The 6 Best Prepaid Travel Cards for Australians 2024

What are Prepaid Travel Cards?

Prepaid travel cards are a good international card alternative to carrying cash. They look like credit or debit cards, but they function differently.

You're able to load the card with a set amount of money in the currency you need and can use it to make purchases online, in stores and to withdraw money at ATMs.

Most travel cards allow for multiple currencies to be loaded onto the card. So it's important to know what currency you'll be using on your travels. Airlines also offer prepaid cards so the money you spend can earn you reward points.

Find out how our 5 best prepaid travel cards for Australians compare in our best and worst travel cards article.

Looking for something different?

Read our guides on:

• The best travel debit cards
• The best travel cards for Europe
• The Wise debit card review
• Best virtual debit cards for Aussies

How does a prepaid travel card work?

Order a prepaid travel card online, through a provider app, or - in some cases - pick one up at a physical location or store. Generally to get your card you’ll need to show or upload some ID documents for verification - this is to keep your account safe and is a legal requirement.

Once you have your card account open, you can load funds. Different cards have their own supported methods for topping up, which usually include bank transfer, PayID, credit and debit card, and which may also allow you to deposit cash in some cases. Once you have funds on your card, you can switch to the currency you need for overseas spending. In some cases you can also leave your funds in AUD and just allow the card to convert for you - but do check that no additional fees will apply in this case.

Prepaid travel cards can then be used to tap and pay, make withdrawals and shop online. You can often also add them to mobile wallets like Apple Pay for convenient spending. Because your card isn’t attached to your everyday account it’s secure, and you can only spend the funds you’ve loaded, which means there’s no chance of accidentally blowing your budget.

Fees when withdrawing cash with your bank card abroad

There is likely to be a fee when taking money out of an ATM overseas. Your own bank is likely to charge an ATM fee which is often higher compared to using an ATM at home. The ATM operator might also charge a fee. Some banks do offer discounts or waived fees if you use an ATM operated by a partner bank in the foreign currency.

Usually, any ATM fee will apply on top of the foreign transaction fee we described earlier, which can be 3% or more.

*Data correct at time of research - 14th November 2024. Sources: Westpac; ANZ; NAB; CBA
 

Are there any travel prepaid cards with no fees?

You may find that some providers offer travel prepaid cards with no listed foreign transaction fees, but in general it’s not possible to completely avoid extra costs when spending in foreign currencies. Where a card states no foreign transaction fee, the costs you pay are likely to be built into the exchange rate you’re given when you switch from AUD to the currency you need to spend with, instead. 

If you’d like a low cost card which lets you spend conveniently around the world, check out Wise and Revolut as handy options which let you convert your funds to the currency you need first and spend in the foreign country like a local once you’re there. You’ll be able to clearly see what currency conversion is costing you, and can choose to exchange at a point that the rates look good.

Loading money on to your prepaid debit card

You’ll find that different prepaid debit cards have their own ways to add funds. Usually you can choose between options such as:

• Bank transfer initiated by yourself or received from a third party
• BPAY payments 
• Top up with credit or debit card
• Add money with a wallet like Apple Pay
• Add cash in a retail location

Pros and cons of travel prepaid cards

Prepaid cards can be a handy addition when you’re abroad, as they are secure and convenient to use for payments and withdrawals. However, they’re not the only option. If you’re not sure about whether a prepaid card is right for you, check out these Pros and Cons to help you decide:

Read more on how to find the best travel cards with no foreign transaction fees

Who is a prepaid debit card for?

A prepaid debit card is handy for many different customer needs. For example, you may choose a prepaid debit card in the following situations:

• You’re planning travel and want to set your budget in advance with no chance of accidentally overspending
• You want to be able to hold and exchange a selection of foreign currencies all in the same account
• You want to increase security by using a payment card that’s not linked to your main everyday account when you travel
• Some cards also offer other perks like ways to receive foreign currency payments conveniently, or cashback 

Are prepaid travel cards safe?

