Whether you’re traveling domestically or abroad, you need a convenient way to pay for things like transportation, food, lodging, and souvenirs.
Cash can be cumbersome. Credit cards require a credit check (and might entice you to overspend). And debit cards are directly linked to your bank account, meaning that your entire account balance could be at risk if the card is compromised.
Thankfully, there’s another option for international travelers, students abroad, and budget-conscious tourists: the prepaid travel card.
What is a prepaid card for traveling?
A prepaid card (sometimes called a travel money card) is a reloadable payment card that comes preloaded with money in one or more currencies.
Unlike standard debit cards, a prepaid card does not require a traditional checking account with a bank or credit union. Instead, you load the funds directly to the card itself. This is helpful for travelers without bank accounts, but it’s also useful for anyone with concerns about exposing their entire bank account through a traditional debit card. For example, if a traditional debit card was compromised while traveling, the entire balance of the bank account associated with that card could be at risk. But with a prepaid travel card, you get to decide how much is loaded onto the card.
There’s also an important difference between prepaid cards and credit cards. While credit cards allow you to borrow funds for your purchases, prepaid cards use funds that already belong to you. This means you don’t need a credit check to get a prepaid card, and you won’t have to worry about spending more than you can afford or paying interest expenses.
What prepaid cards for traveling work
Here’s an overview of how these cards work and what you can expect when you use one:
- You purchase a prepaid card and register it under your name.
- You load funds to the card (there are multiple ways to do this).
- The card can then be used like any other payment card to make purchases online or in shops, restaurants, and more as you travel.
- You can reload funds to the card as needed, so you continue to have a convenient digital payment method as you travel.
Benefits of prepaid cards for traveling
These cards offer several advantages that can make managing money abroad simpler and safer. Benefits include:
- Budget control —Since you can’t spend more than you have loaded to the card, prepaid cards can help you stay financially responsible.
- Security — Unlike cash, prepaid cards can typically be replaced if lost or stolen. And because they aren’t directly linked to a bank account or credit line, any losses would be limited to the amount on the card.
- Wide acceptance, globally — These cards can generally be used anywhere the payment network is accepted. For example, if you have a Visa® prepaid card, it can be used everywhere Visa® debit cards are accepted.
- Multi-currency support —Because prepaid cards are supported by large payment networks, like Visa® and Mastercard®, they can operate in multiple currencies. This helps you avoid juggling local coins and bills or paying expensive conversion fees at currency exchange facilities.
- Reasonable fees — While prepaid cards may come with monthly or pay-as-you-go fees1, these amounts are usually on the low side (especially considering how much you might save compared with using a high-interest credit card).
- Cash withdrawal options — If you find yourself at a restaurant or shop that only accepts cash, you can withdraw local currency from your prepaid card at a nearby ATM.
- Reloadable while traveling —There are multiple options for reloading your card while on the road if you choose to.
Where to get a prepaid card for travel
You can get a prepaid card for travel at the following locations:
- Credit unions
- Some currency exchange providers
- Some airport kiosks (although these may require higher purchase fees because of the convenience)[a]
- Retailers and convenience stores (in some countries, like the U.S., which offer them in stores like CVS, Walmart, 7-Eleven, and grocery chains)
Reloadable cards typically need to be registered to a user, as required by anti-money-laundering regulations in many countries, including the U.S.[d] So you’ll need to provide some personal information to register and activate your card, such as:
- Your name, date of birth, and proof of identification
- An address (a recent bill or invoice in your name, mailed to that address, may be required as proof)
- An email address for an online account
- A phone number for mobile app access and security verification
In some cases, a Social Security number may also be required.
How to reload a prepaid card
Depending on your chosen card, you may have multiple options for adding money to your card, including:
- Digitally transferring funds from a bank account or debit card
- Loading funds to your card at select retailers2 (however, this service might not be available at international retailers, so it’s best used when living or traveling in the U.S.)
- Having recurring income, like your paycheck or government benefits, direct deposited to your card
Tips for choosing a prepaid card for traveling
When choosing a prepaid card to travel with, compare multiple options, such as the Netspend® Prepaid Card3, Green Dot® Pay As You Go Debit Card, and Wise Multi-Currency Card (which technically links to a Wise Multi-Currency Account, but functions similarly to a prepaid travel card), and focus on the features that are most important to you. These may include:
- Reasonable fees with a transparent fee structure
- A user-friendly mobile app
- Favorable exchange rate policies
- Accessible customer service
- Simple reloads
Common (and sometimes hidden) fees to watch out for
In addition to monthly or pay-as-you-go service fees, you should look for or ask about the following additional expenses associated with prepaid travel cards:
- Currency conversion fees — This fee is charged whenever you accept or pay money in a different currency than your card’s native currency.
- ATM fees —Some cards charge fees for ATM usage and/or withdrawals. Importantly, ATM networks can also charge fees, separate from the card’s fees.
- Inactivity fees —Some cards charge fees when the account has not been used for a certain amount of time (like three or six months, as an example).
- Replacement card fees —If your card is lost or stolen, there may be a small charge to replace it.
- Load/reload fees. Some cards charge a small fee to load funds onto a card. This can vary depending on the method of loading.
Compare fee tables for multiple cards before committing to a specific card.
Prepaid card FAQs
How do I check my card balance and transactions?
It’s generally a good idea to regularly monitor your card to catch any errors or possible fraudulent activity. Depending on your card issuer, you might be able to check your balance and review recent transactions while traveling via the issuer's mobile app, an online portal, SMS text alerts, or by calling customer service.
What should I do if my prepaid card is lost or stolen?
If your card is lost or stolen while traveling, freeze or lock the card via the mobile app. Then you can notify customer support online or by phone and request a replacement card. Depending on the issuer, you might be able to get your new card delivered quickly to your current location, even while traveling.
Are prepaid cards accepted everywhere?
Prepaid cards are widely accepted wherever credit and debit cards are accepted. Visa® and Mastercard® are some of the most widely accepted cards in the world, so a prepaid card with one of those logos can be used in many stores, restaurants, and hotels across many countries.
Can I withdraw cash using my prepaid card?
Typically, yes, you can use an ATM to withdraw cash from your prepaid card in the local currency, wherever your travels take you. Just note that you might incur fees from the card, as well as the ATM itself, for withdrawals.
Are prepaid cards transferable?
Because prepaid cards are reloadable, they typically need to be tied to a specific person and are not meant to be transferred to anyone else. However, it’s quite common for parents to get teens a prepaid card of their own. This can give them a little financial freedom while keeping parents in the know about how kids are spending.
Be ready for anything with a prepaid card while traveling
If you’re looking for a secure, cost-effective way to manage your spending while traveling, a prepaid card might be the right solution for you.
Explore multiple card options to find one with the features you need for the destinations you’re traveling to and a fee structure you’re comfortable with.
Then pack your bags and enjoy your trip!
Additional resources:
