Avoid Holiday Nightmares: Use Travel Prepaid Cards
Travel Prepaid Cards
In 2014, 31.8 million U.S consumers had their credit cards breached, more than three times the number affected in 2013 (Nasdaq, 2014). The results of decreased cash use for transaction are an increase in the use of credit cards for most purchases. Unfortunately, this also brings more people trying to execute credit card fraud through all sorts of methods. Travel Prepaid Cards
Compounding this problem are the issues credit card holders have with attaining debt. Credit card owners don’t need help losing their money and cards. In the U.S, credit card holders have an average of $16,140 on credit card debt (Nerdwallet, 2015).
As a result of these issues, the need for a method to make safe payments and manage budgets is at an all-time high. Some situations where people are most vulnerable to these risks are when they are traveling.
Here are some possible scenarios where these issues can rear their ugly head.
Scenario #1: My Swimsuit has no pockets
You’ve finally made it to your winter holiday after a long and exhausting year. Looking forward to spending some quality time catching rays on the beach in Miami, you’ve packed your full swimsuit and hat collection with no intentions of looking at an email all week.
Walking to your first day on the beach, you realize your swimsuits have no pockets. No worries, you’re on vacation and sticking your credit card and extra cash in your waist band will work just fine.
After enjoying a long relaxing day on the sand, you start the walk back to your hotel room. After a few steps, you realize your credit card is missing from your not-so-trusty waist band. With no idea when or where you may have dropped it, your stomach sinks thinking that your card may be in the hands of a stranger that won’t think twice to spend your money.
Stat: 14% of U.S card fraud occurs because of lost or stolen cards.
Suddenly that $10,000 limit seems like it could easily be reached this month.
Scenario #2: The POS from hell
When you get home you realize some weird transactions one your bank statement. It seems that your exploratory nature backfired with some transactions at some shady, un-reliable merchants leading to credit card fraud.
Stat: In Europe, 69% of all credit card fraud losses originate from a remote purchase (Financial Fraud Action UK, 2014)
Scenario #3: I can’t stop spending money
Over the last few months you’ve been meticulously planning your two week long vacation across Europe. With all flights and hotels booked, you think your projected spending is set at a reasonable limit.
During your trip you find that you have a larger taste for French cuisine and Italian fashion than you first thought. When you get home you and your luggage are ten pounds heavier than when you left.
Unfortunately, once you see your bank account and credit card bill, you realize that your extra weight is going to be easier to lose than the debt accumulated over the last few weeks.
Solution: Prepaid Cards
Although many travelers are becoming increasingly careful when it comes to handling their money while on vacation, the consequences of these scenarios are still very possible. As a result, travelers are putting more value on products and services that offer something with increased security and budget restrictions.
One effective solution to mitigating these problems is using prepaid cards. Travel agencies that have prepaid cards for their customers offer a solution to credit card fraud and budgeting for traveler’s vacation.
1. Using a prepaid card is especially effective when you want to manage a limited budget on your trip. Since the idea behind a prepaid card is that the funds on the card are already paid for, you can only spend the money you have on the card. This makes budgeting for a trip much easier to plan and follow through with
2. As a result of the way prepaid cards work, they often offer more security than debit and credit cards. Like credit and debit cards, prepaid cards are protected by a PIN or signature; however, since they are not linked to a bank account, you are only at risk of losing money that is on the card
3. If your prepaid card is stolen or lost, your credit score will not be affected. This is important for people who are looking to protect their credit score while on vacation
4. Prepaid cards offer the same freedom and flexibility of a credit card. They can be used at any POS where credit and debit is accepted and can be used at many ATM’s.
For reasons like this, travel agencies should seriously consider offering a prepaid card to their customers. Offering this type of product can be very appealing to customers looking to manage their budget and limit security risks while on vacation.
Travel Prepaid Cards