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A new report has been issued offering holidaymakers advice on the best ways for their cash to travel.

The Moneyfacts study looked into debit cards, credit cards, travellers' cheques, cash and prepaid travel cards, the latest entrant to the market.

Rachel Thrussell from Moneyfacts said: "With so many options now available to travellers, the choice is already somewhat baffling without even considering the different costs both here and overseas and the final, probably hardest variable to compare, the exchange rate."

The research looked at ten of the biggest providers of foreign cash and found that prepaid cards and travellers cheques came out on top.

"Travellers cheques on the whole win, albeit by a pretty small margin," said Mr Thrussell.

"Prepaid cards offer a credible alternative to travellers' cheques and in time I am sure competition will lower fees and increase pricing transparency."

He went on to explain that both travellers' cheques and prepaid cards offered the consumer protection against loss and theft, guaranteeing fast replacement.

"However, the added benefit of using a card is that it is operated via an ATM using an individual pin, so travellers don't have the hassle and worry of carrying around their passport or having to remember to record their spent travellers cheque number," he added.

Furthermore, the prepaid cards can be reloaded over the phone, if travellers run short of cash.


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