View Full Version : Currency card
Hello, Happy New year to you all,
Does anybody know of a good currency card the one you preload with dollars before you go? We had one last time and it was a brilliant, we had one with Thomas cook and they for some reason ended it, and sent me the balance left on it?
We want to start buying now ready to go August.
Thanks
Ali
erowlands
04-01-2011, 10:35
Hi Ali,
we had a Thomas Cook one for out last visit in November, we bought it at our local TC shop in October so it looks like they are still going,we used it everywhere and it was ideal.
Eric
steph_goodrum
04-01-2011, 15:04
We bought our daughter a FAirfx one last year which has proved very good with exchange rate and reliability. She used it this trip and just loaded from her debit card as and when rather than put it all on there. She used her card to pay most times as they dont charge but also cash a couple of times for which they just charge $2.
canarypam
04-01-2011, 21:15
FairFX offer the best exchange rates I believe we use this and load money on
throughout the year.
DisneyPrincess
04-01-2011, 22:56
We got one from Thomas Cook in August - it was excellent [msnsmile] Im sure they're still doing them.
I got a My Travel Cash one this time round. The exchange rate was good with minimal charges for using it abroad. Purchases cost nothing, with a nominal fee for cash withdrawals.
One of the reasons I chose it is they allow you to have a backup card, so if one gets lost/stolen, you can immediately switch your balance to the second card (which can be in a different name if you like).
FairFX works perfectly for us each time. Benefit for us is that we just keep loading the card whenever we want when the rate is good or we have some spare cash. It makes saving up a whole lot easier.
steph_goodrum
06-01-2011, 17:22
Garry
I intended to do that for my daughters card but when we realised that there is not really any protectiion if they go bust as its not covered under the financial compensation act she just loads it from her debit card as and when its getting low , so although the exchange rate may not be so good when she loads it then she knows it is safe. Also from March they are introducing a minimum reload of $80. She finds it very useful though and is trying to find a similar one for her boyfriend to use whne he comes over here as he cant buy the Fairfx one in the US.
Yeah i did think about that risk.
The card is actually issued by Newcastle Building Society and has the following statement:
The Card is issued by Newcastle Building Society ("NBS") pursuant to licence by MasterCard International Inc. NBS is authorised and regulated by the Financial Services Authority as an issuer of e-money (registration no. 156058).
Now although i have not looked into it and we are happy to use FairFX, this sounds like the issue of the money onto the card is regulated by the FSA. Again, not concerned as we've used them for 3 years but it's worth being cautious.
steph_goodrum
07-01-2011, 15:01
It was in the terms and conditions when we got the card last year Gary that it said there was no cover under the financial compensation scheme. Crown Currency had been trading for quite a number of years when it collapsed last year meaning several millions of customers money was lost which was what made me double check before we put too much on.
<blockquote id="quote" class="ffs">quote:Originally posted by gpullan
Yeah i did think about that risk.
The card is actually issued by Newcastle Building Society and has the following statement:
The Card is issued by Newcastle Building Society ("NBS") pursuant to licence by MasterCard International Inc. NBS is authorised and regulated by the Financial Services Authority as an issuer of e-money (registration no. 156058).
Now although i have not looked into it and we are happy to use FairFX, this sounds like the issue of the money onto the card is regulated by the FSA. Again, not concerned as we've used them for 3 years but it's worth being cautious.[/quote]It's worth pointing out that whilst the card is issued by Newcastle, I suspect they only act as administrators on behalf of the FX company - the funds are most likely not covered under the Newcastle FSCS protection. I've nothing against these cards at all and I certainly think they have their uses, but it would be a mistake to assume that your cash is covered under FSCS.
Robert5988
07-01-2011, 23:30
<blockquote id="quote" class="ffs">quote:Now although i have not looked into it and we are happy to use FairFX, this sounds like the issue of the money onto the card is regulated by the FSA. Again, not concerned as we've used them for 3 years but it's worth being cautious.[/quote]A card(the issuing firm) being 'Regulated' by the FSA does not give your money protection.
All it means is the company should observe certain conditions, but if the company went bust the FSA would not pay any compensation; you would just be a creditor like the 13,000 customers of Crown Currency. Crown was 'Registered' with the FSA not Regulated which essentially means the conditions were less stringent.
As Tonish states above it is the Financial Services Compensation Scheme(FSCS)that will pay compensation if a firm is a member. All Building Societies are members, but you need to check if Newcastle BS cover the FX firm.
