up travel card pros and cons

Are Prepaid Travel Cards a Good Idea?

They can help with budgeting but compare them with other debit and credit card options before you go.

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A prepaid travel card can offer fraud protection, with your liability limited to $50 if you report it within two business days of learning of the theft.

Whether you're planning a trip to Bali or Boston, staying on a budget and keeping your money safe is essential. A prepaid debit card can help.

Prepaid travel cards function similarly to general-purpose prepaid debit cards but offer extra perks that can make your life a little easier when you're abroad. However, they also come with limitations and other drawbacks that may give the casual traveler pause.

What Are Prepaid Travel Cards?

Prepaid travel cards, also sometimes called international prepaid cards, can make spending easier when you're outside the country.

There are two primary types of prepaid travel cards:

Multicurrency prepaid travel cards. These cards allow you to load cash in specific currencies onto your card before you go on your trip, letting you lock in your exchange rate instead of paying the current rate at the ATM or point of sale.

You can then use the card wherever its payment network, such as Visa or Mastercard, is accepted.

You can't load cash with just any currency, though. Even major prepaid cards may be limited to only a handful of currencies. For example, some have only six currencies available: the euro, British pound, Australian dollar, Canadian dollar, Japanese yen and Mexican peso.

General travel prepaid cards. These cards don't differ much from traditional prepaid debit cards. However, they're more likely to offer certain features that can come in handy when you're overseas.

Examples include chip and PIN capability, emergency cash and card replacement, and international ATM use.

Not all prepaid cards have a chip though, and that can be a problem, says Quentin Telep, director of financial services for AAA National. "In many countries, especially in Europe, they've had the chip functionality for many years."

You may have difficulty using a chipless card at unmanned kiosks and other automated payment points.

What Are the Benefits of Having a Prepaid Travel Card?

If you're planning a trip within the U.S., you likely won't need a travel prepaid debit card. But if you're traveling internationally, you may gain some benefits from doing so.

It can help with budgeting. Sticking to your vacation budget can be tough. Traveling is a time to let loose and live a little, and it can be easy to spend more than you originally planned.

"It's a little easier perhaps to overrun the credit card when you're on vacation and you're not really thinking about how much you're spending," says Mike Clark, co-founder of PrepaidCards123, an online tool for comparing prepaid debit cards. "You may want to set aside a specific amount for your spending money while you're on your trip, and people use prepaid cards for that purpose."

You'll be protected from fraud. Prepaid debit cards are required to give cardholders the same level of fraud protection as traditional debit cards.

This means that if someone uses your card without your permission, your liability is limited to $50 if you report it within two business days of learning of the theft.

Some prepaid cards may go above and beyond this standard, providing a zero-liability policy that protects you from losing any money, even if you don't report the theft before charges show up on your account.

Prepaid cards offer a buffer for your accounts. If you're wary about using your debit or credit card on your trip, a prepaid card can help. While all three types of cards offer some level of fraud protection, it might take time to recover.

A thief who gets access to your debit card could do serious damage to your bank account right when you need funds the most. For example, you may not be able to get reimbursed right away, or it may take some time to receive a replacement credit card . If any kind of theft happens with your prepaid card, the stakes are much lower.

What Are the Disadvantages of Using a Prepaid Travel Card?

While prepaid travel cards can have their perks, watch out for some potential pitfalls, too.

They can cost more. General prepaid debit cards typically charge foreign transaction fees on purchases made in a foreign currency. And though many travel credit cards waive that fee, prepaid travel cards don't. That means you may be paying 3% on top of every purchase you make on your trip.

Even if you exchange your currency before you go with a multicurrency card, you can expect to pay a premium. For example, you may pay a fee of 5.5% to exchange U.S. dollars to an available currency.

Prepaid travel cards could be a more expensive option than other methods of obtaining foreign currency, such as withdrawing cash from an ATM at your destination. "The exchange rate is not nearly as favorable as you would even have if you prepurchase currency at a bank," says Clark.

And if you don't use all the money on the card, you may be subject to a fee to get a refund of your remaining balance.

Prepaid travel cards can also come with other costs, such as fees to load money onto the account, inactivity fees, ATM fees and even a fee to set up your account.

They don't provide rewards or perks. If you're a disciplined spender and can stick to your budget while traveling, a travel rewards credit card may give you a lot more value than a prepaid travel card. Not only do most travel credit cards charge no foreign transaction fees, but you could get access to rewards and other perks such as statement credits for select travel-related expenses, travel insurance protections , complimentary airport lounge access and more.

Most benefits aren't unique. There are some clear benefits of using a prepaid travel card when you're out of the country, but other products could offer the same benefits.

For example, both traditional debit and credit cards offer fraud protection, and you can also avoid debt by using your regular debit card. And while prepaid travel cards come with a built-in limit as to how much you can spend, it's possible to do the same thing with your checking account – you'll just need to make sure your overdraft protection is disabled to avoid nonsufficient funds charges.

You may run into limitations. If you're hoping to get a multicurrency card, you'll only be able to use it if you're visiting a country that uses an eligible currency.

"It's kind of limited in terms of the geography where it's viable," says Telep, "and it also is really only suitable for frequent international travelers or people who are on very extended international trips."

Should You Consider Using a Prepaid Travel Card?

Prepaid travel cards may sound appealing because they're geared toward travel use. But they don't always provide more than what you get from using your regular debit card and a travel rewards credit card.

And while a multicurrency prepaid travel card sounds like it can make your life easier, you'll pay a premium to preload the currency of your choice. Credit and debit cards may assess fees, but many of them are easier to avoid than on prepaid card fees.

Some prepaid cards charge high monthly fees, for example, which may feel unnecessary if you're only using it when you travel. If you're thinking about using a prepaid debit card when traveling overseas for the forced budgeting feature, avoid limiting your search to cards that brand themselves as prepaid travel cards. Instead, also consider general-purpose prepaid cards that allow for international ATM withdrawals and don't charge a lot of fees.

"Look for a card that has a fee structure that's not going to penalize you if you only use the card two or three times a year when you’re going on various vacation trips," says Telep.

You'll also want to make sure you don't run into limitations on how and when you can use your card while you're traveling.

"If I'm traveling abroad, I have to make sure that my prepaid card is going to work for both cash access and for purchases abroad," says Clark. "And you're always going to want to go with a Visa or Mastercard network because of the acceptance abroad."

Consider Using a Mix of Payment Methods

Instead of focusing your vacation spending on just one form of payment, consider using more than one. For example, a travel rewards credit card may be best for most purchases because you can avoid the foreign transaction fee and earn valuable rewards on each transaction. Then use a traditional or prepaid debit card to withdraw cash from ATMs, since credit card issuers will charge a cash advance fee on these transactions.

By having multiple payment options, you can judge which one is the best every time you need to make a purchase. It can also help if one of them gets stolen. While some credit cards and prepaid debit cards offer emergency cash and card replacement services, having a backup ready to go can be a major stress reliever.

Whatever you do, take some time to compare your options to make sure you're getting the most value out of your trip.

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Sticking to your travel budget isn't always easy. Using a prepaid travel card is one way to help keep your money safe, and can make sense for those who want to avoid overspending while on vacation. 

Prepaid travel cards are an alternative payment option to consider, especially when traveling outside of the U.S. They work like other prepaid debit cards but often come with valuable extra benefits that are perfect when traveling abroad, like loading other currencies onto them. 

Keep reading to learn more about prepaid travel cards, how they work and whether they are right for you. 

What Are Prepaid Travel Cards and How Do They Work?

Prepaid travel cards are prepaid debit cards that make spending easier when traveling outside of the U.S. Sometimes referred to as international prepaid cards, these cards allow you to load funds using specific currencies before you travel, making them a good tool if you're trying to stick to a specific trip budget. Cardholders can even reload additional funds as needed. 

Several payment networks like Mastercard and Visa offer prepaid travel cards. These cards are accepted almost anywhere worldwide and allow you to lock in exchange rates before traveling internationally. They also provide an extra level of security with zero liability protection from unauthorized purchases if your card is lost or stolen. 

Types of Prepaid Travel Cards

Most prepaid travel cards fall into two categories. 

1. Multicurrency Prepaid Travel Cards

Multicurrency prepaid travel cards allow you to lock in a specific exchange rate in several currencies before you travel. You avoid paying current exchange rates at an international ATM or merchant by loading funds ahead of time. 

These cards can be used wherever they are accepted. Since many of these cards are tied to payment networks like Visa or Mastercard, consumers have few limits when using prepaid travel cards. 

Not all multicurrency prepaid travel cards offer the same currency options. Some cards only offer a handful of the more popular currencies — the Australian dollar, British pound, Canadian dollar, the euro, Japanese yen and Mexican peso. Other cards offer over 50 different currencies. 

2. General Travel Prepaid Cards

General travel prepaid cards work like other prepaid debit cards where you can preload funds into the card, but with a few extra features handy for travelers. 

Some features of general travel prepaid cards can include:

• International ATM Use 
• Modern Features Like Chip and PIN Capability
• Emergency Cash Assistance
• Quick Card Replacement  

How Are Prepaid Travel Cards Different from Credit Cards? 

Many consumers are familiar with  travel rewards credit cards that can be used to rack up points for travel expenses, but not many know about prepaid travel cards. Prepaid travel cards are different from regular credit cards in a variety of ways, but they work similarly to secured credit cards with self-loaded funds acting as your credit line. Money is deducted from the prepaid card balance with every transaction until the funds are exhausted. However, consumers can add more funds to their prepaid cards using an outside funding source. 

Here are the major differences between prepaid travel cards and credit cards. 

• Prepaid cards are preloaded with your own money.  You can control your spending with a prepaid travel card based on how much money you load onto the card.
• Prepaid cards don't charge interest . That's because you can only use funds loaded onto the card, not borrow from a credit line like a credit card. You could end up paying foreign exchange fees with a prepaid travel card or a credit card, although many of the top travel rewards credit cards don't charge this fee. 
• Prepaid travel cards don't have any bearing on your credit score or history .  They can't help boost your credit  or hurt it because they're not reported to the credit bureaus since you use your own money to fund the card.

Pros & Cons of Using a Prepaid Travel Card

Just like any payment option, there are benefits and drawbacks to using prepaid travel cards. Here are some of the pros and cons to consider before getting a prepaid travel card. 

Pros of Prepaid Travel Credit Card  

• Helps you stay within your travel budget.
• Lock in the currency exchange rate in advance.
• Safer than a debit card or carrying cash.
• Load multiple currencies onto one card.
• Chip and PIN technology.
• Use at ATMs and shopping online.

Cons of Prepaid Travel Credit Card 

• Foreign transaction fees and ATM fees, among other fees.
• Doesn't help you build credit.
• No overdraft option.
• May not be able to use at hotels that only take credit cards.
• Few (if any) travel protections.
• No travel rewards.

Are There Fees With Prepaid Travel Cards?

While there are several benefits to using prepaid travel cards, there is one negative attached to most cards — extra fees. You could face several fees if you choose to use a prepaid travel card, including: 

• Foreign transaction fees : Many cards charge a fee when you use a prepaid card while traveling abroad. You could see charges of up to 4% or higher on some prepaid cards. 
• Monthly fees : You could also pay a monthly fee for using a prepaid card. Some cards have fee structures that include a monthly fee, while others opt to charge cardholders per transaction instead. Some cards charge fees upwards of $9.95 per month. Some cards waive the monthly fee by meeting balance or deposit requirements. 
• ATM fees : Using a prepaid card at an ATM typically involves paying a fee, whether used at a domestic or international ATM.

Other common prepaid card fees include: 

• Initial load fee
• Inactivity fee
• Transaction fee
• Cash reload fee
• Balance inquiry fee
• Replacement card fee

Fees attached to your card may depend on the specific card, payment network or how you use the card.

Is My Money Safe On A Travel Card?

One big benefit of prepaid travel cards is the security they provide, such as: 

• Funds are not linked to your bank : Unlike a debit card, a prepaid card isn't attached to your bank account. If your card is lost or stolen, you're less likely at risk of someone emptying your checking account. Your exposure is limited only to the funds on the card itself. 
• Chip and PIN authentication : Many prepaid cards also feature chip and PIN technology, giving you another safeguard if your card is stolen. You can contact your card provider to freeze the card account if necessary.  
• Zero-liability fraud protection : Several popular travel prepaid cards come with zero-liability fraud protection. Regardless of the card, prepaid cards must carry the same level of fraud protection as debit cards. 

Can I Get A Prepaid Travel Card If I Have Bad Credit?

Because prepaid cards are secured with cash, there’s typically no credit check involved. That's what makes prepaid cards an attractive good option for individuals with bad credit who may have a hard time qualifying for a travel credit card. If you have cash, generally, you can get a prepaid card. 

Unfortunately, prepaid travel cards don't help you build credit either. There are no monthly payments to report to credit bureaus. Prepaid cards also don't impact your credit utilization ratio, credit mix or length of credit history, all factors that could improve your credit. A prepaid card could be a good option short term when traveling but shouldn't be a substitute for other payment options that can help improve your credit. 

Are Prepaid Travel Cards Worth It?

A prepaid travel card could be worth it for individuals who are seeking a safe payment option when traveling internationally and want to keep their spending abroad in check. It can also help to lock in a lower exchange rate instead of leaving it to chance with fluctuating rates. 

But prepaid cards have their limitations too. They usually do not come with travel rewards or allow the cardholder to build credit by using the card. Don't forget that most prepaid cards also charge foreign transaction fees and other fees like monthly fees or inactivity fees. 

Shop around if you're thinking about getting a prepaid card for your next international trip. Compare card fees, features and benefits to find one that fits your needs and is accepted in places you travel. Another option is to use multiple payment options when you travel. Using a prepaid card in combination with a credit card and debit card allows you to use each card in situations where it's advantageous. This also protects you if you run into any issues with your prepaid card. 

Kevin Payne

Kevin Payne is a personal finance, credit card, and travel writer. He is the family travel and budget expert behind FamilyMoneyAdventure.com. Kevin lives in Cleveland, Ohio, with his wife and four kids. His work has appeared on several websites, including FinanceBuzz, Credit Karma, Millennial Money, Club Thrifty, Student Loan Planner and Slickdeals.

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Key takeaways

• Card perks such as free hotel stays, companion travel passes and credits for programs such as Global Entry may make a travel card worth considering.
• Travel credit cards offer a variety of perks, but make sure to choose one that aligns with your spending so you can get top benefits from it.
• Make sure to pay off your balances so that you don’t incur interest, and also that the benefit you get outweighs any annual fee you will pay.

For frequent travelers, it’s hard to avoid the allure of a great travel card. Since I got into points and miles a decade ago, the number of travel rewards cards seems to have quadrupled. And social media has only increased their appeal, with influencers flocking to sites like Instagram to show off their incredible travel experiences made possible by travel rewards cards.

Those magical pieces of plastic (or metal) can make your wildest travel dreams come true , so why wouldn’t you get as many of them as you can fit in your wallet?

For one, despite the hype surrounding travel cards, they’re not for everyone. Many travel rewards cards carry hefty annual fees and offer perks that, while impressive, might not be suitable for how you travel. They can also overlap with perks offered by your other cards, therefore eroding their value.

Here’s everything you need to decide whether travel rewards cards are worth it for you:

Most valuable travel card benefits

Travel credit cards often come with annual fees, but they offer valuable benefits that can make them worth it. These perks come in handy long after you spend the card’s sign-up bonus. Here’s a look at the most valuable travel card benefits.

Global Entry fee credit

Global Entry is a trusted traveler program that makes navigating passport control a breeze with a dedicated kiosk. Not only do you get to skip the long lines when returning from a trip abroad, but you also get TSA PreCheck . PreCheck provides access to a dedicated security lane that’s much faster and allows you to keep your shoes and a light jacket on.

The Global Entry application fee is reasonable at $100 for a membership that lasts five years. However, many travel cards provide Global Entry fee credits every 4-5 years to cover this fee. Here are a few examples:

• Capital One Venture Rewards Credit Card
• Chase Sapphire Reserve®
• The Platinum Card® from American Express
• United℠ Explorer Card *

Annual statement credits

Some travel cards carry hefty fees — think $695 and even higher. In return, you’ll get a slew of benefits to justify the annual fee, like annual travel statement credits. Some of these credits are valid for a wide range of travel purchases. Others are limited to specific airlines and hotels.

• Chase Sapphire Reserve® : $300 annual travel statement credit
• Amex Platinum Card : $200 annual airline fee credit, valid at a pre-selected airline
• Hilton Honors American Express Aspire Credit Card *: Up to $250 annual Hilton resort credit
• Marriott Bonvoy Brilliant® American Express® Card : Each card renewal year, get up to $300 in statement credits per calendar year (up to $25 per month) for eligible purchases at restaurants worldwide.

Annual free night awards

Some travel cards require spending to earn an annual free night award with hotels, but others issue them just for renewing your card.

• Hilton Aspire Card : Annual free weekend night
• Marriott Bonvoy Brilliant Card : Receive 1 Free Night Award every year after your card renewal month. Award can be used for one night (redemption level at or under 85,000 Marriott Bonvoy points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
• The World of Hyatt Credit Card *: Annual free night valid at a Category 1-4 hotel

Companion passes

Many travel rewards cards earn you a companion pass for a travel buddy if you meet a certain spending threshhold. With the right card, you might even get one annually just for renewing your card.

• Southwest credit cards : Earn a Southwest Companion Pass after racking up 135,000 points in a calendar year. The welcome bonus and earnings from the Southwest cards count toward this requirement.
• AAdvantage® Aviator® Red World Elite Mastercard® *: Earn an annual companion certificate after spending $20,000 a year.
• British Airways Visa Signature® Card *: Earn a Travel Together Ticket after spending $30,000 in a year.

Elite status

Whether it’s through airlines or hotels, having elite status can make your travels much more comfortable (and save you a ton of cash). While elite status is usually reserved for frequent travelers, several hotel loyalty programs issue it outright to their co-branded cardholders. Some of these cards even let you earn additional status via credit card spending.

• Hilton Aspire Card : Top-tier Hilton Diamond Status
• IHG® Rewards Premier Credit Card *: Platinum status
• The World of Hyatt Credit Card : Discoverist status
• Amex Platinum Card : Hilton and Marriott Gold elite status

Types of consumers who benefit most from travel cards

Travel rewards cards are ideal for consumers who have good credit and pay off their balance every month. Travel cards tend to have higher interest rates than many other credit cards and the last thing you want is to pay more in interest than you earn with rewards.

If you’re not able to pay off your balance every month, you may benefit more from cards that offer 0 percent intro APR on new purchases or balance transfers. These will allow you to carry a balance without paying interest for a specified period.

Beyond this criteria, here’s a look at the types of consumers who benefit most from travel rewards cards:

Frequent travelers

Frequent travelers will benefit most from travel credit cards. That’s because they have more opportunities to maximize the travel perks and rewards .

Consider for example the co-branded Hilton Aspire Credit Card*. It carries a $450 annual fee but comes with an annual free weekend night award and top-tier Diamond status. A frequent Hilton traveler would have no problem justifying the annual fee. They would likely get significant value out of the free night, room upgrades and bonus points offered to Hilton Diamond members.

Those who don’t travel often may not have as many opportunities to redeem the free weekend night for maximum value. In fact, loyalty programs often count on this to stay profitable.

Aspirational travelers

If you’ve ever scrolled through an Instagram travel account and thought, “I want that — without the price tag,” then travel credit cards may be a good fit for you. Travel cards can pay off nicely for aspirational travelers who learn how best to utilize rewards.

The primary function of a travel credit card should be to get outsized value in return for your spending. Redeeming points for an aspirational vacation, first-class ticket or five-star hotel is a sure way to do just that.

Small-business owners

Small-business owners have a lot of expenses that can generate a significant stash of points with the right credit card. For example, the American Express® Business Gold Card earns 4X points on advertising and shipping (among other bonus categories). That can be quite lucrative if shipping and advertising are big spending categories for your business. The card has a $375 annual fee that might be hard to justify unless you have significant expenses in eligible categories.

But you don’t have to pay high annual fees to benefit from travel rewards cards. For example, The Blue Business® Plus Credit Card from American Express has no annual fee but still earns 2X Membership Rewards points on all spending (up to $50,000 per year, then 1x). A small business that maxes out the 2X bonus every year would earn 100,000 Membership Rewards points, worth about $2,000 in travel redemptions. Meanwhile, most cash back cards would generate about $1,000 in rewards for the same amount of spending.

Big spenders

Big spenders can benefit substantially from travel credit cards, especially ones that offer annual spending bonuses . Travel cards offer generous incentives for substantial spending. Rewards range from airline and hotel elite status to free hotel nights and even companion passes .

These perks can offer hundreds (or even thousands) of dollars in value every year. But juggling large amounts of spending across multiple travel cards can be challenging. You don’t want to sacrifice rewards value by accruing interest on a balance you can’t pay off or taking on a late payment fee. Setting up auto-pay and tracking spending can help you keep things organized.

Is a travel rewards card right for you?

A travel rewards card is probably right for you if you want to — you guessed it — use points for travel.

But ultimately, everyone’s spending habits and goals are different. While some consumers can benefit from travel cards, others might be better off with one of the best cash back cards .

Here are some of the factors you should consider when deciding if a travel card is worth it for you:

Have a travel goal in mind

Your travel goals are the most important factor in deciding whether a travel card is worth it. Are you looking to book aspirational travel or are you more of an RVer? Travel cards are ideal for luxury travel since they carry annual fees and sometimes have complicated reward programs.

Dedicating yourself to understanding award charts and how best to use them will help you determine whether earning rewards points instead of cash back is a good idea. Regardless of what you decide, make sure you have a redemption goal in mind before getting a new credit card. Programs can devalue without notice and you don’t want to end up with a bunch of miles that can’t get you where you want to go.

Consider your spending habits

Your spending habits are crucial to determining whether travel rewards cards are worth it. If you’re only putting a few hundred dollars a month on your rewards card, you’re probably better off with cash back. These cards generally don’t charge annual fees and offer 1 percent to 2 percent cash back on all purchases.

If you can take advantage of category bonuses and then put your points to good use, then a travel rewards card might be a good option. Just make sure the value of the points you’re earning is higher than the annual fee you’re paying, and you can pay your balances down each month.

Consider the recurring benefits

Confession: I don’t put as much spending as I could on my Hilton Aspire Card, so I’m losing out on rewards value. The card has a $450 annual fee and offers generous category bonuses that I’m not utilizing. However, I will keep it in my wallet for two reasons: Hilton Diamond status and the annual free weekend night award. Both perks provide me with exceptional value.

