Credit Debit Card use

It is a viable solution to use at ATMs there. We use that AAA debit card as our backup debit card in case our primary card won't work for some reason. Our primary debit card for ATM use is tied to our credit union checking account. You should always have two sources of debit card money when relying on ATMs because all cards will not work in all ATMs all the time.

I don't know specifically about AAA's product. In general prepaids are not the best option because of the fees associated with them. To know for sure, you have to read all the fees and compare them to your other options. As a general rule, I'd look for an ATM card that charges only a one percent foreign transaction fee for ATM use (some are free) and a credit card that charges no (or at least low) foreign transaction fees. Use your ATM/debit card to get cash and use that for purchases from small retailers and cafes. Use your credit card for purchases from big retailers, flights, rental cars, nice restaurants, etc. Whether using an ATM or making a credit card purchase, always do it in local currency. The "option" to be charged in U.S. dollars isn't a good one, they'll charge you for the service and your bank(s) will still charge the transaction fees.

I just tried to access the AAA site to find out the currency exchange rates to load the prepaid Visa card, but it wouldn't let me access the information because I'm not a member. This seems to me to be a sure sign they are hiding something, not letting people compare before they "buy". Last time I was able to check on the AAA prepaid card, it was actually a Travelex card, which has just about the world's worst foreign exchange rate, 10% - 14% over the Interbank rate. Before using one of these cards, make sure you understand the exact rate you'll pay to load the card in Euro (or GBP) or the rate you pay to get Euro (or GBP) at an ATM with a card loaded in USD. Then compare the rate to the rate at Oanda.com. I once found a prepaid card from Key Bank that had a reasonable exchange rate, but most don't.

I have not looked at the prepaid AAA for several years so the fee structure may have changed but when I looked at then the fees were in the range of 8 to 10%. I see no advantage to any of the prepaid cards over a standard debit card. But these products are constantly changing so read the fine print carefully and frequently. Since you asked the question, what advantages do you see with a prepaid card?

Thanks for the valuable input and feedback!

Here is the fee schedule for the AAA prepaid VISA card: Fees •Purchase fee applies. Consult your local AAA office for details. •The minimum card load is $100; maximum load is $5,000 daily in branch, $1,500 USD daily online or by phone. •Maximum balance on the card is $9,999 •Reload fees may apply. Consult your local AAA office for details. •Up to 3 Companion cards for $1.50 each •ATM Fee domestic: $1.50 •ATM Fee international: $3.00 •Foreign Exchange markup: 3%
•Account Maintenance Fee per month: $1.25 after 12 months of inactivity The card is loaded with dollars, so the exchange rate is whatever the ATM says at the time of withdrawal, plus the 3% conversion fee and $3.00/withdrawal fee. Plus that purchase fee, reload fee....

Wow Nancy - great, great info. My gratitude. So what I'm thinking is to use the AAA card as a "back-up" debit/ATM card while carrying a credit card (confirmed no foreign transaction fees) and my main credit union's debit card. Again, my sincere thanks.

But at those rates, not even a good back up card. Look around for a credit union. The membership requires for credit unions is pretty easy these days.

Frank is right. Skip the prepaid card and just open a separate account at a credit union. My credit union charges nothing at all, and there are plenty that charge no more than 1%. I carry two debit cards (separate financial institutions - my second card charges 1%), and two credit cards.

Check out: "Graffiti Wall > Money/Communication > ATMs: Minimizing Fees" for some additional information. I go to Europe every summer for the last 12 years and have always used a DEBIT CARD tied to a CHECKING ACCOUNT at a local CREDIT UNION that charges a 1% transaction fee for getting local currency at ATMs in Europe. Those ATMs do not charge any fees. I have done this all over Europe including GB and Ireland but I have not been to those two countries in several years. Good luck. Happy travels.

I have never had an issue using my debit/atm card in Europe or Asia nor my credit cards. Let me tell you my bank is not the biggest or best bank not at all. Just call them to let them know your travel plans, and they can tell you if there could be any problem.. Have a great trip.