You are here: Home - Saving & Banking - News - Understanding -

Got a prepaid currency card for your holiday? Watch out for this fee

0
Written by: Paloma Kubiak
04/08/2017
If you’ve taken out a prepaid currency card especially for your summer holiday, make sure you know exactly if and when you’ll be charged an inactivity fee.

Prepaid currency cards have given UK holidaymakers heading overseas a ray of hope in securing better exchange rates following the volatility of the pound in the aftermath of the Brexit vote and ongoing economic uncertainty.

They are a more convenient and safer alternative to carrying cash and as you can load them up before you go abroad, travellers can lock in exchange rates when factors which could adversely impact the value of the pound are due to come into play.

See YourMoney.com’s Why you should consider a prepaid currency card for your holiday for more information.

However, if you’re not a frequent flyer and you took out a prepaid currency card especially for your summer holiday overseas, watch out for any dormancy or inactivity fee.

While Caxton FX and Revolut confirm there are no such dormancy or inactivity fees, the following providers charge when the product isn’t used for a specific amount of time:

  • Cash Passport: if not used in 12 months, there’s a £2 a month fee. If following the debit of any monthly inactivity fee, the card balance is less than the fee, Cash Passport will waive the difference.
  • Centtrip: an annual inactivity fee of £10 is charged.
  • FairFX: fees are only applied once the prepaid card has expired and it has money left on it. The FairFX card expires after three years and card holders are charged £2 a month. Once it has a zero balance, there are no further fees.

Andrew Hagger of independent finance site, MoneyComms, said: “A prepaid currency card is safer than taking foreign currency cash, and cheaper than most debit and credit cards – just be aware that some cards charge a dormancy or inactivity fee if the card isn’t used for 12 months or more, and as it’s charged monthly, it will soon eat away at any balance remaining on your holiday plastic.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
new build
Help to Buy review triggers fears for early end

The government has launched a review of the Help to Buy scheme which sent house builders’ shares tumbling first thing...

Close