Spending overseas can quickly become expensive thanks to the hefty foreign exchange fees that many debit and credit cards charge.
So, if you’re off on a trip to Europe soon, it pays to think about what type of plastic you might want to use to make purchases while you’re there.
One option is a prepaid euros card, so here’s how they work. We also have a guide on foreign currency accounts if you are looking told hold and manage more currencies. For business users, you can visit our business euro accounts guide.
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
Download the Revolut app to open an account and you can sign up for a euros debit card too. Technically, it's a multi-currency card that can hold a range of different currencies, but you can choose to preload it with just euros if you prefer. The card is free to order and you can then use it to spend and withdraw cash like a local when you're abroad. Just be aware that the amount you can spend and withdraw on your card for free depends on the Revolut plan you have. Each plan has a monthly fee-free limit. If you go over this limit, or exchange currency on a weekend, you will pay a fee.
Pros
Low overseas fees
Quick sign-up
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked 'Junior' account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
Receive 1% cashback on everyday purchases capped at £15.
While Chase doesn't offer a dedicated Euro account, you'll be able to use the debit card you get with it to spend overseas fee-free. What's more, you'll earn cashback on your everyday spending both in the UK and abroad for the first 12 months. Further benefits of the account include a round ups feature, where your spending is rounded up to the nearest £1 and the difference automatically saved for you - your round-up balance will even earn 5% interest. You'll also have access to the Chase Saver account which pays a competitive rate of interest.
A prepaid euros card is a card that you can load with euros ahead of your holiday. You can choose how much you want to load onto the card and then use it much like a credit card or debit card when you’re abroad.
The key difference is that you won’t be charged the high conversion fees that a lot of debit and credit cards charge when you carry out foreign transactions. Many prepaid cards offer competitive exchange rates too.
A further benefit of these cards is that they can be useful if you’re on a budget as you can only spend what’s on the card – you’ll need to top it up again if you need to spend more.
How do prepaid euros cards work?
Once you’ve compared prepaid euros cards and found the one you want to apply for, you can usually do this online by filling in a form and providing some personal details.
Once your application is sorted, you can choose how much you want to load onto your card – this amount is usually transferred from your chosen bank account. One of the advantages of a prepaid euros card is that if you have time before you travel, you can keep an eye on exchange rates and try to buy at a time when exchange rates are good. Your card’s value won’t change if the currency fluctuates.
If your card is loaded up with euros, you can then use it to spend in most places when you’re on holiday, as well as withdraw cash from an ATM and you shouldn’t be hit with high fees – although be aware that some cards might charge a small transaction or cash withdrawal fee.
Pros and cons of prepaid euros cards
Pros
Cheaper way to spend: Prepaid euro cards tend to charge lower/no foreign exchange fees when used abroad.
Good for budgeting: You can only spend what you’ve loaded onto the card, making them ideal if you’re on a budget.
Secure to use:If anyone gets hold of your card, they can only spend what’s on it – they won’t have access to your bank account. Plus, prepaid cards have the usual PIN protection.
Competitive exchange rates:Prepaid cards usually have good rates and you can lock in when exchange rates are more favourable.
Cons
Limited acceptance:Prepaid cards aren’t accepted everywhere – some petrol stations might not accept them and you can’t usually use them for car hire.
Some fees may apply:Many euros cards charge you if you use them in a different currency. You should also watch out for card delivery fees, loading fees and inactivity fees.
Lack of flexibility:Euro prepaid cards are only designed to be used for spending in euros – if you want more flexibility, pick a multicurrency prepaid card.
Limited protection:You won’t have the same level of protection you’d have with a bank account, where your funds are usually covered up to £85,000 under the Financial Services Compensation Scheme (FSCS) if things go wrong. Credit card purchases of more than £100 are also protected under Section 75.
How to choose a prepaid euros card
If you’ve decided to choose a prepaid euros card, it’s important to compare the following features:
Fees: Check whether any fees apply for spending or cash withdrawals, as well as whether there are loading, inactivity or card delivery fees.
Currency options: If you only plan to travel to Europe, a euros prepaid card might be perfectly suitable. But if you think you might travel further afield, it could be worth looking for a prepaid card that holds multiple currencies.
Promotional offers: Some card providers offer incentives such as extra cash if you add a certain amount onto your card at application.
Eligibility criteria: You won’t need to have a credit check to get a prepaid euros card, but it’s still important to check the eligibility criteria. Some providers require you to be at least 18 years old, while others accept younger applicants.
Bottom line
A prepaid euros card could be a useful addition to your wallet if you regularly travel to Europe. As well as offering low or no fees for spending abroad, they can help you with budgeting and even let you preload your cash when exchange rates are good.
However, it’s crucial to compare cards carefully to ensure you don’t get caught out by unexpected fees and that you meet the qualifying criteria.
Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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