How to compare travel money to get the best deal

Travel, they say, broadens the mind. Whether you are soaking up some sunshine on a Mediterranean beach, hoping to bag a bargain in the local bazaar or sightseeing on the Champs-Elysees, it pays to be smart about how you are paying for goods and services. Otherwise, travel might also be broadening your bank statement with a host of unwelcome extra charges. To help you compare travel money options, we’ve put together a handy guide on how best to conserve your holiday cash.

Use the Post Office currency calculator to see how much your could be taking away on your next holiday. Convert currencies from across the world to see where you can get the best exchange rates.

When going on holiday, you should consider the following travel money options:

1. Cash – local currency is a useful backstop.
2. Prepaid money card – simple to load but check any usage, load and ongoing fees.
3. Travel credit card – pay in local currency to ensure you get your card’s exchange rate.
4. Debit card for travel – check your account’s fees for international payments.

You can buy travel money online, at a travel agent on the high street, from your bank or from the post office. Below is a list of travel money providers:

Provider	Information	Find out more
	Click and collect Euros and US Dollars in 2 hours from 3,500 branches* Over 70 currencies available for next day home delivery or collection from over 11,500 branches Summer Offer - Get A Free Gift When You Also Buy Travel Insurance. T&Cs Apply** Even Better Rates Throughout The Summer Refund Guarantee If Your Holiday Is Cancelled 0% Commission on Travel Money	Find out more
	Save up to 90% on your travel money fees. Store 18 different currencies on one card or spend globally. 5 star rated on Trustpilot. No foreign transaction fees. Load via debit card, bank transfer or Apple/Android pay. Supported with a mobile app	Find out more
	Commission-free Travel Money in over 70 currencies Available in notes, Travellers Cheques and Multi-Currency Cash Passport Great rates 365 days a year and improved rates on over 20 currencies Over 175 branches across the UK Click & Collect in just 60 seconds from a branch of your choice Order right up until 4pm for next day Home Delivery, free on orders of £600 and over Travel Money Provider of the Year’ in the MoneyAge Awards Rated as ‘Excellent’ on Trustpilot	Find out more
	Purchase Currency online to lock in our very best rates Choose delivery or pick up Over 41 currencies Order before 3pm for next day home delivery Over 49 stores across the UK to collect your currency from	Find out more

You can buy travel money online, at a travel agent on the high street, from your bank or from the post office. Below is a list of travel money providers:

Provider	Information	Find out more
	Pre-paid reloadable multi-currency card Use it anywhere that Mastercard is accepted Contactless payment for on-the-go holiday spends Manage your account and freeze your card with our Travel app Track your spend View your PIN and transfer money from one currency to another	Find out more
	No overseas ATM fees and transaction charges 5* Trustpilot rating & dedicated UK support centre Great exchange rate One card, multiple currencies you can preload Manage your account via the Caxton App, incl. blocking your card and checking your pin Contactless Mastercard, globally accepted	Get your free Caxton currency card and £10 here
	Save up to 90% on your travel money fees. Store 18 different currencies on one card or spend globally. 5 star rated on Trustpilot. No foreign transaction fees. Load via debit card, bank transfer or Apple/Android pay. Supported with a mobile app	£10 free on a £50 first load
	Application fee: None FairFX's own exchange rate ATM withdrawal fee: €1.50/$2/£1 depending on card Currencies you can lock in rate on: Euros/dollars/pounds only, depending on card Spendable currencies: Euros/dollars on respective cards (free), all others, incl sterling card (1.4% fee) Is my cash protected? Your money is ring-fenced in a bank account, so if there are problems with FairFX, the cash is safe	Find out more
	Top up your card with your choice of 10 available currencies: including US Dollars, Euros, Turkish Lira, Swiss Franc & UAW Dirham Lock in Exchange Rates Use your travel card abroad across millions of locations Free Access to Cash – No ATM charges overseas from Travelex 24/7 Assistance if your card is lost, stolen or damaged	Find out more

For many destinations, taking some local currency with you on holiday is very useful to make sure you are covered on the occasion where card payment is not accepted. Cash, unlike debit and credit cards, will not fluctuate in value due to changes in exchange rates.

While cash remains the most tangible and one of the simplest ways to manage your holiday spending, it does have some drawbacks. If you’re unlucky and your cash is lost or stolen, it cannot be retrieved or cancelled unlike with a credit, debit or prepaid card. While your travel insurance might cover this, it’s likely you won’t receive your money back until after your holiday has finished. 

Not only this, but carrying around large sums of cash anywhere (even here in the UK) is not a smart thing to do with pickpockets and other criminals actively targeting tourists in busy urban locations and at popular tourist attractions.

