Spend Less Money: Get A Lower Rate On Foreign Exchange With FairFX
When thinking about going on holiday, organising your travel money is very important, particularly in the present economic climate. The weak dollar means that your cash is unlikely to go as far as in previous years. Therefore, it is vital that you get the best travel money rate for your cash.
Travel Money Choices
You can choose from several alternatives for your travel money.
*Cash - With this option, you simply take your cash and exchange it for the appropriate currency to use in the country you are traveling to. You can do this before leaving your home country or after you arrive at your destination. This is probably the oldest option for obtaining travel money but its disadvantages have almost single-handedly led to the other options for travel money. Its primary disadvantage is that it may be misplaced or stolen.
*Standard Credit Cards or Debit Cards - These cards are associated with one of the large international card brands, like Visa, MasterCard, Discover, JCB or American Express, for example. The charges that are typically applied to each transaction are the main issue with using these cards, but there is also a risk of fraud.
*Travellers Cheques (TCs) - Unlike the credit/debit cards, they are fee-free. They are also relatively secure: they need to be countersigned and are replaceable if stolen or misplaced. However, the exchange rate applied is usually not competitive. Again, most banks and exchanges will charge a commission to change TCs, thus further reducing the overall travel money rate.
*Pre-paid currency card - Another and more recent alternative is the pre-paid currency card. The cards are structured to counter the disadvantages of the other travel money alternatives while retaining overall conveniences for the international traveller. These are covered in more detail below.
About Prepaid Currency Cards
Prepaid currency cards are somewhat similar to standard credit cards and debit cards, and offer the same ability to buy services and products. They have one large difference, however - you are only permitted to spend up to the total amount that has been pre-loaded onto these cards. There is absolutely no risk of going into debt because these cards do not provide credit or any overdraft facility. Similar to cash, a prepaid currency card requires the user to convert cash into the appropriate currency, meaning you are subject to the currency exchange rate designated by the card provider. The ability these cards give you to hedge against fluctuations in the exchange rate during your trip is an advantage, however. You are issued a PIN number, and these cards can be used almost everywhere on the planet, much like a standard international credit or debit card.
Prepaid Currency Card Advantages
*Application process - There are no credit checks and this implies you get the card without worrying about your credit history. All prepaid card providers will carry out an identity check to confirm you are who you say you are.
*Ability to Control Spending - The control these cards provide makes them popular with parents and guardians of children sent overseas to study because it helps manage the child's spending. Cards are pre-loaded with money based on a budget, and any excess expenditure is easily detected because money would have to be loaded into the card again.
*Better travel money rate - Though not necessarily a rule, prepaid currency cards often attract a better exchange rate than other forms of travel money.
Article Source: FxTradingStock.com
About the Author
Fair FX give some of the best exchange rates available on their of prepaid currency cards. Have a look at their current exchange rates, and find out exactly how much money you could save.
by: Cheri Thomas
Total views: 77
Word Count: 602
Date: Thu, 8 Apr 2010
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