Absolutely Avoid Fair FX Cards -- No Cash From ATMs!

trevor2522

Fair FX cards are terrible! Would not dispense me any cash in Thailand, saying my personalised PIN was invalid!



They also charge a "Network currency exchange rate mark-up percentage" when paying a small ticketing charge at an airline office. Purchases are supposed to be 0%! This was never mentioned clearly on signing-up ... maybe hidden away in the small print ... but that's criminal deception as far as I'm concerned.



They also have ABSOLUTELY NO TELEPHONE BACKUP for clients stuck abroad unable to access their cash. Cardholders then have to email all their personal details via unsecure email to identify the problem -- totally compromising their identity and security worldwide!


AVOID! AVOID! AVOID! Pay a little more and stick to regular banks and building societies with a proper infrastructure. FairFX is false economy!


-- Trevor Perry
-- Stuck in Thailand without cash, thanks to FairFX
-- December 9th, 2012

P.S. Not only me; read more criticism of Fair FX at money co uk.

zagfles

trevor2522 wrote: »

Pay a little more and stick to regular banks and building societies with a proper infrastructure. FairFX is false economy!

And you don't even need to pay more, I use the Halifax Clarity and pay far less than FairFX or indeed any pre-paid card. Several other options are even cheaper eg MetroBank, N&P debit cards.

Pre-paid cards should be a last resort for people who can't get a credit card/bank account or have left everything till the last minute.

trevor2522

zagfles wrote: »

And you don't even need to pay more, I use the Halifax Clarity and pay far less than FairFX or indeed any pre-paid card. Several other options are even cheaper eg MetroBank, N&P debit cards.

Pre-paid cards should be a last resort for people who can't get a credit card/bank account or have left everything till the last minute.

Nationwide also had zero foreign exchange fees until they got greedy 2 years ago and put them up to 2% + £1 per transaction. Still the best of the rest.

Halifax Clarity cards require a full credit check and minimum inputs into the account, so are not for everyone.

(Un)FairFX are apparently cheap because they have no customer service and rip off clients on un-mentioned fees and lousy exchange rates. They also change customers' PIN numbers after the customer has set them to their own choice, thereby invalidating the card.

Best solution: carry cash, use ubiquitous hotel safety boxes and keep bank plastic for emergencies only; you are still at the mercy of foreign ATM charges which are always going up.

zagfles

trevor2522 wrote: »

Nationwide also had zero foreign exchange fees until they got greedy 2 years ago and put them up to 2% + £1 per transaction. Still the best of the rest.

Halifax Clarity cards require a full credit check and minimum inputs into the account, so are not for everyone.

They don't require any "minimum input", it's a credit card, you can use it as much or as little as you like. Naturally a credit check is required as it's a credit card.

(Un)FairFX are apparently cheap because they have no customer service and rip off clients on un-mentioned fees and lousy exchange rates. They also change customers' PIN numbers after the customer has set them to their own choice, thereby invalidating the card.

Best solution: carry cash, use ubiquitous hotel safety boxes and keep bank plastic for emergencies only; you are still at the mercy of foreign ATM charges which are always going up.

How is carrying cash the best solution? Changing cash is generally a rip-off. I have never been charged by a foreign ATM and I've used them in most European countries, though I know charges are hard to avoid in some countries outside Europe (however they're probably still better value than changing cash).

Cards are generally much better value, if you can't get a Clarity or a bank account at the likes of Metrobank or N&P, then a good value pre-paid such as Kalixa is probably the best option.

NFH

trevor2522 wrote: »

Best solution: carry cash, use ubiquitous hotel safety boxes and keep bank plastic for emergencies only

You're mistaken. An electronic form of payment is inherently cheaper than changing banknotes because extraterritorial cash is expensive to handle. When you use a card, Visa or MasterCard obtains a wholesale interbank rate and no money crosses borders. GBP is paid between UK bank accounts and the foreign currency is paid between bank accounts within the foreign country. When you change cash, either in the UK or abroad, one currency will always be extraterritorial, i.e. outside its home country. If you change cash in the UK, the foreign cash will be extraterritorial, or if you change your cash abroad, the GBP will be extraterritorial. Physical cash is inherently expensive to handle, extraterritorial cash even more so.

In the wholesale banknote trading markets, cash is consequently traded at a premium or discount compared to electronic funds, and the premium or discount depends on several factors. For example the physical state of the banknotes is relevant; in Russia and other parts of Eastern Europe a pristine state is expected. The denomination is also relevant because smaller denominations are more expensive to transport. Another factor affecting some currencies is the issuer of a banknote; for example there are multiple issuers of GBP and HKD banknotes, and Scottish banknotes have a lower wholesale value than Bank of England banknotes. Added to these wholesale costs are the retail costs incurred by bureaux de change, such as employing staff and the potential movement of the wholesale interbank rate while a bureau de change holds the cash. Forget taking cash between countries unless you want to pay unnecessarily for these many costs through a worse exchange rate.

