Of Interest To Canadians

[george/patricia]

News from The Globe and Mail BMO launches pre-paid travel card

 

Tara Perkins

Monday, June 25, 2007

 

The Bank of Montreal is launching a pre-paid travel card that brings traveller cheques into the plastic era.

This is the second in a series of product announcements BMO plans to make as it battles the other big banks for personal customer deposits. The first was the offer of Air Miles each time customers use their debit cards.

This second announcement, made Monday, is for a new Prepaid Travel Mosaik MasterCard. The customer loads it with funds and it therefore has no interest charges. It's accepted at more than 24 million locations around the world, the bank says. In addition, cardholders can take out cash in the local currency at any automated banking machine around the world that's connected to the Cirrus network. The bank says the card is safer than cash, because if it's lost or stolen, it can be cancelled and the funds replaced.

“A prepaid travel card has a lot of potential in the travel market,” Nancy Marescotti, the bank's director of brand marketing, stated in a press release. “Travellers tell us they don't like travellers cheques because not enough merchants accept them and they are too difficult to cash.”

[LHT28]

I would read the cardholder agreement very carefully. http://www3.bmo.com/mosaik_images/PrepaidTravelMosaikCHA_EN.pdf

There is a fee to get the card, a fee to use the card etc...

http://www3.bmo.com/mosaik?ACTION=PP_FEES_SERVICE_CHARGES

 

CAA also has a similiar scam

 

I just use my debit card and keep a low amount in my account...I can still transfer money into from other accounts if needed.

[cruiseyguy]

American Express has a similar pre-paid card. They use your money while you hold the card. I'm not a fan of pre-paying anything unless it involves a discount that at least equals the prevailing interest rate. Otherwise, what's the point?

[george/patricia]

Your comments are correct - see link.

 

 

 

 

http://www.reportonbusiness.com/servlet/story/RTGAM.20070626.wrcarrick26/BNStory/robColumnsBlogs/home