FairFX should I be worried?

HogMan

Good advice is not to use prepaid cards for hotel and car rental as funds will be ring fenced. For hotels and car rental always use credit cards.

As has often been stated never ever rely on just one card. Have a back up or two just in case.

EveryWhere

Once again;
https://www.fairfx.com/topcardtips

12. Where shouldn’t I use my FairFX Card?
It’s best not to use your FairFX Card when checking into a hotel or hiring a car as they may process a ‘pre-authorisation’. No money is actually taken from your card but funds are ring-fenced to cover against non-payment for up to 21 days. These funds are therefore not available to spend on your card. The best solution is to use a debit or credit card when checking in and then use your FairFX Card, with its great rates, to settle your bill when you check out or settle the account.

There is a service restriction on some prepaid cards at some self-service petrol pumps and motorway tollbooths, particularly in France. This is because the services used at these terminals do not check the balance of a card before taking payment and could potentially take a prepaid card into a negative balance. So for this reason any such terminals are not able to accept prepaid cards.

So basically, they are trying to avoid the situation of your funds being ring-fenced, by blocking your card temporarily. Otherwise you may not be able to access them during your holiday.

Of course if you were simply settling your bill, that's another issue.

photome

Never rely on one card.

I use a clarity, Revolut, starling and PO credit card all have perfect exchange rates and if I have a problem with one I still have 3 more options.

To say I will never use an Fx card again after one experience is a bit short sighted

etienneg

I still don't understand why people choose to use prepaid cards. FairFx may be one of the better ones - or, I would say less bad ones. But its exchange rates are still not as good as the best travel credit cards, it charges ATM fees, there are fees for withdrawing any unused currency loaded onto it (or for spending back in UK in £), fees if the card expires or is lost or stolen, etc.

Why not go for a good travel credit card (or two)? Or a current account whose debit card doesn't charge for foreign spending or ATM use?

EveryWhere

etienneg wrote: »

I still don't understand why people choose to use prepaid cards. FairFx may be one of the better ones - or, I would say less bad ones. But its exchange rates are still not as good as the best travel credit cards, it charges ATM fees, there are fees for withdrawing any unused currency loaded onto it (or for spending back in UK in £), fees if the card expires or is lost or stolen, etc.

Why not go for a good travel credit card (or two)? Or a current account whose debit card doesn't charge for foreign spending or ATM use?

The £35 bonus that FairFx offers makes it good value, especially when utilised optimally.

HogMan

I have FairFX, Starling and Clarity cards. Whilst the latter two offer the better rates on the day of the transaction, a prepaid card can be used to your advantage when the exchange rate moves in your favour.

An extreme example, I was in the US on the day of the Brexit vote. I had preloaded the FairFX card at a rate of around $1.50 the day before, moments after the result was announced the exchange rate plummeted so that even cards giving prefect rates were much less value..

More recently over the past few months I have been topping up the FairFX card each time they offered at least $1.30 (market rate about $1.33). Having just returned from the US I can tell you spending money already on the FairFX felt better than using the Starling at $1.25.

So whilst the use of prepaid card generally do offer worse value, they can be used in your favour too.

eDicky

HogMan wrote: »

I have FairFX,
So whilst the use of prepaid card generally do offer worse value, they can be used in your favour too.

You've done well so far, with good fortune or foresight or both, but without them there's as much chance of loss by converting in advance.

You could make more of your talents/luck by using Revolut, with which you can convert any time at the perfect interbank rate (weekdays), instead of the FairFX rate with its margin.