As for being 'not concerned' because you have used a firm for 3 years, it is pertinent to point out that many customers of Crown were saying exactly the same for up to 6 years - including on OV.
steph_goodrum
07-01-2011, 23:35
<blockquote id="quote" class="ffs">quote:Originally posted by Robert5988
<blockquote id="quote" class="ffs">quote:Now although i have not looked into it and we are happy to use FairFX, this sounds like the issue of the money onto the card is regulated by the FSA. Again, not concerned as we've used them for 3 years but it's worth being cautious.[/quote]A card(the issuing firm) being 'Regulated' by the FSA does not give your money protection.
All it means is the company should observe certain conditions, but if the company went bust the FSA would not pay any compensation; you would just be a creditor like the 13,000 customers of Crown Currency. Crown was 'Registered' with the FSA not Regulated which essentially means the conditions were less stringent.
As Tonish states above it is the Financial Services Compensation Scheme(FSCS)that will pay compensation if a firm is a member. All Building Societies are members, but you need to check if Newcastle BS cover the FX firm.
As for being 'not concerned' because you have used a firm for 3 years, it is pertinent to point out that many customers of Crown were saying exactly the same for up to 6 years - including on OV.[/quote]They didnt last August, as we checked the small print.
Fair points well made and a little naive of me to not be concerned when i am placing 1000's of dollars with them for a short time.
Question is..............what to do?
Great rates with FairFX and very handy having a Mastercard to use.
steph_goodrum
09-01-2011, 01:56
Garry
My suggestion would be to open a separate account (that offers a debit card and if possible interest ) into which you can put your money when you have some spare cash. When you are going on holiday you can then transfer some (or all ) into dollars. If you will have access to a computer to top up as you wish you can manage your funds that way, you can do it with the phone as well but we've always used the internet. My daughter transferred some on holiday and withdrew it a couple of hours later. The better exchange rate offsets the $2 withdrawal fee.
We just felt it would be safer (of course if you haven't transferred all the money over, if you were to lose the card you would also have your extra funds in the account with the UK debit card as back up. I noticed the Santander card advert on tv the other day said they don't charge for use overseas but don't know what their exchange rate is like.
Steph,
Not sure what you are suggesting?
Keep FairFX but keep the money in our UK account and only put enough money on for a day or two?? Agree that would be very secure but if the rate has dipped to 1.40's then i will lose out.
Bin off FairFX and just use the best UK credit card then pay it off with our savings once back home?
Interesting ideas just not sure what you're saying. It is late though [msneek]
Katys Grandad
09-01-2011, 06:18
<blockquote id="quote" class="ffs">quote:Originally posted by gpullan[br
Keep FairFX but keep the money in our UK account and only put enough money on for a day or two?? Agree that would be very secure but if the rate has dipped to 1.40's then i will lose out.[/quote]True, but any method is going to be subject to the ups and downs of the exchange rate.
Personally, I wouldn't want to take that risk but if you know and accept it exists with these cards, then it's a case of your money and a matter for you to decide on.
Robert5988
09-01-2011, 11:44
<blockquote id="quote" class="ffs">quote:Bin off FairFX and just use the best UK credit card then pay it off with our savings once back home?[/quote]
I know this has been covered Ad nauseam, but it seems to be a peculiarly British practice to want to take large sums in TC and cash on holiday.
Many of us haven't used TCs anywhere in the world for the last 20 years - Credit/Debit cards(for ATM) are more convenient, safer and have a better exchange rate.
If someone from, say, Scotland has a holiday in Devon they wouldn't take TCs or wads of cash, they would use 'plastic'. Why then take TCs and cash to the USA? it is not as if you get a good rate of exchange.
I have asked a few of my American friends in the USA and some didn't think it was still possible to get TCs - they use 'plastic' exclusively on their travels.
steph_goodrum
09-01-2011, 13:19
Garry
I was suggesting keep the Fairfx card but keep the funds in your account until you are ready to use it (or the majority) If the exchange rate is particulary good then you could add some more but that money will be at risk.
It's always a trade off, if you add the funds as you have got them to your Fairfx card (which as you say gives you a Mastercard which is accepted everywhere), if you keep them in the UK account until you need them then the exchange rate may not be as good but you have the security of knowing
a) they will be there when you need them
b) you have the back up option of the UK debit card to access them if you lose the other one.
Robert
Many of us like to keep track of our spending and having a finite sum of money is much easier than plastic, that it is easy to keep handing over and then suddenly realise it's all gone. Just because some people think it is convenient and a good way to do it doeant mean it is right for everyone. The Government decided that all pensioners should be paid in the bank and use a card because they would be safer than carrying large wads home. My MIL who passed away in June did exactly the same as most of the other pensioners at the counter, she would simply take the card on pension day and ask for it all to be taken out so her risk was exactly the same as before. She said it was too much trouble to use the plastic and try and remember each transaction, at least with a cheque book even you have an easy way to write and keep track of it.
