5 benefits of a travel money card

There are a few different ways to access your money when you are travelling overseas. One method is a travel money card.

A travel money card is a card that you can preload foreign currencies onto. You can then use it like a regular debit card, with most travel money cards issued in partnership with Visa or Mastercard. So what are some of the main benefits?

1. Lock in your exchange rate before travelling

You can load foreign currencies onto a travel money card and lock in the exchange rates before you travel. This is different to travel credit and debit cards, where the rate you receive will depend on when you make the transaction.

Locking in your rates could give you some certainty over your money. But there is also the risk that exchange rates could improve after you have already locked in your rates.

2. Load multiple currencies onto the card

A good travel money card will allow you to load multiple foreign currencies onto the one card. This could be helpful if you are planning to visit a few different countries with different currencies. Many travel money cards allow you to load up to 10 foreign currencies, but some cards allow you to load even more.

Common currencies include the US dollar (USD), Euro (EUR), British pound (GBP), New Zealand dollar (NZD), Japanese yen (JPY) and the Singapore dollar (SGD). Most travel money cards offer many more currencies than this, so it’s a good idea to check the specific card and ensure the currencies you need are available.

3. Avoid multiple currency conversion fees

Most of the travel money cards on Canstar’s database charge no currency conversion fees. So this could be a more cost-effective option than using a travel credit or debit card that charges international currency conversion fees on purchases.

But be aware that you can be charged other fees. For example, some travel money cards charge reloading fees in certain circumstances, as well as other fees like monthly inactivity fees and fees to withdraw the remaining balance on your card. It’s a good idea to read the terms and conditions for a card before you sign up.

4. Be in control of your spending

With a travel money card you can only spend what you have loaded onto the card. This could make it a more budget-friendly option than a travel credit card, where you can borrow money up to your credit limit. If you need access to more money, you also have the option of reloading your card. Many travel money cards allow you to do this via an app.

5. Get the benefits of a debit card without linking it to your account

Travel money cards work in a similar way to debit cards. You can use the card to make purchases with a wide range of retailers and withdraw money from ATMs. But a key difference is that travel money cards are not linked to your bank account and you can only spend what is loaded onto the card. This could provide some peace of mind in the event that your card is lost or stolen. You’ll also usually be able to freeze your card if it is lost or stolen and may be able to access emergency funds.

How to buy a travel money card

There are a number of travel money cards on the market in Australia. But remember that not all cards are created equal. That’s where Canstar’s Travel Money Card Star Ratings can help. Our experts have assessed cards and given them a rating between one and five stars. We considered price (such as loading and reloading fees, ATM fees and the exchange rates offered), as well as features (such as the currencies offered, the reloading options and the available spending options) to identify cards that offer great value.

Compare travel money cards