Halifax Clarity Cash Withdrawals Abroad

bspm

We go to Florida four times a year, next visit is June, we always use the clarity card for withdrawing cash.

To be honest I preload it so there is a credit balance, but in fairness if you did not pay it off till you get back you are literally talking pence interest.

Forgot to add, the withdrawal is only free if you withdraw form a bank, an ATM in a store will charge you.

Not worth worrying about, enjoy Florida!!!

Raimonds

grumbler wrote: »

No, cash withdrawals may take time to show.
It will work if

• the previous statement balance is £0 or already paid in full

and

• you make payment after the cash withdrawal shows in the online statement (recent transactions)

That said, there is no point in rushing to pay as the daily interest is very small.

I just successfully applied to this card, and would like to use it abroad for both purchases and occasional withdrawals.

I understand, that the interest on cash withdrawal (will it be a day, a week or more) will appear only in next month's statement and not along with the recent transactions?

What is the best timing to make a payment to cover just the withdrawal amount (not the purchases) so that it is not used to cover purchases instead? Should I wait until the withdrawal transaction changes from pending to approved online?

grumbler

Raimonds wrote: »

I understand, that the interest on cash withdrawal (will it be a day, a week or more) will appear only in next month's statement and not along with the recent transactions?

Yes

What is the best timing to make a payment to cover just the withdrawal amount (not the purchases) so that it is not used to cover purchases instead? Should I wait until the withdrawal transaction changes from pending to approved online?

I wait for the latter or until I get back to UK.

IIRC, they say 'statemented' in the T&C.

Raimonds

grumbler wrote: »

Yes

I wait for the latter or until I get back to UK.

IIRC, they say 'statemented' in the T&C.

May I ask, if You had a personal experience in such scenario? After quickly repaying the statemented withdrawal amount and still having some purchases amount left, does this not continue to accrue the interest charges? I know, I will probably find it out only on my own experience, but wanted to see someone been through this.

maryapple1993

Any payment to the Clarity card will go to pay off the outstanding debt with the highest interest.
We use the card exclusively to draw cash, make purchases when abroad and this always happens.

grumbler

Raimonds wrote: »

May I ask, if You had a personal experience in such scenario? After quickly repaying the statemented withdrawal amount and still having some purchases amount left, does this not continue to accrue the interest charges?

No. Why would it?
In fact, all purchases do incur interest, but it's waived if you pay the balance in full every month.

chattychappy

If you are departing from an airport which has Moneycorp ATMs (Gatwick is one), then you can use Clarity to obtain some fee/loading free USD before you go. Just make sure you choose "without conversion" when offered the choice. That way you are billed directly in USD for the amount of USD withdrawn. No other charges at all.

P1Fanatic wrote: »

Thanks but its ok I don't use DD. Prefer to have full control of what is taken and when

Great stuff! (dives for cover....)

Raimonds

grumbler wrote: »

No. Why would it?
In fact, all purchases do incur interest, but it's waived you you pay the balance in full every month.

Was not sure if these balances (purchases and withdrawals, for example) are treated separately, and I would not lose the interest free period of up to 56 days.

chattychappy

Raimonds wrote: »

Was not sure if these balances (purchases and withdrawals, for example) are treated separately, and I would not lose the interest free period of up to 56 days.

They are not treated separately for the purposes of "you must pay your balance [ie including cash withdrawals] in full to avoid purchase interest". Regardless of whether you pay in full or not, you will always get interest on your cash withdrawals - in that sense they are treated separately.

HOWEVER, if you are mixing transaction types, in availing yourself of up to 56 days interest free purchases, you might pay more cash interest than you otherwise would. Let's say your statements are issued on the 1st of the month, and your due by date is 26th. You make a big purchase on 2nd Jan. You would have until 26th Feb to pay and not pay interest... But if you made a cash withdrawal on 10th February, any payment you send will pay off the purchases first (because it's on an earlier statement). So you have a choice: pay at least 16 days cash interest, or pay the whole lot off on 11th February (previous statement balance and cash amount) to reduce your cash interest to almost nothing. But then you've pruned off 16 days from your "up to 56 days".

Best way when travelling is to have two separate unloaded cards. Eg Clarity for cash, Post Office Mastercard/Nationwide Select etc., for purchases. Of course they can then back each other up in the case of refusals.

Raimonds

chattychappy wrote: »

They are not treated separately for the purposes of "you must pay your balance [ie including cash withdrawals] in full to avoid purchase interest". Regardless of whether you pay in full or not, you will always get interest on your cash withdrawals - in that sense they are treated separately.

HOWEVER, if you are mixing transaction types, in availing yourself of up to 56 days interest free purchases, you might pay more cash interest than you otherwise would. Let's say your statements are issued on the 1st of the month, and your due by date is 26th. You make a big purchase on 2nd Jan. You would have until 26th Feb to pay and not pay interest... But if you made a cash withdrawal on 10th February, any payment you send will pay off the purchases first (because it's on an earlier statement). So you have a choice: pay at least 16 days cash interest, or pay the whole lot off on 11th February (previous statement balance and cash amount) to reduce your cash interest to almost nothing. But then you've pruned off 16 days from your "up to 56 days".

Best way when travelling is to have two separate unloaded cards. Eg Clarity for cash, Post Office Mastercard/Nationwide Select etc., for purchases. Of course they can then back each other up in the case of refusals.

Thanks for the explanation! I will keep that in mind.

What about the same scenario, but before the new statement is generated and the previous is either £0 or repaid upfront to £0 before making a cash withdrawal?

Still, as You and others kindly advise, if I am not willing to repay my card statement's balance upfront it is safer to use two different no load cards.

I wish the MSE team could include these scenarios in say two simple paragraphs at the Credit Card's description/FAQs.