Yes, the ASDA Travel Money Card is a contactless prepaid Mastercard currency card, designed for overseas use. However, there is a £2 monthly inactivity fee charged after a 12-month period of not using your card.
Although using a prepaid travel card is safer than carrying around large amounts of cash and can help you avoid overspending, prepaid cards often come with lots of fees. Common charges to watch out for include application fees, monthly fees, ATM withdrawal fees, redemption fees and inactivity fees which ASDA charge £2 a month after 12 months of no not using your card.
Prepaid travel cards also can’t be used in certain circumstances, such as in places that require a security deposit, and some petrol stations. Prepaid cards also don’t offer the same level of protection as credit cards.
5 Things to consider before choosing a prepaid travel card
1. What’s the rate?
Prepaid cards offer a huge range of rates that might not be as good as the rate offered by your bank. Whilst almost all providers say no fees, the fee is often hidden in the exchange rate.
2. Does your travel money card offer protection?
Some cards are covered by section 75 protection, but not all, it’s worth checking the T&Cs before you sign-up to ensure that all your purchases will be covered by some kind of chargeback protection.
3. Can you get back unused currency?
Once your holiday has finished you’re unlikely to want to leave any leftover currency on your travel money card. Make sure that you can easily get your money back, without incurring further fees.
4. Are there any hidden fees?
Check for any fees, prepaid cards generally have more hidden fees than credit or debit cards. Make sure that you keep an eye out for fees such as application and replacement fees, transaction fees, and inactivity charges.
5. Are there any limitations to where you can use the different types of cards?
All providers say that they can be used wherever you see the Visa or Mastercard logo but there are some big exceptions that may impact your choice. If you want to pay at a petrol station, hire a car, or pay on a cruise - generally, you can only use a Credit, Debit, or Currensea’s direct debit travel card - prepaid cards are often not accepted.
Better than a prepaid travel card
A better solution, only offered by Currensea, is the direct debit travel card. You simply spend abroad in any desired currency as the money will be collected from your existing bank account by direct debit.
A new way to spend abroad without worrying about fees, topping-up, and managing multiple accounts.
