Your UK guide to prepaid travel cards: lock rates, compare fees, snag perks, and avoid pitfalls when spending abroad.
Smart holiday money, explained for UK travellers
Prepaid travel cards can cut FX costs, tame your budget, and add app-first control. But they are not one-size-fits-all. Here is how to choose the right card, lock in exchange rates, grab perks, and avoid the common traps before you fly.
Understanding FX is not just percentages - it is real pounds saved on your trip.
Who will benefit most
If you are planning a city break in the eurozone, a multi-country tour, or want to ring-fence spending money for the family, prepaid cards can help you stay in control. They suit budget-conscious travellers who value rate certainty, easy top-ups, and security if a card is lost. Heavy points collectors or those needing Section 75 protection may prefer specialist credit cards instead.
The essentials in plain English
Prepaid travel card
A card you load with money in advance, then spend in a chosen currency abroad. It is not a credit or debit card and is usually managed via an app.
Locked exchange rate
You convert pounds to a foreign currency at today’s rate before travel, helping you dodge later market swings. Handy when the pound looks volatile.
Fees to watch
Common costs include ATM withdrawals, foreign top-ups, inactivity charges, or conversion fees if you spend in a currency not loaded on the card.
Protection
Unlike credit cards, prepaid cards do not give Section 75 cover. Money is typically held in ring-fenced accounts, not protected by FSCS if the provider fails. You may still have chargeback routes for disputes, which can help if a merchant does not deliver.
Budget control
Load a set amount, track spend in-app, and avoid accidental overdrafts. This can be a safety rail for shared trips or teens’ spending.
Your main choices in the UK
Several UK names offer competitive travel money cards that lock rates and simplify multi-currency trips.
- Post Office Travel Money Card - supports many currencies, widely accepted, online top-ups, competitive overseas use. Strong on accessibility via branches and app.
- Hays Travel Money Card - multi-currency loading, app freeze features, no account fees, and the ability to lock rates before you go.
- Sainsbury’s Bank Travel Money Card - load chosen currencies, lock current rates, manage online or in-app with a focus on straightforward fees.
- Everyday UK prepaid options (e.g., Ode, HyperJar) - budgeting jars and retailer cashback for domestic use. Overseas features vary and may be limited.
Quick comparison
| Provider | Currencies supported | Typical overseas spend fees | ATM fees abroad | Standout features | FSCS protection |
|---|---|---|---|---|---|
| Post Office | Up to 22 | Often £0 for card purchases | Often lower than debit | Lock rates, wide acceptance | No |
| Hays Travel | Multi-currency | Often £0 for card purchases | Varies by destination | App freeze, no account fee | No |
| Sainsbury’s Bank | Multiple | Typically no extra charges | Varies by ATM | Rate lock, simple management | No |
Note: Exact fees can change. Always check latest tariffs in the app or on the provider’s site.
What it costs and what it could save
Prepaid cards can be cheaper than using a high-street debit card abroad, particularly where your bank adds non-sterling transaction and cash fees. Locking rates gives certainty and can be valuable if sterling weakens after you load. App spending controls help curb overspending and avoid credit card interest.
Risks remain. If you pick the wrong currency wallet or accept dynamic currency conversion at the till, you may pay more than expected. Inactivity fees or out-of-network ATM charges can nibble away at balances. Finally, the absence of FSCS protection means you should avoid holding large sums long-term on the card.
A practical target: load what you expect to spend for the trip plus a small buffer, then top up if needed. Keep emergency funds in a separate account or a backup card.
Can you get one and should you
Most UK adults can apply without a credit check, as these are not credit products. You will need ID for onboarding and will be asked to verify your identity in-app. Age limits apply and junior options may require a parent or guardian. Some cards are designed for UK residents only and must be used in line with the provider’s terms and the card scheme rules.
Consider whether you need Section 75 protection for big purchases between £100 and £30,000. If so, a specialist travel credit card might be more suitable. If you want the absolute best FX rate and fewer fees without preloading, a fee-free travel debit or credit card may beat prepaid for simplicity.
