Over recent years an increasing number of people have turned to prepaid credit cards, where the card is pre-loaded with cash in the same way as a mobile phone. There are a number of reasons why people are turning to these cards, and amongst the reasons cited are increased security and safety whilst on holiday as well as better control of finances and less likelihood of overspending and ending up in debt.

Many of those taking prepaid cards on their travels with them have been able to enjoy the benefits of ease, convenience, and security along with some added benefits.

For example, one consumer stated: ‘I think everyone is feeling the pinch a bit at the moment and I wanted to try to limit how much I spent. The pound has not been strong so holidays in Europe have been more expensive. With the FairFX card I was able to take out a card in euros, so I can load it up when I think the exchange rate is good. It also stops me whipping out my credit card to shop all the time when I’m on holiday.’

Another said that the prepaid card helped to combat the risk of fraud and the losses that could result from credit card fraud, stating: ‘I was concerned about using bank debit or credit cards overseas in case they were cloned and I had my bank account cleaned out. I also took out a US dollar-denominated card because I was travelling in South America. I topped up the card from my Halifax bank account online and didn’t have a problem having the prepay card accepted in most places and for withdrawals at cash machines. It was convenient, and though the charges are quite high, I think it was worth it for peace of mind. If I had lost the card or had it stolen, all I would have lost was the money I had loaded on it.’

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