Travellers 'using prepaid cards' - 03/10/2008

Backpackers are turning to prepaid cards to fund their travels as credit cards often get cancelled while they are overseas, it has been claimed.

Despite people informing banks of their intentions to use cards abroad, computer glitches can mean they still get cancelled, stated Tom Griffiths, the founder of gapyear.com.

"This is because the computer sees a card that hasn't been used much in the UK suddenly being nailed in Ecuador or Fiji. It just looks like fraud so the card's been stopped," he said.

As a result prepaid cards are rising in popularity among backpackers that may be away for long periods of time.

Meanwhile, research from American Express recently revealed that 16 per cent of those taking a gap year thought the best place to keep money would be in their jeans pocket.

The firm recommended that a combination of cash, travellers cheques and credit cards is the safest choice for those going abroad.