Recurring benefits are crucial when considering whether you should get a travel card. If recurring perks can save you money on travel, then go for it.

Consider cheaper alternatives

Just because a card is loaded with perks doesn’t mean it’s the best option out there. When shopping for a travel card, always consider cheaper alternatives. For example, a lot of cardholders love The Business Platinum Card® from American Express for its many travel benefits. But if you don’t use them, it’s a waste of a $695 annual fee. You might be better off with the no-annual-fee Amex Blue Business Card instead.

Always explore your options. The higher-fee card that everyone raves about may not be the best option for your spending.

The bottom line

Travel rewards cards are a fantastic option for people who can put their various benefits to use. If you’re earning enough points or using those free night awards consistently enough to justify the annual fee, then it’s worth paying. If these cards are collecting dust in your wallet or you find yourself going over budget to earn incentives, then they’re not worth having.

Since you’re paying an annual fee on most travel cards, you should be coming out ahead. Analyzing your credit card usage will allow you to answer that question honestly.

* The information about the United℠ Explorer Card, United℠ Explorer Card, The World of Hyatt Credit Card, the IHG® Rewards Premier Credit Card, AAdvantage® Aviator® Red World Elite Mastercard®, British Airways Visa Signature® Card,  has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuers.

The pros and cons of travel credit cards

Should I get a travel credit card that earns points, miles or both?

5 steps to choose the best travel card

Best Travel Credit Cards of 2024

Siri Stafford/Getty Images

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What to know about prepaid travel credit cards

Prepaid travel cards are one more way to access cash while traveling the globe

Published: December 15, 2022

Author: Allie Johnson

Author: Dan Rafter

Editor: Brady Porche

Reviewer: Kaitlyn Tang

How we Choose

Prepaid travel cards can make it easy to access cash while you’re traveling abroad, but remember that convenience comes with limitations.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards , or use our CardMatch™ tool to find cards matched to your needs.

Finally ready to take your next international trip? Whether it’s a business meeting in Brussels or a foodie’s tour of Florence, you might consider packing a prepaid travel card for your trip.

Prepaid travel cards let you access cash in your destination’s local currency without the risk of using your debit card. They also let you avoid the high fees of credit card cash advances or the hassles of scrounging up traveler’s checks before you depart.

But, be careful — despite the convenience of prepaid travel cards, they come with their own set of fees and limitations (most notably ATM withdrawal and purchase amount caps that could put a damper on your vacation).

“A prepaid travel card is one tool in a diverse travel wallet,” said Julie Hall, internal communications manager for Hilton Grand Vacations and former public relations manager for AAA, in a previous interview. “It’s one of the most convenient ways to get money while traveling.”

Let’s take a look at everything you need to know about prepaid travel cards — from how they work to the pros and cons of using them for your travels.

• How do prepaid travel cards work?

Prepaid travel cards work much like general-purpose prepaid cards, except that they typically offer special features and perks designed for travel — which can vary based on the issuing bank.

In general, to use a prepaid travel card, you purchase the card and simultaneously load it with the funds you want to spend on your trip, up to the maximum amount allowed on the card. (For example, the PayPal Prepaid Mastercard® , a general prepaid card, allows a maximum balance of $15,000.)

Once you’ve arrived at your destination, you can use your prepaid card to make purchases directly (much like you would with a debit card). You can also use it at an ATM to get cash in that destination’s currency.

Depending on the card issuer, you’ll be able to log in to a mobile app or your online account to check the balance, review your purchases and see any any account charges.

• What are the benefits of a prepaid travel card?

Why not just take cash, your credit cards and your debit card the next time you travel to an international destination? Why would you also take a prepaid credit card?

If you lose your card, thieves only have access to the loaded cash

If a thief gains access to your prepaid card abroad, they’ll only have access to whatever funds are loaded onto the card (unlike debit cards, which can provide thieves access to your bank account, or credit cards, which a thief can charge up to a certain limit).

Further, the network through which a prepaid card is offered may provide a zero liability policy , though, overall, prepaid cards don’t offer the same breadth of protections as debit and credit cards (think chargebacks and fraud alerts).

More convenient than traveler’s checks

Prepaid travel cards also provide more convenience than, say, traveler’s checks (which, yes, still exist). Getting traveler’s checks before you go can be a hassle, and you might also be surprised at how many retailers across the globe no longer accept them. As a result, prepaid cards are often a better option than these paper checks.

• What are the drawbacks of a prepaid travel card?

Like most financial products, prepaid travel cards come with pros and cons. Here are some of the drawbacks of using one:

Foreign transaction fees, among others

Travelers should be wary of the fees connected to prepaid cards, as they can add up to a lot of money during an international trip. Many prepaid cards carry foreign transaction fees. Today, it’s far easier to find credit cards with no foreign transaction fees than to find prepaid cards without them.

Further, prepaid travel cards may also charge a card purchase fee, ATM withdrawal fee, higher foreign ATM withdrawal fee, inactivity fee and a fee to get any remaining balance back by check.

No help for your credit score

If you charge restaurant meals, souvenirs and tickets to a traditional credit card and pay your bill on time, your three-digit credit score will receive a boost. This doesn’t happen with purchases you make with prepaid travel cards, because your prepaid card activity isn’t reported to the national credit bureaus .

If you don’t keep track, you could run out of funds

If you’re used to swiping a credit card without much thought, there’s a chance a prepaid card could leave you high and dry when you go to make a purchase. Just be sure to keep tabs on the amount of money you’ve loaded — and spent — on your card.

Prepaid travel card tips

Prepaid travel cards do come with some potential hurdles. Here are some tips for avoiding the most common downsides of these cards:

• Check the fees associated with your card (or potential card): Prepaid cards can charge fees that existing debit and credit card holders aren’t used to, so it’s important to read the fine print before swiping. For example, the Netspend® Visa® Prepaid Card charges a $5.95 inactivity fee per month after the card has been idle for 90 days.
• Verify the card will work at your destination: Double-check with your issuer that your prepaid card will be accepted where you’re traveling. Even a card that’s designed for international travel might not work in specific locations due to restrictions from U.S. trade sanctions.
• Know the limits: Prepaid travel cards typically have limits that could throw a wrench into your trip if you don’t understand them ahead of time. For example, some cards can have a daily reload limit as low as $500 (or as high as $7,500, in the case of the Netspend Visa card). Again: Be sure to read through your card’s fine print before embarking.
• Avoid holds at all costs: In a sense, prepaid travel cards work like debit cards. Be sure to avoid using a prepaid travel card to reserve a hotel room or a rental car, which can trigger a hold that could tie up hundreds of dollars of your cash for a week or longer. Instead, use a credit card to reserve these items, then use your prepaid card to pay the final charges.

Should you use a travel credit card instead?

If the drawbacks of a prepaid travel card outweigh the benefits, you might be better off signing up for a travel credit card  or using one you already have as your primary payment method while traveling.

Travel credit cards almost always have zero fraud liability, which can set your mind at ease in the event your card is lost or stolen . They also let you earn rewards for your spending, and many offer purchase and trip protection and have no foreign transaction fees. Some even offer perks such as access to airport lounges where you can get complimentary food and drink. And, depending on your credit limit, you may have more spending power with a credit card than a prepaid card.

That said, they can also have pitfalls. Not all travel credit cards are accepted in all countries. For example, Visa and Mastercard are widely accepted, while American Express and Discover have a smaller international presence. And, depending on your location, some merchants may require chip-and-pin cards or may not accept payment cards at all.

It’s advisable to carry a few different payment methods with you (credit, debit and prepaid) when traveling, along with some local cash. Also, notify your credit card company about your travel plans, lest they flag your card as stolen and cancel it.

Bottom line

A prepaid travel card doesn’t come without downsides, but if you want an easy way to access cash in your destination’s currency — and want a quick way to pay merchants once you arrive at your international destination — the ease of using them might make your trip a less stressful one.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Allie Johnson is an award-winning freelance writer covering personal finance, business and lifestyle. She loves tracking down tips, tricks and cautionary tales about credit cards and money.

Dan Rafter has covered personal finance for more than 15 years for publications ranging from The Washington Post and Chicago Tribune to Wise Bread, HSH.com and MoneyRates.com. His work has also appeared online at the Motley Fool, Fox Business, Huffington Post, Christian Science Monitor and Time.

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Best Travel Credit Cards of 2024

December 15, 2023

Going has partnered with CardRatings for our coverage of credit card products. Going and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses, and recommendations are the author's alone, and have not been reviewed, endorsed, or approved by any of these entities. Some of all of the card offers that appear on this page are from advertisers; compensation may affect how and where the cards appear on the site; and Going does not include all card companies are all available card offers.

‍ The best travel credit cards bring you closer to your next trip by making your everyday spending more rewarding. 

I’m sharing with you some insight from my brilliant colleagues here at Going about how they use their own favorite travel rewards cards. Real advice from real people? It’s more helpful than you think!

Chase Sapphire Preferred® Card: Best Overall

Annual fee: annual_fees

Foreign transaction fee: foreign_transaction_fee

Earning rate:

• Earn 5X points per dollar spent on travel purchased through Chase Travel(SM).
• Earn 3X points per dollar spent on online grocery purchases (excluding Walmart, Target, and wholesale clubs), dining at restaurants (including eligible delivery services, takeout, and dining out).
• Earn 3X select streaming services. 
• Earn 2X points per dollar spent on all other eligible travel purchases (like airline tickets and hotel bills).
• Earn 1X point per dollar spent on all other eligible purchases.

Welcome offer: bonus_miles_full

• Low annual fee
• Great transfer partners -- Virgin Atlantic, FlyBlue and Air Canada are some of my favorite Chase transfer partners ‍
• Offers several types of travel protections, including car rental insurance
• Doesn't come with airline perks like lounge access or free checked bag
• Doesn't include credits for TSA PreCheck or Global Entry

Chase  points can be very valuable when you transfer them to airline partners. Plus the card offers travel insurance protections, for a low annual fee.

Who it's best for

Beginners and seasoned points and miles veterans alike may want to have the card_name in their wallet. It has an excellent welcome offer that you can redeem towards your next trip, and its bonus categories on travel, transit, food, and dining make a long-term keeper.

Read our review .

Why it’s in my wallet.

“I’ve had the Chase Sapphire Preferred® Card for almost four years. Most often, I transfer the points to my hotel loyalty programs—Hyatt, Marriott, and IHG. The card has been clutch with accruing points and transferring them out!”

 — Bisola, Product Designer @ Going

Capital One Venture Rewards Credit Card: Best travel credit card for beginners

• Earn 2X miles per dollar on every eligible purchase, everyday. 
• Earn 5X miles per dollar spent on hotels and rental cars booked through Capital One Travel.
• Statement credit for Global Entry or TSA PreCheck
• Flat 2x earning structure
• Capital One transfer partners do not include a domestic airline
• No bonus categories

The generous welcome offer on the card can help you get a head start on earning a free flight for your next trip.

If you’re just starting out in learning how to use points and miles to travel for less, the card_name is a great place to start. Unlike other cards that have bonus categories to track, you’ll earn 2X miles per dollar on every eligible purchase, everyday. (Editor's note: Capital One calls its points currency "miles.")

"I just got the Capital One Venture Rewards Credit Card for the welcome offer and the good general spend benefits!" 

— Rob, Director of Member Success @ Going

Ink Business Preferred® Credit Card: Best for business travel

• Ads on social media or search engines
• Internet, cable, and phone services
• 1X point per dollar spent on all other purchases 
• Points can be redeemed with transfer partners
• Comparatively low annual fee
• Bonus categories for common business expenses make earning points easy
• Chase offers several no-annual-fee business cards that may earn at a higher rate, depending on spending category
• No travel credits, like  Global Entry or  TSA PreCheck
• Subject to Chase’s 5/24 rule

For a low annual fee, you have the ability to earn bonus points on common business expenses and redeem those points for travel through Chase’s network of transfer partners. 

The card_name is a great option for business owners and entrepreneurs who want to earn travel rewards on everyday business expenses.

Read our review.

Citi premier ® card: best for gas and groceries.

• Earn 3 Points per $1 spent at Restaurants and Supermarkets. 
• Earn 3 Points per $1 spent at Gas Stations, Air Travel and Other Hotels. 
• Earn 1 Point per $1 spent on all other purchases.
• Earns bonus points in three spending categories
• Big welcome offer 
• JetBlue is the only domestic airline that is a transfer partner
• The travel bonus category limited to hotels and airlines: Other card

While other travel credit cards might earn bonus points on one or two of these bonus categories, the Citi Premier ® Card is the rare card that earns bonus points in gas, groceries, and travel.

The card_name stands out because it earns 3 Points per $1 spent on gas, groceries, restaurants, air travel and hotels. If these are big items in your budget, you'll earn that very generous welcome bonus easily.

Learn more about the Citi Premier Card.

The Platinum Card® from American Express: Best travel card for lounge access

Annual fee: annual_fees ( See Rates and Fees )

• Earn 5 points per dollar spent on flights booked directly with airlines or on AmexTravel.com (up to $500,000 per calendar year); and on eligible prepaid hotels booked at AmexTravel.com, including The Hotel Collection. 
• Earn 1 point per dollar spent on all other eligible purchases.
• Great welcome offer
• Tons of travel perks included
• Access to Centurion lounges
• Very high annual fee
• Some statement credits can be difficult to use
• Low points earning rate
• To bring a guest to the Centurion Lounge , you need to spend $75,000 on the card the year before

If you can stomach the annual fee, the card offers a host of great travel benefits to enjoy. 

If you want to travel in luxury, card_name ( See Rates and Fees ) may be the card for you. Along with a stellar welcome offer, this card also grants you entry to the American Express Centurion Lounges and Priority Pass lounges. You’ll also get statement credits towards CLEAR Plus and Global Entry or TSA PreCheck, helping you to speed through security. The card also gives you mid-level elite status at Marriott and Hilton hotels.

Why it's in my wallet

“The Platinum Card® from American Express ( See Rates and Fees; terms apply ) has made my layovers insanely more entertaining because I have access to airport lounges, where I can have a snack, a drink, and even shower before a long flight. In New York, we even scheduled massages and went to a speakeasy! 

I even added my entire family as authorized users for a small fee that gives them the same access to lounges. What a special way to treat my parents when they fly now!” 

The Bilt Mastercard: Best travel card with no annual fee

If you make at least five transactions with your Bilt card each statement period, you will earn:

• 1X points per dollar on rent (up to 100,000 points each calendar year)
• 2X points per dollar on travel
• 3X points per dollar on dining
• 1X point per dollar on other purchases
• Earn double the amount of points on non-rent payments on the first day of the month (e.g. earn 6X on dining on the 1st) 
• No annual fee card with travel partners
• Earn rewards on rent payments
• Extremely valuable travel rewards points currency
• No signup bonus
• To earn points, you must use the card at least five times each statement period.
• May not be as valuable if you are not a renter

The Bilt Mastercard is the rare travel credit card that charges no annual fee, yet offers a wide range of excellent transfer partners.

If you rent, card_name enables you to earn points on what's probably your biggest monthly bill. Just be aware that in order to earn any points at all, you must use the card at least five times in a statement period.

Capital One Venture X Rewards Credit Card: Best premium travel rewards credit card

• 2 Miles per dollar on every purchase, every day. 
• 5 Miles per dollar on flights booked through Capital One Travel.
• 10 Miles per dollar on hotels and rental cars booked through Capital One Travel.
• Lower annual fee than most luxury travel credit cards
• Includes Global Entry or TSA PreCheck credit  
• Includes access to Priority Pass lounges
• Earns the same 2x miles per dollar on everyday spending as does its sibling card, the Capital One Venture  
• Capital One Lounges are limited to only three airports currently
• Travel credit can only be used in the Capital One Travel portal

For a premium travel credit card, its annual fee is a bargain—comparatively speaking. Plus, the $300 annual credit for bookings through Capital One Travel portal, makes it even more palatable.

If you’re looking for a premium travel rewards card the card_name is an excellent option. The card gives you access to the network of Priority Pass airport lounges and Capital One Lounges, plus a statement credit for the application fee to Global Entry or TSA PreCheck.

“I love the Capital One Venture X Rewards Credit Card because it pretty much pays for itself with the $300 travel credit and 10,000 bonus points on your card member anniversary. I also love that I can easily transfer points from my Capital One SavorOne Cash Rewards Credit Card to the Capital One Venture X Rewards Credit Card. And of course, the Capital One Lounge in Dallas-Fort Worth is top tier!”

— Lanchi, Associate Product Operations Specialist @ Going

American Express® Gold Card: Best travel credit card for foodies

• Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). 
• Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
• Great welcome offer for American Express Membership Rewards points
• Excellent bonus earning rates
• No travel credits like CLEAR Plus or TSA PreCheck
• No lounge access
• High annual fee

This card is points-earning workhorse, especially if you love to eat. 

If you love to eat out, cook at home, or some combination of both, the card_name ( See Rates and Fees ) is worth considering. The card_name ( See Rates and Fees ) earns 4X points on restaurants, takeout and deliveries, plus 4X points on supermarkets (up to $25,000 at supermarkets), making it a powerful addition to your wallet.

Chase Sapphire Reserve® Card: Best credit card for international travel

• Earn 5x total points on flights when you purchase travel through Chase Travel (SM) after the first $300 is spent on travel purchases annually
• Earn 10x total points on hotels (excluding The Luxury Hotel & Resort Collection) and car rentals when you purchase travel through Chase after the first $300 is spent on travel purchases annually.
• Earn 3x points on dining at restaurants, including eligible delivery services, takeout, and dining out. 
• Earn 3x points on other travel worldwide after the first $300 is spent on travel purchases annually.
• Earn 1x point per $1 spent on all other purchases.
• Generous, very flexible annual $300 travel credit
• Highly valuable points currency with great suite of airline and hotel transfer partners
• Bonus categories in travel and dining
• Earns similar bonus rates to its younger sibling, the Chase Sapphire Preferred® Card

The benefits that this card offers easily can make up for the high annual fee.

Although any of the cards on this list could be great options for international travel, the combination of the $300 annual travel credit, lounge access benefits, and statement credit for an application to Global Entry, TSA PreCheck, or NEXUS, makes the card_name Card the best card for international travel.

AAdvantage® Aviator® Red World Elite Mastercard®: Best airline card

• Annual fee:  $99
• Welcome bonus:  Earn 50,000 AAdvantage® bonus miles after making your first purchase and paying the $99 annual fee in full, both within the first 90 days.
• Rewards: Earn 2X AAdvantage ® miles for every $1 spent on eligible American Airlines purchases. Earn 1X AAdvantage ® miles for every $1 spent on all other purchases.
• Foreign transaction fee: None
• Welcome bonus is easy to earn
• First checked bag free
• $99 annual fee
• Must spend $20,000 to earn the companion pass

Who it’s best for: 

Among domestic airline co-branded credit cards with an annual fee under $100, the American Airlines AAdvantage® Aviator® Red World Elite Mastercard® stands apart for its easy-to-earn welcome offer. To earn 50,000 bonus miles all you have to do is make one purchase and pay that and the $99 annual fee in full. Like other airline co-branded cards, this card gets you one free checked bag and preferred boarding. 

‍ Learn more about the AAdvantage® Aviator® Red World Elite Mastercard® .

How do travel credit cards work? 

Travel credit cards reward you for the purchases you make on everyday expenses. You’ll earn points each time you use the card to make eligible purchases, but you’ll earn more points if you spend on the card’s bonus categories. For example, the American Express Gold Card (see rates and fees) allows you to earn 4X points on restaurants worldwide. That means if you spent $100 on a meal out, you’d earn 400 points to redeem for travel. 

Travel credit cards enable you to earn points or miles on purchases that you can redeem for travel, but specific cards reward you in different ways. You can either earn transferable credit card points from a general-purpose travel credit card or miles or hotel points from an airline or hotel credit card. 

General travel credit cards

General travel credit cards allow you to earn points that you can transfer to a wide range of airlines and hotels. You could transfer some of your points to one airline partner, then a few months later transfer more points to a different airline partner, and then transfer points to a hotel partner. 

Currency:  Transferable credit card points

Example:  Chase Sapphire Preferred Card

Who it’s best for:  Travelers who fly or stay with multiple airlines and hotels

Co-branded airline or hotel cards

These cards earn airline miles or hotel points that can only be used with the specific airline or hotel. Depending on how premium the card may be, the card may also give you additional perks like a free checked bag, priority boarding, airport lounge access, a leg up on elite status, or a free night’s stay at a hotel’s property. The benefits and points earned are often limited to using with that airline or hotel chain.

Currency:  Airline miles or hotel points

Example:  Southwest Rapid Rewards Priority Credit Card

Who it’s best for:  Travelers who are loyal to a specific airline or a hotel. 

Business travel credit cards

Business travel credit cards can be either general-purpose travel credit cards, earning flexible travel points, or co-branded with an airline or a hotel. Perks and earning rates tend to vary depending on the annual fee the business card charges. Of course, to be eligible for business travel credit card , you’d need to be a small business owner, freelancer, or entrepreneur.

Currency:  Either transferrable credit card points, airline miles, or hotel points

Example:  The Business Platinum Card from American Express

Who it’s best for:  Business owners or entrepreneurs who want to earn travel rewards on their business spending 

How to compare travel credit cards

Welcome offer.

The  welcome offer is the most fun part of opening a new credit card. After spending a certain amount on your new card within a predetermined amount of time, you’ll receive a treasure trove of tens of thousands of bonus points or miles. Earning a card’s welcome offer can help you get a free flight—or pretty close to one!

Earnings rate

After you’ve earned the welcome offer on your card, the card’s earning rate will help you continue to earn points or miles in the long term. Your spending habits should help guide your choice of cards. 

Do you spend a lot on groceries? Consider the  American Express Gold Card . Are you a renter? With  the Bilt Mastercard , you could earn points on your rent. 

Points, miles, or cash back

Even before you look at a card’s welcome offer, you should decide what type of travel points you want to earn. If you are looking to book a bucket trip to Tokyo or Rome, you might be better off getting a general-purpose travel credit card because it will give you a wider range of airline partners to transfer your points. 

On the other hand, if you are a Delta diehard or Marriott manic, a credit card with that brand could help get you a shortcut to elite status and a bunch of other benefits to use when you frequent that hotel or airline.

In addition to the credit card’s welcome offer and earning rates, the credit card’s annual fee is one of the most important deciding factors. While there are some travel credit cards with no annual fee, those that offer higher earning rates and more travel protections tend to have annual fees in the ballpark of $95. Cards offering premium benefits, like airport lounge access and travel statement credits, often carry annual fees of $395 or higher.

