Best prepaid travel accounts

A prepaid travel card is a preloaded payment card designed for use while travelling abroad. You load it with money in advance and use it like a debit card for purchases and cash machine withdrawals overseas. Unlike a standard credit or debit card, many prepaid travel cards charge no foreign transaction fees and offer competitive exchange rates, making them a popular alternative to changing cash before a trip.

You load money onto a prepaid travel card before your trip, either in pounds or in the local currency. When you spend abroad, the card converts at a pre-agreed or live exchange rate. Some cards let you lock in an exchange rate in advance, which can be useful if you’re travelling somewhere with a volatile currency. Most prepaid travel cards can be topped up via an app or online if you run low.

A prepaid travel card is beneficial if you want to monitor your spending while you're abroad. It stops you from going over your budget, as the card won't allow you to spend more than the loaded amount.

You can buy a prepaid card any time before your trip as you can start using it as soon as you've bought it.

Fees vary significantly between prepaid travel card providers. Some charge no fees at all for spending abroad; others charge ATM withdrawal fees, inactivity fees or a one-off card issuance fee. Some cards also apply a currency conversion fee if you spend in a currency different from the one loaded on the card. Always check the full fee schedule before choosing a prepaid travel card, as fees can erode the savings on exchange rates.

Prepaid travel cards are generally considered safer than carrying cash abroad. If the card is lost or stolen, you can block it instantly through the provider’s app, and you only lose the money loaded on the card rather than giving access to your main bank account. Most prepaid travel cards are protected by PIN and chip technology. However, they don’t offer the same Section 75 purchase protection as a credit card.