Prepaid travel cards FX products cost guide: typical prices & fees in the UK

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Prepaid travel card fees explained for UK travellers

Setting the scene

Understanding FX fees is not just about percentages - it is about what you actually pay on holiday. This guide compares leading UK travel cards, the real costs of ATM access, and the small print that catches people out. Use it to pick the right product for your trip.

Who should read this

If you are a UK traveller who wants predictable costs, safer spending than cash, and fewer surprises at ATMs or tills, this guide is for you. It suits budget-conscious families, city breakers, gap-year travellers, and frequent flyers who want low, transparent fees and clear rules on cash withdrawals abroad.

Jargon made simple

• FX fee - The percentage charged to convert one currency to another.
• Cross-border fee - A fee for transactions outside the card’s base currency or region.
• ATM withdrawal fee - Either a flat fee, a percentage, or both when taking out cash.
• Pre-authorisation - A temporary hold placed by hotels or car hire firms that reduces your available balance.
• Inactivity fee - A monthly charge if you do not use or top up the card for a set period.
• Load fee - A charge for adding money to the card.
• Section 75 - UK credit card purchase protection that does not apply to prepaid cards.
• Chargeback - A card scheme process that may recover losses after disputes, not guaranteed.

Standout point: Prepaid cards are cost-effective for spending and light cash needs, but credit cards typically give stronger purchase protection for big-ticket items.

What UK travellers can choose

Here is how popular options stack up on costs and use cases, drawing on UK providers and consumer sources.

Rule of thumb: If you need cash, compare ATM fees first. If you mainly tap, compare FX fees and cross-border charges.

Pounds and pence - what it means for you

• Low-cost leader: Wise keeps fees simple with no application fee and two free ATM withdrawals up to £200 each per month, then a modest conversion fee. That can materially cut holiday cash costs compared with rivals.
• Cheap card, pricier FX: Sainsbury’s looks attractive upfront, but a 5.75% FX fee for un-loaded currencies can outweigh savings if you hop between countries.
• ATM costs add up: Post Office charges £3 to £50 per withdrawal plus 2.5% conversion. Larger cash needs can become expensive quickly.
• Credit card caution: Nationwide’s purchase FX is £0, but cash costs 2.99% with a £3 minimum. Use for spending, avoid for cash.
• Hidden charges: Some prepaid providers add application, inactivity, replacement and redemption fees. Which? and MoneySavingExpert both highlight cross-border and renewal charges worth checking.

Quick saver: Withdraw less often and in larger amounts where fees are flat. Always decline Dynamic Currency Conversion at foreign tills and ATMs.

Can you get one - and should you

Eligibility for UK prepaid travel cards is generally straightforward. You will usually need to be a UK resident, pass identity checks, and be over 18, though some issuers allow 16+. Credit checks are lighter than for credit cards because you are spending your own funds. App setup requires valid ID and a UK address.

Consider your itinerary. Many prepaid cards are not accepted for hotel deposits or car hire pre-authorisations, as merchants can lock funds and issuers may decline such transactions. If your trip involves those, carry a credit card for the deposit and use a prepaid card for day-to-day spending.

Security is solid for PIN and contactless, and you can freeze the card in-app. But prepaid cards do not have Section 75 protection. Disputes may rely on chargeback and issuer policies. Funds are not protected by FSCS. For expensive bookings, a UK credit card can be safer.

Step-by-step - from setup to first spend

1. Compare fees table and shortlist by your destination and habits.
2. Check FX, ATM, inactivity and replacement fees in the latest tariff.
3. Apply in-app, verify ID and set security controls.
4. Load GBP from your bank by bank transfer or card.
5. Add destination currencies if supported to avoid extra FX.
6. Set travel alerts and enable contactless in-app.
7. Spend in local currency and decline Dynamic Currency Conversion.
8. Withdraw cash only where necessary and track free allowances.

Pros, cons and fine print

Prepaid cards help you budget, reduce the risk of carrying cash, and often beat high-street bureau rates. Wise is especially competitive for mixed spend and occasional cash. Credit cards like Nationwide are excellent for purchases with no foreign transaction fee but are poor for cash.

Trade-offs include potential inactivity fees, replacement charges after 12 months, and expiry rules that force renewal. Cross-border fees up to 2.75% can appear if you spend outside loaded currencies. Acceptance limits for pre-authorisations mean a backup credit card is wise for hotels and car hire.

Red flags before you choose

• Large cash needs - prioritise low ATM fees and caps.
• Multi-country trips - check cross-border and un-loaded currency FX charges.
• Long gaps between trips - inactivity and replacement fees can bite.
• Big-ticket purchases - consider a credit card for Section 75 rights.
• Redemption costs - some providers charge to move unspent funds back.

If a fee is not obvious on the product page, download the current tariff and read it in full.

If this is not the right fit

• Credit cards with no foreign purchase fee - great for tap-and-go spending, but avoid cash withdrawals.
• Bank debit cards with low FX markups - simple, but watch ATM and cross-border fees.
• Cash exchange before travel - predictable, though often worse rates and riskier to carry.
• Specialist providers like Hays Travel or Travelex - convenient with 24/7 support, but fees vary, so compare their schedules before loading.

Frequently asked questions

Q: Are prepaid travel cards cheaper than using my UK debit card abroad? A: Often, yes, especially versus debit cards that add FX markups and ATM fees. Compare total FX and cash fees for your bank and any travel card.

Q: Can I use a prepaid card for hotel deposits or car hire? A: Frequently not. Pre-authorisations may be declined or tie up funds. Use a credit card for deposits and the prepaid card for daily spending.

Q: What protections do I have if something goes wrong? A: You get PIN, contactless, and in-app freeze, plus possible chargeback. There is no Section 75 protection and no FSCS coverage for e-money balances.

Q: How many free ATM withdrawals do I get with Wise? A: Two free withdrawals up to £200 each per month. After that, conversion and withdrawal fees apply according to Wise’s schedule.

Q: Why do some cards charge inactivity or replacement fees? A: Providers recover servicing costs through periodic charges. MoneySavingExpert notes replacement fees after 12 months and holding fees on some cards.

Q: What is a cross-border fee? A: An extra percentage charged when spending outside your card’s currency region or in an un-loaded currency. Which? reports up to 2.75% on some cards.

What to do now

• Shortlist two cards aligned to your itinerary and cash needs.
• Read each provider’s latest fee schedule in full.
• If you need hotel or car hire deposits, line up a credit card.
• Practise with a small top-up and one ATM test before you fly.

Small test transactions at home reduce airport stress and help you confirm PIN, contactless and app controls.

Important information

This guide is for general information only and is not financial advice. Fees and terms change. Check each provider’s latest tariff and terms before applying. Consider your circumstances, protection needs and travel plans before choosing a product.