🛫 Ready for take-off: why travel cards are flying high

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😎 Travel smart

Carrying around a lot of cash can be risky when travelling, and also inconvenient. As such, many have turned to travel cards as an alternative to manage their spending overseas. For starters, there are quite a number of benefits to using a multi-currency card on top of its ease of use. 

• Greater security levels: Many travel cards are embedded with more secure technology that requires cardholders to enter their own personal identification number (PIN) before transactions are approved, offering an added layer of protection against fraudulent activities. These advanced security features are helpful in protecting users against security risks in financial transactions. Furthermore, in the event of loss or theft of travel cards, they can be easily blocked and replaced, minimising the risk of financial loss.
• Budgeting and cost savings: Travel cards can in fact help individuals have better control over their travel budgets. Users can preload specific amounts onto their cards, helping them stick to a predetermined spending limit. This is valuable for budget-conscious travellers who wish to avoid overspending while exploring new destinations. Moreover, travel cards are also known to waive foreign transaction fees that can exceed 3 per cent on typical credit cards or offer favourable currency conversion rates, allowing travellers to save money on international transactions. 
• Rewards and benefits: Certain travel cards come with enticing rewards and benefits programmes – typically in the form of cashback or miles. By using a travel card for their expenses, individuals can accumulate points to redeem rewards that can be used on future trips or to offset other spending costs.
• Connection to mobile apps: Generally, travel cards’ services are complemented by a mobile app function. These apps are pretty intuitive and easy to use, enabling users to conveniently manage their cards, track their transactions, and even receive real-time notifications.  

That said, travel cards aren’t without downsides. Some things to note when taking on a travel card include:

• Fees and charges: Some travel cards may have ATM withdrawal fees, annual fees or currency conversion fees (for certain currencies). For example, Revolut’s foreign transaction fee rate can go up to 2 per cent on weekends. However, this continues to stay lower than other card companies’ rates, which tend to go above 3 per cent (inclusive of charges imposed by card associations such as Visa or Mastercard). Wise charges S$1.50 on a user’s third withdrawal within a month, and a 1.75 per cent fee on any amount a user withdraws that is above S$350. Do check the fee structure of the card and evaluate whether the benefits outweigh the costs for you. 
• Exchange rate fluctuations: Travel cards are subject to currency exchange rates, which can fluctuate. While some cards offer competitive rates, it is essential to stay updated on exchange rates to avoid unfavourable conversions.
• Reloading issues: If the travel card requires reloading with funds, it may be challenging to do so while travelling in remote places with limited data connection and accessibility to reloading options. Planning ahead and ensuring adequate funds are loaded onto the card can mitigate this issue.

💳 Cards to consider

With that in mind, here are some cards that you can consider using during your upcoming trips: 

ALERT: While cards can be extremely handy, it’s strongly advisable to continue having some cash on hand when travelling, as not all countries have gone cashless. Having cash can be helpful in the event of an emergency or a situation where cards are not accepted or happen to be declined. 

TL;DR: 

• Multi-currency cards can make managing your travel finances much easier 
• However, they are not exempt from ever-fluctuating foreign exchange rates 
• Consider certain fees that some travel cards pose and pick the ones you are most comfortable using 😎
• Although cards are handy, don’t go completely cashless! You never know when some cash might be useful on your trip