Foreign transaction fee

You’ll want to confirm that the card you’re considering does not charge a foreign transaction fee—it is a  travel  credit card, after all. Foreign transaction fees tend to be around 3% of each transaction, so if you’re traveling internationally for a week, that can add up fast. When you use a card that offers no foreign transaction fee, you’ll simply be charged that day’s exchange rate for your purchases—no extra fees. 

Lounge access

If you’re a frequent flyer, you may want to look for a credit card that includes access to airport lounges. This, too, is another area where general-purpose and co-branded credit cards differ somewhat. Higher-end airline cards offer you complimentary access to the airline’s network of airport lounges: For example, the card_name allows you complimentary access to Delta Sky Club®, plus four One-Time Guest Passes annually.*

Higher-end general-purpose travel credit cards also commonly offer  lounge access to their respective network of airport lounges: For example, the Platinum Card® from American Express gets you access to the American Express Centurion Lounges; the Chase Sapphire Reserve® Card and the Capital One Venture X Rewards Card each offer access to their issuers’ lounges, respectively. 

You’ll also want to check if the card you’re eyeing allows you to enroll in  Priority Pass Select™ , a membership program that grants you access to a wider network of airport lounges worldwide.

*Note: Effective 2/1/25, Reserve Card Members will receive 15 Visits per year to the Delta Sky Club; to earn an unlimited number of Visits each year starting on 2/1/25, the total eligible purchases on the Card must equal $75,000 or more between 1/1/24 and 12/31/24, and each calendar year thereafter. Once all 15 Visits have been used, Eligible Card Members may purchase additional Delta Sky Club Visits (including Grab and Go) at a per-Visit rate of $50 per person using the Card.

Credit for Global Entry or TSA PreCheck

TSA PreCheck and Global Entry are two different Trusted Traveler Programs that provide travelers with expedited security screening or customs processing. To be eligible, you’ll need to apply online through the US Customs and Border Patrol and pay the application fee. Over two dozen travel credit cards offer statement credit that would reimburse for this fee. Check out our picks for the  best cards that offer TSA PreCheck or Global Entry .

Elite status

Airline elite status used to be earned by the amount of miles you flew, but now, airline elite status is largely determined by the amount of dollars you spend with an airline. The transition is a bummer for those who loved to do  mileage runs , but the good news is that airline credit cards offer a shortcut toward earning elite status. 

For example, The United ClubSM Infinite Card allows you to earn 25 Premier Qualifying Points (PQP, United’s metric for earning status) for every $500 spent on the card, up to 10,000 PQP.

Likewise, card_name and card_name each award cardholders $2,500 Medallion Qualification Dollars (MQDs, Delta’s elite status currency) each Medallion Qualification Year. This alone gets you halfway to Delta’s Silver Medallion Status. Plus the cards allow you to earn MQDs based on your card spending: the card_name earns $1 MQD for each $10 spent on the card, while the card_name earns $1 MQD for each $20 spent on the card.

Travel insurance

Sometimes, shift happens in the overhead bins. Things happen in life, too, where you may need to cancel a trip due to illness, natural disaster, or personal emergency, or a trip may be delayed because of circumstances out of your control. 

When these things happen, a credit card with travel cancellation insurance may allow you to recoup your costs, while trip delay insurance may reimburse you for essential expenses like food or lodging. And, some cards offer baggage delay or lost baggage insurance. Just make sure to read your card’s terms and conditions carefully before filing a claim: Many require you to have made the original purchase on your card to qualify.

How to choose a travel credit card 

Now that you know what features to look for in a travel card, here are some questions and tips to keep in mind when you are picking one. 

Evaluating general-purpose travel credit card

When picking a general-purpose travel credit card, make sure to consider the following:

• Transfer partners:  Who are the airline partners, and can you redeem your points for good value?
• Travel portal statement credit:  Does the card issuer give you statement credit or perks toward booking through your card’s travel portal?
• Travel perks:  Does the card make travel more relaxing by giving you statement credit for Trusted Traveler programs or airport lounge access?
• Travel insurance protections

Evaluating airline credit cards

When picking an airline credit card look for the following:

• Companion fares:  This perk lets you  earn a companion pass that allows you to travel with a partner at a reduced rate. 
• Earning rates:  Airline cards usually offer the highest bonus rates on spending with their airline, but you’ll want to check what, if any, other bonus spending categories it offers.
• Free checked baggage:  This perk could let you get a  free checked bag for you and others on your reservation. 
• Elite status bonuses:  Does the card help you earn elite status with the airline quicker?
• Priority boarding:  If the card gives you this perk, you might be able to grab that overhead space first. 
• Airport lounge access
• Complimentary in-flight Wi-Fi

Evaluating hotel credit cards

When looking for a hotel credit card, pay attention to these things:

• Elite status:  You can generally expect cards with higher annual fees to give you higher tiers of elite status with the hotel chain. 
• Earning rates:  Hotel cards tend to earn bonus rates on hotel purchases, but check to see what other spending categories they might offer bonus rates.
• Free night certificate:  Does the card offer you a certificate for a free night’s stay each card anniversary? Some cards allow you to earn additional free night certificates based on spending or nights stayed at properties.
• Early check-in and late check-out: Many hotel credit cards offer this benefit. 
• Room upgrades or extra perks:  More elite cards offer complimentary room upgrades or complimentary services like a free breakfast or spa credit. 

Pros and cons of travel credit cards

• Big welcome offers can you get close to a free flight
• Travel perks like lounge access can make flying more comfortable
• Extra benefits like travel insurance or trusted traveler programs
• Can earn points for travel on everyday spending
• No foreign transaction fees
• Can offer free checked bag or elite status
• High annual fees
• High ongoing APRs
• Limited value for points outside of transferring to airline or hotel partners
• Cash-back rewards are simpler to redeem and understand
• Points and miles could expire or lose value over time
• Transferring to partners can be confusing or complicated

Remember: Your credit card should suit your lifestyle

It’s easy to get caught up in the glitz and glamor of a fancy credit card, but you shouldn’t have to drastically alter your own spending habits and lifestyle to take advantage of everything your card offers. If you find yourself working too hard to utilize a benefit or to redeem a credit that a card offers, it may not be a fit for you. 

You can always “product change” the card, i.e. convert it into another credit card within that same “card family” that better suits your needs. Never forget to take it step-by-step and to learn as you go. Points and miles will meet you where you are.

Frequently asked questions

How we chose our picks.

When making our picks, we gave a lot of weight to cards with standout welcome offers—the treasure trove of points a card issuer rewards you with for signing up for a new card and meeting the minimum spending requirements in time. The card’s bonus rewards categories also mattered a lot to us, since this is a card you’ll have long after the earning the welcome offer. We also factored in the card’s annual fee, its transfer partners, and additional benefits like free checked baggage, Global Entry credits, or lounge access.

See Rates and Fees for the card_name

Published December 15, 2023

Last updated April 22, 2024

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Wise Travel Debit Card Review: Fees, Exchange Rates, Limits and How to Use It

There are many things you need to keep track of as a digital nomad, such as visas , travel documents, and accommodation , to name a few.

But one of the most important things to work out is your finances. As a digital nomad, you are likely constantly moving between countries and switching currencies, so having a travel debit card is imperative .

The Wise debit card is an easy financial solution for frequent travelers, digital nomads, and expats . So, what is the fuss about this Wise travel card? How does it work? And most importantly, should you hop on the bandwagon and sign up for it?

I have been using the Wise Travel Card for quite some time now and, in this article, I will give you my honest opinion about it.

What is a Wise Travel Debit Card?

If you travel often, you have probably used or at least heard of Wise (formerly Transfer Wise) .

This UK-based tech company was founded in 2011 by Estonian businessmen Kristo Käärmann and Taavet Hinrikus on the principle of providing fast and fair exchange rates for international transfers without any sneaky fees or below-par exchange rates.

I have been personally using their Wise multi-currency account for years now, and it is still the primary way I transfer money abroad. But, I recently started using the Wise travel card , which added an entirely new dimension to my travels.

Can I Use The Wise Card For Traveling Abroad?

The Wise travel card it's not a credit card and functions pretty much like a regular debit card. You simply add funds to the account and insert, swipe, or tap to pay for items.

The main difference? With Wise, you can hold money in more than 40 different currencies and pay like a local for items in more than 160 countries worldwide without having to worry about hefty fees or markups on conversion rates.

Your Wise Travel Card is connected directly to your Wise account, so you can spend funds from your balances.

Who is the Wise Travel Card for?

Obviously, this is a “travel” card, so its primary purpose is for spending abroad while traveling . That said, you could totally use this for your day-to-day expenses. Traditional banks aren’t really designed to cater to frequent travelers or digital nomads , and the Wise Travel Card fills this gap.

For example, my wages are paid from the US, but I live abroad permanently, so I can easily transfer from my US-based bank to Wise and then simply use my Wise card for most of my daily expenses.

You should consider using the Wise Travel Card if one or more of the following applies to you:

• You frequently transfer funds from another country that uses a different currency.
• You travel internationally often and need a card with low currency conversion fees.
• You often shop online with international retailers that sell their products in a foreign currency.
• You own a business and need a card for international expenses.
• Your current bank card has high currency conversion fees and you want to get away from a traditional bank account
• Your current bank card has high fees for using international ATMs.

Wise Card Features for Traveling Abroad

If you have used a travel prepaid card like Revolut , Chime , or Monzo in the past, you can expect similar features from the Wise Travel Card. Let's see which ones are those:

• Low fees on conversions with the mid-market exchange rate
• Hold, spend, and exchange more than 40 different currencies in your Wise account
• Available to citizens and residents of more than 30 countries , including the UK, Canada, EU, USA, and Australia
• Manage, top up, freeze, and view your card balance in the Wise App
• Use at over 2 million ATMs with free monthly withdrawals up to certain limits.
• Create up to 3 digital virtual cards for free
• Auto currency convert feature to automatically convert your funds at your set rate
• Ability to make Contactless payments
• Connect to most popular eWallets like Google Pay, Apple Pay, and more
• Free spending of any currency you hold in your Wise account
• Biodegradable and eco-friendly card design

Pros and Cons of the Wise Debit Card for Travel

When I first started my digital nomad journey, I quickly came to a rude awakening when I found that my bank was charging exorbitant markups on foreign exchange and fees for ATM withdrawals .

If the same is happening to you, you’ll want to get your hands on this gem of a travel card . But before you sign up, let’s go over some of the upsides and downsides of the Wise Travel Card.

Pros and cons:

What to love about the wise debit card.

For me, the Wise card's standout features are the app's user-friendliness , the multi-currency account , and the low markup on exchange rates .

Being able to hold more than 40 currencies is a game changer. Transferring funds to different currencies in their app when I travel abroad is super easy. To give you an example, I spend quite a bit of time in Europe, the USA, and New Zealand. And with Wise , I can have separate accounts for USD, EUR, and NZD, which makes my life SO much more manageable when traveling to these countries!

On top of that, while there is a small markup fee on currency exchange, it is extremely minimal compared to other banks I have used .

What Could Be Improved About the Wise Debit Card?

The obvious downsides of the Wise Travel Card lie with ATM withdrawal limits , longer card delivery timeframes , and the lack of a premium option .

I am based in the USA, and my card took more than 2 weeks to arrive. Most digital nomads don’t spend too much time in each place, so this can make it difficult to receive your card initially if you are a frequent traveler .

Also, while card transactions are becoming the norm in many countries, cash is still king in several countries I have traveled to in the past few years. The Wise card is NOT exactly the ideal card for withdrawing cash . You’ll only get two transactions for free , and then you’ll be paying a usage fee as well as a 1.75% to 2% markup . This definitely isn’t a dealbreaker, but I hope Wise will improve this in the future.

What Currencies Can You Use With the Wise Travel Card?

One of the main reasons Wise has kept me on board as a customer all these years is their multi-currency account . This is truly the crown jewel of all of Wise’s features.

You can store 40+ currencies in various wallets in your Wise account , but this doesn’t mean you are limited to spending in those currencies. In fact, you can use the Wise debit card in more than 160+ countries ! If the currency you are spending in doesn’t have a wallet option, the Wise card will simply exchange the money into the payment currency at the time of your purchase .

For example, I was recently in Guatemala, and, unfortunately, I was not able to store Quetzal (the local currency) in my multi-currency account. But when I bought something, my funds were automatically converted from USD to Quetzal at the mid-market rate (plus 0.5%).

There are also 11 currencies for which you get account details to make bank transfers . This means you can transfer funds in the following currency balances directly from your Wise account to another bank account.

This is a feature of Wise that I use often. If I need to transfer funds from my US bank account to one in another country, I almost always use Wise as a “middleman” in order to avoid unexpected transfer fees .

While you won’t be able to make bank transfers in other currencies, you can hold them in your Wise account and spend with your travel card.

How Does the Wise Card Exactly Work?

As you can see, the Wise Travel Card is a wise decision for any traveler (see what I did there?), but how does it exactly work?

As with any new bank account or credit card, there is a bit of a learning curve when first using your Wise travel card . That said, using this card isn’t rocket science, so you’ll be saving money on exchange fees in no time!

How to Use the Wise Travel Card Abroad

The Wise travel card is specifically designed for spending money outside of your home country, so as you would expect, it is pretty easy to use abroad.

All you need to do is order your card , activate it, create a PIN, add money to your account, and you will be all set to use the card in a different country!

The Wise App

There is nothing more annoying than an app that is built for developers and not for the general public. Your banking and financial app should be easy to navigate and access.

I personally find the Wise app to be extremely user-friendly and intuitive . All features are easy to find, and when navigating through the app, I rarely got stuck or failed to find a setting.

I was easily able to change personal settings, connect bank accounts, exchange money, and send transfers from the app.

How to Order Your Wise Travel Card

Ordering your Wise Travel Card can take some time (mine took more than 2 weeks to arrive), so I recommend getting on this as soon as possible to ensure you have the card for your next trip!

These are the 3 simple steps you will need to go through:

Step 1: Create a Multi-Currency Account

If you don’t have one already, your first step will be to sign up for a Multi-Currency Account with Wise

Step 2: Start Using Your Virtual Card Immediately

After making an account and verifying your details, you will then be directed to choose a digital/virtual card or a physical card . Digital cards are free and can be added to Google/Apple Pay or used for online payments immediately!

Step 3: Order a Wise Debit Card (Recommended)

If you want instead a physical card, you can do so by clicking on the “Card” tab on the main page and then click on “ Order a Debit Card ”. Physical cards cost a one-off fee of 7 GBP/7 EUR/10 USD , and it will take 7 to 21 business days for the card to arrive, based on your location.

If you'd like to visualise the entire process, watch the instructional video below:

How to Activate Your Wise Card

Once your Wise travel card arrives, it is time to activate it and start spending ! Luckily, for most Wise account holders, you won’t need to take any steps to activate the card, simply make a chip and PIN payment, and the card is ready to go !

Activate Your Wise Card (for US and Japan Customers Only)

As I mentioned above, Wise customers in the USA or Japan must activate the card separately . This isn’t too much of a headache, just don’t forget you need to be in your home country .

Here is a step-by-step breakdown of activating your card if you are a US and Japan customer.

• Log into the Wise app and tap on “ Card ”.
• Then tap on “ Activate Card ”.
• You’ll then be prompted to enter a 6-digit code that you’ll find on your card.
• After entering the code, you’ll create your PIN .

If you'd like to visualise the steps to activate your Wise card for your region, watch the instructional video below:

How to Change the PIN for Your Wise Card

Did you forget your PIN? Don’t worry, it happens to the best of us!

Luckily, if you are a US card holder, you can easily change your PIN in the Wise app :

• Tap on “ Card ” in the Wise app
• Select “ Change PIN ”
• Enter your new PIN 2 times, and you are all set!

If you are a non-US Wise card holder , you cannot change your PIN in the app , unfortunately. Instead, you’ll need to change it using an ATM that supports PIN changes .

My best advice? Choose a PIN you’ll never forget, or keep it written down somewhere secure.

How to Add Money to Your Wise Travel Card

Your Wise travel card is linked to your Wise Multi-Currency account , so you’ll need to top up your Wise account with funds before using the card.

This is a pretty straightforward process:

• Logging into your account
• Choose which currency balance you want to add money to.
• Click “ Add ”.
• Choose which currency you want to use to top up the account.
• Type in the amount of money you want to add.
• Choose your payment method (bank transfer, debit card)
• Confirm the top-up and verify the money arrives in your balance.

Watch the instructional video below to visualise how to top up your Wise balance:

How to Freeze/Unfreeze Your Wise Card

One of the downsides of constant travel is that you put yourself at risk of fraud or losing your card. If you notice potential fraudulent transactions from your Wise card, or you believe your card is lost/stolen, you should freeze your card immediately . This way, you’ll avoid more fraud on your account.

Here are the steps to take to freeze your Wise Travel Card.

• After logging in to your Wise account, tap on “ Card .”
• Then simply click “ Freeze Card ”, or if you want to unfreeze, “ Unfreeze Card .”
• Fill out this transaction dispute form and contact customer support right away. They will be able to help you determine what to do next.

How to Replace a Lost or Stolen Wise Card

If you can confirm that your card has been lost or stolen, you’ll want to cancel the card and then order a new one.

• Log in to your Wise account and click on “ Card .”
• Tap “ Replace Card .”
• You’ll then be prompted to answer why you need a replacement card.
• Wait for the new card to arrive.

How to Use an ATM with Your Wise Travel Card

As mentioned above, ATM withdrawal is not the strongest feature with the Wise card, but you can definitely still use the card to take out cash. Spending with your Wise card is simple since the card can make contactless, chip, and swipe payments and is eligible for Google, Apple, Fitbit, and Garmin Pay. But how do you use an ATM with the Wise card?

Using an ATM with the Wise Travel Card is the same as using any other bank card. Simply insert your card into the machine, enter your PIN, determine how much cash you want to withdraw, and take your cash. Don’t forget to take your card back when you are done (I have made this mistake too many times…).

Wise Card ATM Limits

One of the biggest downsides with the Wise card is that you’ll have limited free ATM withdrawals. For all accounts, you’ll have 2 free ATM withdrawals each month, after which you will be charged an ATM usage fee and a percentage markup on the amount of cash you withdraw.

I use the Wise Travel Card for many of my day-to-day travel expenses, but I use my Charles Schwab Investor Checking account for ATMs. This card not only has a 0% ATM markup, but it also refunds any fees the ATM provider charges. This includes international withdrawals!

Wise Card Delivery Timeframe

Once you order your Wise Travel Card, you can expect it to take between 3 and 21 days to arrive, depending on your location. If you live in Singapore, you’ll get your card SUPER fast. Unfortunately for Americans like me, this isn’t the case.

Wise Travel Card Fees and Exchange Rates

One thing I really love is that using Wise itself is free, and you won’t have to pay an ongoing fee to Wise to use the card. In fact, there isn’t even a Premium account feature, so all users get 100% of the features for free. All this said, there are some charges and exchange rates you should know about before you start using the Wise Travel Card.

Comparison: How Does the Wise Card Holds Up Against Other Travel Cards?

Wise is a leader in the travel account realm, but it still has some major competitors. While all of these different companies vary, they all cater to digital nomads and frequent travelers. The table below will compare some key factors with Wise, Revolut, N26, and Chime.

You may also be interested in:

So, What Travel Card is the Best?

This is a close call and pretty dependent on where you are located. For example, N26 and Chime are awesome choices if you live in the EU or USA (respectively). But, with these options, you can’t hold different currencies like with Revolut and Wise.

For most digital nomads, Wise or Revolut will be the best option. You can hold a huge number of currencies, and they are available to many different nationalities. I have personally used both Wise and Revolut and can say they are both excellent options.

Spending Limits for the Wise Travel Card

The Wise Travel Card has set daily and monthly spending limits for all types of transactions. While these limits won’t be a deal breaker for the vast majority of users, they are still worth noting.

Keep in mind the above limits are for US Wise customers. The amounts will differ slightly for customers based in different regions.

Is It Safe to Use the Wise Travel Card?

Wise is a trusted and safe travel card provider, so you can rest assured that your funds will be protected when using the Wise Travel Card. A licensed and regulated financial institution, your funds are safeguarded in Wise. It is, however, worth noting that since Wise is not considered a bank, it is not FDIC insured. FDIC insures up to $250,000 of bank customer's money, but Wise works a bit differently. Wise safeguards users’ money and is required to ensure all customers have access to all of their funds.

So, is Wise safe to use? Yes, absolutely! We don’t recommend keeping all of your money in Wise, but in general, it is a perfectly secure financial institution.

Additionally, the company uses several security features to protect your data, including HTTPS encryption, a two-step login process, and 24/7 fraud prevention.

What to Do If Your Wise Card Is Lost, Stolen, or Compromised

If you lose your Wise card or suspect it to be stolen or compromised, you’ll need to act quickly to prevent any further fraud. Below, we will go over a step-by-step process for what to do if your card is lost, stolen, or compromised.

• Freeze your card in the Wise app.
• Contact Wise support if you suspect the card to be compromised.
• Cancel the card in the app if you confirm the card is lost or stolen or if fraud charges have been made.
• Order a new card.
• Wait for the new Wise card to arrive.

Bottom Line: Is the Wise Travel Card Worth it?

Time for the 1 million dollar question: Should you get the Wise Travel Card?

If you are a frequent traveler like me and you don’t already have a solid travel card with fair exchange rates, low ATM fees the answer is a resounding yes !

The Wise Travel Card is one of the best cards for digital nomads and expats, as it allows you to seamlessly spend money, withdraw cash, and transfer funds from anywhere around the globe without having to worry about excessive fees. The best part? After paying a one-time card order fee, your Wise account is completely free to use!

Ready To Save Money Abroad with Wise?

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How to Beat Your Post-Travel Depression: Your Guide to Feeling Better

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Prepaid travel cards pros and cons

filo/DigitalVision Vectors/Getty Images

When you pack the essentials for your next big trip, whether it’s a business meeting in Brussels, a food tour of Florence or a volunteer vacation in Venezuela, you may want to consider taking a prepaid travel card.

Prepaid travel cards offer an easy way to get cash in the local currency without the risk of using your own debit card, the cost of a credit card cash advance or the hassle of traveler’s checks. But watch out. That convenience comes with fees and limitations, such ATM withdrawal and purchase amount caps that could put a damper your vacation.

