What matters when choosing a travel card
Three factors determine practical value for travellers:
- Exchange treatment. Whether the provider uses mid-market rates, network settlement rates (Visa/Mastercard), or adds an issuer margin. Wise states plainly: “We only use the mid-market rate — the one you can check on Google.” https://wise.com
- Fee schedule. Issuance, reload, per-transaction, and ATM fees can swamp small FX advantages. For many platforms, ATM pricing is tiered and plan-dependent: “A 2% or 1 € fair usage fee applies thereafter.” (Revolut documentation on withdrawals). https://www.revolut.com
- Operational acceptance and protections. Merchant holds, chargeback rights and in-app controls matter for convenience and loss reduction; Visa documents that it “provides daily FX rates for the 180+ global currencies that are used within VisaNet to authorize and settle transactions,” which is the network-level baseline that issuers may use or adjust. https://www.visa.com
Selecting between prepaid travel cards, travel debit and credit cards or bank debit depends on which of those three factors a traveller prioritises: cost predictability, acceptance for holds, or dispute protections and rewards.
Product classes and their practical properties
A concise taxonomy helps place the options.
- Travel credit cards. Offer strong dispute rights and rewards; many cards waive foreign transaction fees and use network rates for conversion. They are the default option when merchant holds or insurance benefits matter. Independent roundups regularly list fee-free travel cards as top picks for ordinary foreign spending. https://www.forbes.com/advisor/
- Bank debit cards. Withdraw directly from a deposit account. Some banks reimburse ATM fees or participate in partner networks; acceptance for authorisations is generally reliable. For ATM-heavy trips, a bank debit card with fee reimbursement often beats multiple small prepaid-card withdrawals.
- Prepaid travel debit cards / multi-currency prepaid cards. Allow preloading of currencies and locking an exchange rate at top-up; they are useful for budgeting and for travellers who avoid credit exposure. Their utility depends on explicit fee transparency and the exchange model used. Consumer testers emphasise that prepaid cards can save money when mid-market or low-markup rates are available, but hidden fees and dormancy rules must be checked. https://www.which.co.uk
How to test a candidate card in advance
Marketing claims should be converted into quick, verifiable experiments before travel. Three tests suffice.
- Rate test. Convert a small amount in the app (or top up in the target currency) and compare the applied rate with a mid-market reference at the same timestamp. If the issuer claims mid-market execution, confirm that claim numerically. https://wise.com
- ATM trial. Make a small ATM withdrawal from a representative terminal and record on-screen surcharges plus any issuer fee shown in the transaction feed. The sum is the effective prepaid card ATM fees for that withdrawal. Revolut and many fintechs publish plan thresholds and post-threshold percentages that can be verified this way. https://www.revolut.com
- Authorisation simulation. Request a standard hotel or car rental pre-authorisation to check acceptance; if the prepaid card is refused, plan to carry a credit or bank debit card as backup.
These checks turn opaque fee schedules into evidence and convert a marketing claim into an operational decision.
Comparing real costs: exchange spreads and ATM layering
Two mechanics commonly create surprise:
- Hidden spread at conversion. Small percentage spreads compound over repeated transactions. If the issuer applies a 1–2% hidden FX margin, that cost accumulates across daily spending. Products that explicitly pass mid-market or show the exact conversion pre-transaction avoid this trap. https://wise.com
- ATM layering. Withdrawals can attract both an issuer fee and a terminal (owner) surcharge displayed by the ATM. The combined cost is the practical marginal cash cost; consumer tests and provider pages frequently demonstrate a flat-plus-percentage pattern. For frequent cash users, the net ATM cost can flip the choice from prepaid cards to a bank debit card with reimbursed fees. https://www.which.co.uk
When prepaid travel cards make sense
Prepaid travel cards excel under a narrow set of conditions:
- The traveller wants strict budget control and wishes to lock exchange rates by preloading local currency wallets.
- The itinerary includes countries where the issuer’s accepted currencies match the required spend and ATMs are not the primary cash source.
- The user is confident that the prepaid card will be accepted for routine merchant payments and that dormancy or reload fees are acceptable.
Consumer testers find that prepaid cards can be cost-effective when providers publish transparent rates and low ATM fees; the savings vanish when inactivity charges, reload fees or poor exchange spreads are present. https://www.which.co.uk
When credit or bank debit cards are preferable
Credit and bank debit cards outperform prepaid instruments when:
- Merchant authorisations are required (hotels, rental cars). Credit cards are almost universally accepted for holds.
- The traveller values purchase protections, chargebacks and travel insurance benefits that are often bundled with travel credit cards.
- The traveller plans many ATM withdrawals and can use a bank that reimburses partner ATM fees or belongs to a network that minimises terminal surcharges. Consumer guides commonly recommend no-foreign-transaction-fee credit cards for most international spending. https://www.forbes.com/advisor/
Product shortlist and selection criteria
Rather than list “best” cards unqualified, a replicable selection rubric is recommended: rank products by (1) exchange transparency, (2) comprehensive fee disclosure (issuance, reload, inactivity, ATM), and (3) operational acceptance and protections.
- For low landed cost and transparent FX: choose providers that commit to mid-market execution and show pre-conversion rates in the app. Wise is an archetype of this approach. https://wise.com
- For broad acceptance and protection: select a travel credit card that waives foreign transaction fees and includes travel insurance or purchase protections. Consumer guides list top travel cards and their benefits. https://www.forbes.com/advisor/
- For ATM-centric cash needs: prefer bank debit cards with fee reimbursement or cards issued by banks that participate in fee-free ATM alliances. Compare the issuer’s published ATM policy and test with a small withdrawal. https://www.which.co.uk
Practical rules to avoid predictable losses
A short set of operational rules reduces cost leakage:
- Avoid dynamic currency conversion (DCC) at the terminal; accept charges in the local currency so the card network performs the conversion.
- If the issuer charges per-withdrawal fees, withdraw larger amounts less frequently, subject to safety considerations. https://www.revolut.com
- Maintain a mix: one no-foreign-transaction-fee credit card, one ATM-friendly debit or prepaid card, and a small cash float for markets that require notes. https://www.forbes.com/advisor/
Final Considerations
Choosing the right travel payment mix is a judgement that converts projected behaviour into measurable costs. The best ways to take money abroad are those that align with actual spend patterns: if most payments are card-accepting urban transactions, prioritise a no-fee travel credit card and a tested ATM strategy; if budgeting and currency timing matter, a multi-currency prepaid card that shows mid-market or transparent rates is appropriate. The disciplined traveller runs three quick tests—rate, ATM and authorisation—before departure, reads fee tables carefully, and keeps a backup instrument for holds and emergencies. That empirical approach minimises surprises, helps avoid fees when travelling, and yields a defensible international travel money guide tailored to the trip’s risk profile. https://wise.com, https://www.revolut.com, https://www.visa.com, https://www.forbes.com/advisor/, https://www.which.co.uk