Those who are traveling abroad know that there is a long way to go between the decision on the destination and the time of boarding. Good planning needs to be done. Among other things, there is the decision on how best to take money for the trip. Cash and credit cards are the most common options. But there is also a safe way to travel and still avoid surprises with the exchange rate variations: the international prepaid credit card.
This mode of payment offers some advantages that fit the profile of people who like to keep track of expenses. It also works in a practical way. It can be recharged at the same time with different currencies. Ideal for anyone who is planning a script with passage through different countries.
At that time, it’s worth considering the characteristics of your destination and the local infrastructure to use the most appropriate payment options.
How does the international prepaid credit card work?
The international prepaid credit card is a form of payment that works, in some ways, like a conventional credit card. But, there are important differences between them, which need to be considered.
Let’s now see what they are:
Advantages of the international prepaid credit card
- Control of expenses: in the prepaid mode, the customer uses only the balance that is available on the card. There are no surprises with unplanned expenses or expenses that can extrapolate the planned budget. There is the freedom to recharge at convenient times and track the balance as often as necessary.
- Lower impact of exchange variation: in the prepaid mode of the international card, you avoid unpleasant surprises related to the exchange rate variation. That’s because before using the card on your trip, you need to add credit. In this way, it is possible to program to make refills in advance. You choose the days when the foreign currency quote is more favorable.
There are websites that help you keep track of the quote for the day and also make it easy to negotiate with the currency exchange offices.
Already on the conventional credit card, you have the convenience of using the previously approved limit. However, you will only be certain of your total expenses when you receive the invoice. This happens because the price of the coins can vary a lot between the time of the purchase until the closing of the collection cycle. In that case, the surprise may not be so good.
- Refills in multiple currencies: some of the international prepaid credit cards are multi-currency. That is, they allow you to recharge in different currencies at the same time. This makes life a lot easier for anyone planning a trip that targets destinations across different countries.
- Shopping online in the credit function: The prepaid credit card can also be used for online purchases on international websites as well as a conventional credit card.
Points of attention of the prepaid modality:
- The approval of the purchase occurs only through the balance of the card: by the prepaid feature, the customer has only the limit recharged.
- No installments: it is not possible to make purchases in installments with a prepaid card.
If you want to know all the features besides the international, see more information about the prepaid credit card .
How to get an international prepaid credit card?
You can apply for an international prepaid card through a brokerage firm that can find the product that best meets your goals.
The issuers of this type of payment are financial institutions, banks, and exchange offices. The flags used are Visa and Mastercard , which have the largest network accredited in Brazil and worldwide.
In general, to obtain the card, no proof of income is required.
There are also no consultations with credit protection agencies such as Serasa and SPC. Hence, it is a good choice for anyone who is having some difficulty approving a traditional credit card.
Some international prepaid cards are linked to digital accounts. Therefore, the customer must have an active account in order to request it.
How to recharge your international prepaid credit card?
Some card issuers offer to recharge in an online environment, via applications, and even network stores and supermarkets. The cards linked to the digital accounts also offer options such as boleto bancário, debit online and deposit into an account.
How much will I pay for each recharge rate?
As we have seen, one of the favorable points of using the international prepaid credit card is to be able to plan the recharges before the trip. This is a good way to minimize possible impacts with the exchange variation of foreign currencies. Therefore, with each recharge, you must count that you will pay the value of the currency of the day.
And, as in all foreign exchange transactions, the Tax on Financial Transactions (IOF) will be charged, which is 6.38%. This is the same percentage of the international transactions of a conventional credit card.
Below we will also see some tariffs that can be charged by the prepaid card issuers:
What are the rates of an international prepaid credit card?
Card issuers have different policies when it comes to the international prepaid mode. It pays to be attentive regarding some questions:
Membership fee – some broadcasters charge. However, depending on the initial recharge value, the customer is exempt.
Tuition – Many cards waive this charge. Already some operators charge a monthly fee. In general, in the sum of 12 months, these amounts are lower than the conventional credit card annuity.
Recharge – charges may also apply. Some stations exempt depending on the value to be recharged.
Rate for withdrawals – the customer also needs to be aware. There may be charges for withdrawals at national and international ATMs. The values vary from transmitter to transmitter.
Second card route – the amounts charged for the issuance of the second route are also different for each carrier.
International Use Fee – Some cards charge a percentage on the currency conversion rate.
What if there is a balance on the prepaid credit card?
After the trip, if you return with a balance on the card, you can save it for another opportunity. But in this case, you need to know that some cards charge for inactivity.
There is also the option to redeem the remaining amount of foreign currency in reais. But you need a lot of attention because in this operation there is a devaluation. This means that when you sell your balance, the customer will receive in real less than the amount invested in the purchase of the foreign currency.
Now that you’ve seen how each payment scheme works in practice, you can now decide more safely on your travel planning. Credit cards always offer advantages as they can complement the budget. In addition, they ensure safety and practicality. The important thing is to always adopt at least two different ways so as not to have unpleasant surprises on foreign soil.
Tip: always take into account the characteristics of the country you want to visit and also the purpose of the trip you will make.