If you’re reading this, you’re interested in finding a new card to use when travelling abroad. Specifically, a card that doesn’t charge you high, or even worse, hidden fees when spending on your trip.
So we’ve compared Travelex’s Terms and Conditions for spending abroad with our own, to help you make the right decision.
What is Travelex?
Travelex is a global foreign exchange and international payments company, founded in 1976.
What card options and plans does Travelex offer?
Travelex offers a free to use prepaid money card that enables you to load money onto it to use abroad. It is called a Travelex Money Card.
Card scheme vs interbank foreign exchange rates
The card scheme foreign exchange rate is set each day by major credit card networks such as Visa and Mastercard.
While the value of currencies fluctuates throughout the day, the card scheme rate stays the same for the whole day. The rate will contain a mark-up to protect the card schemes from fluctuation risks. It’s difficult to figure out exactly how this rate is calculated as the information isn't shared, but this is included in the rate that Travelex uses.
The interbank rate, on the other hand, tracks the real-time value of currencies and is considered the fairest rate in the industry. It fluctuates throughout the day, and is the rate that Currensea uses, with an additional 0.5% markup.
So what does Travelex charge you to spend abroad?
Since it is a prepaid card, Travelex won't charge you any transaction fees while spending abroad if you use the correct currency for the country you're in. However, you will be charged a rate of 2% to top up your card with currency in the first place. If you top up in pounds and then convert afterwards, you'll face another 2% conversion fee on top of this.
If you spend abroad in a currency which you don't currently hold in your wallet, or isn't supported by Travelex, you'll incur a 5.75% foreign exchange fee. Given they only support 22 out of 180 currencies, there is a significant risk you'll be hit with this rate. So if you topped up in pounds then just spent in USD on your holiday without first "converting" for another 2% charge, you could find yourself paying 7.75% for the privilege.
What other fees does Travelex charge?
Replacement card
While Travelex don't charge for replacement cards, they do charge an inactivity fee of £2 per month if you don't use your card for a continuous 12-month period, including after your card expires.
Balance below zero
If your balance falls below zero because of a transaction there is a £10 charge. The 5.75% charge also applies if you don’t have enough money in the transaction currency and the rest is taken from another currency wallet.
What is Currensea?
Currensea is a travel debit card that allows you to spend money directly from your trusted bank account, rather than having to open up a new one or top up a prepaid card. It is based on open banking, which was introduced several years ago to promote innovation and competition in financial services so that you have access to a wider range of options and rates.
What card options does Currensea offer?
Currensea has three travel cards, including Currensea Premium and Currensea Elite. For the purposes of this comparison, we'll be focusing on Currensea Essential, which is free like the Travelex Money Card.
What is different about Currensea?
What Currensea offers is a product focused on providing you with the best possible rates as you spend abroad. Our card partners directly with your trusted bank account (unlike other travel cards), meaning that you can spend with your Currensea card abroad just as you would at home with your regular debit card. Funds come straight out of your bank account, and you can spend whatever balance you have.
Because it’s not a prepaid card, you never have to top up your Currensea card. You don’t have to worry about losing it and any funds that might remain on it, nor do you have to constantly top it up and remember how much you have on it: we offer travel, but without the hassle.
We also check how much your bank would have charged you to use your regular debit card abroad- and we can tell you exactly how much money you saved by using your Currensea card.
What does Currensea charge to spend abroad?
We convert your currency based on the real-time interbank exchange rate, with an additional markup of 0.5% per transaction no matter when and where you use it or how much you spend with it. No hidden fees, no weekend fees, no increases to the markup - just clear, transparent information on how much we charge and how much you save.
What other fees does Currensea charge?
Cash withdrawal
We charge our usual fee of 0.5% for withdrawals up to £500 a month, and for anything over this amount we charge 2%.
Replacement cards
While your first card is free, we charge a £5 replacement fee (but no delivery fees).
How does Currensea stack up against Travelex?
We compared how much it would cost spending with Currensea versus Travelex on a 10 day holiday to Florida for a family of four. With a combination of card and cash spending, we found that using a Currensea card can save you just over of £375 on FX fees compared to Travelex.
Take a look at the table to see the breakdown of spend- we've also included the card scheme rate that Travelex charges.
| |
Currensea charges |
Travelex charges |
| $10,000 on card spending |
£39.06 |
£312.48 |
| $600 on ATM withdrawals |
£2.34 |
£18.75 |
| Card scheme rate |
£0 |
£44.72 |
| TOTAL |
£41.40 |
£375.94 |
Total saved with Currensea vs using Travelex: £334.54
% saved with Currensea vs using Travelex: 88.99%
In summary
The Travelex travel card could be a good solution if you have younger family members travelling abroad and want to help them with a little bit of spending money their trip, but don’t want to give access to large amounts of money or for them to use their bank card. The card could then allow you to top up from afar and with smaller amounts.
For personal travel use, the card is far from ideal. Of all the cards we've benchmarked, the Travelex card is one of the worst for charges, with costs significantly more than most high street banks. We've also been relatively generous in the example above, and assumed you're not spending in an "out of wallet" currency - which would almost double the charges. Since it is a prepaid card, you'll need to remember how much is on it and faff around topping it up as you spend abroad. And if you don't spend all the money you top it up with, you'll also have to remember to take the unspent balance off your card when you get home, incurring yet more charges. On average in the UK in 2023, prepay travel card users returned home with £78 on their card..
If you are after the best foreign exchange rates possible, then Currensea clearly has the edge. While Travelex charge a 2% fee to top up, a 2% fee to convert and a 5.75% fee for any currencies outside their 22 supported (out of 180 in the world) or any "out of wallet". We offer the real-time interbank rate with a markup of just 0.5%, meaning that you'll save at least five times more with Currensea.
With Currensea on the other hand, you can spend abroad just as you would at home with your regular debit card, since your card partners with your existing bank account. We offer travel, but without the hassle.
Overall, if you're looking for a prepaid card to give to younger family members while they travel, then Travelex is a great choice. But if you want a card you don't have to continually top up that focuses on providing the best rates possible, then Currensea is the right choice for you.
