Can I Withdraw Money From My Post Office Travel Card

Post Office Travel Money Card customers warned to think twice at ATMs this summer after customer racks up €100 fees in a week

As the busiest time of the year for travel commences, the Post Office has warned customers to check the small print before topping their cards up and withdrawing cash overseas

Heading to the sun? Don't use your Post Office card at foreign cashpoints (

Image: Getty)

Holidaymakers with a Post Office Travel Money Card are being warned to steer clear of cash machines abroad this summer - as it could leave you hundreds of pounds out of pocket.

The warning comes just days after a holidaymaker racked up a £100 bill at an ATM machine in just a week, after using the firm's flagship prepaid travel money card - one of the most popular in the market.

In a statement, the Post Office said it's currently in the process of writing to all customers to advise them of the risks and fees associated with the free card - which charges around £1.91 for each ATM withdrawal made outside of the UK.

What are travel money cards?

Travel money cards can be loaded with euros or dollars before you fly (

Image:

Post Office)

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Travel money cards are often considered one of the safest ways to take cash abroad - especially on short holidays.

They're easy to cancel and can be replaced within minutes - even abroad - plus, they save you the stress of having to carry large chunks of cash around - which can be a huge inconvenience at even the best of times.

They're also free to use in shops and restaurants which is a perk for every holidaymaker. But, use your card at a cash machine, and you're likely to be hit with a mammoth fee per withdrawal.

The Post Office's travel money card is a prepaid card like the versions described above, you simply sign up (it's free), get your pin and load it up before you fly. This can be in euros or dollars. Once abroad, you simply use it as you would any other credit or debit card.

But, not at cash machines.

The Post Office charges $2.50 (£1.91) or €2 (£1.79) per withdrawal made on its travel money card.

If a family visited a cash machine twice a day on a two-week holiday, it would cost them $70 (£54) or €56 (£50).

There's another hidden danger too.

When abroad, it's always advised that you pay in the local currency - this includes in shops and restaurants. Choose to pay in sterling and you won't get the preferential rate and may have to cough up an additional conversion fee - in other words, you'll lose out.

This rule applies to cash machines too which means if you press the wrong button or forget to choose the local currency when taking cash out, you'll be charged in sterling rather than in the local currency.

A letter is on its way to you...

The Post Office says it will be handing out new explainer leaflets to all new customers

As a result of growing concerns around prepaid cards and hidden transaction fees, the Post Office says it's now in the process of writing to customers to clarify 'dynamic currency conversion' - and the importance of paying in the local currency abroad.

In branch it'll also be handing out new leaflets to help customers understand how they can avoid any extra charges on holiday. The Post Office says this will be handed to every new card customer.

A Post Office spokesperson said: "The Post Office's Travel Money Card can be used like a debit card in millions of shops, bars and restaurants across the world. That's the best way for our customers to use the card; paying with it is commission and fee free when used in one of the 13 currencies we support that can be loaded on the card.

"When making purchases abroad we strongly recommend completing the transaction in the local currency, as converting the transaction to sterling will result in additional fees.

"These fees include a Dynamic Currency Conversion fee, none of which is levied or received by the Post Office; for cash withdrawals, ATM charges are very common and apply to credit, debit and prepaid products.

"We try to make our explanation of how best to use our Travel Money Card as clear as possible, providing welcome packs with the cards and setting out the details of potential fees that may be incurred on our website.

"Our colleagues in branch are also on hand to answer any questions our customers may have."

Other charges on the Post Office card includes a £5 fee to close the account. If you don't, you will start paying a £2-a-month maintenance charge one year after it expires.

To find out more about prepaid cards, exchange fees and more see our guide on how to buy holiday money.