Is Fairfax safe?

hot-ice

Is Fairfax card for foreign currency safe? After the collapse of Crown Currency Exchange, the foreign exchange website I'm having second thoughts of paying up front for my foreign currency or is this not the same sort of product?

serenseren

I am just bumping this as I would like the answer too! It is an entirely different entity as FairFx is run by the Newcastle Building Society I think, but I am not sure whether you get the same FSA protection as you do for savings, or whether the money loaded onto the card is 100% safe.

Hope someone can help!

serenseren

Ok, think I found the answer, card T&C's, number 18. Hmm, what to do!! I am working on the basis that losing your money depends upon the collapse of Newcastle Building Society, so whilst not unthinkable in this day and age, it is nothing like the Crown Currency situation.

18. Compensation

The Prepaid Card is an electronic money product and although it is a product regulated by the Financial Services Authority, it is not covered by the Financial Services Compensation Scheme. No other compensation scheme exists to cover losses claimed in connection with the Prepaid Card. This means that in the unlikely event that Newcastle Building Society becomes insolvent your funds may become valueless and unusable and as a result you may lose your money.