As money has become more digitalised over the years what with the growth of debit cards, credit cards and internet banking we have gradually seen cash become less and less widely used on a daily basis in the UK.
However, it has taken the travel industry a little longer to catch up with this change when it comes to travel money cash which is mainly due to the difference between the different types of holidays consumers take and the different types of destinations that consumers visit.
For example, if you go on an all inclusive holiday at a hotel then you will only need Travel Money for when you leave the hotel for excursions, travel costs, tipping and shopping etc. However, if you went on a self catering holiday, then the chances are, that you will also need travel money for food shopping, restaurants and even petrol for your hire car etc whilst on holiday overseas.
In many cases you will always need to have the local currency in cash for small purchases, tipping, taxis and buses etc especially when you visit destinations that have less cash machines’ or card payment facility options in rural locations. But, the real question is, what is the value of travel money cash vs travel money cards?
As the travel money industry becomes more digitalised especially for some of the main stream currencies such as the Euro, US Dollar, Australian Dollar, New Zealand Dollar, Canadian Dollar and the South African Rand, we have noticed that more and more travel money suppliers now offer a Travel Money Card.
But, are travel money cards offering the best value when it comes to Currency Exchange Rates and withdrawing cash from ATM’s overseas when compared with just using travel money cash, UK debit cards or UK credit cards overseas for your travel money requirements.
The following three travel money cash vs travel money card infographics go into detail about Euro Travel Money Cards, US Dollar Travel Money Cards and Multi Currency Cards which usually allow you to add additional currencies for Australia, New Zealand, Canada and South Africa for example.
Euro Travel Money Cash vs Euro Travel Money Card Infographic
US Dollar Travel Money Cash vs US Dollar Travel Money Card Infographic
Australian Dollar Cash vs Multi Currency Travel Money Card Infographic
As you can see in the three different travel money cash vs travel money card infographics that the value that you get back in return for using the good old fashion travel money cash option is far better than using the more modern banking cards whether it be a travel money card, UK debit card or UK credit card for your travel money spending requirements.
However, quite interestingly the Travel Money Cards do offer some advantages over just using your UK debit card or UK credit card overseas when either withdrawing foreign currency from an ATM or just using them to pay for a restaurant bill. In fact, in the majority of cases the travel money cards were better value than using your Debit Card Overseas or your Credit Card Overseas.
So, therefore if travel money cash offers a better return on your travel money spending requirements what are the other benefits of using a travel money card overseas for your holiday money spending?
Travel Money Card Advantages:
- They can be used anywhere in the world that accepts Visa or Mastercard payments.
- The travel money cards come with full chip and pin security.
- Less risk of over spending when compared with using a debit or credit card.
- Several travel money cards can be issued to additional family members.
- No credit checks or bank account required to apply for a travel money card.
- In most cases the exchange rates are better on travel cards than debit or credit cards.
- Top up your travel money balance if you would like to add more money.
- Sell back unused travel money to some currency suppliers at the same rate.
- In some cases you can earn cash back on purchases using your travel money card.
Travel Money Card Disadvantages:
- The exchange rates on travel money cards are not as good as travel money cash.
- In some cases there charges for withdrawing currency from a travel money card.
- In some cases there are charges for additional travel money cards if you need them.
- In some cases there are additional FX fees to take in account when adding travel money.
- In some cases there are additional monthly or annual fees to consider for long term use.
- Not all currencies are as yet available on travel money cards.
So it seems travel money cards have their place when it comes to overseas holiday spending money especially when compared with UK debit cards or UK credit cards and there are certainly advantages to using Travel Money Cards when it comes to convenience. However, another question is what are the exchange rates on travel money cards vs travel money cash?
In order to help answer this question in a little detail I have today performed a comparison on the exchange rates from one of our travel money suppliers whom not only offer travel money cash, but also Travel Money Cards in Euros and US Dollars to help us to really see the difference in spending £1000 through each of the options available:
International Currency Exchange Euro Travel Money Cash
International Currency Exchange Euro Travel Money Card
As you can see the Euro Exchange Rate from International Currency Exchange is much better for Travel Money Cash and for example if you were to exchange £1000 in Euros this would work out at a difference of 25.90 Euros which could be a lunch out at a restaurant whilst you are on holiday. In addition, the Euro Exchange from International Currency Exchange today was not the best on the market and if you were to compare all the Euro Travel Money Cash suppliers for exchanging £1000 into Euros you could get an even better Pound to Euro Exchange Rate.
The Best Pound to Euro Exchange Rates from the Best Euro Travel Money Cash Suppliers
As you can see in the above screen shot from today from our Euro Travel Money Cash Comparison Table that there are currency suppliers with even better Pound to Euro Exchange Rates than International Currency Exchange and if you take the top Euro Exchange Rate you could end up with an extra 11.90 Euros in your pocket taking the total difference to 37.80 Euros when you compare exchanging £1000 using Euro Travel Money Cash vs Euro Travel Money Cards. Now, if you are after US Dollars rather than Euros I decided to run the same comparison against US Dollar Travel Money Cash vs US Dollar Travel Money Cards to see which would work out the best on the US Dollar currency.
International Currency Exchange US Dollar Travel Money Cash
International Currency Exchange US Dollar Travel Money Card
Again, just like the Euro travel money comparison the US Dollar travel money comparison works in favour of US Dollar Travel Money Cash with the exchange rates working out at a difference of 28.70 US Dollars when exchanging £1000 using International Currency Exchange. But, again in addition if you were to take the best US Dollar Exchange Rate from all our top US Dollar Travel Money suppliers you could end up with even more US Dollars in your pocket.
The Best Pounds to USD Exchange Rates from the Best US Dollar Travel Money Cash Suppliers
As you can see in the above screen shot from today from our US Dollar Travel Money Cash Comparison Table that there are suppliers with even better US Dollar Exchange Rates than International Currency Exchange and if you were to take the top USD Exchange Rate you would end up with an extra 19.90 US Dollars in your pocket taking the total difference to 48.60 US Dollars which of course is a fair amount of difference when you are comparing exchange rates and actual Travel Money in your pocket for your holiday spending money.
Travel Money Cash vs Travel Money Card Infographics Summary
In summary there is no doubt that travel money cash especially on the two major currencies of the Euro and the US Dollar that taking cash rather than a Travel Money Card certainly works out more cost effective with regards to ensuring that you have more travel money in your pocket for your holiday spending money. However, as more travel money cards come onto the market it may make the market more competitive for consumers especially when it comes to added fees and exchange rates for currencies.
Travel money cards certainly have lots of advantages when it comes to topping up your currency and for the security of your travel money whilst you are away on holiday, so it really depends on what your preferences are, but one thing is for sure that it always best to compare all the fees and exchanges rates in advance of your departure date to allow you to get the best deal for your travel money. If you, would like to stay in touch why not sign up to our Weekly Travel Money Email Newsletter to get special offers and all the latest currency news directly to your inbox.