Set-up to first spend in 7 clear moves
- Download the provider app and start registration.
- Complete ID checks and verify your email and mobile.
- Choose your travel currencies and review the live rate.
- Load funds from your UK bank or by card.
- Add to digital wallet and set PIN and security.
- Turn on spend alerts and ATM usage controls.
- Use the card abroad and decline dynamic conversion.
Weighing it up
Prepaid cards offer cost control, rate certainty, and strong app tools. They are widely accepted at millions of merchants and ATMs. Security is decent - cards are not linked to your main bank and can be frozen quickly. For multi-country trips, multi-currency wallets reduce repeated conversion costs.
On the flip side, no FSCS protection and lack of Section 75 are meaningful trade-offs. You must pre-load and monitor balances, and you could face fees for ATM withdrawals or inactivity. If you want maximum legal protection or do not want to juggle wallets, consider a travel credit or debit card instead.
Red flags to check before you load
- FSCS coverage does not apply - keep balances sensible.
- ATM fees and limits - daily cash caps and charges vary.
- Currency wallet rules - out-of-wallet spending may trigger extra conversion costs.
- Inactivity or card closure fees - could apply after months of no use.
- Dynamic currency conversion - always pay in local currency at the terminal.
- Refunds and chargebacks - processes exist but are not Section 75.
Golden rule: set alerts, review fee tables, and test a small transaction before your trip.
If a prepaid card is not ideal
Travel credit or debit cards can provide better rates and fewer fees, plus Section 75 on eligible credit card purchases. This can be more convenient than preloading. Challenger banks sometimes offer near-interbank FX on debit, with fee-free ATM allowances.
Cash remains useful for small merchants, but avoid large exchanges at airports. A split strategy works: one primary card, one backup from a different provider, and a small amount of local cash.
FAQs
Are prepaid travel cards cheaper than my bank card abroad?
Often yes, especially versus high-street debit cards with non-sterling fees. Specialist travel credit or debit cards may still beat prepaid for pure FX value.
Will I get my money back if a provider fails?
Funds are usually held in ring-fenced accounts, but there is no FSCS protection. Keep balances moderate and do not store long-term savings on a travel card.
Do prepaid cards have purchase protection?
They do not provide Section 75 protection. Some chargeback routes exist, which can help with disputes, but outcomes are not guaranteed.
Can I use one card across multiple countries?
Yes. Products like Post Office, Hays Travel, and Sainsbury’s support multiple currencies and let you switch or load wallets in-app.
What about budgeting and cashback perks in the UK?
Some prepaid cards, such as Ode or HyperJar, offer retailer cashback and spending jars. Check fees, overseas rules, and ATM limits before relying on them for travel.
How do I avoid bad rates at the till?
Choose to pay in the local currency, not pounds. Decline dynamic currency conversion to avoid extra mark-ups.
Your action plan
- Compare two or three UK providers and read fee tables carefully.
- Decide your main currency wallets and load a sensible amount.
- Set spend alerts and try a small online or contactless purchase.
- Carry a backup travel-friendly credit or debit card for resilience.
Small prep now can save pounds across every meal, ride, and museum ticket.
Important information
This guide provides general information for UK consumers and is not personal advice. Always check the latest fees, exchange rates, limits, and eligibility with the provider. Consider alternative cards if you require Section 75 protection or FSCS coverage.
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FAQs
Common questions about managing your personal finances
Begin by tracking every expense for one month. Use an app or spreadsheet. No judgment. Just observe your spending patterns.
Cancel unused subscriptions. Cook at home. Compare utility providers. Small changes add up quickly.
Aim for 20% of your income. Start smaller if needed. Consistency matters more than the amount.
Choose reputable apps with strong security. Read reviews. Check privacy policies. Protect your financial data.
Pay bills on time. Keep credit card balances low. Check your credit report annually. Be patient.
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