“A prepaid travel card is one tool in a diverse travel wallet,” says Julie Hall, public relations manager for AAA, which offers prepaid travel cards. “It’s one of most convenient ways to get money while traveling.”

How prepaid travel cards work Prepaid travel cards have gained in popularity in the United States only in the past five to 10 years, though they’ve been widely used in Europe for much longer, says Brad Fauss, President and CEO of the Network Branded Prepaid Card Association (NBPCA), a prepaid card industry association.

A prepaid travel card works in a similar way to a general purpose prepaid card, except that it typically offers special features and perks designed for travel, which can vary based on the issuing bank, Fauss says.

In general, to use a prepaid travel card, you purchase the card and simultaneously load the funds you want to spend on your trip, up to the maximum amount allowed on the card. For example, the Travelex Multi-Currency Cash Passport MasterCard allows a maximum balance of $8,500 while AAA’s Visa TravelMoney Card (not available in California, Hawaii or Texas) allows a balance of up to $9,999. Once you’ve arrived at your destination, you can use your card at ATMs to get cash or to make purchases.

If you have a prepaid travel card with a Visa or MasterCard logo, you’re protected by the zero liability policy from those card networks. Depending on the card issuer, you may be able to use a smartphone app or log onto a website to check the balance, review your purchases and look for charges you don’t recognize.

For example, the AAA Visa TravelMoney Card offers a mobile app that helps you track your card transactions on the go, Hall says. “If there’s a fraudulent purchase, you can be alerted to that pretty quickly.”

The pros and cons of prepaid travel cards Think you’ll just take some cash, a credit card and your debit card with you on your next trip abroad? There are two big reasons you might want to take a prepaid travel card instead.

Pros include:

Security. Prepaid cards are safer than using your own debit card. “I almost never travel with my personal debit card,” says Elizabeth Avery, founder of the travel site Solo Trekker 4 U, who has traveled to 66 countries. “It’s linked to your hometown bank, so somebody can steal your entire bank account.” Prepaid cards also are safer than carrying wads of cash, says Rupert Kaufmann, president of the site Dream Travel On Points. “Cash is high risk for theft,” he says.

Travel-friendly features and perks. Travel-specific prepaid cards are designed with globe-trotters in mind. For example, some issuers offer MasterCard Travel Cards that are chip-and-PIN, says Jeff Feuerstein, North American senior vice president of prepaid for MasterCard. Because this technology is the norm in Europe and other parts of the world, having a chip-and-PIN card can make it easier to buy train tickets or other items at unattended kiosks. Also, prepaid travel cards may offer some of the perks usually associated with rewards credit cards. For example, the Visa TravelMoney card from Inova Credit Union offers purchase protection, which covers items bought with your card up to $500 for 90 days from the date of purchase for theft or damage due to accidents, fire and weather. The card also offers travel and emergency assistance, pre-trip planning help, emergency translation services and lost luggage reimbursement up to $250 per trip.

Prepaid travel cards also provide convenience when compared with traveler’s checks, which, yes, still exist. “Travelers checks are almost extinct these days, and it's hard to find places to cash them in some countries,” Kaufmann says.

One big con: fees

Travelers may balk at prepaid cards’ fees. “Check the fine print,” Kaufmann says. Travel cards can have “outrageous fees.”

Foreign transaction fees. Like some credit cards, prepaid travel cards may charge foreign transaction fees. The AAA Visa TravelMoney Card, for example, hits users with a foreign transaction fee of 3 percent for purchases made outside the United States, while the Travelex Multi-Currency Cash Passport Card has a foreign transaction fee of 5.5 percent. Today, it's far easier to find cards with credit cards with no foreign transaction fee .

Other fees. Prepaid travel cards may also charge a card purchase fee, an ATM withdrawal fee, a higher foreign ATM withdrawal fee, an inactivity fee and a fee to get the remaining balance back by check.

To avoid high fees, Kaufmann shops around and uses prepaid cards not marketed specifically as travel cards. For example, he used the American Express Bluebird card, until AmEx in 2016 announced it would remove the ability to withdraw cash from ATMs abroad , he says. He’s now switching to Simple , which offers a Visa that charges a 1 percent foreign transaction fee. That's still a better deal than many travel-specific cards, Kaufmann says.

Prepaid travel card tips Depending on the card you want and where you live, you might have to go to a local AAA office, bank branch or a Travelex location to get the card. MasterCard offers a prepaid travel card locator , as does Visa .

Before you make the trek, check out the details of the cards online. Here are five tips for shopping for and using a prepaid travel card:

• Check the fees. Some travel cards get you coming and going, so read the fine print before you buy. For example, the Inova Visa TravelMoney Card charges a $2 card purchase fee, a $5 international ATM withdrawal fee and a $10 account closure fee. And, in addition to foreign transaction fees, the Travelex card charges a $20 balance refund fee and, after the card hasn’t been used for a year, an inactivity fee of $3 a month. That bothers Kaufmann: “I don't want to pay fees when I'm at home and the card sits in the drawer,” he says.
• Verify that the card will work at your destination. Make sure you’ll be able to use the card where you’re going, Avery says. She once got a prepaid travel card at a drugstore for a volunteer trip to an orphanage in the Dominican Republic. After she opened the card, she found out it couldn’t be used abroad. “It was definitely for U.S. travel,” she says. Even a card that’s designed for international travel might not work in specific locations due to restrictions from U.S. trade sanctions. For example, both the Travelex Cash Passport card and AAA’s Visa TravelMoney won’t work in prohibited countries , which include Ecuador, Indonesia, Kenya, Turkey and Vietnam. After Avery discovered her card wouldn’t work abroad, she had to return to the store and go back and forth with the issuer to get her money back, she says: “All it cost me was time and frustration, but I ended up with no card to use on the trip.”
• Pick a card you can manage with ease. Look for a card that lets you check the balance and view purchases either online or via your smartphone, Kaufmann says. “If you’re in a foreign country and different time zone, calling your bank by phone is difficult and expensive,” he says. Also make sure that you can load your card quickly and easily, for example, by free bank transfer, he says. AAA allows reloading at the original purchase location, at various AAA locations, online and by phone. However, funds may not be available for 48 hours when loaded in the latter two ways. “If you use your card more than expected, you don't want to be stuck with an empty card,” Kaufmann says.
• Know the limits. Prepaid travel cards typically have limits that could throw a wrench into your travels if you don’t understand them ahead of time. For example, the Travelex Cash Passport has a $250 reload minimum and also limits you to loading a maximum of $10,000 in a week and $20,000 in a month. The card also has a $1,000 a day ATM withdrawal limit and a $5,000 purchase cap.
• Avoid holds at all costs. Prepaid travel cards function as debit cards, Fauss says. So avoid using a prepaid travel card to reserve a hotel room or a rental car, which can trigger a hold that could tie up hundreds of dollars of your cash for a week or longer. Use a credit card to reserve and, if you want to, use your prepaid card only to pay the final charges.

Despite the downsides, business and leisure travelers should consider prepaid travel cards, says Avery, who had great luck using one on a recent trip to Portugal. “For a traveler, it just makes so much sense,” she says.

See related: 5 favorite apps to save money while traveling , 11 credit card travel insurance benefits

Most prepaid cards fail to disclose fees

Overcoming 5 merchant barriers to EMV chip cards

Home » Credit Cards » Our Guide to Traveling With Points and Miles This Year

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Our Guide to Traveling With Points and Miles This Year

• Author | Steven Cruse
• January 5, 2024

The Daily Navigator strives to help you make the best decisions in travel. While we produce content according with strict editorial integrity this post may contain references to partner products. Here’s a full explanation for how our team makes money .

• Where to start: What are your travel goals?
• What are points and miles?
• The best points and miles programs
• How to earn points and miles
• How to use points and miles

What are travel credit cards, and how do they work?

Travel credit cards are financial products that offer various rewards and benefits geared towards frequent travelers. They typically earn you points or miles for every dollar spent on eligible purchases. These rewards can be redeemed for flights, hotel stays, car rentals, and other travel-related expenses. Travel credit cards may also include perks like travel insurance, airport lounge access, and no foreign transaction fees.

How do I choose the best travel credit card for my needs?

Choosing the best travel credit card depends on your travel habits, spending patterns, and preferences. Consider factors like the type of rewards offered (points, miles, or cash back), the card’s annual fee, sign-up bonuses, earning rates, redemption options, and additional travel perks. Analyzing these features will help you find a card that aligns with your lifestyle and offers the most value.

What are the benefits of using a travel credit card over other types of credit cards?

Travel credit cards provide unique advantages for travelers, such as earning rewards specifically tailored to travel expenses. Additionally, many travel credit cards offer travel-related perks like free checked bags, priority boarding, and travel insurance. Some cards also waive foreign transaction fees, making them ideal for international travelers.

What is a sign-up bonus, and how can I qualify for it?

A sign-up bonus is a promotional offer provided by the credit card issuer to entice new cardholders. To qualify for a sign-up bonus, you usually need to meet specific spending requirements within a certain timeframe after opening the account. The bonus can be in the form of points, miles, or cash back, and it’s a great way to jump-start your rewards earning.

Do travel credit cards charge foreign transaction fees?

Not all travel credit cards charge foreign transaction fees. Many of the top-tier travel cards waive these fees, making them ideal for international travel. However, it’s essential to read the card’s terms and conditions to confirm this before using it abroad.

How can I maximize the rewards earned with my travel credit card?

To maximize rewards, use your travel credit card for everyday expenses and large purchases. Take advantage of bonus categories and special promotions to earn more points or miles. Consider combining your travel credit card with loyalty programs to stack rewards and get even more value out of your purchases.

So you want to start traveling using points and miles? You’re in the right place. 

In this comprehensive guide on how to travel on points and miles, we’ll show you how to leverage different airline, credit card, and hotel currencies to travel for free (or at least a heck of a lot cheaper). From the outside, it can seem complicated, and that’s why so few people take full advantage of the opportunities points and miles can afford them. But by simply being here, you’re taking a huge step towards an elite group of travelers with the world at their feet.

If you haven’t already, subscribe to our bi-weekly travel tips newsletter, Smart Points , where travel expert Steven will inundate you with the latest news and strategies—he’s made all the mistakes, so you don’t have to. Even better, sign up for our Smart Points course , so you can become an expert yourself. 

But without further ado, let’s dive into our guide to traveling with points and miles in December 2023.

Where to start with travel points and miles: What are your travel goals?

1. be honest with yourself.

Before you take your first steps forward into the world of points and miles, you need to take a few back and look at yourself.

Seems like strange advice, right? 

But it’s critical to remember you’re not playing with Monopoly money. Earning points and miles requires opening and using credit cards. This carries an inherent financial risk, where poor decisions and inexperience can lead you down a dark path.

To be effective, you need to have a strong credit score, pay off your credit cards every month, and never, ever, ever spend more than you can afford. If this isn’t you yet, wait a little while longer. Your time will come. No amount of free travel is worth plunging into debt. In fact, it’s not free travel at all.

If, however, you’re in a good place, read on and get ready to change your travel experience

2. Define your travel goals

Just because you’re ready to get rolling doesn’t mean you get to skip the self-analysis. Being an effective points and miles user requires strategy, and a plan is worth nothing without a clearly defined end goal.

Everyone has different perceptions of travel. Smart Points writer Steven travels full time, jumping from country to country each month. One of our other writers, Alexa, has her eye on frequent luxury travel. Both of those lifestyles require different strategies.

For someone like Steven, a first-class seat is less important. He wants to fly as much as possible for the least amount of money. Alexa may fly less, but she wants to do so in style before staying in a world-class hotel.

Before making any decisions, narrow down what you need. Are you aiming to cover flights and hotels for one big trip at the end of the year? Or are you hoping to cover flights for two or three shorter adventures across a more extended period? Does luxury matter to you? Does volume play a factor? Do you prefer certain airlines? Are you set on a single destination?

Write down everything you can about what you need. It’s what will dictate your next move. Now that you’ve defined your goals, we can dive into the nitty-gritty. 

Navigator Tip

Determine what type of travel you enjoy and where you want to go. Some cards may offer better rewards for specific airlines or hotel chains, while others provide more flexibility in redeeming points for various travel expenses.

What are travel points and miles?

In short, points and miles are currencies created by airlines, hotels, and credit cards to be redeemed by customers for travel (or other products).

Just like traditional currencies, their values vary and fluctuate often. Many are set at around 1 cent a piece, but, as you’ll discover later, they can be worth far more in certain exploitable situations.

1. Airline miles

As the name suggests, airline miles are currencies tied to a particular airline. Virtually every carrier has its own version, which can be redeemed for flights with said airline or one of its partners.

Some examples are Delta SkyMiles, British Airways Avios, United MileagePlus, and American Airlines AAdvantage Miles. Don’t get too hung up on whether a currency is named points or miles—they’re generally interchangeable.

You can earn points and miles in many different ways. The most straightforward is flying with the airline. The more you fly (and pay) with a given airline, the more points you earn. Of course, this may only be one or two flights a year for the average person, limiting earnings. A regular business traveler can earn hundreds of thousands.

The best way for most of us to earn airline points and miles is by using credit cards. Most airlines have co-branded cards that allow you to earn rewards currency by using the card. Many cards come with bonus spending categories that gift extra points for using the card to purchase specific things like groceries, restaurants, or flights with the airline. We’ll dig into credit card strategy later on.

One of our favorite cards for earning miles is the  Capital One Venture Rewards Credit Card . With a large welcome bonus, simple-to-understand points-earning opportunities, a low annual fee, and versatile redemption options, it should be a staple in your wallet.

Capital One Venture Rewards Credit Card​

75,000 Bonus Miles

after you spend $4,000 on purchases in the first 3 months of account opening.

The Capital One Venture is an excellent go-to card for any traveler, thanks to its easy to navigate 2 miles per dollar on every purchase. With no bonus categories to consider, a reasonable $95 annual fee, and a strong 75,000-mile intro offer worth over $1000, Alec Baldwin might be onto something. 

  PROS

• The Capital One Venture’s 75,000 mile intro bonus is worth $750 when spent on Capital One’s (recently revamped) travel portal or you can use your miles to cover your recent purchases. The bonus rises to well over $1000 when transferred to an airline or hotel partner.
• A steady 2 miles per dollar on all purchases makes earning simple and lucrative. You’ll also grab 5 miles per dollar when booking through Capital One’s travel portal.
• Its $95 annual fee is almost negligible, especially if the intro bonus is achieved Flexible miles allow for a wide array of redemption options
• You can enjoy a two free visits to a Capital One Lounge each year
• You’ll get up to a $100 credit for Global Entry or TSA PreCheck® membership which can help make airport security a breeze.

  CONS

• Capital One lacks US-based airline and hotel transfer partners
• Not many major perks beyond its miles value

Annual Fee: $95   |  Terms Apply  |   Rates & Fees

2. Hotel points

Hotel brands also have their own currencies. Companies like Hilton, Marriott, and Hyatt all have individual systems and operate similarly to airlines, rewarding customers for stays at branded properties or using co-branded credit cards, like the  Hilton Honors American Express Surpass® Card .

Of course, hotel currencies can be redeemed for stays instead of paying for flights. Depending on the hotel, the same amount of points could pay for multiple nights at a lower-end hotel or one night at a high-end property. 

Generally, hotel points achieve less value than airline miles. But that doesn’t mean they’re not useful—far from it.

Hilton Honors American Express Surpass® Card

Earn 130,000 Hilton Honors Bonus Points

after you spend $3,000 in purchases on the card in your first six months of card membership

The Hilton Honors American Express Surpass® Card is an excellent hotel card, with a strong intro bonus of 130,000 Hilton Honors bonus points after you spend $3,000 in purchases on the card in your first six months of card membership. It’s worth having this card even for a couple of stays a year, as the $150 annual fee is already validated by the free breakfast and strong points-earnings. If free Hilton nights is the goal, its earning potential is stellar, with 4X points for each dollar on U.S. online retail purchases, and 3X points for all other eligible purchases on your card.

• Strong 130,000-point intro bonus, which could translate to multiple free nights or one night in a luxury property in some places
• Up to $200 back each year on eligible Hilton purchases after you use your Hilton Honors American Express Surpass® Card
• Get complimentary Hilton Honors Gold status. This entitles the cardholder to room upgrades if available, free breakfast, 80% bonus points on Hilton spends, and fifth night free on an award stay. It’s more than worth the annual fee.
• Strong spending categories on popular purchases like U.S. supermarkets, U.S. gas stations, and U.S. restaurants
•  Free Night Reward from Hilton Honors after you spend $15,000 on eligible purchases on your card in a calendar year
• Enjoy complimentary Hilton Honors(TM) Gold Status with your Hilton Honors American Express Surpass® Card.
• No automatic free anniversary nights 
• You’ll need a lot of Hilton points to redeem for a free night at a luxury property
• $150 annual fee

Annual Fee: $150  |  Terms Apply   |    Rates & Fees

3. Transferable credit card points

By far, the most valuable points are those earned on general travel cards. Instead of being tied to a singular entity, these points currencies can be transferred to a number of different partners. American Express, for example, has 18 airline partners and three hotel partners, including British Airways, Delta, Hilton, and Marriott.

This flexibility is what makes these points so valuable. Instead of being tied to one carrier and its prices, transferable points allow the customer to shop around and deposit points into the airline or hotel account that offers the best value for that specific situation.

Cards like the American Express Platinum,  Chase Sapphire Preferred , and  Capital One Venture X  all use transferable points currencies. These kinds of cards are the key to traveling like a pro. We’ll show you how to use them soon.

Chase Sapphire Preferred® Card

60,000 Bonus Points

after spending $4,000 on purchases within the first three months from account opening

Learn More –>

The Chase Sapphire Preferred Card is the ultimate all-around travel credit card—it fits perfectly into almost any points-earner’s wallet. Points novices can enjoy a significant intro bonus and easy to grasp spending categories with an approachable annual fee. The more experienced can utilize its high value earning potential as a secondary card and also gain access to Chase’s strong travel booking portal.

• Get 25% more value when you redeem for airfare, hotels, car rentals, and cruises through Chase Ultimate Rewards®. The 60,000 points, for example, are worth $750 toward travel.
• The $50 dollar hotel credit for stays purchased on the Chase Travel Portal already cuts the already approachable $95 annual fee significantly.
• A 10% annual points bonus is tacked on every year, adding a little more value.
• A free year-long Doordash DashPass membership is also thrown in, which gives you free delivery and some extra discounts. It’s a solid perk if you order food delivery at least semi-frequently (Activate by 12/31/2024).
• Along with all of the above, cardholders also have access to a string of travel protections like rental coverage, cancellation insurance, and purchase protection.
• Maximizing the value of Chase points can still be complicated for complete novices. Competing cards like the Capital One Venture have a better earning rate for non-bonused spend. It’s subject to Chase’s 5/24 rule. So, if you’ve opened five cards in the last two years, you’re most likely not going to be accepted.

4. Loyalty points

One of the most confusing facets of loyalty programs is the similar names of companies’ loyalty systems and reward currencies. Airlines and hotels typically have two sets of earnings available—one can be redeemed for travel, while the other unlocks benefits.

For example, Delta’s points currency is SkyMiles. This is what customers use to redeem flights with the airline. But its loyalty members also collect “Medallions” or “Medallion Status.”

Becoming a gold, silver, diamond, or platinum Medallion member is achieved by regularly flying with the airline (or opening certain co-branded cards), but this can’t be redeemed for flights. Instead, these define elite members of the SkyMiles program. Higher-tier members receive perks like lounge access, free upgrades, early boarding, and increased earning opportunities.

These are all great benefits, but it’s important to remember you’re mainly gaining experiential value. Chasing elite status for the sake of it is usually costly and not a tenet of traveling like a pro.

The best travel points and miles programs

The best airline reward programs.

There is a level of subjectivity to what makes an airline or hotel reward program useful. A customer’s location, airline preference, and travel needs vary, impacting the perceived value of any given points or miles system.

But some programs are objectively more valuable than others. Here are some of the best programs and a brief overview of why they’re helpful. Remember, just because you’re using an airline’s currency doesn’t mean you must fly with that airline.

1. Alaska Airlines Mileage Plan

This plan is widely regarded as the most valuable points currency out there, partly due to its considerable number of partners. With 23 other airlines to earn and redeem Mileage Plan Miles with, the scope is enormous. It’s also got some super high-value flight redemptions. The only downside is its lack of transferability from major credit cards.

2. British Airways Avios

While Avios are most associated with British Airways, it’s also the points currency for Qatar Airways, Aer Lingus, and Iberia. Points can be moved back and forth between any of these airlines, which is hugely valuable. Aside from that, it’s easy to earn Avios, as American Express, Capital One, Chase, and Bilt are all transfer partners. For redemptions, using British Airways has some fantastic sweet spots on short-haul flights in the US using American Airlines.

3. United MileagePlus

United’s points system has been devalued in recent years, but it still has a ton of outstanding redemptions thanks to its long list of alliance partners. Throw in some of its interesting perks like “The Excursionist,” which basically includes a free flight, and its value increases further. Availability is usually good, too, which can’t be said for every program. Chase cards like the Sapphire Preferred allow you to transfer points to a United account, making earning easy.

4. American AAdvantage Miles

AAdvantage Miles are among the most problematic travel currencies to earn, as they don’t allow transfers from any general travel cards. The best way to earn them is through a co-branded card or flying directly with the airline or a partner. Despite these issues, it offers some outstanding value redemptions for routes to the Middle East and Asia. Its off-peak offers for Europe remain some of the sweetest spots for transatlantic travel.  

5. Delta SkyMiles

Delta’s points currency is a tough one to deal with. On the one hand, its fluid value system means some reward rates are astronomical. On the other, its SkyDeals are some of the best redemptions out there when you can get them. If you enjoy flying Delta, it’s better to have points in an Amex account that can transfer to Delta. Otherwise, Virgin and KLM/Air France both allow customers to redeem their own points for Delta flights at far cheaper rates.

6. Southwest Rapid Rewards

Popular airline Southwest’s Rapid Rewards system operates differently from the others mentioned. Instead of using a rewards chart or being able to book other airlines using its points, it simply ties its currency to real-time cash prices. In short, the more expensive a flight, the more points you need. This makes it easy to use the points but remains limited in scope. Still, it’s a handy currency to have stocked up for last-minute domestic or Caribbean travel.

7. Virgin Atlantic

Setting itself up as one of the easiest rewards currencies to transfer and redeem, you can use Virgin points on over 20 partner airlines and transfer in from multiple general travel cards. Its partner redemption chart is distance based, offering some spectacular rates on airlines like Delta. Its transatlantic flights on Delta are among the best sweet spots in the points and miles game.

