Pre Paid Credit Cards (FairFX, Caxton etc)

hillcats

When we went to USA earlier this year, we used CCE for our initial cash, (The first few days spending money etc whilst we got our bearings etc) and we luckily received all of our $750 as planned. *phew*

However, we also took our remaining spending money spread out over 2 prepaid Fairfx cards, the reason we had two was because I was advised it would be easier to just transfer funds over if one card was lost or stolen etc, whereas it would be impossible to replace if we only had one. (Good Tip!)

My Questions:

Does anybody know if in light of CCE problems etc are these types of pre paid cards covered if the company goes belly up and folds...?

Or would you just be stranded in a foreign country with a useless piece of plastic that gets declined everywhere... and then be forced to use your UK card to cover expenses etc with loads of fees on top...

Any links would be appreciated as I am now wondering what to do next time we venture to the USA, what with these companies collapsing all over the place...

whatmichaelsays

They aren't covered by the £50k FSCS as banks are but the funds are ring-fenced. With Caxton, they are held with the Newcastle Building Society. Not sure about FairFX.

The question is whether you think somebody like Newcastle Building Society would go belly up. Personally, I'm happy to trust my funds in a reputable, mutual building society.

Donnie

whatmichaelsays wrote: »

They aren't covered by the £50k FSCS as banks are but the funds are ring-fenced. With Caxton, they are held with the Newcastle Building Society. Not sure about FairFX.

The question is whether you think somebody like Newcastle Building Society would go belly up. Personally, I'm happy to trust my funds in a reputable, mutual building society.

FairFx too use a segregated bank account.

zzzLazyDaisy

I take a prepaid card with me on holiday, but I never have much money on it, I just transfer money on-line from my bank account as I need it.

But maybe not everyone carries a netbook with them wherever they go, like I do

phild145

I have the Euro, Dollar and Pounds Cards through Caxton which I use. Like lazydaisy I top mine up just before I go. The last time I went to the USA i actually topped it up as I was waiting for my flight. It was ready for me to use when I arrived in the USA.

The other thing I always do is to arrange some cash normally ordered on line through Travelex which I arrange to pick up at the airport. Usually if it is a early flight I will arrange to collect the currency the night before from the Travelex shop before the security checks (this way I only have the money with me for the trip back to my hotel and then in the morning the trip back to the airport). If the flight is slightly later then I arrange for collection of the currency at the Travelex shop after security (Lessening the possibility of losing it or having it stolen).

Thanks
Phil