Prepaid Euro Cards

Perhaps read http://www.ricksteves.com/plan/tips/cash-machine-atm-tips.htm and then ask any outstanding question.

I'm sure that any of the many experience posters on this site will tell you that a Travelex card is a very bad deal. If they really have no fees or exchange rate discount at the ATM, then they have a very bad exchange rate to load the card. Just get an account with a debit card from a local bank or credit union, and you will probably get a better rate.

Bruce - Thanks for the link, but I know how the ATMs work in Europe. I used my credit card in them before for cash advances, but then I'm stuck with whatever the daily exchange rate is. If I buy my Euros in cash (well in advance of my trip, when the rates are favorable), can I buy a Euro debit card once I'm in Italy (which would also conveniently be chip-and-pin) to "store" my cash so I don't have wads of Euros in my purse or hidden somewhere in my hotel room. Lee - The now-extinct Travelex Cash Passport was awesome and really didn't have any fees (no exchange fees or currency fees because it was already loaded with EUROS, not USD; I only got charged €1.50 for each ATM withdrawl.) Unfortunately, they no longer exist as of this past April 2013. Cards that are supposedly replacements for the Cash Passport (such as the Visa TravelMoney card) are a complete waste because they're regular USD cards NOT Euro cards; you get charged (1) a setup fee for the card, (2) are at the whim of the daily exchange rates, (3) get charged a "foreign currency fee", and (4) get charged an ATM fee for cash withdrawls, sometimes by both the ATM machine AND the bank that issued the card. So, no those cards aren't worth it at all. The issue isn't with "how do I get cash in Europe" but more with "I don't want to have to carry large amounts of cash around with me." All I want to know is, can I buy gift cards (IN euros WITH euros) when I get to Europe? And if so, do these prepaid cards have any fees other than an activation fee? Thanks!
=) Jodi

As a previous poster noted, Travelex wasn't "free". You paid with a lousy exchange rate - and those per-withdrawal fees. Yes, you loaded it with euros, but those euros were purchased at a certain rate. If you gave Travelex dollars to put euros on your card, you got a bad rate. By contrast, my regular credit union debit card gives me the daily rate with NO foreign ATM fee and NO currency conversion fee. There is no way for anyone to know that the euro-dollar rate will be favorable at any point, no matter how early you buy. For all you know, you could buy euros at what you think is a good rate, only to have to have it get better later. And you used a credit card in an ATM?? That was a cash advance. The rate you got was no different than a regular ATM card would have been that day, but you instantly started accruing finance charges - at a higher rate than a purchase would have! If saving on fees is your goal (along with not carrying a lot of cash) you are really better off just using your own debit card. And use your credit card for purchases, not for cash advances.

Jodi, see this page from VisaEurope: http://www.visaeurope.com/en/cardholders/prepaid/travel_cards.aspx The page is meant for UK people, but it states near the bottom that Visa Travel Cards are available in a variety of currencies. If I were you, I would call Visa and ask how you can get one or more cards in Euros, either somewhere in the U.S. before you leave or when you get to Europe. P.S. I'm not going to try to persuade against it because your real goal is to avoid carrying cash, and I think you understand that a poor exchange rate and fees will be the trade-off for being relatively cash free.

"because it was already loaded with EUROS" Yes, already loaded in Euro, which you bought from Travelex at their rate. Did you compare the rate at which you bought Euro to load your card with the Interbank rate that day? Right now the Travelex rate to buy Euro is $1.4323/€. The Interbank rate (Oanda) is 1.28349. That's an 11.6% charge on the exchange rate. With a lot of bank ATMs, you pay between 1% and 2%; the worst I know of is big banks, like Wells Farge, Chase, etc, who charge 4% (3% currency exchange, plus $5 ATM fee on $500, or 1% more). So, just use an ATM card in ATMs over there. You won't carry around any more cash that if you were using a Travelex card, and it will cost you a lot less to use it. When I explored this issue in detail a few years ago, I found that Key Bank had a prepaid "debit" card with very low fees, better than travelex. Don't know if it's still true, but check into it.

Nancy - The Cash Passport was totally different, and was in fact free of additional charges because it was loaded with Euros, not USD, so there were no currency exchange fees, and only a €1.50 per ATM transaction fee, as I stated above in my previous post. It was like buying cash, only they put your currency on a chip-and-pin card for easy use. But that's neither here-nor-there since the card is no longer available and no longer an option for travelers. As for the exchange rate, I watch the market fairly close, and I know what a good or not good rate is. Yes, it's a gamble buying Euros in advance, but when the market drops down to €1 = $1.28, that's a good deal. Yes, it could go even lower, but I know that it's unlikely. Usually, it's in the low $1.30s, so anything below that is worth buying in to. Yes, I used my credit card for cash advances a couple times. I have Capital One, so I didn't get charged any foreign currency fees other than the regular ATM cash advance fee (which is the same in Europe as at home). I only use my Capital One credit card for travel, and I paid it off as soon as I got home, so no additional charges there, either. I don't like to travel with my bank debit card, because if it was stolen, I wouldn't have the same protection as with a CC. Rose - Thanks for the link; I've been to this page before. You do not want to get the USD version of this card to take to Europe; this is the card I was talking about that has all those hidden fees. They make it sound like the Cash Passport, but it doesn't even come close. (I had to dig deep and find all the fineprint, because it sounds like a good deal, but is not!) Has anyone purchased a Visa/Mastercard "gift card" or prepaid Euro card while in Europe? I want to know if they're readily available at drugstores and shops like they are here in the U.S.
=) Jodi

