Visa TravelMoney Cards

Prepaid ATM/debit cards replace traveler's checks

Until recently, both Visa and American Express offered prepaid cards that combine the convenience of ATM or debit cards with the safety of traveler's cheques. American Express has withdrawn from the "travelers cheque" card market, leaving Visa as the only provider.

Safety is the main appeal of a prepaid travel cash card: If your card is lost or stolen, the card company 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).

Visa Travelmoney Card

The Visa TravelMoney Card is sold in the United States 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. 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.). 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. When we last checked, the fee per withdrawal was $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 our 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.

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