OK, I'll bite: has anyone used a "travel funds card"?
 

I note the newest banner ad on this forum, which is AmEx's "travel funds" card, which seems a good if tardy solution to the dwindling use of traveler's checques and the hazards/hassles of using ATM cards in foreign countries (whichever side of the Atlantic is foreign to you). Has anyone used one of these cards? Is it an expensive thing to use -- i.e., hidden or excessive fees, sharp mark-up for currency exchange, etc.?

(I won't send you to eBay for this one, either!)

Yes, they're expensive. They charge $15. to issue the card and then $2.50 for each ATM transaction/withdrawal. AND they add 2% to the exchange rate, which they get to choose from the highest listed among banks or governments. I'd say they'd be most useful to give traveling offspring (because there's a cap on funds -- $2750. per card or per account) who may be casual about keeping track of things and ought not to have access to the family bank account. Traveler's checks were cheaper and easier to keep track of and ATM cards are probably a better deal (if you can negotiate w/issuing bank to keep fees down) assuming you don't lose them.

Have a question regarding the "Travel Fund Card".: CAn it also act as a Credit Card meaning. Can someone make a hotel reservation with it, and pay for same, as though they were using a regular credit card? Assuming of course there are enough funds still loaded into the card at the time of payment? Or can this card be used for paying at restaurants and so on? Or is this card(as convenient as it maybe) only good to access ATM's?
I've some foreign friends who will visit USA for the first time later this fall, and thought this maybe a decent alternate for them?

It's up to hotels, etc. whether they will accept the card to guarantee anything, but they'd be stupid to do that, since there is a cap on reserve funds. If you go to www.americanexpress.com and poke around 'til you find their info on this card -- and then read the "Terms and Conditions" verrrrrry carefully, there's a whole bunch of stuff about renting a car and what you can and can't do. This can be a special problem.

I saw someone at a Dollar car rental place and he was completely unable to rent a car because he had no credit cards (Hasidic Jew? is this part of the requirements of being "ultra-orthodox?) and either no checking account or they wouldn't honor a check. They insist on being able to lock into some credit account in case of damage or theft (understandable if they don't abuse it by tying up a large amount without justification), and they wouldn't consider a cash deposit -- although I don't know how much he had to offer.

I would guess people trying to reserve or rent things with this card will have trouble.

I didn't answer your other questions. It's clearly intended to be used as a pre-paid credit card -- in other words, in shops and restaurants -- anywhere the AmEx card is accepted (it looks a lot like the Am Blue card). Think of it as a debit card for a separate, small savings account. You can start out with a few hundred dollars up to that cap of $2750 (where did that figure come from, I wonder), and then you can "reload" it by having funds transferred into it from another account -- which, by the way, incurs a new fee each time you "reload."

In case anyone is planning to purchase the AE Travel Funds card (despite its high fees), there is an offer right now from AE. If you purchase one between now and 9/30/04, you can get a free companion airfare.

http://www10.americanexpress.com/sif...8,00.asp#terms

Don't forget to read ALL the fine prints...

Frankly, my own old debit/ATM card, which is free from my credit union, does all of this. The one for the kids who are abroad does all that limitation stuff, too....you tell them, "When the funds are gone, start looking for work."

Seems to me this is a simple marketing concept that would appeal to some who might not have the inclination, or time, to realize they already have these capabilities without paying AE for the "privilege."

As someone above said, "read the fine print."

No, but am familiar with it. One of the biggest scams going. Bought one as a wedding gift and was later told by the newlyweds that no one accepted it.

I think AAA has a similar card with less restrictions and fees, but still exasperating ones. I wouldn't expect them to ever be better than personal cards for myself, but would like to use them as a gift - any better deals?

We used a travel funds card for one of our teens on our last trip. Never again. The fees were horrible, PLUS you have to pay to get the card to start with. Next time, we'll set him up a checking account and get him a debit card.

A mother who sent her teen with us, however, made a good point. "Those fees are nothing compared how much it would cost me if I just gave him a credit card!" I, too, would love to find a prepay that was a decent deal.

I had heard they were expensive to use. And I don't understand why this would be any better in any way than your own ATM. Even in marketing the card, what do they try to sell as the advantages?

I was just paying my credit card, and I noticed the "buy a Fleet gift card" link. There is a small fee to purchase one, and a $2.50 fee per ATM transaction. No foreign transaction fee over the 1% charged by Visa. Has anybody tried to use a gift card overseas?

Firstmate, this may be an option for your guests. We're thinking it also may be a way to give a gift to our family who lives abroad. Wiring money is really expensive.

AAA also offers travel cards, and there's no fee for members.