I'm looking for something like this: https://www.unicredit.it/it/giovani/pensatoperte/paroledibanca/strumentidipagamento/cartaprepagata.html that I can buy in a store in Europe, rather than online (where you have to prove your residency and they only mail to EU countries). Possible? Not possible? Additional fees associated with the card??

Jodi, I wasn't suggesting that you get a USD version of the card, but rather inquire from Visa how/where you could get the card in Euros. But if you found in the fine print that there are fees, it doesn't surprise me. I think any such convenience card will incur hidden fees. There is no free lunch. I'm not crazy about carrying a lot of cash around either, but that worry vaporizes as soon as I tuck my moneybelt securely underneath my clothing. No one's getting in there without a big fight from me. LOL!

I am well aware of what the Cash Passport was, and it was not "totally different". As Lee and I both said before, you bought the euros it was loaded with at an inflated rate set by Travelex. Your earlier statement about wanting to buy euros well in advance of your trip "when the rates would be advantageous" makes no sense. There is no early point where you could be sure that was true. We are trying to tell you that you can do the exact same thing with a debit card you already have, without buying at a bad rate (or being tied to one). It seems that you don't wish to hear that. As for the cash advance, even if you did pay it off when you got back you still paid finance charge on it from the moment you withdrew it, at a higher than normal rate. So yes, there were additional fees. You actually do have the same protection with your debit card as with a credit card. You are not liable for fraudulent charges.

You actually do have the same protection with your debit card as with a credit card. You are not liable for fraudulent charges. Visa's FAQ pages for both Credit and Debit cards (reference links below) have the following footnote. I have been meaning to ask about this at my local bank that issued my Visa Debit Card. Visa's Zero Liability policy covers U.S.–issued cards only and does not apply to ATM transactions, PIN transactions not processed by Visa, or certain commercial card transactions. Cardholder must notify issuer promptly of any unauthorized use. Visa Credit: http://usa.visa.com/personal/security/visa_security_program/index.html Visa Debit: http://usa.visa.com/personal/using_visa/personal_finance/debit.html

Here is a link to the Travelex Cash Passport in the UK: http://www.cashpassport.com/1/en/uk/About-Cash-Passport/Fees-Limits/ Fees are similar to what you paid for your old Cash Passport, free in your mind, expensive to the rest of us.

..."and would use it to withdraw my cash for the day at an ATM without having to worry about currency fees and exchange rates." That's my ATM card with no fees by the issuing bank. Minutes ago, I checked rates using my ATM card and found euros at $1.29177 while Oanda reveals an exchange rate of $1.28251 or a cost of $.00926 per euro. That combined with no fees (daily withdrawals if I wish), makes it a smart bet. If you need help finding a "good" ATM card, just perform a quick search on this website. Happy travels.

I ask a question. Someone gives a reply to that question, after re-interpreting the question. I clarify my question. Someone else answers a different question. I clarify again. Someone else answers something else, and throws in a few free insults as well. Thanks. Now, would anyone be willing to answer my actual question? Has anyone, while in Europe, purchased (with Euros) a Visa/Mastercard Prepaid Card (loaded with Euros)? Do these cards work the same as the American ones, where there's a small activation fee, but otherwise are simply debit cards/ATM cards with no additional fees? Thank you!
=) Jodi

No.

....... a credit card cash advance has the highest exchange rate...... Slight misstatement. The exchange rate will be same whether it is used for cash with a debit card, credit card to pay hotel bill, or cash advance. It makes no difference to the networks. The fees for a cc cash advance kicks in when the card issuer tacks on their fees - cash advance fee, high interest rate (afterall a cash advance is a loan) etc., which makes cash advance a very expensive way to obtain local currency which was the original point.

Jodi, now I am curious. The Euro was under a $1.30 today so where do you buy Euro at or near that rate as you mentioned in your postings? The best I can do in Denver is around $1.37, 1.38.

