A prepaid travel card, also known as a 'travel money card', is a debit card that you preload with money and take on holiday. It's a good way to stick to your holiday budget and avoid carrying a lot of cash. 

Prepaid travel cards can be used at cashpoints, in shops and restaurants, and almost anywhere else that accepts Mastercard or Visa debit or credit cards. 

There are exceptions, one being self-service petrol stations, where you insert your card before filling up. Reports abound of blocked transactions. However, a prepaid travel card is not the same as a credit card for two key reasons:

• You can only spend the amount you have put on the card; the pre-loaded limit prevents you overspending and getting into debt 

• You can choose which currency to preload your travel money card with depending on where you're going, which often means you can secure a better exchange rate

Pick a card with fees that suit how you plan to use it, e.g. choose one with no withdrawal fees if you'll be withdrawing cash often while travelling.”

Anyone can get a prepaid travel card. There's no need to have a bank account, and no credit checks are required. Some providers have a minimum age of 18, but others will let you have a prepaid card from the age of six with parental consent. 

Sometimes parents like to use travel money cards to give their children a set amount of holiday money, and to help teach them about budgeting and financial responsibility. 

Exchange rates vary over time depending on what is happening in the wider economy. That means the exchange rate you get for US dollars today, for example, might not be the same as you get tomorrow or next week.

What prepaid cards offer is the ability to lock in today's rate to use later on. That could see you better off if the pound weakens, but might also mean you get a poor deal if the pound strengthens.

Either way, it offers certainty - you'll know exactly how many dollars, euros, lira or whichever currency you load onto the card you have to spend on holiday.

Some prepaid travel cards hold the balance in pounds sterling. These convert the required amount to the local currency every time you spend on them.

The exchange rate isn’t fixed, so you’ll only know how many pounds you have on the card - not what it will buy you while overseas.

But the cards in our comparison tables convert your money when you add it onto the card. This means you know the exchange rate used and your card's exact balance before you go away.

As well as the exchange rate, you might have to pay several other charges on your prepaid travel card.

These could include:

• A fee to buy the card

• A monthly or annual fee for keeping the account open

• Cash withdrawal fees

• Transaction fees when you pay for anything on the card

• Inactivity fees

• Loading fees when you add money onto the card

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