Holiday money card launched by the Post Office

In the past I have written about the cost of using credit cards when on holiday (see Keep an eye on card fees when abroad) but now the Post Office has come up with an interesting idea.

It has launched a pre-paid currency card that could prove very useful for holidaymakers and save on steep charges and uncompetitive exchange rates.

The Travel Money Card costs £10 and you can apply for it in 2,250 Post Office branches across the UK before loading the card with euros, US dollars or sterling.

The card can be used in Visa cash machines around the world, or in shops that display the Visa Electron sign, and topped up, or the balance checked, over the telephone when required.

There are some conditions, for example, when you first buy currency to place on the card your initial deposit must be at least £250 and subsequent top-ups are set at £50 or more.

Also the maximum you can place on a card is £5,000 worth of currency and you can’t mix euros and US dollars on the same card – you would need two different cards.

There is a £2 charge for using the card in a cash machine and some banks will also add an extra fee, so try and check in advance, but this beats some bureaux de change who I’ve seen charge £5.

But the card is not linked to a bank account and has its own PIN number so if it is lost or stolen even the most cunning thief won’t be able to steal any more money off the card than is currently on it.

And again all that is required to cancel the card is a telephone call, and a replacement can be posted to you for a fee.

Each card is only valid for two years, but can be used as often as you like in that period, and should you want to cancel the card then the balance is returned to you. Or if after two years you want another card then the cash is transferred to your new one.

It is also worth considering when you are buying currency to put on to the card, this is not a real concern for smaller amounts say for a weekend, but may be worth considering if looking to buy a few thousand pounds of euros or US dollars – it will most probably be best buying your currency close to when you leave.

There is no doubt the Travel Money Card is cheaper than using the majority of credit cards if used on a regular basis, and is ultimately much safer than regular cards, cash or travellers cheques.

© Cheapflights Ltd Craig McGinty

Comments

[Lynda Massey]

Of course the Post Office is not alone in offering this service - there are other pre-pay cards in the market place such as those offered by Travelex, Cash2Go and Amex - however, I think these are the most expensive ones available!

[patricia cooke]

I have a First Plus card for my two teenage daughters going to Tunisia with us. These are ideal as they can load the cards up every week with any amount and they do not get charged every time they use it. If they lose the card it's not of their bank account so not that much of a problem. The First Plus card is a master card and can be used all over the world without getting into debt.

[William Paterson]

Avoid this card if you are going away in the next few weeks. I applied online for one nearly 10 days ago and it still has not come. I go away tomorrow and it is now too late as I am off before the post arrives. I have been chasing it up for four days now and the first excuse was that it had been sent out more than a week ago. Not true. Then they said they had no cards to send out and were waiting on a delivery that day. They promised it next day delivery - did not happen, then same day delivery the following day -- did not happen either. And to rub it in they have had my money for 11 days. Dont touch the Post Office with a barge pole. You have been warned.