Halifax Clarity - Travel Cash Abroad WARNING

ProfDarkart

Halifax clarity credit card has no interest free period for cash withdrawals, including foreign cash.

This being the case, ensure you figure this into your budgeting, especially if withdrawing large amounts of cash on holiday with a long time to go till billing day.

This is in the Ts and Cs.

With this taken into account, it is still a great deal for rates, and a very low charges for using a card for cash at all, never mind abroad.

chattychappy

I'm inclined to say "what do you expect"? Why wouldn't you pay interest? Interest rates are not buried in the T+Cs. Not getting interest charged on purchases is a concession, and it is always made clear that this concession is on purchases. In the cases of purchases, the CC gets a fee from merchants.

Even with a couple of weeks' interest, this is still an excellent way to get cash overseas. Different if the balance lingers too long.

ProfDarkart

Of course I expected there would be a charge somewhere, I expected it would be from those who fail to pay in full funding those who do.

I DO expect such charges to be pointed out when I call - in fact the Halifax member of staff stated that I should have been made aware when I called to activate for use abroad and it was a failure on their part to have neglected to mention it.

This post is to warn others who do not have the benefit of my mistake when Halifax neglect to tell them too. Pay online while abroad if you have a Halifax current account, otherwise be aware you are being charged and ensure you take into account the potential interest when calculating the true cost of the travel money for comparison.

chattychappy

Fair enough, and it's a timely reminder at this time of year.

Tixy

You are right it is worth taking this into account when working out how much your travel money will cost and which card to use.
And I am sure others have made the same mistake.

But it is specifically stated in the summary box for the card (online or printed) - it doesn't just omit to mention cash advances in this interest free period section - - it actually states there is no interest free period.

teffers

To be fair (edit: as Tixy said) it is right there, in the Summary Box (second section down):

There's no interest free period on cash advances, balance transfers or cheques.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/

But again, if you called them rather than checked it out online etc it's easily missed by someone not experienced in how CCs work.

Sorry you got stung

zagfles

ProfDarkart wrote: »

Of course I expected there would be a charge somewhere, I expected it would be from those who fail to pay in full funding those who do.

Do you really think that's the case? Why do you think credit card companies want people who pay in full? (about 60% of cardholders always pay in full). It's not a cross-subsidy, credit card companies make lots of money out of people who pay in full.

When you buy something the retailer pays around 2% so they are funding your interest free period. When you withdraw cash nobody is.

I DO expect such charges to be pointed out when I call - in fact the Halifax member of staff stated that I should have been made aware when I called to activate for use abroad and it was a failure on their part to have neglected to mention it.

This post is to warn others who do not have the benefit of my mistake when Halifax neglect to tell them too. Pay online while abroad if you have a Halifax current account, otherwise be aware you are being charged and ensure you take into account the potential interest when calculating the true cost of the travel money for comparison.

I just pay it off as soon as I get back off holiday. The interest is trivial on a typical holiday, and other than few specialist bank accouints like MetroBank and N&P, there is no cheaper way of getting foreign currency.

TakeThis

Tricked?? Sorry, it is just an example of how stupid some people can be.

They don't bother to read even the most basic summaries regarding the usage of the product on which they depend.

It is explained clearly within the Summary Box.

The bank is not your family. It is a business. Caveat Emptor.

ProfDarkart

Thanks for the comments. You mean I can't get something for nothing - what a surprise

Trivial fees to one person are non-trivial to another, and it all depends on what has been "cash only" whilst you've been away and what the purpose of the trip is - it's not all all-inclusive packages in Marbella. In developing countries, cash is king and crime is high and as such I don't want to take 3 weeks of accommodation, subsistence, travel, and leisure (if I'm lucky) cash around with me in a wallet between locations, or have to find somewhere to cash a travellers' cheque (with all its combined hassle, including the risky carrying around passport all day) when there are so many more ATMs than banks in such countries.

The Clarity card's sales pitch is the perfect solution for someone like me - I am merely making sure people pay more attention than I did to the Ts and Cs and make an informed decision before taking the plunge.

ProfDarkart

@TakeThis: Thanks for your constructive comments, I'm sure you're a regular nice guy who has a lot of time to read everything in full, never has external time pressures or other distractions, never makes a mistake and certainly would not like to share knowledge of their mistakes in case there's anyone else imperfect in the world. If you've anything to add of value, feel free to reply.

frankie

So, just how much interest are we talking about if it's trivial?

For example if you drew £1000 worth of cash and paid it say 30 days later, how much would that work out to be??