If you’re reading this, you’re interested in finding a new card to use when travelling abroad. Specifically, a card that doesn’t charge you high, or even worse, hidden fees when spending on your trip.
So we’ve compared Travelex’s Terms and Conditions for spending abroad with our own, to help you make the right decision.
What is Travelex?
Travelex is a global foreign exchange and international payments company, founded in 1976.
What card options and plans does Travelex offer?
Travelex offers a free to use prepaid money card that enables you to load money onto it to use abroad. It is called a Travelex Money Card.
So what does Travelex charge you to spend abroad?
We don’t believe fees should ever be hidden - so we’ve done the calculations for you.
The amount you get charged is very dependent on how you use the card, so bear with us..
If you top-up your Travelex card straight into foreign currency, the charges aren't actually stated but taking a few currencies over a week long period, we found the spread varies from 2%-4%. So if you then spend in that currency, that's the fee you'll have paid.
If you top up in pounds and then convert afterwards, then on top of this conversion rate you'll also face a 2% 'pound top up fee' beforehand.
In the worst scenario, if you spend abroad in a currency which you don't currently hold in your wallet, or isn't supported by Travelex, you'll incur a 5.75% foreign exchange fee. Given they only support 22 out of 180 currencies, there is a significant risk you'll be hit with this rate. So if you topped up in pounds then just spent in USD on your holiday without first "converting" for another 2% charge, you could find yourself paying 7.75% for the privilege.
In summary, Travelex charges a fee that varies from 2% to 7.75% for spending.
Travelex also have a £3000 spending limit each day- so if you stay in an expensive hotel, you may be unable to pay at the end of your stay and have to use your regular bank card with associated charges.
What other fees does Travelex charge?
Replacement card
While Travelex don't charge for replacement cards, they do charge an inactivity fee of £2 per month if you don't use your card for a continuous 12-month period, including after your card expires.
Balance below zero
If your balance falls below zero because of a transaction there is a £10 charge. The 5.75% charge also applies if you don’t have enough money in the transaction currency and the rest is taken from another currency wallet.
What is Currensea?
Currensea is a travel debit card that allows you to spend money directly from your trusted bank account, rather than having to open up a new one or top up a prepaid card. It is based on open banking, which was introduced several years ago to promote innovation and competition in financial services so that you have access to a wider range of options and rates.
What card options does Currensea offer?
Currensea has three travel cards, including Currensea Premium and Currensea Elite. For the purposes of this comparison, we'll be focusing on Currensea Essential, which is free like the Travelex Money Card.
What is different about Currensea?
What Currensea offers is a product focused on providing you with the best possible rates as you spend abroad. Our card partners directly with your trusted bank account (unlike other travel cards), meaning that you can spend with your Currensea card abroad just as you would at home with your regular debit card. Funds come straight out of your bank account, and you can spend whatever balance you have.
Because it’s not a prepaid card, you never have to top up your Currensea card. You don’t have to worry about losing it and any funds that might remain on it, nor do you have to constantly top it up and remember how much you have on it: we offer travel, but without the hassle.
We also check how much your bank would have charged you to use your regular debit card abroad- and we can tell you exactly how much money you saved by using your Currensea card.
What does Currensea charge to spend abroad?
We convert your currency based on the real-time interbank exchange rate, with an additional markup of 0.5% per transaction no matter when and where you use it or how much you spend with it. No hidden fees, no weekend fees, no increases to the markup - just clear, transparent information on how much we charge and how much you save.
What other fees does Currensea charge?
Cash withdrawal
We charge our usual fee of 0.5% for withdrawals up to £500 a month, and for anything over this amount we charge 2%.
Replacement cards
While your first card is free, we charge a £5 replacement fee (but no delivery fees).
How does Currensea stack up against Travelex?
We compared how much it would cost spending with Currensea versus Travelex on a 10 day holiday to Florida for a family of four. Take a look at the table to see the breakdown of spend.
| |
Currensea charges |
Travelex charges |
| $10,000 on card spending |
£39.06 |
£156.24 |
| $600 on ATM withdrawals |
£2.34 |
£9.37 |
| TOTAL |
£41.40 |
£165.61 |
In this example, we've assumed the very best case - that you top-up directly into the currency that you'll spend abroad, and that the rates are at a favourable level. In the worst case, where you top-up in pounds then spend in a foreign currency, the fees can be over 3X those quoted above at £641
Total saved with Currensea vs using Travelex: £124.41
In summary
When used carefully in the currency you top up with, Travelex could be a good option if you are looking for a prepaid card. Rates can be similar, and even sometimes better than alternatives.
However, if you are looking for great rates, then Currensea is the better choice. We've been relatively generous to Travelex in the example above and assumed you solely spend in the currency you top up with- in which case you'll typically be charged between 2% and 4% for the initial conversion. However, while this is similar to some other pre-paid cards, it is still at least four times as much as Currensea charges.
On the other hand, you could have topped up in pounds and converted afterwards, in which case Travelex will charge you an additional 2% 'pound top up fee', meaning you'll be charged a total of 4%-6%. And even worse, if you forget to convert and spend in a currency which you don't currently hold, or isn't supported by Travelex, you'll incur a 5.75% foreign exchange fee. Given they only support 22 out of 180 currencies, there is a significant risk you'll be hit with this rate. So if you topped up in pounds and then spent in USD on your holiday without first "converting" for another 2% charge, you could find yourself paying 7.75%.
Since it is a prepaid card, you'll need to remember how much is on it and faff around topping it up as you spend abroad. And if you don't spend all the money you top it up with, you'll also have to remember to take the unspent balance off your card when you get home, incurring yet more charges. On average in the UK in 2023, prepay travel card users returned home with £78 on their card...
With Currensea on the other hand, you can spend abroad just as you would at home with your regular debit card, since your card partners with your existing bank account. With Travelex charging between 2% and 7.75%, versus the real-time interbank rate with a markup of just 0.5%, you'll typically pay between four and fifteen times more in charges to use Travelex. With Currensea you can also set your own limits, to provide the same spending protection as a pre-pay card. We offer travel, but without the hassle.
Overall, if you want a card you don't have to continually top up that focuses on providing the best rates possible, then Currensea is the right choice for you.