Spending with a card is generally safer than carrying lots of cash - and travel cards usually have the extra benefit that they’re not linked to your main everyday transaction account. This means that even if you’re unlucky and someone steals or clones your card, they can't access your full bank balance. 

Another handy security feature to look out for is virtual card options. Some providers like Wise and Revolut let you generate a virtual card which is only available on your phone. You can use it to transact, then freeze it immediately so it can not be used again until you reactivate it. This can be reassuring when you’re in an unfamiliar place.

How can I get a prepaid travel card?

Different prepaid cards have their own order and activation processes. However, to comply with local and international law, providers will usually need to see some ID before you’re able to get a card - this verification step may be available online by uploading images of your paperwork, or in person by visiting a branch. 

Here’s an outline of the basic steps you’ll take to get a prepaid travel card:

1. Pick the right card for your needs
2. Visit the provider’s website or app - or call into a branch if you’d prefer a face to face service
3. Complete a travel card order from, which will include your personal information
4. Get verified - usually this involves showing or uploading ID like a passport or driving licence
5. Add money to your card, which could be in cash, with a bank card, or by bank transfer
6. You can now get your card, and manage your account online or in the app

If you’re ordering a card in person you’ll be able to start using it right away. If you’ve ordered online for delivery, you’ll need to wait a few days, to a couple of weeks, depending on the provider you’ve picked, for your card to be available. You might be able to access virtual card details in the meantime, to start spending right away.

How to choose a prepaid debit card

There are many different prepaid debit cards on the Australian market - so picking the best one for you will require a bit of research. Starting with this guide, compare a few different prepaid debit cards based on features and fees. Here are a few pointers to think about:

• Make sure you know about any opening or card delivery fee which will apply once you order your card
• Check how long it’ll take to get your card if you’re ordering online for home delivery
• Make sure the card you pick can hold a broad selection of currencies, so you can use it for more than one trip away
• Check the fees for adding funds, making ATM withdrawals and converting currencies
• Look to see if there are any account close, cash out or dormancy fees that apply once you stop using the card
• Make sure the card is well rated by other users, and from a trustworthy provider

Who is a prepaid debit card for?

A prepaid debit card is handy for many different customer needs. For example, you may choose a prepaid debit card in the following situations:

• You’re planning travel and want to set your budget in advance with no chance of accidentally overspending
• You want to be able to hold and exchange a selection of foreign currencies all in the same account
• You want to increase security by using a payment card that’s not linked to your main everyday account when you travel
• Some cards also offer other perks like ways to receive foreign currency payments conveniently, or cashback 

What’s the difference between a travel prepaid card and a credit card?

You’ll probably use both a travel prepaid card and a credit card in the same way to spend and withdraw, but how they work is quite different.

To use a prepaid card you must first add a balance to your card account. You can then spend to that limit, and your card will be declined once you run out of money. Funds are deducted from your account instantly when you spend. There’s no interest to pay and no penalties - just add money as and when you need it for spending, and top up as you go.

A credit card works differently in that you’ll be able to spend to your card’s credit limit before you’re issued a bill at the end of the month. You’ll need to clear your bill in full and on time every month to avoid interest and penalties - if you don’t pay in full, interest accrues which pushes up the costs in the end.

Tips to use your card abroad

Here are a few handy pointers to help you get the most from your card spending abroad:

• Always pay in the local currency wherever you are. You may be asked if you’d prefer to pay in AUD, but this will leave you open to higher fees and a poor exchange rate.
• Take several different means of payment with you, including cards on different global networks, in case one is unavailable or not accepted at a particular retailer
• Check your card’s fees and rates before you use it - in particular look at the costs for ATM withdrawals which can be much higher when you’re overseas
• Ask your bank or card provider if they have ways of reducing or waiving ATM fees - some banks are part of a global network which offer free or low cost ATM use to other customers of other banks
• Get yourself a low cost travel card from a provider like Wise or Revolut before you travel to access secure  spending and withdrawals with low costs and great exchange rates