Halifax Clarity

ste1200

Hi, I have applied for the Halifax Clarity card and in the Credit card section on MSE it states:

The Clarity card from Halifax has no foreign exchange fee anywhere in the world, so you can get the best rate possible. Plus it doesn't charge a fee for cash withdrawals, although you will be charged interest even if you repay in full.
The rate for cash withdrawals is a fairly low 12.9% APR (this rate is 'typical' which means two thirds of those that are accepted will get it, the rest will be charged up to 21.9%). This works out as around £1 per month for every £100 withdrawn.

My question is: Is it more cost effective to withdraw cash from an ATM or pay for items on the card in shops, or does it not matter ?

Thanks
Ste

izools

If you pay your bill in full each month you will be better off using the card for purchases, as purchase interest is waived on accounts that are paid in full every time on time.

Cash interest, however, accrues daily from the date of the withdrawal to the repayment date, irrespective of whether or not the bills are paid in full.

If you don't plan on paying the account in full - i.e. you use it to borrow and spread repayments - the cost is the same.

ManAtHome

But check that the shop doesn't charge for using credit cards first.

chattychappy

Check out https://forums.moneysavingexpert.com/discussion/2956902

We never got a satisfactory answer. Nobody has yet posted any alternative first hand experience of Clarity - ie dates of transactions and exchange rates.

Based on my own tests, Santander Zero and Post Office are genuine 0% cards, with Nationwide Gold Visa credit card at 1% (outside Europe). Of course out of these, only Zero is free for cash advances (charging interest from the date of withdrawal).

I don't have Clarity - will get one when I can - and the above thread is the only negative one I've seen.

Whatever you do, take backups. Cards are more likely blocked when used overseas due to so-called fraud monitoring systems. This can happen whether or not you've pre-warned them of your intended spend.

Aside from that - agree what has been said. You're probably best using it for purchases rather than ATM because if you pay off in full you won't be charged interest. In some countries it is common for credit cards to be surcharged. But that goes for ATMs too.

ste1200

Cheers, Its just for use on a cruise I'm going on and I will repay at the end of the month.

taxi73

In that case then it'll be best used for purchases.

ste1200

I've just activated my card and the guy said it would be better for me to pay on the card as there would be no interest as opposed to drawing cash out, which would be charged. He also said he would put a note on my account regarding the travel dates so the card wouldn't be blocked if there was a lot of spending. Quite helpful he was

lisyloo

said it would be better for me to pay on the card as there would be no interest as opposed to drawing cash out

If you have the choice, then yes put it on the card.
However if you need small change to use the loo or to buy souvenirs off a stall etc. then you won't be able to use a card, so you may well need some cash.
Halifax Clarity is very low fees if you pay it off as soon as you come back.
12.9% is about 0.5% for two weeks which is a very low fee.
I don't know where you are going on your cruise, but you might be well advised to do a little research to find out whether cards are widely accepted.
A lot of self-employed taxi-drivers on small islands won't have the facility to take cards.

It depends on where you are going and what you are doing.
If you are going on an excursions with lunch and drinks included you may need no cash at all (although tipping is customary is most countries).
However if you are travelling independently you may need money for taxis, souvenirs, drinks etc.
You will get the best out of your cruise if you do a little research beforehand.
If the ports are not close to the town e.g. Rome then you would be better off joining an organised excursion otherwise you'll have a long way to travel independently, other cruise ports are in walking ditance of towns and can be easily explored independently.
You need to consider distance, ease of public transport, language, safety etc.
For exmaple if a museum has nothing in English you will get more out of it with an English speaking guide.

chattychappy

Watch out for DCC. If stuff is priced in USD on the cruise, then that's the currency you want to pay in. Let Clarity do the conversion rather than the ship.

If you have time, please report back the foreign amount, date of transaction (ideally processing date) and sterling equivalent for a few transactions so we can see if Clarity is all it's cracked up to be!

lisyloo

Watch out for DCC

Very true (dynamic currency conversion).
When you checkin you will probably be asked on your form whether you want
A. the cruise company to do your conversion (with commission of course)
B. Your bank to do the conversion (0% commission)

Concentrate carefully on the question as that don't make it particularly clear that you'll be charged for the service.
You want to be charged in USD and Halifax do the conversion and not GBP where your cruise company do it. It's "counter intuitive" so concentrate.

Similarly you need to be aware of this in shops.
You want to always pay in local currency.
Sometimes they won't ask or tell you so you have to check the currency you are being charged in on the handset.
You need to be aware of this.
Some of the staff in shops aren't even aware of it themselves.

southantrim3

Yea, using the card would be best as when using cash the intrest is calculated from the date of withdrawel.