Prepaid cards can offset travel costs

By UK CreditCards.com

Prepaid cards help with travelFor loved ones travelling during the holiday, the gift of a prepaid card for Christmas can help with travel costs, suggests prepaid card provider Caxton FX.

Currency cards are "pre-loaded" with credit in the same way as a pay-as-you-go mobile phone. They commonly charge lower fees for transactions and cash withdrawals than the typical credit card. Exchange rates can also be fixed by prepaid card customers, so that the user always knows how much their foreign purchases are worth in sterling.

Providers currently offering the products include Caxton FX, FairFX and Travelex.

Mainstream credit cards such as the Santander Zero and the Post Office Platinum also offer fee-free foreign transactions.

"If a friend or relative is planning a holiday, you could give them a prepaid currency card," Caxton FX added.

"This is a present that keeps on giving, long after you've exchanged that fetching jumper from Great Aunt Mildred."

Published: 8 December 2009