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When you’re planning an overseas trip, money should always be an essential item on the packing list. But is a wallet stuffed full of Euros, Pesos or Rupees the smartest way to travel, or should you stock up on travel cards? Mallorca Beds recently conducted a survey and asked the public what they thought:
Cash is king
Well according to a survey by Mallorca Beds, cash is still king, with 63.5% of the survey preferring cash over travel cards. Why is this?
This is probably because no matter where you go, you’ll be hard-pressed to find anywhere that doesn’t accept cash, and paying with something like a travel card may not be an option in some places. Make sure you have enough cash to pay for a few days’ expenses, and a taxi, meal and hotel room when you arrive. There are plenty of places you can exchange currency from:
- banks
- bureaux de change
- the Post Office
- some shops and supermarkets
- travel agents
- foreign exchange brokers
- specialist online providers.
Place your currency order about a week before your trip (allow longer for exotic currencies) as some places may not have the currency you need in stock. If one of those places needs to order the currency, rate changes can occur between the time you order and receive your cash.
Top Tip
Avoid exchanging at the airport. It really does pay to be prepared, as fees and exchange rates profits margins at airports soar.
Prepaid Cards
On the other hand, only 36.5% of the survey said they prefer prepaid travel cards. These travel cards have many benefits, including ways around the dreaded overseas ATM fees, which can make a huge dent in your travel funds if you are regularly withdrawing cash while away. There are plenty of companies that offer these cards, so be sure to shop around to find the best card to suit your needs.
How do they work?
Before leaving, you pay money onto the card account and use it for purchases and cash withdrawals as per a debit or credit card. For foreign currencies, you can “lock in” your exchange rate when you load money onto the card.
They are great if you are trying to minimise the hassle of carrying cash and offer a cost effective alternative to a standard debit or credit card. Not to mention, these cards can easily be replaced if lost or stolen.
These travel cards are becoming increasingly popular, especially with males, according to the survey. However, they do have their drawbacks. Many of them come with one off application fees, whilst some also come with monthly fees, which will add up if you are not using it all year around.
Some providers also charge a fee each time you load onto your card, which is usually around 3% of the amount you are putting on.
Other possible problems include the fact that, in most cases, prepaid card purchases are not protected under the terms of the Consumer Credit Act, and neither is your money protected as part of the Financial Services Compensation Scheme (FSCS), meaning that if the bank or building society providing the prepaid card goes bust, you will lose any remaining money on it.
Ultimately, it is probably best for a mixture of both cash and travel cards in order to split your money up and in the case of an emergency, you’re sure to be covered.
The post What is the best sort of money for your holiday? appeared first on Pommie Travels.
Source: pommietravels.com