Travelers cheques are likely to become a thing of the past as
backpacking tourists begin to opt for prepaid foreign currency cards, according to moneysupermarket.com.
Being more efficient and cost-effective, prepay debit cards are likely to suit budget tourists more than travelers cheques or cash.
It is also safer, with more than one third (39 per cent) of fraud abroad the result of credit card loss, recent research from Apacs found.
It is also useful for those on
student travel, who "perhaps can't obtain any form of credit card", which offer extra protection.
"It does give them a way of taking money abroad - and often at more competitive rates than obtaining foreign currency at, say, an airport," notes Steve Whilley, head of cards and payments at moneysupermarket.com.
"Once you've loaded your money in the currency you chose…you don't pay any fees on the transactions, so there are no exchange fees thereafter," he added.
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