8. KLM/Air France Flying Blue

Flying Blue is a combined rewards program for Dutch carrier KLM and Air France (from France, obviously). It’s possible to transfer points from American Express, Chase, Capital One, Marriott, and Bilt, making it easy to earn. It regularly has the best deals on SkyTeam flights (including Delta), so always make them the first check if you’re a Delta loyalist. Bookmark the Flying Blue Promo awards—monthly deals that offer the best value at any one time.

The best hotel rewards programs

On the other end of the smart traveling spectrum are the hotel rewards programs. Operating in much the same way as the airlines, members of each program can earn and redeem points for hotel stays.

Hotel programs, as a whole, offer less value than airlines in mathematical terms. Simply put, you’ll usually enjoy more cents per point when redeeming for flights. But, when lounging by the pool in a five-star hotel you didn’t pay cash for, it’s hard to feel that difference.

As with airlines, brands have their own redemption rates, perks, and earning opportunities.  Here are a few of the most popular.

1. Hilton Honors

With a massive footprint, Hilton properties are found worldwide, making it a useful currency by pure convenience. Redemptions vary from as low as 10,000 points a night in small markets to over 100,000 points for luxury properties. Its fifth night free on reward stays is one way to maximize value. You can transfer points to Hilton from American Express at 1:2.

2. Marriott Bonvoy

As the largest hotel brand in the world, Marriott also has huge availability across the world—somewhere in the realm of 1.5 million rooms. It also has a fifth-night free perk which adds enormous value. You can transfer points to your Bonvoy account from American Express or Chase. You can also transfer points out of your account to Alaska Airlines—valuable in itself.

3. World of Hyatt

While Hyatt is miles behind the likes of Hilton and Marriott in terms of size, it has the best value awards program. Room redemptions are far cheaper than its competitors, and its member perks are outstanding. The only downside is the comparatively small number of hotels. 

4. Wyndham Rewards

Wyndham’s program slots into an interesting hole in the market—smaller cities in the states. It’s unlikely to be your go-to for a Maldives break, but it can offer tremendous value if you’re a regular domestic traveler or business road warrior.

Despite being a significant player in the hotel industry, IHG’s rewards program is comparatively weak. It has improved, but dynamic pricing means most redemptions aren’t phenomenal value. It has added a fourth-night-free perk, which is better than Hilton and Marriott’s offer, and fits the bill for loyalists to the brand.

Consider diversifying your points portfolio. While it’s tempting to focus solely on one airline or hotel rewards program, diversifying your points portfolio can offer significant benefits. By spreading your loyalty across different programs, you can maximize your options and capitalize on the unique advantages of each program.

How to earn travel points and miles 

Now for the important parts: how to earn and, eventually, use points and miles.

As alluded to earlier, understanding your travel preferences is critical. Those preferences dictate the points you should collect and how you earn them. We’ll break down individual processes in another article, so for now, we’ll dissect the main ways to earn.

If you’re serious about earning free travel, you’ll make this your financial mantra: No dollar spent without maximum points return.

1. Credit card bonuses

Credit card bonuses are the bread and butter to travel like a pro. No other method allows us to earn so much in such a short amount of time. You can use airline and hotel co-branded cards or transferable general travel credit cards to do this, but the latter are more valuable.

Credit card companies offer introductory points bonuses as an incentive for customers. It encourages them to a) open a card and b) keep using it. Remember, credit cards make money from annual fees and vendor fees every time a card is used. They want you to use the card and will reward you for doing so.

The introductory fees are usually large sums of points awarded to a cardholder after spending a specified amount of money within a period of time. It’s vital never to open a card with a spending threshold you can’t responsibly pass. Your value diminishes with every interest fee and debt you dig yourself into.

As an example, the American Express® Gold Card  currently has a 60,000-point intro bonus. A cardholder must spend $6, 000 within six months of opening the card to achieve that bonus. The 60,000 Amex points are worth around $1,200 in travel, making that a massive return on your spending.

Before opening a card for the intro bonus, ensure it’s with an airline you can use to reach your destination. For example, the Amex Gold bonus could be transferred to Virgin Atlantic. With those points, you could book a Delta flight to Europe.

Don’t make the mistake of opening a Southwest card hoping to fly to Tokyo. You can’t transfer those points, and Southwest doesn’t fly there. Always check back to your initial travel goals.

American Express® Gold Card

60,000 Membership Rewards® Points

after you spend $6,000 on eligible purchases with your new card within the first 6 months of card membership

The American Express® Gold Card gives your munch more punch with an outstanding 4 points per dollar spent on dining at restaurants and U.S. supermarkets (up to $25,000 per calendar year, then 1x). For some context, if you spent $8,400 a year on eating out and groceries, which is roughly what the average American spends, you’d have enough points for a roundtrip flight to Hawaii. That’s not even factoring in the huge 60,000-point bonus worth over $1,000.

• Huge returns on popular spending categories like dining at restaurants, takeout and delivery in the U.S .and U.S. supermarkets
• Solid earnings on travel purchased via Amex or directly with an airline
• Solid intro bonus of 60,000 points worth over $1,000
• Up to $120 in Uber Cash for rides and food delivery, and up to $120 in statement credits for selected dining outlets including the GrubHub food delivery app, Shake Shack, Wine.com, and more
• Nice, but pointless in the grand scheme of things, customizable card designs
• $250 annual fee
• No major travel perks like its bigger sibling, the Amex Platinum

Annual Fee: $250   |  Terms Apply  |   Rates & Fees

2. Daily earning and spending categories

If you’ve already earned a bonus or are between new cards, you must ensure you’re maximizing your day-to-day spending.

All travel credit cards come with preset earning rates for everyday spending. A basic card might earn 1 point for every dollar spent on the card. Some will include this basic earning rate but add some bonus categories. For instance, the Chase Sapphire Preferred card earns 5x points per dollar on the Chase Travel Portal, 3x points per dollar in restaurants and supermarkets, 2x points per dollar on travel, and 1x points per dollar on most other purchases. Airline or hotel-specific cardholders can earn huge rates on purchases with the specific company, but it’s vital to remember those points can only be used with that brand.

Some cards, like the Capital One Venture X , set a flat rate of 2x miles per dollar on all spending. This is a happy medium—you don’t get significant earnings on specific purchases, but you earn a higher rate than other cards do on everything else. 

More advanced cardholders have multiple cards in rotation to maximize every purchase. They might use one card for restaurants, one for groceries, and one for everything else to guarantee the most points.

Smart strategy can earn thousands of points in this way.

Capital One Venture X Rewards Credit Card

after you spend $4,000 on purchases in the first 3 months of account opening

The Capital One Venture X is a direct competitor to the Chase Sapphire Reserve, and for many seeking a simpler earning scheme with premium perks, it could be the better option. But the Venture X truly shines with one benefit in particular: four free authorized users. Not only can they all use the card and earn miles, they all receive a Priority Pass membership which allows themselves and two guests access to airport lounges. In a highly improbable situation, that means you could technically bring 15 people into a lounge with you.

• Its solid intro bonus of 75,000 miles is worth well over $1,000 when transferred to partner airlines and hotels, or a flat rate $750 when redeemed on the Capital One Travel Portal.
• Cardholders get a bonus of 10,000 miles each year after their first account anniversary, which is nothing to shrug off, especially when a little bit short of that business class flight. It’s worth almost $200 depending on how you use it. 
• The $300 annual credit for purchases made on the Capital One Travel Portal, combined with the yearly free miles, more than annul the $395 annual fee.
• Four authorized users can be added for free.
• The cardholder is entitled to a Priority Pass membership and entry to Capital One Lounges, even the authorized users.
• A generous offering of travel insurance, protections and reimbursements round out an excellent array of benefits.
• The $300 credit is a bit less flexible than the Chase Sapphire Reserve’s comparable benefit.
• Miles earning is the same as the Sapphire Reserve on portal-based purchases, but less on general travel spending.
• Capital one transfer partners are solid, but still don’t include any US-based airlines or hotels.

Annual Fee: $395   |  Terms Apply  |   Rates & Fees

3. Shopping portals

Shopping portals are an excellent way to maximize individual purchases regardless of what credit card you use.

Many airlines, hotels, and credit cards host these portals on their websites. They’re not shopping sites like Amazon but are gateways to other stores that track your cookies and add extra points to your account when making a purchase.

If you need a new pair of shorts from Lululemon, check the American Express shopping portal before heading directly to the website. You’ll likely find an offer specific to the brand. It may be an elevated bonus earning opportunity, like 6 points per dollar. A huge volume of these portals is available, and it’s likely many of your specific stores are featured somewhere. Check any airline or credit card you’re a member of, as well as cash-back and points websites.

4. Buy flights and hotels

It may sound self-explanatory, but purchasing flights and hotel stays earns you a good haul of points. Booking direct with the airline is usually the best way to guarantee you’ll earn the points. Become a member of all the loyalty programs you might use, and never forget to attach your partner membership numbers.

How to use travel points and miles 

The points have landed in your account. What now? It’s time to redeem them for travel.

Statistics suggest that only 8% of people with points in their accounts use them. That’s most likely because they have no clue where to start. Airlines purposely make it complicated to redeem points for the best value, but for the tenacious among us, there’s a literal planet to explore for pennies on the dollar.

Here’s a step-by-step guide as to how we’d suggest a basic search.

1. Identity your destination and dates

Nailing down where you want to go and when is the first step. Flexibility is a superpower in this world, as it gives you far more options, but a rough timescale and destination are essential. Suppose you want to visit Paris in October and have 80,000 American Express points.

Next, you should assess the airlines operating Paris routes at your nearest airport. Is it Delta-heavy? Is it a small regional airport? You can do this by checking SkyScanner or Google Flights. Note the best flights, the carriers that operate them, and when.

2. Analyze redemption rates

Your search shows Delta operates the best and most frequent flights to Paris. Log into Delta and search for the flight using SkyMiles. Note the cash and SkyMiles rates, then repeat the process with Delta’s partners, like Virgin Atlantic and KLM/Air France.

Here’s what you find for a roundtrip from New York to Paris from each carrier on the same Delta flight:

• Delta – 74,000 SkyMiles and $94
• Virgin Atlantic – 24,000 points + $250
• KLM/AirFrance – 55,000 + $177

But which is best? Delta uses the most points with the lowest fee, while Virgin has the opposite.

If you pick Delta, this trip is cheaper, but you lose the chance to save on more flights. But if you choose Virgin, you’re left with 56,000 American Express points. If you transferred those points to British Airways, that’s enough to fly to South America or the Caribbean twice, with fees as low as $5.50. 

That shifts the value immensely. But the final decision lies with you.

3. Transfer points and book your flight

When you’ve made your decision, you can transfer your points. On the American Express portal (it’s similar for Chase and Capital One), you’ll find a “Transfer to a partner” section. From there, you’ll find a list of partners. Select your desired airline, be it Delta, Virgin, or KLM, and transfer the required points.

Remember, the points only go one way, so only send the exact number you need. Also, keep an eye out for transfer bonuses. Sometimes you’ll find bonuses as high as 30%, which can sway the value of a transaction hugely and make your points even more valuable.

The points should arrive quickly, and you’ll be on your way in no time.

Frequently asked questions

Yes, using credit cards to earn points and miles carries financial risks. It is crucial to maintain a strong credit score, pay off credit card balances every month, and avoid spending beyond your means. Plunging into debt is not worth the promise of free travel.

Before delving into travel hacking, determine your travel preferences and goals. Consider factors like the number of trips, luxury preferences, preferred airlines, and specific destinations you want to cover.

Transferable credit card points can be converted and transferred to various partner airlines or hotels, offering more flexibility in redeeming for the best value.

Airlines and hotels often have loyalty status levels that offer various perks, such as lounge access, free upgrades, and increased earning opportunities. Loyalty status is different from reward currency and is earned through frequent travel or certain co-branded cards.

To use points and miles, identify your destination and travel dates, compare redemption rates with different airlines or hotels, transfer points if needed, and book your flight or hotel stay accordingly. Flexibility and careful planning can enhance the value of your points and miles.

Ask the Navigators: What's the best travel credit card?

Editorial Disclaimer: Opinions expressed here are the author’s alone. This post contains references to products from one or more of our partners and we may receive compensation when you click on links to those products.

Our Top Travel Card Picks​

The Platinum Card® from American Express

80,000 Membership Rewards® Points

after you spend $8,000 in the first 6 months

LEARN MORE –>

Chase Ink Business Preferred® Credit Card

100,000 bonus points

after you spend $8,000 on purchases in the first 3 months

Capital One Venture Rewards Credit Card

after you spend $4,000 in the first 3 months

60,000 Reward Points

Explore Top Travel Cards

Learn To Earn

Get expert insight into travel credit cards, loyalty programs, points hacks, and more.

Related Stories

9 Ways to Use the Chase Sapphire Preferred 60k Bonus Points Offer for Huge Value

Credit Card of the Week: The Bank of America Travel Rewards Card

How to Use Points and Miles to Get Flights to Australia

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Find the best credit card for you

Can't decide between an airline credit card or travel rewards card ask yourself these 3 questions, both types of credit cards can save you money on your next trip, but they have different strengths and weaknesses..

Terms apply to American Express benefits and offers. Visit  americanexpress.com  to learn more.

With the right type of credit card , you could save serious money on your next trip. The tricky part is choosing the right one: a standard travel rewards credit card or an airline credit card .

There are some key differences between the two types of credit cards , and personal considerations that may affect your decision. To help you hone in on the right card for you, CNBC Select outlines three questions to ask yourself before applying.

Find the best credit card for you by reviewing offers in our  credit card marketplace  or get personalized offers via  CardMatch™ .

Airline credit cards vs. travel rewards credit cards

These two credit card categories may sound interchangeable, but they are in fact very different.

An airline credit card is a co-branded credit card for a specific airline, and its rewards can only be redeemed with that airline and its airline alliance partners. For instance, the miles you earn with the Delta SkyMiles® Gold American Express Card can only be redeemed with Delta or its SkyTeam alliance partners, such as Air France or Aeroméxico.

Though airline credit cards are less flexible in terms of award-redemption opportunities , they offer benefits catered to those who are loyal to a particular airline. These perks include airline lounge access , complimentary checked bags, waived foreign transaction fees and benefits designed to help you earn elite status faster.

For example, if you hold the Delta SkyMiles® Reserve American Express Card , you receive access to Delta Sky Club® lounges and free checked bags when you fly Delta. Reserve Card Members will receive four Delta Sky Club One-Time Guest Passes each year. After that, you may bring up to two guests at a per-visit rate of $50 per person, per location. Effective 2/1/25, Reserve Card Members will receive 15 Visits per year to the Delta Sky Club; to earn an unlimited number of Visits each year starting on 2/1/25, the total eligible purchases on the Card must equal $75,000 or more between 1/1/24 and 12/31/24, and each calendar year thereafter.

A travel rewards credit card , earns points that can be redeemed for a variety of travel. You can typically use travel rewards to book directly through the bank's travel portal or by transferring points to hotel or airline partners.

For example, the Capital One Venture X Rewards Credit Card (see rates & fees ) lets you earn Capital One miles, which can be redeemed through the Capital One travel portal for different travel purchases including flights, rental cars and hotels. You could also transfer your Capital One miles to one of its many airline and hotel partners .

Capital One Venture X Rewards Credit Card

10 Miles on hotels per dollar and rental cars, 5 Miles per dollar on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening

Regular APR

19.99% - 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fees

Credit needed.

See rates and fees . Terms apply.

Read our Capital One Venture X Rewards Credit Card review.

3 questions to ask yourself when choosing between airline or travel rewards credit cards

Both types of credit cards present great opportunities to save money on travel , and one is not inherently better than the other. Everyone has different needs, travel habits and preferences, so it's best to analyze your travel style and find the card that works best for you .

For starters, ask yourself the following three questions:

1. How do you typically travel?

If you tend to fly more than three times per year, an airline credit card may be a solid fit, especially if you live in a city that serves as a hub for a particular airline. For example, Atlanta is a hub for Delta, so a co-branded credit card such as the Delta SkyMiles Reserve American Express Card could make sense if you live near Atlanta.

If your travel style varies — a mix of cruises , road trips , train rides, etc. — a travel rewards credit card may better suit you since you'll be able to accrue and redeem points for more than just airfare on one airline.

Delta SkyMiles® Reserve American Express Card

Earn 3X Miles on Delta purchases and 1X Mile on all other eligible purchases.

Earn 60,000 Bonus Miles after you spend $5,000 in purchases on your new Card in your first 6 months of Card Membership.

20.99% - 29.99% variable

Excellent/Good

See rates and fees , terms apply.

2. Where do you want to go?

Once you have a destination in mind, it's easier to know which credit card to get.

If you'd like to travel around Europe, you'll probably fly with more than one airline, use other modes of transport and stay at different hotels. In that scenario, earning transferable points such as Amex Membership Rewards® points or Chase Ultimate Rewards® points makes more sense than earning airline miles as they offer greater flexibility.

Some of the best cards for earning these points are the Chase Sapphire Preferred® Card and the American Express® Gold Card .

Chase Sapphire Preferred® Card

Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Chase Travel Hotel Credit, plus more.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

21.49% - 28.49% variable on purchases and balance transfers

Either $5 or 5% of the amount of each transfer, whichever is greater

Foreign transaction fee

Terms apply.

Read our Chase Sapphire Preferred® Card review .

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

See Pay Over Time APR

Read our American Express® Gold Card review .

On the other hand, if United Airlines flies everywhere you want to go and you're staying with friends, the United Club℠ Infinite Card is a great choice . It earns United miles, comes with United Club lounge access and gets you free checked bags.

United Club℠ Infinite Card

Earn 4 miles per $1 spent on United® purchases, 2 miles per $1 spent on all other travel and dining, and 1 mile per $1 spent on all other purchases

Earn 80,000 bonus miles after qualifying purchases

21.99% - 28.99% Variable

5%, minimum $5

Member FDIC. Terms apply.

3. What is your budget for an annual fee?

Many airline credit cards and travel rewards cards come with an annual fee . Some cards offer solid benefits for a fee that's under $100 . But cards that allow you to earn more points and miles and come with a wide variety of benefits can have a much higher annual fee .

While paying an annual fee isn't necessarily a bad thing, it's important to remember to stay within your budget and not pay for a new card when you won't be able to maximize all its benefits.

The best airline credit cards

Here are CNBC Select's picks for the top airline credit cards :

• Best for American Airlines: Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
• Best for JetBlue: JetBlue Plus Card
• Best for Delta: Delta SkyMiles® Platinum American Express Card
• Best for Southwest Airlines: Southwest Rapid Rewards® Priority Credit Card
• Best for United Airlines: United℠ Explorer Card
• Best for Alaska Airlines: Alaska Airlines Visa® credit card  
• Best airline card with no annual fee: American Airlines AAdvantage® MileUp®

The best travel rewards credit cards

Here are CNBC Select's picks for the top travel rewards credit cards :

• Winner:   American Express® Gold Card
• Runner-up:  Capital One Venture Rewards Credit Card (See rates and fees )
• Editor's choice:   Capital One Venture X Rewards Credit Card
• Best welcome bonus:  Chase Sapphire Preferred® Card
• Best for luxury travel:  Chase Sapphire Reserve®
• Best for lounge access:   The Platinum Card® from American Express
• Best for no annual fee:  Discover it® Miles
• Best for paying rent:   Bilt Mastercard®
• Best for low interest:   Choice Rewards World Mastercard®
• Best for students:  Bank of America® Travel Rewards for Students

Airline card and travel card pros and cons

When you're deciding whether to apply for an airline card or a travel rewards card, you need to consider the advantages and drawbacks of each choice .

Airline cards are helpful if you're loyal to a specific airline because you'll earn miles with that program. In addition, many airline cards can help you earn elite status more easily or may grant you elite-like perks like free checked bags, priority boarding and access to the airline's airport lounges . But there are downsides to earning miles with a single airline because it may not fly where you want to go or may not be the best deal for that particular route.

Travel rewards cards offer the most flexibility. Many travel cards allow you to transfer the rewards you earn to various airlines and hotels, allowing you to pick the best deals . This type of card also typically offers a variety of general travel benefits, such as trip delay insurance , lost baggage coverage and access to larger networks of airport lounges. On the flip side, with a travel rewards card, the best redemptions can be harder to find or complicated to book and you usually won't get airline-specific benefits.

Keep in mind, if you've assessed your situation and feel you can benefit from both types of cards, you can have one (or more) of each card type .

Airline credit card: Pros and cons

• Earn miles with your favorite airline
• Fast-track your way to elite status
• Unlock valuable benefits with a specific airline (priority boarding, free checked bags, airline lounge access, etc.)
• Locked into a single loyalty program
• Limited options for using rewards for other types of travel
• Fewer general travel perks, like travel insurance

Travel rewards card: Pros and cons

• Flexibility to use rewards for hotels, rental cars, flights and more
• Exceptional travel protections
• Versatile airport lounge access benefits
• Few, if any, airline-specific perks
• Certain redemptions are more complicated
• May not be able to transfer rewards directly to your favorite airline

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

Bottom line

When deciding between an airline credit card or a travel rewards credit card , ask yourself the above three questions to narrow down the best choice for your travel needs.

As long as you earn the welcome bonus , make the most of your card's travel benefits and stay within your budget , either type of credit card can enhance your travels while simultaneously saving you money on flights and other expenses.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

For rates and fees of the American Express® Gold Card, click here .

For rates and fees of The Platinum Card® from American Express, click here .

For rates and fees of Discover it® Miles, click here .

Information about the American Airlines AAdvantage® MileUp®, Alaska Airlines Visa® credit card, Bank of America® Travel Rewards for Students, Citi® / AAdvantage® Platinum Select® World Elite Mastercard® has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

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Who should (and shouldn’t) get the Capital One Venture X card?

One of the most popular premium travel rewards credit cards is the Capital One Venture X Rewards Credit Card .

While its $395 annual fee (see rates and fees ) is significant, the card offers a host of travel perks — from a $300 annual credit for purchases made through Capital One Travel to lounge access to up to four free authorized users — that can easily offset the full yearly cost of the card.

The card is a step up from the Capital One Venture Rewards Credit Card , the tried-and-true Capital One product that charges an annual fee of $95 (see rates and fees ) but still offers a taste of what its more expensive sibling provides.

Of course, the Venture X isn't for everyone. Let's dig deeper to see who should — and shouldn't — apply for this card.

Learn More: Capital One Venture X

Key Capital One Venture X benefits

The Capital One Venture X is currently offering a sign-up bonus of 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening.

