Prepaid card for travel in Europe - Caxton, Post Office, or something else?

br1anst0rm

I've browsed the articles in MSE and posts in the forum, about using cards for spending overseas, and I'm still struggling to work out what the most sensible and appropriate option might be for us. We have normal UK credit cards (Visa/Mastercard) , debit cards on our bank accounts, and for some years have also had a Caxton (black) prepaid card

With a prepaid card clearly there are various aspects to consider: i) the exchange rate used when loading the card with non-UK currency; ii) the ease of use and access when actually travelling abroad; and iii) the charge levied for inactivity if you are not travelling extensively of often.

We've used our Caxton card for years. But it barely features now in MSE articles and advice, perhaps because it's been overtaken by new rivals - Revolut, Wise etc. We have found Caxton useful. But in recent years we have travelled less. We are now being hit by inactivity charges (£2 per month!), there is a charge or fee for using the card in the UK (which was waived only temporarily during Covid lockdown), and we cannot easily recover or transfer the funds held in the Caxton card account. So we are wondering whether there might be better alternatives.

We've noticed that there is a Post Office prepaid travel card - but that doesn't feature in any MSE reviews or best buys and I haven't yet compared the details of fees and charges to see if it is any better than Caxton. Are there any other comparable or better prepaid cards?Or should we move away from prepaid and look for a credit card which has low or no fees and charges for use overseas? Our focus is on use in Europe: these days we rarely to the US, Asia or other regions.

flaneurs_lobster

You have a card which charges you £2/mth for not using it?

Get rid.

Assuming that none of your existing cards (you don't say what they are) offer fee-free overseas purchases and/or ATM withdrawals, then is there a particular reason why you need a pre-pay card?

A current account like Chase or Starling will give you fee-free overseas use. Any number of credit cards ditto. Easiest card to obtain will probably be with a bank you already have an account with.

Slinky

Lloyds Ultra give 1% cashback on UK and overseas spending for the first year.

rnem170

or Revolut? You don't really even need a physical card. Add a virtual one into Apple/Google pay. You can also open currency accounts and preload the currency you need in advance whch may give a better rate…

eg, open account (sterling), transfer £500 in. Open a € account and exchange £200 for € (or deposit €200). Do it midweek for no exchange fees/

When you spend in Europe, ALWAYS choose € if it offers € or £. It will be taken out of the € account first at 1:1. When the € is used up, it will be taken from the sterling account on the transaction day rate. This may be better (or worse) than the rate you first exchanged at.

br1anst0rm

https://forums.moneysavingexpert.com/discussion/comment/82119024#Comment_82119024

Yes, this largely reflects my own thinking. BUT…

Difficult simply to "get rid" of Caxton card. I think we will have to actually spend (overseas) the current balance loaded on to the card in order to empty and close the account. If we use the card in UK we pay fees on each transaction.

We got the Caxton card in the days when almost all 'normal' credit and debit cards charged fees for use abroad. As you say, there are now quite a few cards offering fee-free overseas use.

I think all our current cards still charge for foreign use:

• Bank of Scotland debit card [Visa] - 2.99% transaction fee, 2.99% cash withdrawal fee . We have a standard "Classic" current account. Only the BoS premium accounts (Silver, Platinum etc) and concessionary accounts (Student, Graduate) offer fee-free foreign use.
• Cooperative member credit card [Visa] - 2.75% foreign use charge, 3% cash advance (ATM) charge
• John Lewis credit card [Mastercard] - 2.95% forex charge, 5% (!!) cash withdrawal charge both in UK and abroad

I also have a NatWest credit card (Mastercard), and a rarely used First Direct bank account with debit card, with a very modest amount sitting in it. The NatWest credit card charges no fee for foreign use and 3% for cash withdrawals in UK and abroad. Having just checked, I think the First Direct debit card may charge no fees for foreign transactions or cash withdrawals. So that could maybe become an alternative to the Caxton card. But I'd have to deposit a bit more into the account to support such usage.

Otherwise it looks like a case of having to explore what other debit or credit cards might best suit our needs for a fee-free or low-cost card (credit or debit) to use on trips to Europe maybe twice a year…it's just a bit tedious to have to go through the rigmarole of having to apply for and set up yet another bank or card account!

flaneurs_lobster

Sounds like the Natwest credit card for spend and the first direct DC for spend/ATM would be a decent combination. Good that you have a couple of options for resilience.

JGB1955

I use Starling debit card and Barclaycard Reward credit card. Both are fee free for both purchases and cash withdrawals, home and abroad. Do you actually use cash abroad? If not, use your NatWest card. I have had a (slowly dwindling) €100 cash stash but only use it for the odd tip now and again.

NoodleDoodleMan

"Difficult simply to "get rid" of Caxton card."

I closed mine a year or so ago, no issues.

Used the remaining balance in Euros as part settlement of a hotel final bill on holiday, thus running the credit down to almost nothing, called Caxton on return home and cancelled the card.

br1anst0rm

https://forums.moneysavingexpert.com/discussion/comment/82119466#Comment_82119466

Yup, that's what we'll aim to do. But it awaits our next trip abroad to use up the Euros currently on the card, and we just have to live with the £2 a month inactivity charge till then.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82119478#Comment_82119478

Does the Euro spend have to be overseas?

Just wondering if we can come up with something that can be bought online using EUR that might be of benefit/use?

Even if it's just a few EUR/mth to stop that annoying charge.

NoodleDoodleMan

Correct me if wrong - but is the fee not £1.50 per UK ATM transaction ?

So, take currency from an ATM to run the balance down to a negligible amount before cancelling.

Better than a £2 monthly dormancy fee I reckon.

I'd highly recommend Starling for overseas debit card use - Chase and Monzo also well thought of.