Should I order a travel prepaid card
We have discussed such subjects as money transfer channels, and today I would like to look at the fx card. Just what is this and what can it do for customers? Is it trustworthy and will I save money in the use of this? To start off with, let us examine the main features. It looks like a debit card – it has distinct features such as the magnetic strip, the long card number, the Chip and PIN function and it even bears your name on the front. As with a credit card, it will also carry the brand of one of the main credit card providers eg Mastercard. But while a usual credit card will give the customer access to a line of credit, and while a debit card will allow for a overdraft facility, the fx card will only give the holder the possibility to spend what he or she has put onto the card. So, in essence: it is a “pre-pay” card, where the user “loads” their own funds on to the card, and can then spend this. Once the money is used up, it is up to the individual to top up the card.
But hold your horses – what’s the point of that? Most have a credit card. Why should I get an fx card and just load it with cash? Well there is something important to fx cards – and that is their specific features. To start with, it is in the name – fx – which we know means foreign exchange. The rate of exchange you have access to on an fx card is much better to the one you will have on your usual payment card. Every time you go to buy something abroad, you are being charged a “purchase fee” – and then add to that the ATM fee. All these may apply to your fx card as well – but they will be much cheaper. They will be tailored to suit someone who is on a trip and needs to spend cash in the cheapest way. Many of us have been overseas and withdrawn money using our regular cards. There will be a cost which cuts out a proportion of your money, and then the exchange rate will negative. On an fx card, you’ll save some funds.
Of course there are other methods of conducting currency exchange – you can carry it out in the foreign land you are visiting by going to a terminal – but again you may find the exchange rate is poor in comparison. You can also purchase travellers cheques – but increasingly fewer countries give exchange services on these, and the commission rates can also be a disadvantage. Not only that, but travellers cheques are annoying! An fx card is portable, fits into your wallet and you can have a new one if you lose it or it becomes stolen. The company will also be able to see your sales, so any unspent cash left on the card will be returned.
This entry was posted on Friday, March 27th, 2009 at 4:42 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.