How do you pay for stuff on the road if you don’t have a credit card? There are times when you just need to make reservations or online purchases with a credit card on the road. (And if you have bad credit, this may not be possible).
Prepaid travel cards present a solution to managing your money on the road if you don’t have a credit card, and are concerned about the security of your debit card.
Although they may act and look like credit cards (many prepaid travel cards are issued by credit card companies themselves), they work on debit, not credit. You load the card with money, then you can use it around the world at ATMs, debit machines, and as you’d use a credit card. Thus your potential loss if you run into trouble (theft, etc) is never more than the value of the card.
I’ve never used one because I have a credit card, and the fees of prepaid travel cards – though not exorbitant – are still higher.
Here’s some more information on selecting and using prepaid travel cards, and managing finances securely:
Other Money-Management Travel Tips
Scroll through this resource for other tips for managing your money on the road: