Introduction
A money card is a debit card that is filled every time you get paid. It is a card that your paycheck is uploaded to. Wal-Mart is a pioneer in taking out a commercial money card which is actually an uploadable credit card. You can control how much you want on the card and you can use it like a credit card or a debit card at banks or stores. It beats carrying of cash around.
However, the most important use of a money card is in travel terms. A money card is a handy item for travelers. It is used just like a debit card and it is preloaded with foreign currency. It works like a typical prepaid card. You load it with money that you can spend abroad.
A travel money card will allow travelers to set up personal spending limits without incurring heavy charges and over-the-limit fees. The major provider of this card in this country is American Express. A money card is convenient for young people traveling alone as parents can feel comfortable that their children wont be left stranded without funds in a place abroad. Money card can come in useful for foreign students who do not have credit cards.
People have been asked to use credit and debit cards for a long time now while going abroad as the exchange rates are better than you would get with cash or traveler checks. This case was true at one time and though the exchange rates may still be favorable, banks have started charging heavy fees for people who want to take advantage of this convenient method. In the country, the travel money card is still relatively unknown. These cards have not been in circulation very long and they are just starting to gain recognition in Europe.
Features
One of the major benefits of using a money card is the opportunity to hedge exchange rates. If the card is loaded with your home currency which is at a favorable rate and if it is not used until it drops against the currency of the country you are going to, you will have extra money on your money card. This could be a huge benefit to business users even if it does not make that much of a difference to a casual user.
A money card can be used at all places where MasterCard and Visa are accepted. In Europe and the country, that is just about everywhere. You have to remember that you do not withdraw money on a money card from an ATM as it will be expensive. It is better to use the money card directly at an establishment as it is just like a cash transaction and you will not be charged extra fees.
Tips and comments
Some companies have started offering a more global money card although the most common currencies available on the cards are still the British Pound, the Euro and the Dollar. More currencies will become available on a money card as it grows in acceptance. These cards have become popular in the business world.
A money card is slowly becoming the next best thing to carrying cash. The card lets you purchase a certain amount of foreign currency at the exchange rate prevalent on that day. Unlike the fluctuating exchange rate that affects credit cards and the ATM withdrawals when used abroad, this foreign currency amount on your money card lies as accrued credit.
