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Choosing the Best Currency Rate Option


Apr 5, 2022

Choosing the Best Currency Rate Option

For anyone who has booked a holiday abroad this year, you are probably aware of the range of ways there are to pay for goods and services abroad. What you may not have considered is which is the best currency rate option for you, given the considerable variance in cost between each method. By looking at a few options we can help you decide what currency choice you should be making.

Cash is probably the most obvious currency option available, and the main benefit is that cash is accepted everywhere you go. That is also where the benefits of carrying cash end. Cash is usually the most expensive option due to the commission that has to be paid for the physical transaction of buying cash. It is also the least secure option as if you are targeted by pickpockets there is no comeback.

Travellers cheques, while often seen as a thing of the past, are still a valid payment option. The main advantage is security, as lost or stolen cheques can be replaced by the issuing institution, and fees are usually fairly low in comparison to other options. However, very few retailers accept travellers cheques nowadays and most people would prefer not to spend their holiday queuing at a bank to exchange their cheques for cash.

The most common currency exchange option now is the credit card, and indeed it does have several advantages. Convenience is the main benefit as the card is small and easy to carry, and it is accepted at the great majority of retail outlets. The issuer will also offer protection against loss or theft so it is also a secure option. The down side is that fees are often excessive, and because credit is afforded, it is all too easy to overspend and have repayments souring the memory of an otherwise enjoyable holiday.

The debit card is very similar to the credit card. Benefits offered are almost identical save for the credit facility, but higher withdrawal charges and slightly less acceptability make the debit card a less appealing option.

Of all the choices available, the prepaid currency card is best for most holidaymakers. It incorporates elements of all other options as it offers the same security and convenience of credit and debit cards, and similar low fees to travellers cheques. It also protects against overspending as it can be loaded with cash before you go, meaning that you know exactly how much you have available to spend at all times.

Of all options, it is clear that the prepaid currency card is best when deciding upon the best currency rate. Other options may be used as a back up, but by using the prepaid card you will be able to relax and enjoy your holiday knowing that you will not be paying over the odds.