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F
ootball fans heading
to the World Cup in South
Africa next week may
end up scoring an own
goal when it comes to
holiday money.
Restrictions on importing and
exporting South African currency
mean visitors can only take 5,000
rand in cash – equal to around £450
– into or out of the country.
Travellers who take too much
risk having it confiscated at the
airport when they enter the country,
although there is no restriction on
taking in foreign currency such as
sterling if you are prepared to
exchange when you’re there.
England supporters are expected
to spend up to £319million or,
£6,399 each on flights,
accommodation food, drinks and
souvenirs if the team reaches the
final, according to Virgin Money’s
Football Fans’ Inflation Index.
Taking a prepaid card is one
way around the problem of taking
spending money to any country,
including South Africa. Travellers
cheques are a bit outdated and need
a passport at the point of exchange.
Prepaid cards are also protected
by Chip and Pin and, should they
be lost or stolen, are a useful weapon
against card fraud.
in association with
World Cup trips: South
Africa-bound football fans
needn’t face penalties for
carrying too much cash
BY JAYNE ATHERTON
What’s more, prepaid cards can
work out cheaper than debit or credit
cards, which have fees attached –
typically a foreign transaction fee of
2.75 per cent and a cash handling fee
of around 1.5 per cent.
A prepaid card is ‘loaded’ with
spending money and used like
a debit or credit card in shops,
restaurants and bars or to withdraw
cash at ATMs. Usually the prepaid
cards are loaded with sterling,
euros or dollars.
The Limited Edition Travelex World
Cup Cash Passport card, however,
allows you to withdraw local
currency at ATMs and can also be
preloaded with rand, as a special
concession for the tournament.
A major benefit is the exchange
rate is fixed at the time you buy.
Additionally, the card is not attached
to the user’s bank account, comes
with a free second card and has
a 24-hour global emergency
assistance service. It can be
used to make withdrawals from
cashpoints or to make purchases
anywhere that accepts Visa, and
there are no charges for use
while abroad.
As Travelex supplies Sainbury’s
Travel Money, the card is also
offered through the supermarket
bank. It can be preloaded with
up to 85,000 rand (about £7,000).
An alternative is the Prepaid
Financial Services Mastercard Rand
Travel Card, which can also be
loaded with South African currency
by a debit or credit card online or
through a mobile phone. There are
no application charges but there is
a two per cent ATM fee and purchase
transaction fees.
Sarah Kendall (pictured left), of
New Cross, south-east London, is
travelling to the World Cup and has
£800 loaded on her Travelex card.
‘I’ll be staying for more than three
weeks and have tickets to a couple
of the England games in the group
stages,’ she says. ‘I thought a prepaid
card would be a good idea when
I found out about the restrictions on
taking money into South Africa
but I was also concerned about the
security aspect of carrying a lot of
cash around.
‘Plus, if my prepaid card is lost or
stolen, I can get a replacement
and I won’t lose any of the holiday
money, which puts my mind at rest.’
The certainty of the exchange rate
is another advantage of prepaid cards.
If you are not bothered about the
chances of losing a little money if
exchange rates deteriorate, then you
could take a sterling-loaded card,
which you could use for other trips
abroad. And, of course, you could
increase your spending money if the
pound strengthens against the rand
while you are in South Africa.
CaxtonFX’s Global Traveller Card
has prepaid MasterCards in sterling,
euros or dollars and there are no
fees for overseas ATM use, handling
charges or top-up fees. FairFX also
offer a Currency MasterCard with
free oversees transactions but a small
charge on using ATMs abroad.
INSIDE UMORTGAGES AND REMORTGAGING ADVICE, AND FINDING THE BEST SAVINGS RATES
Pictures: Getty, Alamy
MONEY MATTERS
A prepaid
card is a
rand idea
Metro
Guide