Those 75,000 miles are worth at least $750 when redeemed for travel directly through Capital One Travel or as statement credits toward other travel purchases. But their value is boosted to $1,388, according to TPG's latest valuations , thanks to a robust set of airline and hotel transfer partners .

While that might be alluring enough on its own, the card extends plenty of other valuable, everyday benefits:

• Earning: The Venture X earns 10 miles per dollar on hotels and car rentals booked via Capital One Travel, 5 miles per dollar on flights booked via Capital One Travel and an unlimited 2 miles per dollar on everything else
• Credit: A $300 credit annually for bookings made through Capital One Travel
• Anniversary bonus: 10,000 bonus miles every account anniversary, starting on your first anniversary (worth at least $100 toward travel)
• Lounge access: Complimentary access for cardholders, authorized users and up to two guests per visit to Capital One Lounges and for all guests traveling with the cardholder or authorized user to more than 1,400 Priority Pass lounges worldwide
• Authorized users: Up to four authorized users can be added at no charge, and they also get the same guest access as the cardholder for the Capital One Lounge and Priority Pass
• Global Entry or TSA PreCheck: Up to $100 in statement credits for either TSA PreCheck or Global Entry
• Annual fee: $395 (see rates and fees ).

Who should get the Venture X?

If you're considering the Venture X, let's narrow down why the card might best fit you.

You want simplicity in a premium card

The Venture X credit card is a premium card that is simple to understand. Unlike some other products with a dizzying array of statement credits and third-party partners, the Venture X keeps its perks relatively straightforward.

In fact, the Venture X offers benefits that even beginner travelers can maximize, including a $300 annual credit through the travel portal (hotels, airfare and rental cars qualify). The Venture X also adopts a simple earning structure, accruing 2 miles per dollar on most charges, complemented by elevated earning rates for bookings made via Capital One Travel.

In addition, Venture X cardholders receive 10,000 bonus miles every account anniversary. Those miles are worth $100 when redeemed via the travel portal or potentially even more if you transfer miles to an airline or hotel partner .

Simple math will show that between the annual travel credit and bonus miles on each account anniversary, you're already breaking even on the $395 annual fee (see rates and fees ). And that doesn't include a variety of other perks.

Related: The most exciting premium card to come around in years: A review of Capital One Venture X

You want access to airport lounges

While more and more travel credit cards seem to offer airport lounge access these days, the Venture X still has a few features that set it apart in this respect.

Venture X cardholders have access to a growing network of Capital One Lounges. Currently, three locations are open: at Dallas Fort Worth International Airport (DFW), Dulles International Airport (IAD) and Denver International Airport (DEN) . The lounges have a modern design, premium dining experiences and a robust grab-and-go selection.

In addition, Venture X cardholders get access to over 1,400 Priority Pass lounges worldwide.

You want free authorized users

Venture X cardholders can add up to four authorized users at no cost.

That's an excellent value proposition, considering authorized users get unlimited access to Capital One Lounges and Priority Pass lounges worldwide — with the same guest policies as the cardholder.

In addition, authorized users get Hertz President's Circle elite status. By registering through your Capital One account, your authorized user can enjoy top-tier status with Hertz car rentals.

Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program, and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.

You want some of the best travel protection benefits

This Visa Infinite card offers some of the industry's most comprehensive travel and trip protection benefits.

That includes trip cancellation and interruption insurance , trip delay reimbursement , lost luggage reimbursement, cellphone protection , primary rental car protection , purchase protection , extended warranty protection and return protection .

Who shouldn't get the Venture X?

While the Venture X is an impressive, high-end card, it isn't for everyone. Let's take a closer look.

You want a robust network of premium lounges right now

The Venture X offers extensive travel perks, but thus far, it has just three proprietary airport lounges open.

Indeed, while Capital One has grand ambitions with its own lounge network, Amex has a significant head start with Centurion Lounges at more than 20 airports, as well as the Global Lounge Collection , which includes Priority Pass and Delta Sky Clubs (when flying on the same day with Delta).

Therefore, certain flyers who often hit the lounge might prefer a card like The Platinum Card® from American Express .

You don't travel much or plan to leverage transfer partners

To truly maximize the Venture X card, you should consider leveraging Capital One's transfer program.

Capital One has made several significant advancements to its mileage program over the past few years, including shifting from just fixed-rate redemptions to adding airline and hotel transfer partners and improving mileage transfer rates. Currently, there are 18 airline and hotel transfer partners , with 16 transferring at a 1:1 ratio. If you don't use transfer partners, the best you can do is a redemption rate of 1 cent per mile.

However, by utilizing transfer partners, there are several sweet spot redemption opportunities , including economy flights to Hawaii for just 7,500 Capital One miles by transferring to Turkish Miles&Smiles and redeeming for United business-class flights to South America for 50,000 Capital One miles by transferring to TAP Miles&Go.

Bottom line

The Capital One Venture X Rewards Credit Card is an excellent option for those in the market for a premium credit card with easy-to-digest benefits. However, for those looking for a card with better lounge access or who don't need the flexibility of airline and hotel transfer partners, there may be better options out there. That said, we think the card is nearly a no-brainer for travelers ranging from luxury seekers to the more budget-minded.

Learn more in our full review of the Venture X .

Apply for the Capital One Venture X and earn 75,000 bonus miles when you spend $4,000 on purchases in the first three months from account opening

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

For rates and fees of Capital One Venture Rewards Credit Card, click here .

For rates and fees of Capital One Venture X Rewards Credit Card, click here .

The Pros and Cons of Using Travel Cards

Just as purchasing cards (commonly known as P-Cards ) have become a convenient and safe way to handle business expenditures, the more specifically used travel cards (or T&E Cards) have also become popular with businesses as a method of payment. What exactly are travel cards, and what are their pros and cons, especially in terms of monitoring your business expenses?

What is a travel card?

A travel card is similar to a purchasing card, with the only exception being that its use is delegated specifically for travel expenses, often on a global scale. Typically, they are pre-paid cards: a certain amount of money is placed on the card for the cardholder’s use. But it’s also possible to have travel cards that are based on a credit or debit model.

The pros of using travel cards

They help with the management and monitoring of transactions. Because travel cards are being used specifically for travel (as well as dining and entertainment) expenses, they — by their very nature — assist with the organizing and categorizing of expenses. Having these expenses organized in clear, easy-to-view categories makes trends — both positive and negative — easier to track. With use of the data, budgets are better determined, while red flags of fraudulent behavior or misuse become more apparent.

They provide spend control. A handy tool for companies that use cards is the ability to block certain “merchant category codes” (more commonly called MCCs ). Doing so helps ensure that the card is used only for its intended purpose — namely travel expenses. Blocking MCCs helps limit misuse and fraud, and it eliminates needless categories when doing expense reviews.

They make tax compliance and deductions easier. The same tools that help transactions more secure and easier to track also help businesses when it comes to taxation. Travel cards make it more convenient to track the T&E deductions and discern tax obligations.

They’re secure. Travel cards offer a secure method of payment. They can be quickly and easily deactivated and replaced if lost, stolen, or damaged.  The transactions themselves are safer too, thanks in large part to modern technology — such as chips, PINs, and security monitoring.

Furthermore, some banks also offer other means of security as part of their benefits, such as T &E insurance and emergency travel assistance. When an employee is in a foreign country with limited resources, such added benefits can be extremely reassuring — and they have the potential of saving the company money when such services are necessary. Businesses should check with the bank that issues their travel card to determine if these benefits are available.

They can protect personal credit. One of the great things about travel cards is that they typically do not report credit activity to any consumer credit bureaus. So their usage rarely impacts personal credit lines. Again, check with the issuing bank to confirm whether or not it reports activity to consumer credit bureaus.

They pay — literally. Many travel card companies provide monetary value back to the company via cash rebates, frequent flyer mileage, and hotel points.

The cons of using travel cards

They are limited. While for monitoring and managing expenses this trait is a “pro,” the fact that travel cards are only used for T &E can also be a “con” for some businesses.

Since travel cards are — technically and practically speaking — strictly for travel expenses, this fact creates the necessity of an alternate payment source for all the other types of business expenses. Creating multiple expense payment systems can be challenging for many businesses, as it can place an overwhelming burden on a company’s resources.

They don’t always cover all travel expenses. As ironic as it might seem, there are some expenses that companies with T &E cards exclude that are “travel” in nature. These can include flight upgrades to first or business class, “non-preferred” hotels, car rental upgrades to luxury lines, extra luggage, and memberships for business-lounge access. To prevent confusion on what to purchase with a travel card, companies typically have cardholders comply with a travel policy that will outline the purchases that are prohibited or allowed on the travel card.

They still require monitoring and reviews. Yes, travel cards do inherently assist with organizing expenses. But the key word here is “assist.” The cards alone cannot provide assurance against internal fraud and misuse. Only a stringent system of statement and receipt reviews can do that.

So the assumption that, due to the nature of T &E , monitoring is unnecessary is a dangerous one. Without internal controls, compliance goes unchecked, savings are not realized, and spend categories can become vague, misleading, and downright inappropriate.

Reviewing travel expenses can also be a huge undertaking. Travel cards can carry thousands of data transactions to review. And if your company is still handling reviews manually, that can be a daunting task.

They don’t stop misuse.   Travel cards cannot, on their own, stop personal purchases from happening. Nor can they end business purchases that might be out-of-policy, prohibited, or conducted with non-preferred suppliers. Without constant, consistent communication and deliberate training of card users, a greater possibility of misuse on unauthorized charges exists.

That risk of confusion runs for both the travel card and any other methods of payment that might be in use. Without proper orientation of procedures, employees might use the travel cards for non- T&E expenses and likewise, other payment methods for travel.

Another trend worth noting is the extension of business trips into personal travel. Hotel stays and meals that are actually personal in nature can show up on travel card statements. Termed “bleisure trips” (for business and pleasure combined), these trips don’t necessarily have to be condemned — they are often a beneficial perk for employees — provided that the “pleasure” portion doesn’t creep its way onto their travel cards.

Again, monitoring and conducting reviews, with included targeted controls, need to be put into place to keep these transactions from occurring.

They can be pricier. Travel card fees tend to be higher than the typical credit/debit card. There can be fees for:

• Loading and reloading pre-paid cards
• Rate conversion
• Cash back at the time of purchase
• Card replacement
• Closing the card’s account

So, to avoid these fees, research a number of financial institutions and their fee structures before choosing a travel card for your organization.

They’re used on a bigger, wider scale. As discussed in our article “ Taking on the world: the challenges of a global card program ,” the more far-reaching a card program, the more issues that program can potentially face. Namely, these would include the necessity of unique policies and procedures, dealing with international law and compliance, establishing and maintaining good business relationships with international vendors, and reviewing the global spend data. A T &E program will face all these challenges. Click HERE to read and learn more.

Is a travel card right for your business?

So is a travel card right for you and your company or organization? As with anything else in business, you have to weigh the pros and cons — and then decide for yourself, taking into account your organization’s unique wants, needs, and priorities.

But remember when making that decision that Card Integrity can handle the massive, often global aspects of a T &E program. The issues of monitoring all those international transactions, creating and communicating special program policies, and training employees on new card usage are no longer a part of that consideration. Problems solved!  

To learn more about how Card Integrity can be an integral part of your travel card program, call us today at 630-501-1507 or contact us by clicking HERE .

For More Tips, Download the Complete T&E Best Practices eGuide

Card Integrity’s T&E card expense review  best practices eGuide  will provide your organization with a clear and detailed outline of best practices that can be implemented into your program today.

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Pros and Cons of Getting an Airline Credit Card

Smart for Airline Loyalists but Otherwise Not So Much?

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If you travel often, you’ve probably heard in-flight pitches for an airline’s co-branded credit card. Flight attendants often promote airline credit cards with promises of special perks for cardholders. 

But before you apply, consider your travel style and preferences. For instance, if you usually fly the same airline and prize boarding a flight early, an airline card that offers priority boarding may be worth the annual fee. But if you want your card to help fund your next vacation, then a general travel card’s sign-up bonus may get you a free flight faster. 

Here are the pros and cons of getting an airline credit card. 

Priority boarding

Complimentary seat upgrades

Free checked baggage

Discounts on in-flight purchases

Free or heavily discounted companion passes

Airport perks

Easy ways to earn miles

Potentially limits you to one airline

Less lucrative sign-up bonuses

Fewer opportunities to earn bonus miles

Complex reward redemption process

More likely to have an annual fee

Pros of Airline Credit Cards Explained

Here's why you should get one. 

Priority Boarding

If being one of the first to board a flight is important to you, an airline credit card could guarantee your spot. A number of airline cards offer priority boarding as a perk for cardholders—which you won’t find on a general travel card. 

Complimentary Seat Upgrades

Signing up for an airline’s rewards card can also boost your odds of landing a roomier seat towards the front of the jet, even if you only pay for an economy seat. Some airline cards offer free seat upgrades, under certain conditions, as a perk. 

Plus, many airline loyalty programs reward frequent flyers with free seat upgrades when available. You may need elite status to qualify, but an airline credit card could help you earn elite status faster on the airline if you meet certain spending thresholds.

Free Checked Baggage

Several airline credit cards also waive cardholders’ baggage fees. That could save you at least $60 on a round-trip Delta, for example (unless you have elite status and qualify for free checked bags).  

Some cards will even cover the cost of baggage for others flying on the same reservation as you. Just one group vacation could more than justify the card’s annual fee. General travel cards may offer credits that can reimburse you for baggage fees. But those credits are capped—at $100 or $200 per year, for instance, depending on the card—so you may save more with an airline card. 

Discounts on In-Flight Purchases

Some airline cards also offer discounts, commonly 20% to 25%, on in-flight purchases like food, drinks, and Wi-Fi.

Free or Discounted Companion Passes 

Companion passes are only available on a handful of airline cards, but they’re one of the most lucrative perks you can receive. Some airline cards automatically offer at least one free or deeply discounted companion pass a year, while others award them after you’ve spent a certain amount. You’ll pay taxes and fees on free companion passes, though the card may limit the amount you can be charged.

Airport Perks

Your airline card may also offer special benefits to make your airport stay less stressful, like airport lounge access and free food and drinks in the lounge. Cards with middle-of-the-road annual fees (around $100) typically offer limited or discounted lounge access, while more expensive cards will let you in anytime for free. In addition, some airline cards offer application fee credits for TSA Precheck or Global Entry so you can avoid long security lines. 

Easy Ways to Earn Miles

If you’re a member of an airline’s loyalty program and are looking for an easy way to earn more miles, charging purchases to an airline’s co-branded credit card is a good way to do it. While you can also transfer miles from a general travel card to your chosen airline, the process isn’t as straightforward. 

Cons of Airline Credit Cards Explained 

And here's why you might consider another kind of travel rewards card.

Potentially Limits You to One Airline

With a general travel card, you can typically book flights on a wide variety of airlines. When you choose an airline card, you commit to flying with just one carrier when using that card—though you can use rewards earned on some cards to purchase flights on partner airlines.

Less Lucrative Sign-Up Bonuses

General travel cards, such as the Chase Sapphire Preferred and the Capital One Venture, tend to offer plusher bonuses to new cardholders than airline cards. A few airline cards stand out for their generous sign-up bonuses, though, like the British Airways Visa Signature, the Delta Reserve Credit Card, and the Hawaiian Airlines World Elite Mastercard .

Fewer Opportunities to Earn Bonus Miles

Many airline cards also sharply limit the kinds of purchases that earn bonuses, making it tough to stock up enough miles to earn a free flight. For example, many airline cards only offer bonus points on airline purchases. Others are slightly more generous and offer a limited number of miles on everyday purchases, such as dining, groceries, or gas. 

Complex Reward Redemption Process

One of the biggest downsides to an airline credit card is that it can be a pain to book rewards travel through an airline’s loyalty program. Some airlines impose travel blackout dates, restricting when you can travel. Others limit the number of rewards seats that are available, making it harder to find an open seat. 

You also can’t count on an airline card’s rewards program staying the same: A number of airlines have retooled their loyalty programs in recent years, causing the miles frequent flyers earn to be less valuable when booking a flight with the airline. 

Annual Fees

Most airline credit cards charge an annual fee, often ranging from $75 to $95 a year or more. (Some waive the annual fee the first year.) A few luxury airline cards even charge upwards to $550 yearly in exchange for premium benefits. There are a handful of airline cards that don’t charge an annual fee, but they don’t offer as many perks, either. 

Who Should Get an Airline Credit Card? 

You typically need good to excellent credit to qualify for an airline credit card. Also, many airline cards’ APRs start at 15% and maximum APRs can reach 24.99% or more. That means they’re best for those who plan to pay off their balances in full each month to keep interest from piling up.

You’ll get the most value out of an airline card if you travel often enough to earn bonus points on airfare and earn back its annual fee. In addition, you may be a good match for an airline card if: 

• You spend a lot on checked baggage fees, particularly if you often fly with a group. 
• Being one of the first passengers on board is important to you. 
• You value comfort and convenience when you travel.
• You’d like a simple way to earn additional airline miles. 

The average airline credit card doesn’t offer as many flashy perks or plush bonuses as some travel rewards cards. But if you’re looking for an easy way to turbocharge your miles or save money on your next trip, then an airline credit card may be worth a closer look.

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Chase Sapphire Preferred Card Travel Insurance – 10 Frequently Asked Questions [2024]

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Chase Sapphire Preferred Card Overview

Recap of chase sapphire preferred card travel insurance, travel accident insurance, trip cancellation and interruption insurance, 2. does chase sapphire preferred card travel insurance cover cruises, 3. what does the chase sapphire preferred card baggage insurance cover, 4. what does the chase sapphire preferred card medical insurance cover, 5. does the chase sapphire preferred card cover hotel cancellations, 6. does the chase sapphire preferred card cover airbnb cancellations, 7. does chase sapphire preferred card travel insurance cover rental cars in other countries, 8. does the chase sapphire preferred card cover turo or zipcar rentals, 9. how do i file a chase sapphire preferred card travel insurance claim, 10. do i need travel insurance if i have the chase sapphire preferred card, final thoughts.

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The Chase Sapphire Preferred ® Card remains one of the most popular travel rewards credit cards for numerous reasons. Alongside excellent earning rates and a fair amount of benefits that justify the $95 annual fee, the card also offers numerous shopping and travel insurance benefits.

If you’re like most people, you hear the word “insurance,” and your eyelids start feeling heavy. Let’s be honest: Insurance isn’t thrilling. The terminology can feel confusing, leaving you with many questions about what exactly the travel insurance on your Chase Sapphire Preferred card does and doesn’t cover.

You have questions, and we have answers. Here’s a simple look at your most common questions about travel insurance on the Chase Sapphire Preferred card.

Chase Sapphire Preferred ® Card

A fantastic travel card with a huge welcome offer, good benefits, and perks for a moderate annual fee.

The Chase Sapphire Preferred ® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance . With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

• 5x points on all travel booked via the Chase Travel portal
• 5x points on select Peloton purchases over $150 (through March 31, 2025)
• 5x points on Lyft purchases (through March 31, 2025)
• 3x points on dining purchases, online grocery purchases, and select streaming services
• 2x points on all other travel worldwide
• $50 annual credit on hotel stays booked through the Chase Travel portal
• 6 months of complimentary Instacart+ (activate by July 31, 2024), plus up to $15 in statement credits each quarter through July 2024
• Excellent travel and car rental insurance
• 10% annual bonus points
• No foreign transaction fees
• 1:1 point transfer to leading airline and hotel loyalty programs like United MileagePlus and World of Hyatt
• $95 annual fee
• No elite benefits like airport lounge access or hotel elite status
• Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
• Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
• Member FDIC

Financial Snapshot

• APR: 21.49%-28.49% Variable
• Foreign Transaction Fees: None

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Before moving any further, let’s ensure you’re familiar with the long list of travel protections built into the Chase Sapphire Preferred card :

• Auto rental collision damage waiver
• Baggage delay insurance
• Lost luggage reimbursement
• Travel accident insurance
• Trip cancellation and trip interruption insurance
• Trip delay reimbursement

You’ll also enjoy several other cardholder benefits and protections beyond travel insurance :

• Extended warranty protection
• No foreign transaction fees
• Purchase protection
• Roadside dispatch
• Travel and emergency assistance

Some of the benefits seem more obvious than others. And, as with all insurance, there are always specific terms to understand, exclusions to mind, and coverage limits . Let’s clear some of those up.

1. What Flight Insurance Does the Chase Sapphire Preferred Card Have?

When flying, you’ll have 2 types of insurance: travel accident insurance and trip cancellation and interruption insurance. Both types are in effect for trips for which you paid at least a portion of the cost with your Chase Sapphire Preferred card. Let’s look at each benefit.

Travel accident insurance applies to you and your immediate family members if one of you becomes permanently injured or dies while traveling. The cardholder benefit guide lists specific dollar amounts that you can be paid for specific injury types. The coverage is further divided into 2 categories: traveling on a common carrier and 24-hour coverage .

Coverage related to a common carrier covers both injuries and death resulting from your travel on a licensed air, land, or sea transport that regularly carries paying passengers . Think planes and ferries, for example. You’ll also be covered while at an airport, terminal, or station immediately before or after a trip, including courtesy transport to or from these places if provided as part of your trip. If your flight booking includes the airline picking you up from the hotel, this could be covered if all other conditions are met.

The 24-hour coverage applies around the clock and is valid on trips of up to 30 days. If you take a trip longer than this, coverage will end 1 minute after midnight on the 31st day, though it would come back into effect when you are in transportation to the airport for your flight home. If you drive yourself to the airport, coverage should resume once you are inside the airport .

This benefit reimburses you for the money you lose when a trip paid for (in whole or part) with your card is interrupted or canceled. Trip interruption is when you’ve started the trip and must end it early for a covered reason; trip cancellation applies to canceling a trip before it begins. The maximum benefit payout here is $10,000 per person and up to $20,000 per trip. Both the cardholder and immediate family members are covered.

Trip cancellation coverage begins when you make your first deposit toward the trip and ends when you depart on your scheduled departure date. Trip interruption starts on your scheduled departure date and ends on your scheduled return date. However, if these dates or times are adjusted for reasons beyond your or the carrier’s control, the benefit will adjust automatically .

What expenses are reimbursable? They include nonrefundable, prepaid travel expenses by a licensed supplier, such as a travel agency, hotel, shore excursion agency, etc. When canceling for a covered reason, you’re also covered for redeposit fees to get your airline miles back. Unfortunately, this benefit doesn’t cover lost money you paid for tickets to shows or theme parks, tee times at golf courses, museums, or other entrance fees unless they’re part of a tour package.

