Prepaid travel cards: Should you lock in a foreign exchange rate now?

By Polly Fleeting ·

It’s no secret that the Aussie dollar has continued to take hit after hit over the last 12 months, whether it’s the trade tensions between the US and China, the recent bushfires or RBA cuts.

One of the latest blows comes from the recent outbreak of the Coronavirus (COVID-19), pushing it to the lowest it’s been in 11 years - with 1 AUD currently sitting at 65.05 US cents. 

And the unfortunate truth is, as the crisis continues to develop, there’s no knowing when the dollar is going to bounce back. 

(Source: RBA website - screenshot taken 12 March 2020)

So if you have plans to travel and are considering a prepaid travel card, you may want to think about locking in an exchange rate incase the dollar drops even further. 

And according to the Reserve Bank of Australia’s (RBA) data a lot can happen in a short period of time, even in six months. 

In fact, check out our full rundown of 10 popular currencies and the changes over half a year: 

Foreign Currency11 September 201911 March 2020
United States Dollar (USD)0.68750.6505
European Euro (EUR)0.62220.5738
Japanese Yen (JPY)74.1267.94
UK Pound Sterling (GBP)0.55600.5032
Canadian Dollar (CAD)0.90370.8911
Chinese Renminbi (CNY)4.89074.5221
Swiss Franc (CHF)0.68170.6084
Hong Kong Dollar (HKD)5.38995.0535
New Zealand Dollar (NZD)1.06891.0345
Indonesian Rupiah96619341

(Data taken from RBA's spreadsheet 12 March 2020)

How do prepaid travel cards work? 

Prepaid travel cards can be a convenient way for travellers to exchange and access their money overseas. 

It works just like a debit card where you can pay electronically or make cash withdrawals, however you load the card with particular or multiple currencies before you leave and while you are travelling as well. 

A handy feature of these cards is that often you can lock in an exchange rate for foreign currencies on the day you load the card. This means that if you need to load more money on the card later on, you’ll receive the same rate as you did the first time around. 

And while you can take your regular debit card overseas,, the downfall is that you can’t lock in an exchange rate. Instead, you are subject to whatever the exchange rate is on the day you make a purchase with the card - which may be higher or lower than the day before. 

Just bear in mind though, prepaid travel cards do come with a range of fees from purchase, reload, cross currency and closure fees, so it’s worth weighing up whether it’s suited for the type of travel you are doing. 

RELATED ARTICLE: Travelex site is back in Australia, but is it all smooth sailing again? 

Want to find out how prepaid travel cards stack up against each other? Head over to our prepaid travel card comparison table or jump across to our travel money hub for more options! 

Prepaid Travel Cards 2020 - last updated January 23, 2021

Search promoted prepaid travel cards below. Advertiser disclosure.
  • Platinum Prepaid Currency Mastercard

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.7371
    GBP: 0.5322
    EUR: 0.5996
    NZD: 1.0214
    $0 online (greater of 1.1% of initial load amount or $15 in-store)
    2.50 USD

    Get Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.

  • Just Go Visa Prepaid Travel Card

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.7450
    GBP: 0.5430
    EUR: 0.6130
    NZD: 1.0360
    $0
    0 AUD

  • Qantas Travel Money Card

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.7406
    GBP: 0.5345
    EUR: 0.6034
    NZD: 1.0203
    $0
    1.95 USD

    Load multiple world currencies, and lock in your exchange rate to stay in control of your spending. Earn 1.5 points for every dollar spent on eligible purchases overseas.

  • Travel Money Card

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.7432
    GBP: 0.5383
    EUR: 0.6075
    NZD: 1.0238
    $0
    3.50 AUD

  • Travel Platinum Mastercard

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6793
    GBP: 0.5193
    EUR: 0.5683
    NZD: 1.0237
    $0 when loaded at Australia Post or online. (1.1% when loading AUD)
    3.50 AUD

^See information about the Mozo Experts Choice Prepaid Travel Cards Awards

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