Travel money cards are also called prepaid travel cards or currency cards. They are a way of paying for goods and services while abroad. They can be used in the same places as debit or credit cards, but they are not a form of credit, nor are they attached to your personal bank account.

Travel money cards are a safe and convenient payment method and accepted worldwide (subject to acceptance of MasterCard, VISA or American Express.)

Travel money cards are easy to understand and use. They allow you to load the card with funds and exchange this from your local currency to that of the country you are visiting.

Customers can then use these prepaid cards in the same way as they would a debit or credit card, paying for goods and services by presenting your card. The cost of purchases is deducted from the balance you have left on the card and as the card is loaded in local currency, there is no exchange rate to calculate. When this amount reaches zero then you will need to top up the card to continue using it. Additional funds can be added via an ATM, using PayPal or direct from a bank account or debit/credit card, although some prepaid travel money cards do have the ability to be ‘reloaded’.

Prepaid travel money cards are an excellent alternative to using your personal debit card or credit card while on holiday. Because they are separate from both your bank account and normal credit card, there is absolutely no way that criminals can use them to access funds held in either of these locations. Prepaid cards are also unable to be used as proof of identity – hence, even if a criminal was to get hold of your stolen or lost travel money card, they would not be able to use it to steal your identity or apply for any financial services in your name, such as opening a bank account or obtaining a credit card.

Travel money cards can help you to budget for your holiday and stop overspending. They only allow you to spend the funds on the card, which means they can help you to avoid getting into debt as they do not offer any form of overdraft or credit facility. Therefore, once your balance is zero, your choice is either to reload the card or forego buying that straw donkey you have your eye on!

They also do not require an affordability or credit check, making these a good option for those with a poor credit history who want the convenience and security of using a card, but cannot utilise a debit or credit card.

Absolutely – even though they are not debit cards they can be used anywhere the card network provider (Visa, Mastercard, Amex, etc) are welcomed, including online. Payments will be immediately deducted from your total fund.

Travel money cards provide an additional way to pay for goods and services when on holiday. They are safe, widely accepted and easy to use. However, they all come with different charging structures. The fees you should look out for include card fees, purchase transaction fees, ATM withdrawal fees and non-usage fees. You should also make sure you only use the card to buy goods in the currency it is loaded with; otherwise there will be an exchange rate applied to the card. Usually, prepaid cards are not the best card to use when you need to make a pre-authorised payment. These include hotels to cover room expenses during your stay or when hiring a car in case of damage. A pre-authorisation will effectively lock these funds out of use on your card.

Yes, but only if your credit card has a low or even no charge for transactions abroad. Travel credit cards give you greater security than cash as they can be cancelled if your card is lost or stolen. They also give you protection on faulty purchases between £100 and £30,000, as per the Consumer Credit Act. If you decide to use your credit card for your holiday, try to pay off your balance in full every month.

Find out more about travel credit cards.

You can also find that some debit cards offer no or low fees to use these when outside of the UK. You should check with your debit card provider if there are specific areas such as Europe where these low or no fees apply. Some providers will have a tiered rate of charges based on your destination or currency.

Paying for your holiday with a credit card is of course another option. For an in-depth look at why this might be a better way to pay then see our booking a holiday using a credit card guide.

*Euros or US Dollars can be ready to collect at a selected Post Office branch near you in just two hours when ordered online before 2pm Mon-Sat (excluding Bank Holidays). All other currencies will be available the next working day when ordered before 3pm Monday to Friday (excluding Bank Holidays). For more information visit Post Office website.

**Offer open to customers who purchase Travel Money or load currency onto a new or existing Travel Money Card in-branch or online (minimum spend applies to online purchases), or use Passport or Digital Passport Check & Send service in-branch, or apply for an International Driving Permit in-branch between 1 June and 29 September 2019, and then go on to buy a new Travel Insurance Policy online, by phone or in-branch, between 1 June and 29 September 2019 or renew a Travel Insurance Policy online, or by phone, between 1 June and 29 September 2019. Customers must use the promotional code provided when buying the Travel Insurance Policy and must have a valid email address. One £10 Amazon.co.uk Gift Cardˡ (ˡRestrictions apply, see www.amazon.co.uk/gc-legal) or Hawaiian Tropic Sun Cream Bundle to the value of £33 per Policy, providing each Policy is purchased at least 30 days apart. Customers have 14 days to claim the gift from receipt of email on how to redeem. Gifts will be sent within 7 days of being claimed. Each Gift is subject to its own t&cs. Cannot be used in conjunction with other offers. For full T&Cs visit postoffice.co.uk/traveloffer19.