You’ll be covered for a few more situations with trip interruption coverage only . These include fees for returning a rental car early or to the nearest facility and up to $250 of expenses to transport you for necessary medical treatment. However, that doesn’t include medical transport (such as ambulances or medevac).

What if you paid with Chase Ultimate Rewards points and are due a refund under these benefits? You’ll be reimbursed according to the value on your travel supplier’s confirmation receipt, assuming that’s listed. If there’s no trip value listed on the receipt after you paid with points, you’ll be reimbursed at a value of 1 cent per point.

Covered Reasons

Not every reason for canceling a trip or ending it early is covered under these benefits. Covered reasons include accidental death or injury, a sickness requiring hospitalization, severe weather, a named storm warning, a change in military orders, a subpoena or call to jury duty, your home being burglarized or becoming uninhabitable, your hotel becoming uninhabitable, a public transportation strike that makes you miss 20% of a trip or a scheduled tour departure, and more. Consult the Chase Sapphire Preferred card benefits guide to see if your specific cancellation or interruption reason is covered.

Trip cancellation insurance doesn’t cover everything. For example, changing your mind about a trip is not covered. If your plans are subject to change, you may want to purchase Cancel for Any Reason (CFAR) travel insurance .

This part is a bit confusing, but yes. Chase’s benefits guide for the Chase Sapphire Preferred card states explicitly that cruise lines aren’t included in the definition of a “common carrier.” However, cruise lines are included in the definition of a “travel supplier.”

Why does this matter? Many of the trip cancellation and trip interruption benefits only apply to travel with a common carrier, which doesn’t include cruise lines. However, some benefits do apply to cruises . These include stolen luggage benefits or even canceling a trip if delays mean you’ll miss at least 20% of the trip or that you’ll miss the departure of your cruise ship.

The travel accident and injury benefits also apply while you’re cruising, but it’s worth noting that returning late to your cruise ship, only to find it’s left for the next island without you, isn’t a covered expense. You’ll be on your own for the costs of catching up to your ship.

There are 2 types of baggage protection here: coverage for delayed bags and coverage for lost, stolen, or damaged luggage. Baggage delay insurance covers up to $100 per day for up to 5 days when your bags are delayed by at least 6 hours, covering each additional 24 hours past that until the maximum of 5 days is reached. This benefit applies to you and your immediate family members when you pay for at least part of your trip with your Chase Sapphire Preferred card. You don’t need to be traveling with your immediate family members for them to be covered , as long as at least part of their trip was paid for with your card, which can be a nice perk if you book travel for relatives.

Coverage begins on the scheduled departure date and ends on the scheduled return date, though coverage adjusts automatically if there are changes outside your or the travel provider’s control. There’s also a list of non-covered items, such as medical devices, losses due to war/conflict, electronics, and cash equivalents. In case of baggage delay, you must report it to the travel provid er as soon as possible and keep receipts for necessary expenses you incur ; you’ll submit these for reimbursement afterward.

Lost luggage reimbursement is different; it covers lost, stolen, or damaged luggage during your trip. Both checked and carry-on bags are covered up to a maximum of $3,000 per person per trip. However, there’s a limit of $500 for jewelry, watches, and electronics.

There are some specifics to understand about this coverage, however. First, it doesn’t cover items you leave behind by accident . Second, coverage applies to you and immediate family members (even if you aren’t traveling with them) so long as you paid for at least part of the trip with your Chase Sapphire Preferred card. Coverage is available from the scheduled start to the scheduled end of your trip, but it is automatically adjusted if there are uncontrollable delays to either date.

Coverage applies to common carriers and cruise lines, and you must report the loss, theft, or damage within the timeframe specified by your travel provider. Then, the coverage on your Chase Sapphire Preferred card will cover any difference in the value of your monetary loss (after depreciation of the items) and the payment you receive from the travel provider . Thus, this is secondary coverage. It’s worth noting that documents, furs, tickets, and cash-like items aren’t covered.

Accidents can happen on any trip, from accidentally slipping on the wet deck of a cruise ship to spending nights in a hospital at a far-flung destination. Does your health insurance at home cover you when you head to Florida? What about South America? These are questions worth asking. If your medical coverage won’t be in effect, it’s worth considering medical travel insurance .

The Chase Sapphire Preferred card includes travel accident insurance for you and your immediate family members . It’s in effect if you pay at least part of the airfare for your trip with this card. You’ll receive varying maximum payouts depending on the type of injury (or death) encountered during your trip, and the maximum limit also depends on whether the accident occurs while traveling on a common carrier or at some other point during your trip . The 24-hour benefit provides maximum coverage of $100,000, increasing to $500,000 when traveling on a common carrier.

But how does this work in practice?

If more than 1 person is injured , the benefits administrator will pay no more than 2 times the maximum limit for each type of injury. That sum will be divided among all covered persons eligible for benefits payments.

In case of death , the benefits administrator will give the money to your named beneficiary. If you haven’t named a beneficiary, the order of preference goes from a spouse or domestic partner to children, then parents, siblings, and finally, your estate. If you go missing and haven’t been found after a year, then this will trigger the “loss of life” benefit.

Coverage begins either when you reach the airport, station, or terminal for travel on a common carrier or when you enter courtesy transportation provided to take you to the point at which your trip begins, such as a train station or airport. If you didn’t buy your tickets in advance but are purchasing them when you arrive at the station, coverage begins once you make the payment for travel. Coverage ends after you leave the transportation vessel or exit the courtesy transportation provided afterward.

The 24-hour coverage functions a bit differently. It’s in effect around the clock for up to 30 days, starting from your scheduled departure for air travel. If your trip is longer than 30 days, coverage will pause 1 minute after midnight on the 31st day and resume when you reach the airport for a flight home or are in courtesy transportation to the airport for the flight home.

Obviously, there are exclusions. You aren’t covered if you’re a pilot or crew member on a flight, you get injured while committing a crime, you get injured while skydiving, your injury is self-inflicted, or you’re injured in a war.

Lastly, you may wonder how COVID-19 factors in . The benefits guide says this under covered losses: “Quarantine of you or your traveling companion imposed by a physician or a competent governmental authority having jurisdiction, due to health reasons.”

Thus, your illness could be covered if a doctor or government requires quarantine related to COVID-19. COVID-19 is generally covered under most travel insurance policies in the same way sicknesses are covered. However, not traveling to avoid COVID-19 risks isn’t covered. As the benefits guide says, “Your disinclination to travel, a country closing its borders, or a travel supplier canceling or changing travel arrangements due to an epidemic or pandemic.”

Hotels aren’t treated separately under the Chase Sapphire Preferred card travel insurance terms. If you must cancel or interrupt a trip for a covered reason, then your hotel cancellation fees can be covered. This would include situations like forfeiting a first night’s room cost for canceling your hotel booking at the last minute, assuming you couldn’t arrive for a covered reason, such as a travel delay or a last-minute injury that made you unable to travel.

While you won’t find the word “Airbnb” or even “vacation home” in the benefits guide, you will find a description that covers these types of rentals :

“Provider of Lodging – a hotel, inn, motel, bed and breakfast, or hostel; a Provider of Lodging includes non–commercial time shares, condominiums, or rentals of a private residence; such rental shall require a written contract between You and the property owner or management company, executed in advance of the commencement of the rental period …” Chase Sapphire Preferred card benefits guide.

So long as you’ve reserved your rental in advance and have a written contract — which Airbnb provides at the time of booking, courtesy of your confirmation details — your vacation home rental should count as a type of lodging. The contract must state the cancellation provisions, must not include a rental of more than 60 days, and your booking must be made directly with a licensed website or agent — not with the homeowner directly (unless that person is a licensed agent).

Airbnb is a covered lodging type, meaning your booking should qualify for trip interruption, trip cancellation, and trip delay coverage .

In short, yes. However, there are some exclusions. Since your personal auto insurance policy may not cover you abroad, it’s great to know that paying with your Chase Sapphire Preferred card and declining the rental company’s collision damage waiver can provide protection on your next rental .

You can be covered up to the actual cash value of most rental cars against theft or collision damage. Coverage can include administrative fees, loss-of-use charges, and even towing charges. Coverage applies to rentals up to 31 days and covers you plus any additional drivers listed on the rental contract .

You’ll need to use your card (or your points) to pay for the entire cost of the rental , and most vehicle types are covered by this primary insurance. However, coverage doesn’t apply to exotic or antique cars, high-value vehicles, cargo vehicles, motorcycles, RVs, or vans with seating for more than 9 people (including the driver). Note that Teslas qualify as high-value vehicles, so these aren’t covered .

The benefits guide doesn’t spell out any specific excluded countries . However, Visa typically excludes coverage in Israel, Jamaica, and Northern Ireland, plus you may not be able to use your card to pay for a rental (and thus coverage won’t be in effect) with U.S. Treasury Department monetary embargoes . These destinations include places where your credit cards won’t work, such as Cuba, Sudan, Syria, and North Korea.

Unfortunately, no. Because Turo and Zipcar rentals aren’t considered rentals from a rental car agency, most credit card rental car insurance doesn’t cover them .

To file a claim, you should first gather all of the documents related to your claim . These can include receipts, accident reports, police reports, photos, hospital records, or anything else pertinent to the type of claim you’re making.

Next, you can call the benefits administrator at 866-390-9735 or visit eclaimsline.com to submit online . Different claims have different required timelines. For example, auto claims must be filed within 100 days of the incident. However, you need to file within 90 days for baggage delays or losses, but you’re supposed to contact the benefits administrator within 20 days of these incidents to at least provide notice, even though you have 90 days to finish submitting the claim.

This question will be subjective, and different people will arrive at different conclusions. Travel insurance can be useful for the unexpected, but no 2 trips are equal. The best way to decide whether you need additional insurance beyond what the Chase Sapphire Preferred card offers is to look at what it doesn’t cover.

Will you be skydiving? Do you have significant trip expenses related to Turo rentals or short connections that could cause domino effects if you miss a departure time? Are you renting an RV or going camping — types of travel not covered by the Chase Sapphire Preferred card?

If you have prepaid, nonrefundable expenses that wouldn’t be reimbursed by your credit card’s travel insurance in the event of delays or cancellations, getting a travel insurance policy that covers these could be a good idea and could provide peace of mind. That said, not every travel activity is covered by every travel insurance policy, so you want to make sure you choose a policy that covers your expenses for your particular trip .

If you look at your trip and decide that your flights, hotel plans, and simple plan of just relaxing at the beach will be covered by the Chase Sapphire Preferred card, then purchasing an extra policy probably isn’t necessary.

The Chase Sapphire Preferred card offers numerous protections for purchases and trips. Insurance terms can feel confusing, but hopefully, the explanations of these policies should clarify what is and isn’t covered, as well as policy limits, in a way that helps you know whether the coverages are sufficient for your upcoming travels.

Want to learn more about what else this card offers beyond travel insurance? Consult our full Chase Sapphire Preferred card review .

Frequently Asked Questions

Does the chase sapphire preferred card have trip insurance.

Yes, it has several types of travel protections. Cardholders get rental car insurance, baggage delay insurance, lost and damaged luggage reimbursement, travel accident insurance, trip cancellation and interruption insurance, and trip delay reimbursement.

How to file a claim with the Chase Sapphire Preferred card travel insurance?

You can call the benefits administrator at 866-390-9735 or visit eclaimsline.com to submit online. Each claim type has different required documents and a different required submission timeline, so check your benefits guide for your specific claim type.

Does the Chase Sapphire Preferred card reimburse for travel cancellation?

Yes, you can be reimbursed for monetary losses of up to $10,000 per person and up to $20,000 per trip if you cancel for a covered reason. You’ll need to pay for at least part of your trip with your Chase Sapphire Preferred card, and the cancellation must be for a covered reason, such as death, injury, or being called to active military duty.

What insurance does Chase Sapphire Preferred card cover?

The Chase Sapphire Preferred card has several types of travel protections. Cardholders get rental car insurance, baggage delay insurance, lost and damaged luggage reimbursement, travel accident insurance, trip cancellation and interruption insurance, and trip delay reimbursement. Cardholders also get shopping insurance benefits, such as purchase protection and extended warranty protection, plus other benefits like roadside dispatch and travel and emergency assistance services (though these are pay-per-use benefits).

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About Ryan Smith

Ryan completed his goal of visiting every country in the world in December of 2023 and now plans to let his wife choose their destinations. Over the years, he’s written about award travel for publications including AwardWallet, The Points Guy, USA Today Blueprint, CNBC Select, Tripadvisor, and Forbes Advisor.

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Credit Card Travel Insurance vs Travel Insurance | Money

Trip insurance offers a financial backstop when you need one. But is it better to use a credit card with free travel insurance or purchase a standalone plan? The answer may depend on your coverage needs and budget.

This article will help you evaluate and compare credit card travel insurance vs. travel insurance. Keep reading to learn about the differences between the two and to see which could be best for your next trip.

What is travel insurance?

Travel insurance is a standalone insurance policy that you typically purchase on a trip-by-trip basis. It’s designed to cover the costs of medical emergencies and other unexpected travel expenses that are outside of your control. There’s also “cancel for any reason” (CFAR) coverage, which is an add-on that offers reimbursement for voluntary travel cancelations within a specified time frame.

How travel insurance works

Travel insurance is different than other insurance plans in that you usually must pay the full premium upfront. You almost always need to pay for the coverage before leaving for your trip, but the exact requirement varies from provider to provider.

Once you pay the premium, you’ll have access to the coverage specified in your insurance contract. You can buy a la carte plans that just cover medical expenses or more robust coverage that also helps with lost luggage, flight delays and other unexpected expenses. The best travel insurance companies will help you find the right fit for your goals.

Travel insurance pros and cons

• Coverage is often more comprehensive than credit card travel insurance.
• Your payment method is flexible, as you don't need to pay for the entire trip using a specific credit card to qualify for coverage.
• There are many different travel insurance options available, making it easy to find one that fits your needs.
• Travel insurance increases the total cost of your trip.
• You may not need the coverage you purchase
• There may be extra fees if you want coverage for preexisting conditions.

What is credit card travel insurance?

In addition or instead of purchasing traditional travel insurance, you can also use the insurance included with your credit card. Certain premium cards build travel insurance coverage into their services at no additional fee. However, these coverages often have lower limits and more exclusions, so it’s important to read the fine print before relying on them.

How credit card travel insurance works

Travel insurance credit cards often require that you pay for the full trip with your card in order to activate coverage. For example, you would need to pay for your flight, hotel and rental car with the same credit card to benefit from the insurance. Some cards that are good for travel may also have higher annual membership fees than you’re used to.

That being said, you don’t usually need to pay anything extra to use your credit card’s travel insurance if you need it. It’s why, all things being equal, credit cards with travel insurance can de more affordable than standalone plans.

Still, note that many credit cards with travel insurance have annual limits. For example, the Chase Sapphire Reserve® Card pays up to $20,000 per trip cancellation, but it has a maximum benefit of $40,000 per year.

Credit card travel insurance pros and cons

• Gives you access to travel insurance without having to pay any trip-specific premium.
• Using a travel credit card often comes with additional benefits, such as reward programs that can save you money.
• You may be able to qualify for a travel credit card with less-than-perfect credit.
• You may need to pay for your main trip reservations with the credit card to activate coverage.
• Your travel insurance credit card may have significantly lower limits than a standalone plan.
• Some credit cards don't offer coverage for medical expenses.

Tips for finding the best credit card for travel insurance

If you’ve been researching Money’s best places to travel list and are interested in credit card travel insurance, here are some tips to get you started.

Check if your existing credit cards have trip coverage

First, take a look at your existing credit cards. It’s possible that one of them already offers travel protections, and you just haven’t had the occasion to use them. You can typically find this information in your credit card contract, which will likely be accessible via your online account.

Determine which types of coverage you need

If you decide you need to take out a new credit card to get the insurance you want, start by considering what coverage you need. Are you just looking for financial protection for lost luggage and unexpected flight delays? Do you also want medical insurance from your travel credit card?

One thing to keep in mind is that you can always supplement credit cards that offer travel insurance with smaller standalone plans. For example, if you find a card you love that doesn’t offer travel medical coverage, you could purchase that coverage a la carte at a lower price than what you’d pay for comprehensive travel insurance.

Analyze coverage limits

Once you find the best credit card travel insurance for your needs, take a closer look at its coverage limitations before applying. These are often lower than the limitations for standalone insurance plans and may not be enough for everyone.

Is it better to get travel insurance through a credit card or a separate travel insurance policy?

If you want travel insurance at the lowest price possible, then choosing one of the best travel credit cards will likely be right for you. These cards usually provide coverage at no additional cost (apart from any annual card fee), while standalone travel insurance policies typically cost between 4% and 8% of your total trip costs, according to the U.S. Traveler’s Association.

However, if you’re looking for the best cancel for any reason travel insurance , your only option may be purchasing a standalone plan. Similarly, traditional travel insurance may be a better fit for travelers with expensive holidays, as these plans usually have higher coverage limitations.

The bottom line is that a credit card with travel insurance will typically be more affordable, while a standalone plan will usually offer more robust coverage. The better option for you will depend on how strongly you prefer one of those benefits over the other.

What credit cards have travel insurance?

There are many different travel credit cards available in 2023. Aside from our list of the best travel credit cards we mentioned above, our best airline credit cards can also be a good place to find other choices.

Is credit card travel protection alone enough?

There are some situations in which getting travel insurance through a credit card can be enough. These cards often provide coverage for lost baggage, flight delays and problems with accommodations. If that’s all the coverage you need for an upcoming trip, then the protection offered via a credit card will likely be enough.

However, there are also scenarios when it might not be enough. For example, the cost of your trip may exceed your credit card travel protection limits, or your card may not offer the robust emergency medical coverage that you want.

Deciding where and how to get your travel insurance will ultimately depend on the type of coverage you want and the limitations and exceptions you find acceptable.

Alternative ways to insure your trip

If you don’t think that credit card travel insurance or traditional plans are right for you, then you may want to look into some of the alternatives. Here are three that are worth considering:

• Direct travel protection plans from companies: Some companies offer their own form of insurance to visitors. This is typically sold as an add-on when you book a hotel, flight or excursion. The general idea is that you pay an extra fee to the company in order to give yourself the flexibility to cancel if needed and still get a full refund. This is an option you’ll often find from cruise lines, online travel agencies and large tour operators. You may be able to save money as compared to cancel-anytime coverage. However, you’ll only have coverage for one part of your trip, rather the whole thing. Additionally, medical insurance isn’t typically available.
• Short-term coverage from your existing health insurance provider: It’s also possible that your current health insurance provider has short-term coverage options designed for international travelers. You may be able to access these plan upgrades for a one-time fee. When talking to your health insurance provider about this, be sure to ask about any coverage exclusions or limitations you should know about. Some domestic providers may only offer coverage in certain countries, and others may only cover specific emergency medical situations.
• Membership programs: Finally, it could also be worth looking into membership programs that cover the costs of medical evacuations. These are offered by independent companies and are meant to provide more intensive evacuation coverage for travelers who may need it. Membership programs can be purchased alongside a standard travel insurance plan or in place of one. But they have limited use for most travelers and will probably only make sense for you if you’re planning a highly adventurous trip.

Summary of Money’s Credit Card Travel Insurance vs Travel Insurance

The best credit cards for travel insurance offer comparable protections to standalone plans. Both options can provide coverage for delayed flights, lost baggage, unexpected cancellations and other expenses you may incur through no fault of your own while traveling.

Credit card travel protection is typically more affordable than standalone insurance because it’s included with your credit card at no additional cost. However, you may not have medical coverage through your credit card and the limits and exclusions may be more restrictive.

The bottom line is that your coverage goals matter a lot when choosing between credit cards and standalone travel insurance plans. If you want robust coverage, a traditional travel insurance plan will likely make the most sense, while credit card travel protections are best for budget-conscious travelers with lower coverage requirements.

© Copyright 2023 Money Group, LLC . All Rights Reserved.

This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer .

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Capital One Venture X Review: A Worthy Option Among Premium Cards

What’s on This Page

The bottom line, pros and cons, detailed review, compare to other cards, benefits and perks, drawbacks and considerations, how to decide if it's right for you.

A big sign-up bonus, travel credits, high rewards and airport lounge access could make this card worth the hefty annual fee.

Rewards rate

Bonus offer

Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

Ongoing APR

APR: 19.99%-29.99% Variable APR

Cash Advance APR: 29.99%, Variable

Balance transfer fee

Balance Transfer Fee applies to balances transferred at a promotional rate

Foreign transaction fee

• Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
• Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
• Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
• Earn unlimited 2X miles on all other purchases
• Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
• Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
• Elevate every hotel stay from the Premier or Lifestyle Collections with a suite of cardholder benefits, like an experience credit, room upgrades, and more
• Receive up to a $100 credit for Global Entry or TSA PreCheck®

High rewards rate

New cardholder bonus offer

Lounge membership

Anniversary perk

Flexible rewards redemption

High annual fee

Requires excellent credit

The Capital One Venture X Rewards Credit Card has an excellent rewards rate, access to airport lounges and hundreds of dollars worth of travel credits that can make up for the $395 annual fee ( see rates and fees ).

To optimize the card, you’ll need to book on the issuer’s online travel portal. If that suits you, the card can stand up to the stiff competition in the market for premium travel credit cards. And despite its many features, the card is overall easier to understand than most premium cards, which can be baffling for newcomers.

You won’t get brand-specific perks, like free checked bags with a particular airline or a free hotel night at a hospitality chain, as you do with co-branded airline and hotel credit cards. But it offers the flexibility of the popular Capital One Venture Rewards Credit Card , while adding a raft of perks that just might give it the X-factor to make it your ideal travel companion.

Capital One Venture X Rewards Credit Card : Basics

Card type: Travel .

Annual fee: $395 ( see rates and fees ).

Sign-up bonus: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

2 miles per dollar spent on purchases.

5 miles per dollar on flights booked via Capital One Travel.

10 miles per dollar on hotels and rental cars booked via Capital One Travel.

Redemption options:

Use miles to book travel through Capital One at a value of 1 cent per mile.

Redeem miles for statement credit against travel purchases at a value of 1 cent per mile.

Transfer miles to more than 15 partner airline and hotel programs. Per-mile value depends on the transfer partner and how you redeem the transferred miles.

Redeem miles for gift cards.

Interest rate: The ongoing APR is 19.99%-29.99% Variable APR .

Foreign transaction fees: None.

Credit required: Excellent .

