Travelex prepaid debit

Every time I've researched Travelex, I've found them to have horrible $/€ rates, like 7-10% greater than the Interbank rates. In contrast, ATM and credit cards are usually 1-3%. For 23 years, I have just used cash, most recently from an ATM. It's worked for me. If you have to have a chip and pin card, at least in Germany, there is something called a "Geldkarte", which is a debit card that you can load at banks with cash from an ATM. It's accepted by German Rail and many Verkehrsverbünde (metro districts). Munich metro gives you a discount if you use a Geldkarte.

Thanks for all your comments. You certainly explained all the fine print. I figured they were too good to be true. I will stick to my Capital One card and my bank debit card and watch what ATMs are used in the airport. We will be flying into Gatwick. Does Travelex control that airport also?

When we arrived at Heathrow T5 last Oct, my friend and I used side by side ATMs at the baggage claim. They looked exactly identical but the one she used was an actual ATM while mine was a Travelex ATM. The hint for me should have been when it asked if "I approve this transaction" which was weird because ATMs don't ask that. I should have cancelled the transaction but I didn't, hence, my friend paid something like $318 for her 200 pound withdrawal while I ended up paying something like $336 for mine. OUCH!

I avoid Travelex in all its manifestations. Their prepaid debit cards have outrageous fees. Their US airport exchange bureaus charge 15% and up. Their Heathrow exchange bureau quoted me a 17% markup with higher fees if I wanted their buy back guarantee. They have replaced the good, honest Heathrow ATM's with Travelex high fee exchange machines. That is reason enough to avoid their travel insurance, too. The only reason I check their prices is to warn others away from them.

"They have replaced the good, honest Heathrow ATM's with Travelex high fee exchange machines." Yes, I noticed that as well three weeks ago at terminal 5. Would I be right to assume that the same holds for the other terminals? Made me far less likely to buy anything, knowing that I couldn't avoid a huge mark-up.

I had heard that Travelex had more or less taken over at Heathrow. Someone said there was a genuine bank ATM at Terminal 5 but that appears to have gone now. I think it is scandalous and reckon it's because the airport owners sold out to the highest bidder rather than consider the interests of their customers. Perhaps someone should organise a boycott?

Travelex also has an ATM monopoly at Toronto Airport (terminal 1).

The weird reason Am Ex cards works for the bikes in Paris is that Am Ex has sponsored that program. Of course, most experienced Paris travelers know that.

Maybe Travelex ATMs at Heathrow gives us a good excuse to get some £ over here before we arrive, so we can pay for the bus or tube to somewhere with real bank ATMs. Today, Wells Fargo is selling £ for $1.6326, just 3½% over the Interbank rate of $1.5777 as reported by Oanda. I once tracked Wells Fargo and Bank of America for almost a year. Wells averaged 5% over the Interbank rate and B of A 5½% over. The banks set the rate for the day in the early morning so they might be higher or lower depending on what the foreign currency does after that. I try to pay cash for everything over there, but last fall I arrived at the station in Freilassing at 8 AM on a Saturday to go across the river to Salzburg Hbf. The ticket counter wasn't open and the Bahn automat didn't take cash. But it did take my swipe CC. I had to charge $3, and pay $.03 for currency exchange. I still think one of our German contributors should look into the prepaid Geldkarte. There's not enough info on their website for me to know if I can just go into a bank and buy one using my CC, ATM card or cash. I won't organize a boycott of Heathrow, but I'll go along with one.

Has anyone found an online listing of Travelex prepaid card fees? This link says to see your selling agent about loading fees (They charge you to put money on the card!) and makes no mention of currency exchange charges. http://www.us.travelex.com/US/For-Individuals/Cash-Passport/Fees-and-Limits/ . In the old days when the information was available online it was cheaper to use the dollar denominated cards abroad rather than the pound or euro, assuming steady exchange rates. I will not use Travelex ATMs and I will not buy pounds in advance as long as Transport for London accept credit cards for tube travel. Heathrow Express and Heathrow Connect also accept credit cards. My hat is off to you Lee. I make only occasional currency conversion comparisons, enough to know that debit card ATM withdrawals and credit card purchases are most economical for me.

Prepaid cards from various sources have begun to make inroads because they are not regulated like bank cards that are subject to federal and state banking regulations. Recent class action suits and new regulations have forced banks to disclose all of their fees. Not so with prepaid cards. They are viewed as cash gift cards with no disclosure requirements. Since debit cards and ATMs work so well and efficiently what is gained by using prepaid cards? With the right card you will get an exchange rate less than 1% over the interbank rate. You cannot do better than that anywhere. The only exception I understand would be people who do not have banking accounts.

I found Travelex fees here for the £ loaded card: http://www.cashpassport.com/1/Documents/US%20Documents/New_US_TC_Sept2009/MasterCard%20US%20GBP%20Leaflet%20TC%20Apr%2008.pdf and here for the € loaded card: http://www.cashpassport.com/1/Documents/US%20Documents/New_US_TC_Sept2009/MasterCardUS_EUR_TC_Apr08.pdf Fees are not as bad as I had feared; $10 delivery, 4.7% markup currently on the GBP card, £1.25 ATM withdrawal fee (about $2) and £1.75 monthly fee after 12 months of inactivity. $1000 worth of foreign currency would cost about 5.5% on the card plus the ATM withdrawal fees. Any amount left on the card after your trip would be costly. There are 8 pages of terms and conditions, I may have missed some pertinent information. I will not buy one. I have not yet had need of a chip and pin card in Europe.

It seems like it might be a good idea to have one of these loaded with several hundred dollars to make it easy at train stations and other places where using a non chip and pin would be a hassle.

I'm interested in getting a Pin & Chip card to use in Europe because I've had some bad experiences at rail station machines which would not take a US credit card. I looked at the Travelex card, and determined that even though their website claims to have the lowest rates, they actually charge 5% over the true exchange rate (at least for Euro). By contrast, my bank charges just 1% for ATM withdrawals and my credit cards charge 3%. That makes Travelex an expensive option. Also, they have a minimum amount that you can load on the card of $250. So, each time you load the card, you get an effective fee of $12.50! In addition, they charge Euro 1.75 every time you use the card at an ATM. I have an account with an internet bank that refunds all ATM charges. If your read the fine print, there are lots of gotcha fees, e.g., inactivity fees, account cancellation fees, etc. A prepaid pin & chip card is a good idea, but I wouldn't buy it from these guys.

I've used my credit card at Bahn ticket machines for the last 3 years (last time Aug 09) without a problem (bought a €2,10 ticket from Freilassing, Germany, to Salzburg, because the automat wouldn't take cash). However, there is something in Germany called the Geldkarte, which is a chip n pin, prepaid card sold through banks in Germany. You can load as much as €200 on it and it is accepted at rail automats, vending machines (exc. cigarettes), and automated gas stations. I think it costs 3/10% to use it and loading is free. Not sure. I've been trying to get someone in Germany to check it out for me.

"...Also, they have a minimum amount that you can load on the card of $250..." The 250 minimum is only for cards purchased via Travelex's US website. The cards via the US site don't have chip&pin anyways. In Europe you can purchase Travelex cards with as little as 10 euros loaded on them, I've done this myself.

The traveled debit cards purchased in the US in Euros or Pound Sterling are chip and pin cards. I bought one for the purpose of buying train tickets and small items.