Sponsored by Post Office Travel Money 
There are few things more exciting than planning a holiday. But before you jet off, it’s essential to think about how you’ll manage your money overseas.
Using the wrong payment method could cost you extra in fees, or result in poor exchange rates reducing the amount you have to spend while you’re away.
Most travellers have three main priorities when it comes to choosing how they’ll spend whilst on holiday – safety, cost and convenience. As a result, a prepaid travel card is often a popular option, as they usually allow you to load a range of different currencies onto them, and you can freeze payments in the event your card is lost or stolen.
Here, we look at some of the easiest and most secure ways to pay abroad, without being hit by any unexpected charges.
Prepaid travel cards
Prepaid travel cards are a popular option for travellers who want control over their spending. You can load a set amount onto the card, often in multiple currencies, and use it like a debit card for purchases, contactless payments or ATM withdrawals.
They can make budgeting easier as you can’t spend more than the loaded amount, and can provide valuable peace of mind that your money is protected, as if the card is lost or stolen, it can usually be frozen. Prepaid cards are also a good option if you’re worried about fraud, as they aren’t linked directly to your bank account.
You can usually lock into an exchange rate before you travel, meaning you don’t have to worry about fluctuations while you’re travelling.
Top tip: If you want to be able to monitor your spending while you’re away, choose a card linked to an app, so that you can check your balance online any time and avoid overspending.
If you’re looking to go cashless when you’re abroad and don’t want to be hit by steep commission charges, the Post Office Travel Money Card has got you covered. You can load up to 22 currencies onto the card and make contactless, or mobile payments while you’re away, and manage everything in the Travel App.
Debit or credit card
Whilst you can usually use your standard debit or credit card to withdraw cash or pay for goods and services whilst you’re abroad, these cards can sometimes attract foreign transaction fees, which can be as high as 2% or 3% of each transaction. These charges can mount up over time, especially if you plan to be away for a couple of weeks or more, so it’s worth checking with your bank to see exactly how much you’ll be charged.
For example, spending £1,000 using a debit card abroad could cost £20 if your bank charges 2% foreign transaction fees.
Depending on your card provider, some credit cards may not always be accepted in smaller establishments or in rural areas, which could make life tricky if you haven’t got an alternative payment option available.
Remember to inform your bank or credit card provider of your travel dates to avoid card blocks while you’re away.
Top tip: When paying by card abroad, you may be offered the option to pay in pounds rather than the local currency. This is called dynamic currency conversion, and it often comes with poor exchange rates and extra fees. Always choose to pay in the local currency to avoid this.
Using cash
Even if you prefer to pay using plastic most of the time whilst you’re away, it’s usually a good idea to have some cash readily available for things like taxis or restaurant tips.
You’ll need to think carefully about where you buy your holiday cash, as not all exchange rates and commission charges are created equal.
Airports, hotels, and some exchange bureaux often offer poor rates and steep commission charges, meaning you’ll get less foreign currency for your money. Always compare rates in advance, and consider ordering currency from a trusted provider such as the Post Office, which offers competitive rates and 0% commission.
Top tip: Cash can be difficult to replace if it’s lost or stolen, so if you do plan to take some with you, it’s worth choosing a travel insurance policy which covers your travel money. Keep careful records too of how much you’re taking with you so that you have proof for your insurer in the event you need to make a claim.
A final thought…
Choosing the right way to spend abroad depends on your travel plans, budget, and personal preferences. By understanding the benefits and drawbacks of each method, you can enjoy your holiday without worrying about unexpected fees or security issues.
If you’re heading abroad and want travel money with 0% commission, the Post Office Travel Money Card lets you load up to 22 currencies, pay securely with contactless or mobile, and manage your account in the Travel App.
* Post Office Travel Money Card is an electronic money product issued by First Rate Exchange Services Ltd pursuant to license by Mastercard International. First Rate Exchange Services Ltd, a company registered in England and Wales with number 4287490 whose registered office is Botanica Ditton Park, Riding Ct Rd, Datchet, SL3 9LL (Financial Services Register No. 900412).