Do people still see value in prepaid cards like FairFX?

isayhello

Just asking about this as I've had one for a few years but with other choices now like Metro bank or internet banks like Monzo do people still think there is a need for currency cards?

I was wondering whether to cancel mine or keep it.

Thanks

Browntoa

I've given up on prepaid cards as inflexible .

I have a Halifax clarity , which I prefer as the phone app updates almost instantly so I can track my spending and I can clear the balance easily from the app . I also have a creation card (now withdrawn to new customers) as a back up .

eDicky

Such cards are not good value at all, unless there's a sizeable bonus paid when you sign up that offsets the exchange rate margin and fees for your first trip.

But so many people are sold on the idea that they should 'take out' their euros or dollars etc before traveling, by exchanging cash or loading a prepaid currency card. These of course involve unfavorable rates and fees, and in general will cost more than simply using a regular bank debit card to pay or withdraw cash in-country, especially if the cost of converting leftover foreign funds back to GBP is taken into account.

All fees can of course be avoided by using the 'travel' credit or debit cards.

I binned my FairFX card several years ago after emptying it of euros by topping up my Revolut card.

Neil49

I used to have a Caxton prepaid card but closed the account a couple of years ago.

On my last big holiday to Australia via Hong Kong and Singapore a couple of years ago I just used my Monzo card for day to day spending and the Halifax Clarity card for cash withdrawals and larger purchases. The big advantage of a card like Monzo or Starling is that you get virtually instant notification of the purchase so you can check that it's OK there and then. 

The_Urbanite

I absolutely do, although probably not for reasons the likes of FairFX like. Pity they're not a very kind business!

couriervanman

Halifax clarity all the way....must be 10 years since i used Caxton card

isayhello

eDicky said:

Such cards are not good value at all, unless there's a sizeable bonus paid when you sign up that offsets the exchange rate margin and fees for your first trip.

But so many people are sold on the idea that they should 'take out' their euros or dollars etc before traveling, by exchanging cash or loading a prepaid currency card. These of course involve unfavorable rates and fees, and in general will cost more than simply using a regular bank debit card to pay or withdraw cash in-country, especially if the cost of converting leftover foreign funds back to GBP is taken into account.

All fees can of course be avoided by using the 'travel' credit or debit cards.

I binned my FairFX card several years ago after emptying it of euros by topping up my Revolut card.

I thought these cards are meant to give very good exchange rates @eDicky they normally give the mastercard rate or interbank rate don't they.

isayhello

Neil49 said:

I used to have a Caxton prepaid card but closed the account a couple of years ago.

On my last big holiday to Australia via Hong Kong and Singapore a couple of years ago I just used my Monzo card for day to day spending and the Halifax Clarity card for cash withdrawals and larger purchases. The big advantage of a card like Monzo or Starling is that you get virtually instant notification of the purchase so you can check that it's OK there and then. 

I think I'm a bit cautious about having banking on my phone or an app @Neil49 - I guess the nice thing about the prepaid cards was that if you lost them, then you would only lose the balance on the card and no more, but if I lost my phone it feels more risky to have my bank accounts on there. I guess maybe it's a mental thing and probably quite safe so I should consider switching.

isayhello

The_Urbanite said:

I absolutely do, although probably not for reasons the likes of FairFX like. Pity they're not a very kind business!

Whats the value you see then @The_Urbanite

eDicky

isayhello said:

eDicky said:

Such cards are not good value at all, unless there's a sizeable bonus paid when you sign up that offsets the exchange rate margin and fees for your first trip.

But so many people are sold on the idea that they should 'take out' their euros or dollars etc before traveling, by exchanging cash or loading a prepaid currency card. These of course involve unfavorable rates and fees, and in general will cost more than simply using a regular bank debit card to pay or withdraw cash in-country, especially if the cost of converting leftover foreign funds back to GBP is taken into account.

All fees can of course be avoided by using the 'travel' credit or debit cards.

I binned my FairFX card several years ago after emptying it of euros by topping up my Revolut card.

I thought these cards are meant to give very good exchange rates @eDicky they normally give the mastercard rate or interbank rate don't they.

No, they don't.

Revolut gives the interbank rate on weekdays. The 'travel' credit and debit cards which don't add a margin give the MasterCard or Visa rate.

Neil49

isayhello said:

Neil49 said:

I used to have a Caxton prepaid card but closed the account a couple of years ago.

On my last big holiday to Australia via Hong Kong and Singapore a couple of years ago I just used my Monzo card for day to day spending and the Halifax Clarity card for cash withdrawals and larger purchases. The big advantage of a card like Monzo or Starling is that you get virtually instant notification of the purchase so you can check that it's OK there and then. 

I think I'm a bit cautious about having banking on my phone or an app @Neil49 - I guess the nice thing about the prepaid cards was that if you lost them, then you would only lose the balance on the card and no more, but if I lost my phone it feels more risky to have my bank accounts on there. I guess maybe it's a mental thing and probably quite safe so I should consider switching.

Just to point out that you can access a stripped back version of a Monzo account through a Web browser which lets you freeze / unfreeze your account, check your balance and recent transactions and contact them for assistance.

As you have a Monzo debit card for transactions you can carry on using your account even if you have lost your phone, or if you lose your card you can use Google Pay through your phone.