I was told that unlike CC, Fairfx hold the money in the building society and that it is covered by their regulations and would receive compensation, so would be safe. I have used the card to pay bills in the USA from here and just load it when the rate goes up. Really good rates and accepted everywhere.
Robert5988
09-01-2011, 23:07
<blockquote id="quote" class="ffs">quote:Robert
Many of us like to keep track of our spending and having a finite sum of money is much easier than plastic, that it is easy to keep handing over and then suddenly realise it's all gone. Just because some people think it is convenient and a good way to do it doeant mean it is right for everyone. The Government decided that all pensioners should be paid in the bank and use a card because they would be safer than carrying large wads home. My MIL who passed away in June did exactly the same as most of the other pensioners at the counter, she would simply take the card on pension day and ask for it all to be taken out so her risk was exactly the same as before. She said it was too much trouble to use the plastic and try and remember each transaction, at least with a cheque book even you have an easy way to write and keep track of it.[/quote]
I really find it very hard to envisage that people 'switched on' enough to organise holidays in Florida cannot count up the Visa receipts and work out how much they have spent. Can they not jot down the sums?
If they can count how much cash they have left, why not take Monopoly money and every time they spend $50 on plastic take a few notes from their wad of Monopoly cash and put it in a suitcase[msnwink]
No, IMO it is just the culture in UK to have TCs/cash - cos thats what we always used to do. Are our American cousins any brighter than us? They use plastic.
steph_goodrum
10-01-2011, 00:09
<blockquote id="quote" class="ffs">quote:Originally posted by Robert5988
<blockquote id="quote" class="ffs">quote:Robert
Many of us like to keep track of our spending and having a finite sum of money is much easier than plastic, that it is easy to keep handing over and then suddenly realise it's all gone. Just because some people think it is convenient and a good way to do it doeant mean it is right for everyone. The Government decided that all pensioners should be paid in the bank and use a card because they would be safer than carrying large wads home. My MIL who passed away in June did exactly the same as most of the other pensioners at the counter, she would simply take the card on pension day and ask for it all to be taken out so her risk was exactly the same as before. She said it was too much trouble to use the plastic and try and remember each transaction, at least with a cheque book even you have an easy way to write and keep track of it.[/quote]
I really find it very hard to envisage that people 'switched on' enough to organise holidays in Florida cannot count up the Visa receipts and work out how much they have spent. Can they not jot down the sums?
If they can count how much cash they have left, why not take Monopoly money and every time they spend $50 on plastic take a few notes from their wad of Monopoly cash and put it in a suitcase[msnwink]
No, IMO it is just the culture in UK to have TCs/cash - cos thats what we always used to do. Are our American cousins any brighter than us? They use plastic.
[/quote]
Not the ones I know who travel here regularly they prefer cash.
We used to use Nationwide Debit and Credit cards, but since they started charging I got a Post Office Card and I used it during Nov/Dec last and was delighted to see the great rate that I got on it. We were getting 1.58 on average and on the odd occasion what my husband used his Nationwide Card he only got around 1.54 so guess what I will be using from now on? I would never dream of using TC's they went out with the Dodo and lots of shops won't accept them anyway now.
I also would not want to carry a lot of cash either.
Andrena
Thanks for replying,
I have just found this:-
What happens if the Prepaid card company goes bust?
All prepaid cards listed are backed by a bank or building society. If the prepaid card company goes bust then the bank or building society that issues the cards will be liable for your cash.
However if the bank or building Society who provides the card goes bust your cash is NOT protected. While with some institutions the money can be ring fenced in separate accounts (though it may be with the bank themselves) there is always a very minor risk as the money is not counted as a deposit thus not covered by the Financial Services Compensation Scheme.
So as a precaution do consider it only a card to have enough cash on for immediate spending requirements rather than as a place to store your cash.
This was from [link edited]
steph_goodrum
13-01-2011, 14:20
This was from the Fairfx website in their terms and conditions.
"If loaded on-line funds will normally be available for use on the MasterCard® Prepaid Card within a few hours. The Financial Services Compensation Scheme does not apply to your MasterCard® Prepaid Card, however in the unlikely event that NBS becomes insolvent, funds that you have loaded are protected against claims made by creditors."
