Travel Prepayments Gone Wrong: How Your Deposit Can Vanish Into Thin Air

Having the chance to travel the world and explore new cultures is something that many of us dream of, but it’s also something that can quickly turn into a nightmare. Bookings that fall through, money in foreign currency that fails to arrive, and endless delays can all cause untold amounts of stress. With this in mind, we want to get to the bottom of the world of travel prepayment errors once and for all. 

What are travel prepayments?

Travel prepayments fall into two main categories, but they are closely related to one another. The first are travel money cards that users prepay money onto so that they can spend them just like a domestic debit card once they arrive at the destination. The second are prepaid expenses in the form of things like deposits for hotels, internal flights, and local services. 

Rather than getting lost in the details, we’re going to group all of the various types of prepayments together and focus on what can go wrong. Why? Because it’s the quickest way to arrive at a solution that ensures everything goes right. 

Can your deposit really vanish?

Yes, just because a payment is made electronically doesn’t automatically mean that it is 100% safe and secure. Deposits can vanish into thin air for a variety of reasons, both legitimate and criminal, and knowing that this can happen is very important. 

For example, if you take up the offer of an unsolicited approach and then transfer money, is that really a smart idea? If you don’t know the person you are sending the money to, can you be sure that your deposit will be used as you intended it? And if you pay a deposit for a hotel room on the other side of the world, and the parent company of that hotel group goes bust while you are in the air, do you know where your deposit will go next? 

These are complicated questions, so it will help to break things down and simplify things a little more.

Why your deposit can vanish

Putting criminal activity and fraud to one side for the time being, here are the most common reasons that your deposit can vanish: 

• Not clearing the balance: Many service providers will include a due date by which you need to pay the outstanding balance. In many cases, they will reserve the right to keep the deposit if you do not clear the balance on time. 
• Travel company cancellation: The company you book with may reserve the right to cancel your booking due to a variety of reasons, and your deposit could be taken as a result. The same is true if the company folds or is placed into administration.
• Incorrect payment details: There is always the possibility that you unintentionally send the money to the wrong account, in which case it may be virtually impossible to retrieve it.

As with many issues in life, the solution is to find a specialist you can trust. In the case of international travel, you need a money transfer service that has years of experience working across borders.

Protecting your deposit the smart way 

A money transfer service will be able to convert from Sterling to the payment currency at the destination and track the money that is being sent at every stage. Fees and charges will be 100% transparent, and payment details will be fully verified before the transfer is initiated. Many such services will offer a SWIFT checker that ensures the correct recipient bank is being contacted in the first place. 

In addition, you may wish to consider taking the following steps: 

• Get travel insurance: Comprehensive insurance can help if you need to change or cancel any of your travel arrangements due to unforeseen circumstances. This can help add some much-needed peace of mind, especially if you are travelling as a family.
• Book with trusted providers: Only doing business with IATA-accredited agents who can demonstrate compliance with the latest FTC regulations will give you a higher level of financial protection. Ideal when you want to make sure your rights are protected as much as possible.
• Avoid unsolicited approaches: A travel card offer that arrives in your inbox and offers incredible rates and flexibility may be the stuff of dreams, but it will always be too good to be true. Stick with trusted services that have your best interests at heart if you want to protect your deposit.

Now that you know how to make sure the vanishing act never happens to you, it’s time to find a reputable money transfer service. Verify your details with them and then sit back as they handle the hard work so that you don’t have to.