Frank - I've just been looking at the base exchange rate from Google. Today it's listed at €1 = $1.29. A few days ago, it was $1.28. To purchase Euros in cash, there's additional fees from the bank, of course, so that rate is a little higher. Wells Fargo exchange rate is $1.3490 per Euro today, which isn't bad.
For argument's sake, let's say I wanted to have a prepaid card (in Euros) for somebody other than myself, and not give them cash directly, nor let them have access to my bank account. (More like giving a teen or a friend an allowance for the week so you don't always have to be with them when shopping.) I'm not trying to reinvent the wheel; I know my Capital One card is perfect for international purchases that I want to make, and I can use my US Bank card (which charges 3% for both POS purchases and ATM withdrawls) for cash withdrawls. I'm just curious as to other options, and if a Visa/Mastercard prepaid Euro card is one.

Jodi, can't you do better than 3% on your debit card for withdrawals? Have you tried a credit union? Mine charges 1% for example.

Jodi: regarding your last post....why not open a separate checking account with a related debit/ATM card and give the card to the intended recipient? Additional deposits can be made as required.

Agnes - The US Bank account I have is for my small business, and would be the account I need to use when paying my vendors in Italy and elsewhere in Europe. I'm looking into alternate checking accounts for my business, but it'll be a huge pain to have to switch to a new bank account; though it might be worth it in the long run...
As for my personal checking, it's a joint account with my husband, and I know after 18 years of being with the same bank (TCF) he will not be willing to switch banks just for a lower fee on foreign transactions (especially since he doesn't do much traveling). So I'm stuck there. I suppose I could open a 3rd account just for my travel purposes... =P Bruce - I'm running small group tours, and was contemplating giving my travelers prepaid cards for meals (which would be included in their all-inclusive tour price) so they can dine on their own and not always be tied to the group (or to a specific restaurant), or use them as part of a "cash back" promotion. So opening separate checking accounts for debit cards is not really feasible. Thanks for all the food-for-thought! =)

It shouldn't be a "huge pain" to switch bank accounts or opening a new checking account with a credit union...this is a free country with an alleged free market, right? Banks count on this extreme but irrational loyalty from their customers even though they rake in profits and screw people on lots of transactions and late fees. Banks are not people, they're corporations :-) Feel free to leave one of them....that's my two cents.

People have probably been unable to answer your question because most of us see the tricks and traps involved in that kind of card, and were trying to give you advice on how to handle your money cheaper and better. It is the nature of the Helpline that such unsolicited advice appears, but it is meant well. No one was insulting you, only trying to inform you. Perhaps if you had told us originally about the business aspect and what you were trying to do, your interest in this method would have made more sense. But you presented it as a personal practice, which is why people were trying to help you get a better deal.

Ah, well, now you tell us! So you want to give these to a number of other people. Makes sense, but here's the problem I see: You want to use a card because you feel it is safer than carrying cash. However, a card can still be lost or stolen. If it's a US based card, even a Visa gift card that is not attached to a bank where you have a relationship, you can call and cancel the card. I don't know what liability you have on a pre-paid card, but the remaining balance could, yes, be cancelled. But if you are buying a European card, you have to try to cancel it in Italian, going through Italian voice prompts, etc. I don't think that makes your money any safer. The user also doesn't always know how much is on a card, so a transaction may be denied, causing the Italian waiter to speak angrily and rapidly at your client. Give them cash, and give a brief tutorial on moneybelts.

Regarding the 3rd account, or maybe your primary business account: something you may want to look is Lloyds Bank Multi-Currency Banking, you can choose to have the account kept in USD, Euro or British Pounds. There is a fee for the account, but it would allow you to have the account registered to your US address, and if you choose to keep the account in Euro, you will likely avoid the daily conversion fee when you withdrawal funds. I can't say I've used the account, as I don't travel enough to warrant the expense, but I was seriously looking into it when I was considering grad school in England. Good luck, best wishes.
http://international.lloydsbank.com/multi-currency-banking/
As to the prepaid card you inquire about, no, I have no experience with that. I would imagine they have something similar, as that's similar to how their prepaid mobile phones work. You buy the sim card nearly anywhere and top it up by buying a minutes card nearly anywhere.

Try Key Bank. A few years ago, after examining the fine print for most pre-paid cards and realizing they were a terrible deal, I saw an ad for the Key Bank pre-paid card. It looked like the exchange rate discount was about the same as bank ATM cards, so I went to visit them, and they convinced me it was true. I don't know if it still is, but at the time their card was the bast pre-paid card.

In Germany, you can buy a pre-paid Geldkarte with Euro. It's only accepted in Germany, and not everywhere there, and it is limited to about 200€, but it only cost ¾% to use.

You should check out www.skrill.com. Its a prepaid card attached to your skrill (used to be moneybookers) account where you can load by credit card (with a 1.9%fee if im not mistaken) or by wire transfer in euros (your bank should be able to handle sending in euros)
It has a €10 yearly maintenance fee but its free to use and has chip and pin. It works like a credit card (along with the fees to merchants associated by it) and hence places which only accept debit (maestro) would not accept your mastercard prepaid card.

Look at the date of the original post. I think the decisions have been made by now.