What’s the catch with these Travel money cards?
Fees. There’s a lot of them, and they can add up.
Although from time to time, some companies offer special deals where they may waive the initial upfront fee or cross currency conversion fees. So it’s always a good idea to do your homework on the cards you’re considering for the time that you will be away.
The following fees may apply when using Travel money cards:
1. New card / Initial load fee
You may be charged a setup fee when you first purchase the card, or charged a certain % on the initial load amount.
2. Reload Fees
To add more money onto your card, you may be charged a fee which is usually a percentage of the reload amount.
3. International ATM withdrawal fee
When you withdraw money from a foreign ATM, a nominal flat fee in the respective currency will be charged. Some ATMs may also charge a usage fee – this will usually be displayed on the screen so you can cancel the transaction if you don’t want to proceed.
Although some travel cards do not charge an ATM withdrawal fee, some foreign ATMs may still charge a fee for the use of their ATM.
4. Currency Conversion Fee
If you use your card for a currency that is not loaded on your card, you may be charged a conversion fee, which is usually a percentage of the total value of the transaction.
5. Non-native transaction Fee
Travel cards have a ‘default currency order’; if the funds in the local currency that you require are too low, or you have run out, the available currencies on your card will be debited to honour that payment, in that default order – and you will be charged a percentage of the total value of the transaction.
6. Secondary Card Fee
7. Replacement Card Fee
8. Monthly Inactivity Fee
If you have money on the card and you don’t use your card for a period of time, a monthly inactivity fee will be charged on the remaining amount until all the money is exhausted.
9. Card Expiry balance Forfeiture
The Travel money cards have an expiry date, once the card has expired, the Travel card company may claim the balance, or keep the money in trusts until it is claimed.
10. Card Account Closing Fee
Some companies will charge you a fee to close the account.