Travellers Cheques Versus Prepaid Travel Cards
Consumers are being advised to shop around for their holiday money as the difference between the cost of travellers cheques and prepaid cards can be quite substantial, according to new research.
Prepaid travel cards seem to have the edge over travellers cheques in terms of usability rather than cost, according to new research.
With a choice of debit cards, credit cards, travellers cheques, cash or brand new travel cards, some consumers can find themselves confused about what type of holiday money would be best.
The results found the top three companies for travellers cheque conversions to both dollars and euros were Marks and Spencer, Halifax and the Post Office and the top three companies for prepay cards were Western Union, Travelex and the Post Office
The cheapest travellers cheque option for dollars was Marks and Spencer selling at a rate of 1.79 per cent which translates to £558 in costs, whereas the cheapest prepay card from Western Union was at 1.77 per cent and added up to £562 in costs.
In terms of euros, again Marks and Spencer offered the cheapest option at 1.4 per cent interest and 0 per cent commission costing £705 compared with the cheapest prepay card option from Western Union at 1.4 per cent interest and costing £710.
"Both travellers cheques and prepaid cards offer the consumer protection against loss and theft, guaranteeing fast replacement," said Rachel Thrussel from moneyfacts.co.uk.
"However the added benefit of using a card is that it is operated via an ATM using an individual pin, so travellers don't have the hassle and worry of carrying around their passport or having to remember to record their spent travellers cheque numbers."
