American Express Travelers Cheque and Visa TravelMoney Cards

ABOVE: The American Express TravelFunds Card (shown here) has been renamed the American Express Travelers Cheque Card.

Prepaid ATM/debit cards replace traveler's checks

American Express and Visa now offer prepaid cards that combine the convenience of ATM or debit cards with the safety of traveler's cheques. So far, the cards are available only in the United States, although they can be used throughout the world to make purchases or withdrawals from ATM machines.

Safety is the main appeal of a prepaid travel cash card: If your card is lost or stolen, American Express or Visa will issue a new card or refund the unused balance. However, you'll pay a premium for this reassurance, especially if you use the cards to obtain foreign currency--and you'll still need to carry a credit card for occasions when the prepaid card can't be used (e.g., to secure car-rental or hotel reservations).

American Express Travelers Cheque Card

The American Express Travelers Cheque Card (formerly the TravelFunds card) costs US $14.95. It's available with an initial value of $300 to $2,750, and you can choose from three currencies: U.S. dollars, euros, or British pounds sterling. The card may be reloaded in increments of $50, up to a maximum card value of $2,750,  by calling a worldwide toll-free number. The reload fee is $5, and the minimum reload is $100.

You can use the Travelers Cheque Card like a credit or check card, or you can withdraw money from any ATM that displays the American Express logo. The fee for each withdrawal is $2.50, £1.50, or €2,-- plus any local bank fees that may apply. Warning: If you withdraw cash or make purchases in a currency other than the one on the card, you're charged the Interbank conversion rate (usually about 1%) plus a whopping 3% surcharge.

Visa Travelmoney Card

The Visa TravelMoney Card is sold by the American Automobile Association, National City, Travelex, US Bank, and other vendors (including at least two supermarket chains). Fees typically vary from US $4.95 to $9.95, depending on where you buy it. You can order a second card for $2.00. There may also be an activation fee of $4.95, and you'll normally pay for shipping.

TravelMoney is available in various preloaded amounts, depending on where you're buying it. (Some vendors have minimums as low as $25 and maximum loads of $5,000 or $10,000.). Four currencies are offered by Visa: U.S. dollars, Canadian dollars, euros, or British pounds sterling. Normally, you can reload the card at the vendor's Web site or by calling a toll-free number, with reload fees that can range from several dollars to $15.

Using the Travelmoney card is like using a credit or check card, and you can withdraw money from any ATM that displays the Visa logo. The fee per withdrawal is $2.50 in the U.S. or $2.00 in other countries. Warning: If you withdraw cash or make purchases in a currency other than the one on the card, you're hit with an eye-popping conversion fee of 7%. (You may even get hit with the 7% charge if you make a purchase in U.S. dollars outside of the United States.)

Should you buy a prepaid traveler's cash card?

In my opinion, no--not when the fees, and especially the currency-conversion fees, are so outrageous. It makes far more sense to carry a standard ATM card with a credit card as backup. If you want additional peace of mind, buy a few traveler's checks and keep them in a neck wallet or money belt.

Need more money advice? See the articles below.

Home

Copyright © 1996-2008 Durant and Cheryl Imboden and their licensors.
All rights reserved.

Privacy Policy