DISADVANTAGES OF CURRENCY CARDS

picture of some currency cards being cut with scissors

Currency cards are a great way of taking money abroad. They are probably the safest, easiest and most cost-effective form of foreign currency.

However as with most things they are not absolutely perfect and there are some disadvantages that you should be aware of.

  1. Although cheaper to use than credit or debit cards, currency cards have their own fee and charges structure. These fees will vary depending on the type of currency card and the different providers of these cards.
  2. Check if there is an application fee. Some currency card providers ask for a one-off application fee to supply you with the travel money card.
  3. Currency cards are treated like debit cards and as such are not covered by the Consumer Credit Act. This means that unlike with credit cards, you will not be protected against fraud or theft when you use them.
  4. If you lose your currency card some providers will charge you a fee for a replacement card.
  5. Some providers may charge you a fee for topping up your card or set minimum and maximum limits on how much you are allowed on your card.
  6. You need to have the money in your bank account before you can get a currency card. Currency cards are not like credit cards and you have to put the money onto them directly from your bank. This will be a problem if you don’t have your savings in the bank or if you don’t have a bank account.
  7. Most providers will charge a small fee for cash machine withdrawals abroad.
  8. If you use your currency card to purchase something in a different currency from what is loaded onto your card you may be charged a conversion transaction fee.
  9. There may be a fee for inactivity if you don’t use your card for a certain amount of time.

Despite these potential downsides currency cards are still in our opinion the best way to take currency abroad and have many great advantages. You just need to choose the right card provider and the right currency card to suit your needs.

As long as you read the small print and find out exactly what charges, fees and conditions apply to your chosen card then you will know what to expect.

By using our comparison page you can easily find the best rated currency cards and make an informed decision about which is the right currency card for you.