When it comes to trips overseas, travelers still mainly use cash and almost never use prepaid credit cards.
According to a new study, 48 percent of travelers reported using local currency to handle purchases.
Thirteen percent said they would use their debit or credit card to withdraw local currency as needed from ATMs, 23 percent said they would just use their cards to pay for transactions and only 3 percent reported using a prepaid credit card.
This is unfortunate because a prepaid credit card offers several advantages compared to the other methods of paying. Carrying large amounts of cash is risky and puts travelers at risk of being robbed.
Loading up a prepaid credit card with the foreign currency often works better. These cards typically charge lower fees for international purchases and offer much better liability protection should a card get lost or stolen. It does take a bit of planning to set up a prepaid credit card, but the benefits can make it worth the effort.
Prepaid credit cards are more popular than they used to be, as people are using these cards instead of traveler’s checks.
However, prepaid credit cards still have a long way to go if they are ever going to catch up to cash or regular cards in popularity for travelers.
Source: moneyfacts.co.uk. Photo source: soshable.com.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.