Prepaid Credit Cards Could Offer Big Exchange Rate Savings

Written by Editorial Team

05 August 2009 / by Andy Davies

Holidaymakers are being urged to use prepaid credit cards when travelling abroad this summer as an alternative way to carry money.

Foreign exchange provider, Caxton FX, believes travellers can make significant savings on their travel money by using a prepaid credit card, compared to more conventional forms of payment such as debit or credit cards and travellers cheques.

Caxton FX provides three types of prepaid credit cards, one specifically for use in Europe, one for America, and a global card for travelling the world.

Each prepaid credit card has no fees attached to it, such as withdrawal fees, application fees or transaction fees.

Figures published by MoneySavingExpert.com found that on July 30 2009, £1 would have bought €1.15 on a Caxton card compared to €1.09 at the Marks & Spencer currency exchange.

The figures also show that buying around £1,000 worth of currency on a prepaid credit card would save just over €100.

Commenting on the findings, Jane Baker, spokesperson for LoveMoney.com, said: “There are lots of prepaid currency cards out there, such as the Travelex Cash Passport, the Fair FX Currency card and the Post Office Travel Card.

“But, I think there’s only one real contender – the Caxton FX Currency Card.”

© Fair Investment Company Ltd