A prepaid overseas card works by allowing you to buy an amount of foreign currency and using it as and when you need it, like a pay-as-you-go mobile phone.
Prepaid overseas cards have many benefits to other methods of spending on your gap year. Most banks charge transaction fees for using their credit and debit cards abroad, but a prepaid overseas card can save you up to 3.5% on transaction fees.
Unlike a credit or debit card, you can only spend the money which is available to you on a prepaid overseas card, so there's no danger of going overdrawn or getting into any debt when you're on your gap year. If your card is lost or stolen, it can be reported and blocked, so nobody else will be able to spend your money.
A prepaid overseas card can be a great way to spend money on your gap year, however, much like insurance policies, it is important that you make sure to choose the card which is best for you. Typically, you can get a prepaid overseas card in almost any currency and you can spend between countries. Using a prepaid overseas card means you get the best exchange rates on foreign currency. When choosing your prepaid overseas card, look at the different rates of each card. Unexpected charges can creep up on you, so make sure you're aware of all the features of your card, such as whether or not it charges ATM fees, transaction fees or any monthly fees.
Using a prepaid overseas card on your gap year makes it easy for you to keep track of any money you spend. Most companies will allow you to check your transactions online, while many offer an SMS service to inform you of your balance. The cards are easy to top-up, so you can get your parents to put more money on your card if needs be, and it should only be one or two days until you can access any new money.
A card like Caxton FX can be ordered online for free and sent straight to your door. You can top it up at any time and works all over the world like a debit or credit card would. Apply for your Caxton FX card here.