Using Halifax Clarity Card Abroad

jojo5987

Hi
I've opened a Halifax Clarity Card for when we go on holiday as there is no fee for purchases abroad.
Can anyone tell me what exchange rate will be used if i buy anything abroad?
I've asked Halifax but they don't know, so i phoned complaints and they put me through to the wrong department, i phoned mastercard and they put me through to halifax! No one seems to know the answer.

Is it that they will apply whatever the rate is on the day they process the transaction or will it be the rate the shop is offering or the mastercard rate for that day?!

I don't know but want to know if the rate paying on the card is going to be better than the rate we've got for taking cash.

Thanks to anyone who knows the answer! :j

opinions4u

It is the Mastercard rate at the time the transaction is made. This is usually more competitive than other currency changing methods.

Their web site states:

What exchange rate will I be charged on transactions made abroad using the Clarity Credit Card?
The exchange rate is set by Mastercard at the time that you make the transaction. Halifax do not apply any loading, fees or charges to this rate

The agreement states:

5.3 If you make transactions in a foreign currency, we will change the amount to sterling at the exchange rate used by the payment system on the date it passes us the transaction. You can find out this exchange rate by calling us on the Customer Services number shown on your monthly statement. If you call before we add the transaction to your account, we will state only the likely rate.

I think asking for a supervisor next time you call and get no joy is in order!

jojo5987

oh so i'll never really know the rate until it's on the statement.
Is paying by card generally a better rate than you would get for buy cash before you go do you know?
Thanks

chattychappy

jojo5987 wrote: »

Is paying by card generally a better rate than you would get for buy cash before you go do you know?

Assuming exchange rates never moved, yes it almost certainly would be with Clarity. Clarity is still relatively new, so there isn't much experience here yet. Some credit cards seem more prone than others to being declined overseas. Always have backups.

Of course exchange rates do move - so you can't really be sure. I spent US$1760 on Nationwide Visa (no loading at the time) when the rate was $2.07. It took 4 weeks for the transaction to go through (unprecedented in my experience) - by which time the rate had dropped to $1.83. That's £110 of ouch because of a 13% decline. I'd have been better off getting cash at a bureau de change. All hindsight of course!

luci

This is the rate that Mastercard uses

https://www.mastercard.com/us/personal/en/cardholderservices/currencyconversion/index.html

System

I too am thinking of getting the Halifax Clarity Card having previously loaded my Nationwide Flexaccount when holidaying abroad. We are off to the US in June 2011.

I noted that Martin refers to it having a "perfect exchange rate" and I wondered what he meant by that.

I was previously under the perhaps mistaken impression that when using my Nationwide Flexaccount abroad they applied a business exchange rate as opposed to a tourist rate and that, along with no fees, made that card very appealing. The Halifax Clarity Card though seems to be applying a Mastercard rate very close to the rates offered by the best options on Martins Cheapest Travel Money tool. So that being the case am I right in thinking that the main benefits of using the card, as opposed to carrying cash or travelers cheques, are the nil fees and the extra protection of making a purchase with a credit card?

luci

and the perfect rate..........

The rate that Mastercard applies is as near to the Interbank rate as you are likely to get, the same as the Nationwide rate before they started applying the current 1% loading and soon to be 2% loading plus a £1 fee.

Other cards have a 2.75% loading on the rate which the Clarity card doesn't.

chattychappy

luci wrote: »

and the perfect rate..........

The rate that Mastercard applies is as near to the Interbank rate as you are likely to get, the same as the Nationwide rate before they started applying the current 1% loading and soon to be 2% loading plus a £1 fee.

Other cards have a 2.75% loading on the rate which the Clarity card doesn't.

Correct me if I'm wrong, but Clarity is a credit card whereas the charges you mention on Nationwide are for their debit card. Isn't Nationwide's Gold Visa cards staying at 1% loading? (Plus a fee/interest for cash advances, of course.)

987654

I can give you a live example as I have just returned from US

Got some cash before I went, rate was $1.53

Paid for some items on M&S credit card, rate was $1.55/1.56

Paid for most items on Clarity & rate was $1.58/$1.60

Therefore whilst I can't tell you the rate used, I would recommend putting as much of your spends as you can on the Clarity card.

chattychappy

987654 wrote: »

I can give you a live example as I have just returned from US

Got some cash before I went, rate was $1.53

Paid for some items on M&S credit card, rate was $1.55/1.56

Paid for most items on Clarity & rate was $1.58/$1.60

Therefore whilst I can't tell you the rate used, I would recommend putting as much of your spends as you can on the Clarity card.

Were they on the same day? Problem is that the currencies often fluctuate day-to-day. But Clarity should indeed be better than M&S.

luci

chattychappy wrote: »

Correct me if I'm wrong, but Clarity is a credit card whereas the charges you mention on Nationwide are for their debit card. Isn't Nationwide's Gold Visa cards staying at 1% loading? (Plus a fee/interest for cash advances, of course.)

Yes the Nationwide credit card is staying at 1% for the moment.

I gave those figures as the OP seemed to be comparing the Nationwide debit card and Clarity credit card