Holidaymakers 'can make savings using pre-paid cards'
According to the BBC, the cards accepted everywhere in the world that conventional cards are normally taken.
Holidaymakers 'can make savings using pre-paid cards'”
The cards which are offered by providers such as banks, the Post Office at Fairfx have only been issue to 75,000 Brits so far.
Users load currency onto the cards before they go on holiday in euros, sterling or dollars, depending on their destination.
This means that the exchange rate will already have been paid, so no further conversion charges will be incurred.
Dan Moore of Which? Money told the BBC: "Provided you pick the right card, you're not going to have any fee loaded onto it."
Since spending money must be loaded onto the card before it is spent, it is impossible for holidaymakers to spend more than they have, making it a good option for those on a budget.
However, the BBC also recommended that using credit cards for large purchases is a good idea, as this gives some protection under the Consumer Credit Act, should something go wrong with the transaction.
Pre-paid cards for teenagers are also soon to be launched by mobile phone provider O2.
It is hoped that cards will help young people to manage their finances since it gives them freedom to handle their own money, without the worry of becoming overdrawn.
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