American Express travel card

Travellers' cheque cards
July 2005

Don't pack a travel money card

Foreign exchange providers are promoting travellers' cheque cards this summer as the clever way to carry your money abroad, but we've found that convenience comes at a cost.

American Express (Amex) and MasterCard both offer the cards, which are the size of a credit card. They can be loaded with euros, dollars or sterling before your holiday and used abroad at cash machines or to pay for goods and services.

The Pin-protected cards are ideal if you want to fix a budget for your trip in advance. If the card is stolen, you don't need to worry about your bank account being cleared out. With the Amex card the balance is refunded within 24 hours and the card replaced. But topping up the card and spending your money isn't cheap. The Amex card is an initial £20. MasterCard charges £5 for the card plus 1 per cent of the amount loaded or £5, whichever is higher. Top-ups are a £3 flat fee.

Once loaded, it costs £1.75 to take money out at a cash machine. Withdrawals with the Amex card are €2, $2.50 or £1.50 (depending on the currency on the card).

In short, buying one of these cards, loading it up with €600 and making one cash withdrawal will cost more than £21 with Amex and around £12 with MasterCard.

Action point

Avoid both cards and take a Best Buy Nationwide debit or credit card on holiday with you. Neither charges the common 2.75 per cent foreign exchange fee. The debit card has no ATM fee. For the credit card it's 1.5 per cent (£1.50 minimum). Make sure you have more than one way to pay in case you lose your cards.