Other benefits:

(Note: Benefits may change over time.)

Up to a $300 annual credit for bookings made on Capital One Travel.

10,000 bonus miles every account anniversary (equal to $100 toward travel).

Unlimited access to Capital One Lounges and more than 1,300 lounges through the Capital One Partner Network.

Access to entertainment, sports and dining events through the Capital One Experiences program.

Complimentary Hertz President’s Circle status. (Car upgrades, expedited pickup and more.)

Credit of up to $100 for the application fee for Global Entry or TSA PreCheck when you pay with the card.

Extra perks when you book a hotel stay through Capital One's Premier Collection like an $100 experience credit, daily breakfast for two people and complimentary WiFi.

Cell phone insurance.

Shopping protections. Includes price prediction, price watch, price drop protection, price match guarantee, extended warranty.

Travel protections.

Bonus miles on travel spending are expected for a higher-end travel credit card, and this one has those if you’re willing to use Capital One’s online travel-booking site:

Unlike some others in its category, this card is rewarding for everyday spending, too. It earns 2 miles per dollar spent on purchases outside those bonus areas. That’s an excellent rewards rate because so much spending falls outside the usual bonus categories.

If it’s your top-of-wallet card, you’ll rack up miles quickly even if you’re not booking a lot of travel.

Generous sign-up bonus

Sign-up bonuses can change over time, especially with travel credit cards. But the Capital One Venture X Rewards Credit Card has an excellent one: Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

That's enough to cover the annual fee for nearly two years. The downside is you’ll have to put a lot of spending on the card first. Spending $4,000 on purchases in the first three months is an average of about $1,333 per month.

» MORE: How to know if a credit card sign-up bonus is worth it

Airport lounge access

Besides access to more than 1,300 Priority Pass lounges , a somewhat common offering on travel cards in this class, the Capital One Venture X Rewards Credit Card offers access to Plaza Premium Lounges and full access to the new Capital One Lounges . As of November 2023, Capital One Lounges are open at Dulles International Airport outside of Washington, D.C., at Dallas-Fort Worth International Airport and at Denver International Airport.

Besides Capital One Venture X Rewards Credit Card holders, authorized users receive unlimited access to both types of lounges. Many travel credit cards restrict lounge access to the primary cardholder. Up to four authorized users can be added for free, which is not the case for other premium travel cards.

Anniversary perks

Central to the value of the Capital One Venture X Rewards Credit Card are the annual credits, which have substantial dollar value.

Up to a $300 annual credit for bookings made through Capital One Travel.

10,000 bonus miles every account anniversary (equal to $100 toward travel). The first batch of miles comes when you renew after one year of card membership.

Those credits alone, granted each year, make up for the annual fee. That assumes you’ll use the Capital One Travel online booking service. More on that later.

Flexible redemption options

Capital One's rewards program gives you several ways to use your miles for travel — both travel you already paid for and travel you want to book:

Redeem rewards as a statement credit. Book travel however you want, then redeem miles for statement credit for some or all of the cost. Miles are worth 1 cent each when redeemed, with no minimum redemption amount required. Any expense that Capital One considers "travel" is eligible, including not only flights and hotel stays, but "rail lines, car rental agencies, limousine services, bus lines, cruise lines, taxi cabs, travel agents and time shares," according to the Capital One website.

Book through the issuer's travel center. This online portal offers flights, hotels, rental cars and vacation packages. You can pay upfront with your miles, at a rate of 1 cent per mile.

Transfer miles to partners. Capital One lets you transfer your miles to the loyalty programs of a number of airline and hotel partners.

Aeromexico (1:1 ratio).

Air Canada (1:1 ratio).

Air France-KLM (1:1 ratio).

Avianca (1:1 ratio).

British Airways (1:1 ratio).

Cathay Pacific (1:1 ratio).

Emirates (1:1 ratio).

Etihad (1:1 ratio).

EVA (2:1.5 ratio).

Finnair (1:1 ratio).

Qantas (1:1 ratio).

Singapore Airlines (1:1 ratio).

TAP Air Portugal (1:1 ratio).

Turkish Airlines (1:1 ratio).

Accor (2:1 ratio).

Choice Privileges Hotels (1:1 ratio).

Wyndham Rewards (1:1 ratio).

Miles have no blackout dates and never expire.

“Simple” and “premium travel credit card” aren't concepts that usually go together, since the typical card in that category is wildly complicated. But relatively, the Capital One Venture X Rewards Credit Card is easier to understand than, say, The Platinum Card® from American Express . That card has a dizzying array of benefits, many of which aren’t super-useful to everybody or take an inordinate amount of effort to use.

By contrast, the Capital One Venture X Rewards Credit Card at its core retains the simplicity of the Capital One Venture Rewards Credit Card by offering a flat rewards rate on all spending and lets you use rewards to pay for travel.

It layers on airport lounge access and more rewards if you use the Capital One Travel portal.

The point is that someone willing to endure only modest hassle from their travel credit card can enjoy and benefit from the Capital One Venture X Rewards Credit Card . That same person might be frustrated by complex competing travel credit cards.

Travel-friendly perks

The Capital One Venture X Rewards Credit Card offers additional benefits frequent travelers will enjoy. Some come because it's a top-tier Visa Infinite card.

Complimentary Hertz President’s Circle status. This is the top status tier at Hertz. You can get confirmed one-car-class upgrades, 50% bonus on Gold Plus Rewards points on qualified rentals, free additional driver, expedited pickup and e-return, and more. The status is typically reserved for customers who have 20 or more rentals in a year or spend $4,000. The status level is good through 2024, at which point cardholders "will be reverted to the level commensurate with Hertz standard usage policies," says the card's terms and conditions.

Trusted traveler application credit. A statement credit of up to $100 for the application fee for Global Entry or TSA PreCheck. The credit is available once every four years.

Cell phone insurance . This is for the primary cardholders and authorized users.

Travel protections. These include auto rental collision damage waiver , trip cancellation and interruption, and trip delay reimbursement.

No foreign transaction fees. Standard on travel credit cards and useful for overseas purchases ( see rates and fees ).

» MORE: Capital One credit cards mobile app review

With annual fees, it’s all relative. A yearly fee of $395 is substantial, but other luxury travel credit cards have similar or even significantly higher fees.

A sampling:

U.S. Bank Altitude™ Reserve Visa Infinite® Card : $400 .

Chase Sapphire Reserve® : $550 .

The Platinum Card® from American Express : $695 .

Still, if the big annual fee bothers you, but you like aspects of the card, consider the original Venture card with fewer perks: Capital One Venture Rewards Credit Card . (See a comparison below.)

Outside the Capital One family, look at the Chase Sapphire Preferred® Card with an annual fee of $95 . It’s versatile and valuable as a travel credit card.

Value tied to booking portal

Capital One Travel, the issuer’s online travel-booking site, has nice features, including predictive pricing models and tools to help customers get the best deals — including proactively comparing hotel rates against Expedia, Orbitz and other travel booking sites. It offers access to thousands of flights, hotels and rental cars, and features free price-drop protection, 24/7 alerts and the option to freeze a price and come back 14 days later to book it.

But this card’s value is so tied to that booking portal that it diminishes one of the main traits of the Venture family of cards: flexibility.

If for some reason you won’t use Capital One Travel for booking, the bonus rewards for spending on this card as well as the huge $300 travel credit are worth nothing to you. The card’s value proposition quickly shrinks. Some savvy travelers prefer to book directly with hotels, for example, which adds to their elite status with a particular hotel chain or allows them to use status benefits they already have. Booking through a travel portal can negate those elite benefits.

By contrast, the competing Chase Sapphire Reserve® also links the value of its rewards to its travel portal. Chase Ultimate Rewards® points are worth 1.5 cents each if used to book travel there. But an important difference: Its $300 annual credit can be used for a broad range of travel purchases, including taxi rides, campground fees and train fares. That travel can be booked anywhere, and the credit is applied automatically.

The comparable anniversary credit on the Capital One Venture X Rewards Credit Card , one that can be used more flexibly for travel, is worth $100.

Granted, the Chase Sapphire Reserve® has a higher annual fee of $550 .

Lack of familiar transfer partners

For travelers who like to squeeze every last drop of value out of loyalty programs, the growing roster of transfer partners of the the Capital One Venture X Rewards Credit Card is appealing. You can now transfer your Venture miles to more than a dozen airline partners — but none are U.S. carriers. While transferring miles to foreign airline carriers can bring outsize value for your miles, it may be overwhelming for those just beginning with transfers. It does offer U.S. hotel partners for transfers to such programs as Wyndham Rewards.

If you want to work all the angles, one of the aforementioned Chase travel cards might be a better choice: The Chase Sapphire Preferred® Card or the Chase Sapphire Reserve® . You can move points to several useful airline and hotel loyalty programs at a 1:1 ratio. Partners include United Airlines, Southwest Airlines and Marriott.

Chase’s transfer partners:

Aer Lingus (1:1 ratio).

Iberia (1:1 ratio).

JetBlue (1:1 ratio).

Singapore (1:1 ratio).

Southwest (1:1 ratio).

United (1:1 ratio).

Virgin Atlantic (1:1 ratio).

Hyatt (1:1 ratio).

InterContinental Hotels Group (1:1 ratio).

Marriott (1:1 ratio).

How it compares to the Capital One Venture Rewards Credit Card

Both Venture cards are general travel credit cards and come with the same base rewards rate of 2 miles per dollar spent. You can redeem miles at 1 cent apiece for credit on your statement against a recent travel purchase, use them at Capital One Travel or transfer to more than 15 travel loyalty programs. And both offer the same credit for applying for TSA PreCheck or Global Entry. A third Venture card, the $0 -annual-fee Capital One VentureOne Rewards Credit Card , is a less useful comparison ( see rates and fees ).

Is the Capital One Venture X Rewards Credit Card worth the higher annual fee? Here’s a quick comparison.

If you already have the Capital One Venture Rewards Credit Card , you can also apply for the Capital One Venture X Rewards Credit Card .

» MORE: Full review of the Capital One Venture Rewards Credit Card

The value of the annual credit for bookings at Capital One and the anniversary miles, if you can fully use them, pays the annual fee on this card.

So the healthy rewards and the perks, including airport lounge access, are essentially free. That makes the Capital One Venture X Rewards Credit Card a contender for people on the hunt for a premium travel credit card.

Still unsure about whether this card, or any travel card, is what you need? See our best credit cards page for options across categories.

Hertz President's Club status : Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.

Fo r Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply .

This card earns bonus rewards in a variety of popular spending categories, including dining and travel. You can transfer points on a 1:1 basis to about a dozen airline and hotel programs, or you can use them to book travel through Chase at 1.25 cents per point. Annual fee: $95 .

Looking For Something Else?

Methodology.

NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.

About the author

Gregory Karp

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Travel money cards with the lowest fees

We look at seven travel money cards from the big banks and airlines..

Prepaid travel money cards are offered by major banks, airlines and foreign exchange retailers like Travelex. Before travelling overseas, you load money into the card account, which locks in the exchange rate for foreign currencies at that time. 

You can then use the card for purchases and cash withdrawals just like a debit or credit card, usually wherever Visa and Mastercard are accepted. 

You can reload money on-the-go via an app or website, and if the card is lost or stolen, it can be replaced (usually at no cost to you).

Prepaid travel money cards also give you assurance that you're not handing the details of your everyday banking account to merchants you're not familiar with, and they provide easy access to cash when you want some, says Peter Marshall, head of research at money comparison website Mozo .

CHOICE tip: Travel money cards are best for longer trips. They're usually not worth your while if you're only taking a short trip, as some have closure, cash out and inactivity fees.

Travel money card fees

A major difference between prepaid travel cards and debit or credit cards is their fees. Some costs aren't immediately apparent, such as hefty margins built into the exchange rates.

And although fees have come down since we looked at these cards two years ago, you still need to watch out for:

• fees to load the card – either a percentage of the total or a flat fee
• ATM withdrawal fees
• a cross currency fee or margin when you use the card in a currency you haven't preloaded
• further fees if you close the account or haven't used the card for a period of time.

Travel money card with the lowest fees and best exchange rate

Westpac worldwide wallet.

Westpac closed its Global Currency Card in July 2021 and offers its new card in partnership with Mastercard.  It's also available from Bank of Melbourne and BankSA.

Currencies: AUD, USD, NZD, EUR, GBP, SGD, THB, JPY, HKD, CAD, ZAR.

Key features:

• No loading, reloading, closing or inactivity fees.
• Free to use it in network ATMs in Australia and partner ATMs overseas in a range of countries including the UK, US and New Zealand.
• A charge applies at non-Westpac and non-partner ATMs in Australia and overseas.
• Best exchange rates for the US dollar, the Euro and GBP in our comparison.*
• The only card that lets you preload the South African rand.

Other travel money cards

Next to the Westpac Worldwide Wallet, there are six other travel money cards available.

Australia Post Travel Platinum Mastercard

Available online or at post offices.

Currencies : AUD, USD, NZD, EUR, GBP, SGD, THB, JPY, HKD, CAD, AED.

• Fee to reload the card via BPay, debit card or instore, but free via online bank transfer.
• Closure fee.
• Fees for ATM withdrawals in Australia and overseas.

Cash Passport Platinum Mastercard

It's issued by Heritage Bank and is available online and from a number of smaller banks and credit unions (like Bendigo Bank and Bank of Queensland) as well as travel agents. 

• Fee to reload with a debit card or instore, but free via BPay.

CommBank Travel Money Card

CommBank Travel Money Card (Visa)

As NAB and ANZ have closed their travel money cards, this is the only other travel money card available from a major bank. This card has the largest variety of currencies that can be preloaded.

Currencies : AUD, USD, NZD, EUR, GBP, SGD, THB, JPY, HKD, CAD, AED, VND, CNY.

• Fee if you make a purchase with currencies not preloaded.
• Fee for withdrawals at overseas ATMs.

Qantas Travel Money Card

Qantas Travel Money Card (Mastercard)

The only travel money card offering from an airline. It can be added as a feature to your Qantas Frequent Flyer card, so you don't need a dedicated card, and you can earn points using it.

• Free to reload via bank transfer or BPay, but there's a reload fee if using debit card.

Travelex Money Card

Travelex Money Card (Mastercard)

Travelex is an international foreign exchange retailer. In Australia, it operates more than 140 stores at major airports and shopping centres, across CBDs and in the suburbs. It was the card with the best exchange rate for New Zealand dollars.*

Currencies : AUD, USD, NZD, EUR, GBP, SGD, THB, JPY, HKD, CAD.

Fees : 

• Load fee instore, but free via Travelex website or app.
• Reload fee instore or via BPay, but free via Travelex website or app.
• Closure fee and monthly inactivity fee (if not used for 12 months).

Travel Money Oz Currency Pass

Travel Money Oz Currency Pass (Mastercard)

The Travel Money Group is owned by Flight Centre and is a foreign exchange retailer. 

• Reloading the card via an online bank transfer or instore is free, but there's a fee if you reload via BPay, debit card or credit card. 
• Cash out (closure) fee. 

Travel money card tips

• Make sure the card allows the currencies you'll need, and also consider stopovers. For example, the South African rand is only supported by the Westpac card.
• Try to load your card with the right currencies and amounts on days with good exchange rates. 
• Make sure you know how to reload your card if you run out of funds while overseas.
• It may be more convenient to choose a card that has an app that can be linked to your bank account.
• Avoid loading more money than you'll need as there may be fees and exchange rate margins to get the unused money back.
• Remember to cancel the card once you're finished your trip, especially if it has inactivity fees.
• Be mindful that you still may need a credit card, as travel money cards may not be accepted as security for hotels and car rental agencies. 

Stock images:  Getty, unless otherwise stated.

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To share your thoughts or ask a question, visit the CHOICE Community forum.

Better Together: How to combine Chase Freedom Flex℠ and Chase Sapphire Preferred® Card for maximum travel rewards

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If credit cards were food, the Chase Freedom Flex℠ and Chase Sapphire Preferred ® Card cards would definitely be peanut butter and jelly, respectively.

That’s because both cards start out perfectly solid on their own. Even if you never knew how to combine their powers, you’d be very happy using both on a daily basis. But once you discover how to make a PB & J sandwich, there’s no going back. You’ve discovered a treat that’s sweet, protein-rich and gives you an excellent excuse to eat Wonder Bread. 

It’s the same thing with the Sapphire and the Freedom Flex–combine them, and you’re in for a tasty treat that you wish you’d discovered sooner.

But what exactly is the “PB & J” of Chase rewards? Well, get your favorite white bread ready and let’s find out.

First, a little explanation of benefits…

Before I share the “recipe” to Chase’s PB & J, here’s a quick overview of both cards to provide some context.

Chase Freedom Flex℠

Intro bonus.

Rewards Rates

• 5% 5% cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1%)
• 5% 5% cash back on travel purchased through Chase Ultimate Rewards
• 3% 3% cash back on dining (including restaurants, takeout and eligible delivery services)
• 3% 3% cash back on drugstore purchases
• 1% 1% cash back on all other purchases
• 5% 5% cash back on Lyft rides (through March 2025)
• No annual fee
• Easy-to-earn welcome bonus
• Earns up to 5% cash back
• Foreign transaction fee
• Must active bonus categories every quarter
• 5% categories are capped
• Additional perks: Purchase protection, extended warranty protection, trip cancelation/interruption insurance, auto rental collision damage waiver, cell phone protection, complimentary Doordash and Instacart+ membership
• Foreign transaction fee: 3% of the amount of each transaction in U.S. dollars

Chase Freedom Flex – 5X rotating rewards

Here are the key highlights of Chase’s peanut butter, the Freedom Flex card. 

• 5% cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1%) , with the categories for Q2 2024 including Amazon.com, hotels and restaurants. 
• 0% intro balance transfer APR for 15 months (intro balance transfer fee: $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days) on both purchases and balance transfers. 
• $200 cash bonus after spending $500 on purchases within your first three months . 
• $0 annual fee

For more detail, check out our full review of the Chase Freedom Flex .

Chase Sapphire Preferred ® Card

• 5x 5x points on travel purchased through Chase Travel℠ (excluding hotel purchases that qualify for the $50 Annual Chase Travel Hotel Credit)
• 3x 3x points on dining at restaurants, including takeout and eligible delivery services
• 2x 2x points on travel purchases not booked through Chase
• 1x 1x points on other purchases
• 5x 5x points on Lyft rides through March 31, 2025 (that's 3x points in addition to the 2x points you already earn on travel)
• Valuable welcome bonus
• Extensive list of transfer partners
• Extra value on travel redemptions
• No premium travel perks
• Has an annual fee
• Additional perks: $50 annual hotel credit, trip cancelation/interruption insurance, auto rental collision damage waiver, complimentary Doordash and Instacart+ membership along with quarterly Instacart+ credits
• Foreign transaction fee: None

Chase Sapphire Preferred – a grab bag of travel perks 

In a similar vein, here’s a quick breakdown of Chase’s homemade grape jam, the ever-popular Sapphire Preferred card: 

• 2x points on travel purchases , plus 3x points on dining, 3x points on select streaming services and online grocery purchases (excluding Walmart, Target and wholesale clubs), 5x points on travel purchased through Chase Travel℠ and 1x points on other purchases. 
• 25% travel redemption bonus when you redeem your Chase Ultimate Rewards points through Chase Travel (e.g. redeem 10,000 points, get $125 in value). 
• 60,000-point welcome bonus after spending $4,000 within three months. 
• $50 annual statement credit good towards a hotel booked through Chase Travel. 
• $95 annual fee

To learn more, check out our full review of the Chase Sapphire Preferred . 

Circling back to our “recipe,” notice how Chase is quick to point out that your 60,000-point welcome bonus is worth $750 in travel redemption–all thanks to that handy 25% redemption bonus. And if you think about it, that means the points you earn with the card are worth 1.25X towards travel, too. 

So in reality, as long as you’re redeeming points through Chase Travel, your rewards chart really looks like this: 

• 5X > 6.25X on travel booked through Chase Travel
• 3X > 3.75X on dining/online groceries/streaming
• 2X > 2.5X on general travel
• 1X > 1.25X on everything else

Those are some mighty impressive earnings rates, lending even more value to the CSP as a travel companion. 

But here’s the crazy thing: that 25% bonus multiplier applies to every Chase Ultimate Rewards point you earn, regardless of which card you earn it with . 

Here’s how it all works. 

Here’s how your Chase Sapphire Preferred account lets you earn 6.25X with your Freedom Flex card

In our Chase Ultimate Rewards guide we outline all of the dozen-ish ways you can redeem your hard-earned Chase points. From trips to back massages to cash back, there’s hardly a bad option. 

But perhaps the most underrated option is the Combine points feature. 

Combine points allows you to move Chase Ultimate Rewards points from one Chase card to another–meaning you can earn points with one card–and spend them with another. Another that has, say a 25% points multiplier on points redeemed for travel…

As you can see, the option only applies to Chase rewards cards that generate Chase Ultimate Rewards points. So the Prime Visa and the IHG One Rewards Premier Credit Card cards, for example, won’t appear here–but your Freedom and Sapphire cards will. 

Unlike a bank transfer, combining Chase Ultimate Rewards points is free and instantaneous. Plus, you can always move the points back if you wish (although I’ve never found a reason to move points from a Sapphire card back to a Freedom card).

Then, as soon as you’ve combined all of your Chase Ultimate Rewards points into your Sapphire account, you can go spend them at Chase Travel where you’ll get an extra 25% in value: 

This trick also works with the Chase Sapphire Reserve card where you’ll get 50% extra value (provided you’re cool with the card’s $550 annual fee). 

Now, while I heartily recommend this trick to most travelers I meet–especially if they already have both cards–you should know that it still comes with three big caveats. 

PB & Js aren’t perfect, and neither is this trick

Though delicious, peanut butter and jelly sandwiches aren’t perfect. They’re high in fat, sugar and carbohydrates, and unlike the Chase Sapphire Preferred card, they don’t travel especially well. 

In a similar vein, here are the caveats to the “PB & J of Chase cards”: 

• The Chase Sapphire Preferred card charges a $95 annual fee and requires a 670+ FICO score to apply. 
• With the Chase Freedom Flex, you can only earn 5% cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1%) (generating 7,500 Chase Ultimate Rewards points worth $93.75). 
• Hotel rooms booked using points typically don’t generate any additional rewards or allow you to utilize your status benefits. 

But if you’re OK with these caveats, I hope you enjoy this simple recipe for tastier travel rewards.  And for more tips to help you get off the ground–quite literally–check out our Beginner’s guide to travel rewards .

Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.

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