Bank account versus currency card

ellymoo

Hi all

I am going to the US next week. I have saved hard for this trip and have the £ saved up to convert into $. I've done a lot of research into currency cards, and I was going to go for the FairFX but it says that there is a charge if you withdraw money in a different currency from the initial card set up. I am not sure I am going to spend all the $ I have saved and would want to convert it back into £ if I can when I return. With this in mind, is it best to just put the saved money into a dormant bank account I have and withdraw it when I need to (say £150 at a time knowing there is an ATM charge)? Or is it best to take the currency card, load it with a few hundred, and add more if and when required? There appears to be an ATM charge with currency cards anyway.

I have got the Halifax Clarity card as well for overseas use in case I need it.

Any advice gratefully received!

Thank you.

benjus

Halifax Clarity is better than any Fair FX card, so don't bother getting a Fair FX card at all - use the Clarity for everything. Try to pay off cash withdrawals as quickly as possible if you have access to internet banking. Take another card (e.g. your normal debit card) as backup.

ellymoo

Thanks for your quick reply! Will most places in the US accept payment by Clarity card? I figured I ought to have some cash with me. I'm out for a week, so I could pay back any cash withdrawals as soon as I make them really, if that's necessary. I figure there must be a charge for ATM withdrawals abroad, but I didn't think I'd do it on my c/card so didn't check the small print on that.

I've never done this before, took traveller's cheques out previously when I went to Europe!


I'm going to Greece later in the year but I use cash for everything there as it's a small island. Would it be worth withdrawing using the Clarity and paying it off quickly rather than converting to Euros?

benjus

The Clarity card will be more likely to be accepted than the FairFX card. The Clarity card is unusual for a credit card in that cash withdrawals do not attract a fee - although they do accrue interest from the date of the transaction (unlike purchases which accrue interest from the date that payment is due for the statement they appear on) - which is why it's a good idea to pay them off asap. Even if you leave it to the end of the month, the interest charged will probably be less than the fees on the FairFX card.

Many ATMs in the US add their own charge when used with foreign cards (this applies equally to Clarity and FairFX cards) - so it would be a good idea to research the area you will be visiting and see if there are any banks that operate fee-free ATMs in the area. I believe TD Bank is one such bank, but I'm not an expert on visiting the US.

As for Greece, if there are ATMs around it will probably be cheaper to use these with your Clarity card than to exchange cash.

Doshwaster

ellymoo wrote: »

Thanks for your quick reply! Will most places in the US accept payment by Clarity card?

The Clarity is just a Mastercard. You will find that credit cards are even more widely accepted in the US than here. Nobody will bat an eyelid if you buy a coffee from Starbucks or a beer in a bar on plastic. The main trouble (depending on where you are) is with taxi drivers as many don't like accepting credit cards.

In other parts of the world where cash is king then just withdraw money from an ATM (I typically take out €100 at a time) and then pay the balance off when I get home. That way you will be paying less than 1% in fees.

Whatever card you take it is always wise to take a backup from a different provider just in case there is a problem with your main card. I once had my wallet stolen in Spain but I got by as I had kept an emergency card in my hotel room along with my passport.

ellymoo

Thanks again! I meant would most places take plastic rather than cash - I'm used to only ever taking cash, as I go to Greece every year and nowhere likes cards. I'm in New York for 2 days and nights, and Las Vegas for 4 days/nights. I had got the credit card to put my accommodation on, but the fact that I can get cash on it will be great - especially if it's at a good rate.

I will take a back up debit and credit card. Very good idea, thank you.

I saw on another thread that you should only pay off transactions when they appear on your statement rather than immediately. Is this the case? (I check my statements daily online)

Doshwaster

ellymoo wrote: »

Thanks again! I meant would most places take plastic rather than cash - I'm used to only ever taking cash, as I go to Greece every year and nowhere likes cards. I'm in New York for 2 days and nights, and Las Vegas for 4 days/nights. I had got the credit card to put my accommodation on, but the fact that I can get cash on it will be great - especially if it's at a good rate.

Yes. It's almost possible to live in a cashless life in most cities in the US. Though a wad of dollar bills is always useful for tips.

ellymoo wrote: »

I saw on another thread that you should only pay off transactions when they appear on your statement rather than immediately. Is this the case? (I check my statements daily online)

This only applies to cash withdrawals as you accrue interest by the day. By paying the balance when you get home rather than waiting for the statement you will save yourself a little bit in interest.

benjus

ellymoo wrote: »

Thanks again! I meant would most places take plastic rather than cash - I'm used to only ever taking cash, as I go to Greece every year and nowhere likes cards. I'm in New York for 2 days and nights, and Las Vegas for 4 days/nights. I had got the credit card to put my accommodation on, but the fact that I can get cash on it will be great - especially if it's at a good rate.

I will take a back up debit and credit card. Very good idea, thank you.

I saw on another thread that you should only pay off transactions when they appear on your statement rather than immediately. Is this the case? (I check my statements daily online)

Plastic is pretty widely accepted in NY, but you will need cash for some things. Not sure about LV - think you might cash if you're planning on betting in the casinos.

It's generally better to pay off transactions after they appear. If you're only paying off the cash withdrawals and leaving the purchases, if you pay too soon the payment will be counted against the purchase balance on the card. If you're paying off the whole balance, you might take the card into a credit balance. This probably won't cause any issues but is technically a breach of the T&C and you don't want to get your card blocked in the middle of your holiday.

NiftyDigits

Doshwaster wrote: »

The Clarity is just a Mastercard. You will find that credit cards are even more widely accepted in the US than here. Nobody will bat an eyelid if you buy a coffee from Starbucks or a beer in a bar on plastic. The main trouble (depending on where you are) is with taxi drivers as many don't like accepting credit cards.

In other parts of the world where cash is king then just withdraw money from an ATM (I typically take out €100 at a time) and then pay the balance off when I get home. That way you will be paying less than 1% in fees.

Whatever card you take it is always wise to take a backup from a different provider just in case there is a problem with your main card. I once had my wallet stolen in Spain but I got by as I had kept an emergency card in my hotel room along with my passport.

Spent a small fortune on taxis in NY. All paid for via plastic....with the annoying options to add a gratuity. I hate all that begging. Everyone has their hand out there. What a poor city.

Doshwaster

NiftyDigits wrote: »

Spent a small fortune on taxis in NY. All paid for via plastic....with the annoying options to add a gratuity. I hate all that begging. Everyone has their hand out there. What a poor city.

As I said, it does depend on where you are. NYC taxi drivers always accept cards are fine but in Boston they will often flatly refuse and claim their machine is "broken" despite them being required to accept them since 2009.