Bob_the_Saver

trevor2522 wrote: »

Purchases are supposed to be 0%!

Charges are here

http://www.fairfx.com/faq#What%20are%20the%20FairFX%20Currency%20Card%20Costs%3F

and here

https://www.fairfx.com/cardselection

Including this one

FX Fee (when card used out of card currency) 1.40% for Euro, US Dollar and £ Anywhere Cards

malkie76

maybe hidden away in the small print ... but that's criminal deception as far as I'm concerned.

Criminal deception because you didn't read the T&C? That's a new one on me!!

trevor2522

zagfles wrote: »

How is carrying cash the best solution? Changing cash is generally a rip-off. I have never been charged by a foreign ATM and I've used them in most European countries, though I know charges are hard to avoid in some countries outside Europe (however they're probably still better value than changing cash).

Cards are generally much better value, if you can't get a Clarity or a bank account at the likes of Metrobank or N&P, then a good value pre-paid such as Kalixa is probably the best option.

Thanks, I'll take a look at Kalixa as FairFX is getting the chop as soon as I return home!

I mostly travel to S.E. Asia. At the right exchange shops, cash is now the best form of travel money. ATMs impose extra fees for foreigners in Thailand and Philippines -- in addition to existing charges there and at home -- so they're not economic any more. Exception: some foreign-bank ATMs like Aeon & Citibank (which don't impose the foreign-card surcharge, yet) where there's a little more value for the customer. Greedy Thai & Filipino banks see us as a soft touch to be milked for £3 on every withdrawal. Given low withdrawal limits in some places, this adds up!

In Europe I would buy Euros at the best Internet rate and have them delivered before departure. Never touch airport or Euro-destination exchange booths! Unlike the third world, where skimming goes on, plastic is safe to use for hotels and purchases in Euroland.

trevor2522

NFH wrote: »

You're mistaken. An electronic form of payment is inherently cheaper than changing banknotes because extraterritorial cash is expensive to handle. When you use a card, Visa or MasterCard obtains a wholesale interbank rate and no money crosses borders. GBP is paid between UK bank accounts and the foreign currency is paid between bank accounts within the foreign country. When you change cash, either in the UK or abroad, one currency will always be extraterritorial, i.e. outside its home country. If you change cash in the UK, the foreign cash will be extraterritorial, or if you change your cash abroad, the GBP will be extraterritorial. Physical cash is inherently expensive to handle, extraterritorial cash even more so.

In the wholesale banknote trading markets, cash is consequently traded at a premium or discount compared to electronic funds, and the premium or discount depends on several factors. For example the physical state of the banknotes is relevant; in Russia and other parts of Eastern Europe a pristine state is expected. The denomination is also relevant because smaller denominations are more expensive to transport. Another factor affecting some currencies is the issuer of a banknote; for example there are multiple issuers of GBP and HKD banknotes, and Scottish banknotes have a lower wholesale value than Bank of England banknotes. Added to these wholesale costs are the retail costs incurred by bureaux de change, such as employing staff and the potential movement of the wholesale interbank rate while a bureau de change holds the cash. Forget taking cash between countries unless you want to pay unnecessarily for these many costs through a worse exchange rate.

Trying to blind me with science? I've done the sums, and for Thailand -- land of smiles (and wiles) -- changing £50 notes at the Superrich exchange head office gives me more local currency than ATMs. PLUS they are more transparent; you never know exactly what exchange rates the banks are using. Carrying cash depends on where you're headed. For much of the third world cash is best, at a certain degree of risk, which can easily be minimised.

trevor2522

malkie76 wrote: »

Criminal deception because you didn't read the T&C? That's a new one on me!!

The T & C are ambiguous and confusing with respect to ATMs and imply there is only a £1 per transaction charge.

If you think the sun shines out of FairFX's backside, fine ... but they stranded me abroad without cash by changing the PIN number I set 2 years ago. This is a cardinal sin for a travel-money outfit. No second chances!

Just because politicians and businessmen are moral criminals, who purposefully lie and deceive, doesn't mean they can be locked-up like the true criminals they are. If the people don't hold them to account, they will continue in the same vein like the psychopaths they are.

visidigi

Personally I have found FairFX excellent for the US - both ordering online and buying in person - wouldn't be without it