For holiday makers who would love to travel for a considerably long period of time, prepaid travel credit cards can be the best budget control tool to use while on vacation. These cards are more like travelers checks but they are relatively hassle-free. All the card holder needs to do is load it before traveling and use it to spend or withdraw cash just as one would use a debit card. And because they’re preloaded, one can keep tight control of the spending during holiday or trip.
Are They Safe?
Most of them are offered or backed by reputable banks and building societies hence they are completely safe. Ideally, when one loads cash into a prepaid card, the cash goes directly into a ring-fenced account that’s separate from the card provider’s account. This means if the prepaid card company runs out of money, the card holder’s money will still be retained in the bank or building society the individual has banked the money in. However, should the bank the holder is registered with go bust, the cash in question will not be protected. Hence, choosing to work with a reputable banking institution is very important