Halifax Clarity vs Prepaid Cards For Cash

Donnie

masca wrote: »

Okay, so the FairFX Anywhere card uses the interbank rate plus a 1.5% transaction fee - is this correct? Therefore:

FairFX at interbank rate (as provided by Oanda) = £262.51 + £3.94 = £266.45

And the Travel Cash Passport Globe using the Mastercard rate with a 1.49% transaction fee would be:

Travel Cash Passport Globe at Mastercard exchange rate of 1.149867 = £260.90 + £3.89 = £264.79

And so the winner of the prepaids seems to be the Travel Cash Passport Globe, particularly since it is multi currency (I assume?). But still the Clarity wins, although now by less? But when taking into account convenience and risk, I think it still seems to be more of a winner.

Now you are just confusing yourself. Why are you introducing 'Interbank' rates?

Donnie

CountryGoose wrote: »

FairFX is supposed to give you the same Mastercard rate as Travelex, but I've have a few rates either side of the official rate for the date it was processed.

Next week I intend to take €30 on FairFX, Travelex and Clarity from the same machine at the same time then post the comparative rates.

And I agree, Halifax is a clear winner - Sec 75 Protection on big spends and you have nothing "invested" in the card. I'm still keeping one of the others in my bag with £200 safety cash on it - which one will depend on my rate check next week.

I can't see that FairFx have any control over this, as I assume that it is the Newcastle BS that does the processing.

Interested to see the comparatives when you have them.

Personally, I don't use a Prepaid card for anything other than paying for Ryanair flights, as I hold most of the other options for transacting in foreign currency.

I agree with using the Clarity for cash and another such as the Post Office Mastercard for purchases.

Prepaid cards would be my last port of call.
But some people cannot obtain the required credit and debit cards, so the Prepaid cards can be a boon for them.

masca

Donnie wrote: »

I agree with using the Clarity for cash and another such as the Post Office Mastercard for purchases.

Why not use the Clarity for purchases too? Thanks.

whatusername

masca wrote: »

Why not use the Clarity for purchases too? Thanks.

There is no reason why you can't

apt

masca wrote: »

Why not use the Clarity for purchases too? Thanks.

You can, but you would need to clear the whole balance (purchases and cash) to stop paying interest. If you use one card for purchases and one for ATM withdrawals you could pay off the latter ASAP to minimise interest charges while keeping the maximum interest free period for your purchases.

From 1 January Santander Zero credit card is moving towards payments being set against the most expesive debt first. Presumbly Halifax will be doing that as well because of the regulators. In that case the advantage of using more than one card will be as back up in case your preferred card does not work.

Donnie

jackieblack wrote: »

My 'statement' is simply my opinion, partly based on my naturally cautious nature, partly that yes, you are correct, I don't know how the system works and partly on a (fairly lengthy) thread on here last year - the outcome of which seemed to be that no-one really knew how safe their money would be in the event of any problem.

I thought this was something about the pre-paid card the OP had considered, based on the comment "Taking into account the fact that there's no risk of losing any balance if the card is lost or if the BS go bust" (regarding the CC option)

In the present climate, I would not take the risk - I'm not saying that I'm correct or that anyone else should or shouldn't, just that I wouldn't.

I'm sorry if my opinion offended you somehow.

You are misinformed and perpetuating the misinformation. That is my problem with your post.

The Financial Services Compensation Scheme does not apply to your MasterCard® Prepaid Card, however in the unlikely event that NBS becomes insolvent, funds that you have loaded are protected against claims made by creditors.

It not that you are 'naturally cautious'. If that were so, you would have read the Terms and Conditions. More a little irresponsible.

Sorry if I offend with with my opinion.

But comments like yours make my work harder and I'm busy enough as it is.

Donnie

masca wrote: »

Why not use the Clarity for purchases too? Thanks.

In addition to what apt has written, there would be the option of using a card that had no interest and forex charges on purchases for a fixed period.

That way, any ringfenced funds(car hire, hotel deposits etc) or emergency purchases will have a minimised impact.

tummy6

Does Fairfx actually use the Mastercard rate for the exchange or their own rate of exchange. The T&C's do not state.

If they use their own then the actual cost of the transaction would be 1.5% in the same currency PLUS c.3-4% in the FX spread.

That would make it very expensive compare to other.