Experience with Travelex cards with ATM's

There was a recent similar discussion on the Greece forum. I hope others will respond here. What I learned there is that you probably paid a hefty price for that card and that if it is lost or stolen, it's just like losing cash -- the money is gone. Is that correct?

It isn't like losing cash - you just notify card services, the card is cancelled, and a replacement card is issued.

" I guess I'm a little "over worried" that some crazy hacker could drain my account somehow,"

No worry now, Travelex, with their 11% exchange rate discount, will drain your account for him.

Go to Travelex's website and find the rate to exchange $ to € to load the card. Right now, you'll pay 1.495 $/€. So for each withdrawal of 350€, you'll pay $523 for the exchange rate plus $3 (2€) ATM fee or $526.

If instead, you go to a major bank (the most expensive at 3%) and open a travel account with just what you need for the trip, every 350€ you withdraw will cost you $484 plus a $5 fee, or $494, a $37 savings.

And if you have a high balance account from Wells Fargo (and probably others), you get the exact Interbank exchange rate with no fee, or $470 for a 350€ withdrawal, a savings of $56.

BTW, last week at SFO, I passed a Travelex currency exchange booth. They were charging $600 for 389€, cash. With my Wells Fargo ATM card, I could get 389€ for $525.

Here's Rick's page of money tips. Read all the links, and you'll be an expert: http://www.ricksteves.com/travel-tips/money

If you are really worried about someone draining your account, a cheaper method than the Travelex card (which, as Lee posted, has very high rates and fees) is to set up a separate checking or savings account just to use at ATM's in Europe.

you will also pay Travelex a large fee to get the remaining dollars off the card at the end of the trip.

The bad mounting is generally around the high fees charged by Travelex for no advantage over a standard debit card. If you are careful in how you use your debit card, the probability of your account being drained is near zero. Second there are security measures built into the usage of your account that also prevents it from being drained quickly. We have used debit cards and ATMs in Europe for the past 15 years or so with absolutely no problems. I carry two cards tied to two different accounts. Always use both accounts the first few days in Europe just to make sure that both are working. Then it is the primary card from a credit union. Never had a problem so never had to use the back up. Same for credit cards - actually carry three.

Last year I looked at a number of these prepaid cards because this is a frequent question. The only one with reasonable fees was from Wal-Mart. The Travelex was close to the highest. However, it is very competitive so the fee structure may have changed. AAA also offers a card. The fees for these cards will range around 10 to 12%. However, since these card are consider a gift card under banking regulations, you do not have the same protection that you have with a debit card. It is all in the contract between you and Travelex.

I personally would not use a prepaid card simply because there is no advantage or savings in doing so.

Thanks to everyone for the advice, wished I had done some research before getting the card. I like the idea of setting up a debit card with a separate account. Now my quandary is this: do I cut my losses and cash out the travelex card now or should I use the card with the Euros I have on it and see this as a lesson learned? I should have been more careful about the fees and the exchange rate. So as part of the hidden fees, will I be charged in Europe if I use the Travelex card to withdraw Euros? If so, I think it might be better to cash it out now. Thanks again!

Better yet, get a debit/credit card from a credit union if you have access to one. I withdraw cash from ATMs all over Europe and pay virtually nothing. Never had an issue in many years of travel...

If you have the card, use it. The damage has been done. Still would take another debit card as backup just in case it does not work somewhere. Remember next time to ask a couple of question before hand instead of coming and seeking confirmation that you made the right decision.

I agree with Frank, the damage has been done. You might as well use the card. It will still cost you 2€ ($3 per ATM transaction at their exch rate), so take as much as you can each time, but with most ATM cards you will have some kind of an out-of-network fee anyway. If you cash the card out, you'll pay $20 to get your own money pack.

I've used ATMs for cash for almost 15 years now without a problem. Try to use bank attached ATM machines whenever possible. In Germany, a lot of banks have the ATM in a lobby, and you have to use the ATM card just to get in, so they can track who's been there.

Don't feel bad about getting taken by the folks at the Travelex card company. They do that every day to lots of inspecting folks who have done the same research that you probably did. You might still be able to get a DEBIT CARD tied to a CHECKING ACCOUNT at one of your local financial institutions - a credit union would probably have the lowest cost. Spend the euros that you have put onto the Travelex card and then start using your new debit card. Since you have gotten yourself into this situation, I hope you have learned by now that using a credit card to get money from an ATM machine is very expensive as most all financial institutions consider this a "cash advance" with resulting high fees and terrible exchange rates. Remind your friend who was pick pocketed in Paris to read RS's advice on money safety. I have read too many stories about folks getting pick pocketed when not using a money belt but I have yet to read a story about someone loosing anything out of their money belt. I put mine on when I leave my house heading to Europe and take it off only in my room and when I return home. Happy travels.

I also carry two regular debit cards, one from my regular credit union, and one from my online bank. One thing that you need to do if using a regular debit card is to call the bank/credit union and inform them of when and where you will be traveling so that they don't block the foreign transactions. My cards do not have chips, and I use them all the time at ATMs in Europe. In your case, as Frank and others have said, the damage is already done, so there is no advice to give about using the Travelex card. It should probably work OK, since you only intend to use it at ATMs, not for purchases (some people have reported problems using debit cards for purchases).

Thanks to everyone for your advice. I really appreciate all the input received. Happy travels to all!

As already explained, we don't recommend Travelex or similar cards because they cost you money. All of Rick's staff carry our home debit cards (tied to a checking account) with Visa or MasterCard logo, which work everywhere, as well as one or two credit cards. Despite varying fees, these methods give you the best exchange rates.

This is a courtesy bump to ameliorate an issue I caused in the forum. Please ignore this post.

Been using my ATM debit card in Europe at machines for last 15-17 years or so.. never had an issue.. but my card was compromised once.. HERE at home.

I can't imagine bothering to use a Travelex card, and as noted, they have their own risks, as noted if you lose them you loose the balance of cash.. at least with an ATM card you can just phone bank and your balance is protected!

Here's a couple things we do to minimize risk.

1) We have a separate checking out (our vacation fund account) that we use only for ATM withdrawals on vacation (no fees). I test the cards at home before the trip to make sure we have the right PIN #'s. Our primary checking account operates during the trip with payroll deposits and bill payments without worry that funds might fraudulently disappear.

2) We NEVER use the debit/ATM card as a credit card at a restaurant, shops, or hotels.

3) If we want to use a credit card to make a purchase, we'll use a visa card (zero transaction fees).

I've experienced 3-4 times where my work Visa was compromised. In every case, it was immediately after a business trip. I think the biggest risk for either a credit or debit(ATM) card is when you momentarily relinquish possession for an establishment to swipe the card elsewhere (office, back room, back to you, cash register, etc). Depending on the credit card, your risk of fraudulent transactions is zero to $50.00. While you are covered with a debit card with a MC or Visa logo, it would mess up your vacation if the funds you had available for withdrawal via ATM's were withdrawn for fraudulent purchases.

We purchased a 200 Euros on a travel Ex card a few years ago, and we never could get it to work in an ATM, gas station, train kiosk, etc. It only worked as a retail transaction, which would have been cheaper and easier to use a credit card.

With chip and pin the card ought to never need to go of your sight and no one else ought to touch it. If still using signatures it may well do.