Prepaid travel cards FX products checklist: what to do before you apply/buy

Your smart money checklist for travel spending in 2025

Why a checklist saves you money

Prepaid travel cards can cut overseas costs and improve budgeting. Yet fees, limits and weaker protections catch many travellers out. Use this guide to compare cards like a pro, lock in fair rates, and avoid charges that erode your holiday budget.

Understanding APR is not the issue here - it is the full fee picture.

Who benefits from a prepaid travel card

• UK holidaymakers wanting control over spending and the option to lock exchange rates
• Parents setting budgets for teens abroad or on school trips
• Travellers without strong credit histories who want no-credit-check access
• Frequent city breakers who value contactless and mobile wallets
• Anyone wary of carrying cash but needing widespread acceptance

Short answer: if you want predictable spending and simple FX, these cards can help. If you rely on Section 75 protection, consider a credit card instead.

Key ideas to know before you compare

Prepaid vs debit vs credit

• Prepaid cards are loaded in advance and used like a debit card abroad. No credit facility. No credit check.
• Credit cards may offer Section 75 protection on purchases over £100. Prepaid cards do not. Disputes rely on chargeback only.
• Debit cards are convenient but often add foreign usage and cash fees.

Exchange rates and commission

• Many travel cards offer 0% commission on loading and let you lock a rate when you load currency. This helps during volatile periods.
• Sterling-only cards convert at point of purchase. Rates may track scheme rates plus any provider margin.

Protections and risks

• No FSCS protection for prepaid balances. Providers typically hold funds in ring-fenced accounts, reducing but not eliminating risk if the firm fails.
• You get PIN and contactless security, plus card freezing in the app. Chargeback via Visa or Mastercard may help with disputes.

Practical limits

• Typical balance caps around £5,000 and annual load limits near £30,000. Minimum loads often £50.
• Daily cash withdrawals often capped around £500. Daily spend limits can be near £3,000.

Usage restrictions

• Common blocks: car hire pre-authorisations, gambling, money transfers, recurring payments, and some in-flight or cruise transactions.

Card types and features to weigh up

Multi-currency vs sterling-only

• Multi-currency wallets: hold euros, dollars and more, sometimes up to 22 currencies. You avoid double conversion by paying in the local wallet.
• Sterling-only: simpler to manage, but conversion happens at spend time. Good when rates are improving or you prefer minimal prep.

App experience and controls

• Look for instant spend notifications, freeze-unfreeze, top-up by bank transfer or card, and spare virtual cards for safer online use.
• Mobile wallet integration - Apple Pay and Google Pay - reduces physical card exposure and speeds up small purchases.

Acceptance and backup

• Choose widely accepted networks like Visa or Mastercard. Carry a backup payment method for restricted merchants and emergencies.

Family and youth options

• Some providers allow under-18 cards with parental control. Handy for set allowances and travel safety.

Standout check: ensure the card lets you choose payment currency at terminals to avoid dynamic currency conversion.

What the fees really look like

Even small fees add up. Scrutinise the full tariff before you buy.

Hidden or recurring fees can erase the FX benefit. Read the full pricing page.

Eligibility and accessibility in the UK

• Age: Most cards are 18+, but some allow children as young as six with parental consent.
• Credit checks: Usually not required, making cards accessible if you have thin or poor credit history.
• Residency: Typically UK residents with proof of address and valid ID.
• Loading methods: Bank transfer, debit card top-up, sometimes cash at branches. Minimum load often £50.
• Limits: Maximum balance near £5,000, annual loads around £30,000, daily ATM near £500, and daily spend up to about £3,000. Check your provider for exact figures.

Security features to look for: PIN, contactless, app freeze, biometric login, spend alerts, and virtual cards. Mobile wallet support improves convenience and reduces theft risk.

From signup to first tap - the simple flow

1. Compare fees, limits and protections against your travel plan.
2. Apply online or in-app with photo ID and address.
3. Load pounds or target currencies before you travel.
4. Add the card to Apple Pay or Google Pay.
5. Set spend limits and enable instant notifications.
6. Pay in the local currency to avoid DCC charges.
7. Withdraw cash sparingly to minimise ATM fees.
8. Keep a backup card or credit card for emergencies.

Advantages and trade-offs at a glance

Prepaid travel cards are widely accepted, encourage budgeting, and can lock exchange rates when you load. Many charge no purchase fees and integrate with mobile wallets for quick, secure payments. On the downside, there is no Section 75 protection for purchases over £100, and balances are not covered by FSCS. Some merchants do not accept prepaid for pre-authorised transactions, and ATM withdrawals often incur fees with low daily limits. If you need robust purchase protection or plan car hire and deposits, a specialist credit card may suit better.

Red flags to consider before buying

• Protection gap: No Section 75. Rely on chargeback only.
• Provider risk: Funds are ring-fenced, not FSCS protected. Avoid large idle balances.
• Fee creep: Monthly and inactivity charges can outweigh benefits if you travel rarely.
• Restrictions: Car hire, recurring payments, and certain travel merchants may decline prepaid.
• Limits: Daily ATM and spend ceilings could cramp longer trips or multi-city itineraries.
• Contactless fraud: Enable transaction alerts and caps. Freeze the card when not in use.

Keep documentation for claims - receipts, screenshots, and chat logs help with chargebacks.

If not prepaid, then what

• Specialist travel credit card: Often 0% foreign transaction fees, better exchange rates, and Section 75 on eligible purchases. Requires good credit and discipline to avoid interest.
• Bank debit card with low FX fees: Simple and familiar, but check cash withdrawal charges and daily limits.
• Cash: Useful for tips and small vendors, but riskier to carry and poor rates at airports.
• Travel-friendly fintech accounts: Some app-based current accounts bundle fee-free FX and budgeting tools with stronger protections.

Choose based on your need for protection, your cash habits, and how often you travel.

Frequently asked questions

Do prepaid travel cards charge for purchases abroad?

Many do not charge a purchase fee, but check for FX mark-ups and dynamic currency conversion prompts at terminals.

Are ATM withdrawals abroad free?

Often not. Expect £1.50-£2.50 per withdrawal or a percentage. Plan fewer, larger withdrawals to reduce costs.

Can I use a prepaid card for car hire or deposits?

Not reliably. Pre-authorisations may be declined. Keep a credit card for hotels, car hire and large deposits.

Is my money protected if the provider fails?

Balances are kept in ring-fenced accounts but are not FSCS protected. Keep only what you plan to spend.

Do these cards work with Apple Pay and Google Pay?

Many do. Adding your card to a mobile wallet improves convenience and reduces reliance on the physical card.

What exchange rate do I get?

Some cards let you lock a rate when loading currency. Others convert at spend time using scheme rates plus any provider margin.

Can teenagers get a prepaid travel card?

Yes with some providers, under parental consent. Controls let guardians set limits and monitor spending.

Make your shortlist - then test it

Create a shortlist of two or three cards that match your destinations and habits. Compare the full fee tables, load a small amount, and trial online and contactless payments before you fly. Enable notifications and set spend caps from day one. If a card feels clunky in the app, move on.

Next step suggestions:

• Download two provider apps and read their fee pages side by side
• Run a £50 test load and a £5 test spend
• Add to Apple Pay or Google Pay and try a contactless purchase

Important information

This guide is general information for UK consumers and not personal advice. Check each provider’s latest terms, fees and eligibility before applying. If you need protection for purchases over £100, consider a credit card with Section 75 protection.