So I would assume that means that you could just withdraw the funds yourself. It very cleverly doesn't say what happens if THEY ,Fairfx, become insolven that Ii could see.
melfrank
16-01-2011, 03:23
Get on the Martin Lewis money expert website. Loads of good advice on saving money and the best cards preloaded/credit/debit to use overseas. Some are good for Europe,some for USA. [website link edited]
I suppose that is the same Martin Lewis who recommended Crown Currency[msnwink][msnwink]
Obviously got that wrong[msnwink]
Sandra
DLB-GOUROCK
16-01-2011, 16:29
I think what it all boils down to is that there is risk with everything. You just have to minimises the amount you are happy to live with, the length of time you are exposed to it and the convenience you are looking for.
We used the Nationwide Debit and Credit cards last time, along with the pre paid card which was handy.
This time i am going to save the money and get a 0% credit card in July with 6 months interest free from Santander then pay it off on our return, to be honest i am not keen on this but its the cheapest and safest way for us.
We will have to be strict and not spend over out limit[msnwink]
melfrank
17-01-2011, 11:37
I would ignore the negative sarcastic comments from SDJ about moneysaving-expert.Have a look at the site yourself. There are really good guides and advice. I've saved loads using it.
Robert5988
17-01-2011, 15:56
<blockquote id="quote" class="ffs">quote:I would ignore the negative sarcastic comments from SDJ about moneysaving-expert.Have a look at the site yourself. There are really good guides and advice. I've saved loads using it.[/quote]
SDJ is absolutely correct.
Martin Lewis had(indeed still has) a 'Travel Money Maximiser' guide.
This guide recommended Crown Currency as giving the best rates. As you might be aware Crown has now gone bust owing some 13,000 people over £16million - many of them Florida home owners/visitors.
This firm recommendation was given in spite of many warnings in the media, and loads on this forum since 2006, that any money with Crown was not secure.
Loads of people are hugely upset with Martin Lewis for giving that advice. His response is that he is a journalist not a financial expert.
rogerdunnaker
17-01-2011, 16:01
<blockquote id="quote" class="ffs">quote:Originally posted by ali-uk
Hello, Happy New year to you all,
Does anybody know of a good currency card the one you preload with dollars before you go? We had one last time and it was a brilliant, we had one with Thomas cook and they for some reason ended it, and sent me the balance left on it?
We want to start buying now ready to go August.
Thanks
Ali
[/quote]
Ali.
Try FairFX they generally give excellant rates.
<blockquote id="quote" class="ffs">quote:Originally posted by rogerdunnaker
<blockquote id="quote" class="ffs">quote:Originally posted by ali-uk
Hello, Happy New year to you all,
Does anybody know of a good currency card the one you preload with dollars before you go? We had one last time and it was a brilliant, we had one with Thomas cook and they for some reason ended it, and sent me the balance left on it?
We want to start buying now ready to go August.
Thanks
Ali
[/quote]
Ali.
Try FairFX they generally give excellant rates.
[/quote]
Can - open - worms - everywhere. See entire thread Roger as the topic is FairFX and should you / shouldn't you.
melfrank
19-01-2011, 00:35
I'm losing the will to live. Have a look at the site yourself.
rogerdunnaker
19-01-2011, 13:01
<blockquote id="quote" class="ffs">quote:Originally posted by gpullan
<blockquote id="quote" class="ffs">quote:Originally posted by rogerdunnaker
<blockquote id="quote" class="ffs">quote:Originally posted by ali-uk
Hello, Happy New year to you all,
Does anybody know of a good currency card the one you preload with dollars before you go? We had one last time and it was a brilliant, we had one with Thomas cook and they for some reason ended it, and sent me the balance left on it?
We want to start buying now ready to go August.
Thanks
Ali[/quote]Ali.
Try FairFX they generally give excellant rates.[/quote]Can - open - worms - everywhere. See entire thread Roger as the topic is FairFX and should you / shouldn't you.[/quote]Yes I know that Gary, just adding my little bit as everyone else has.
grayster
20-01-2011, 13:26
I'm enjoying this thread. I don't know the regulation around pre-loaded cards but if I was ever going to use one to post £2k or so I would certainly read the small print clearly. If there is a risk of total loss, is the FX rate achieved on this really worth the risk?
In a hypothetical example, I buy £2k in USD at 1.59 today = $3,180. Say, the USD/GBP rate cr@ps out to 1.40 before I go on hols, I would only have got $2,800. So if I waited I would have lost out on $380/£270. So I would get a 13% return versus a risk of total loss of £2k capital. Question is is it worth risking losing your whole £2k spending money for the sake of a potential £200-£300 gain (or of course loss should the rate go up to 1.7 before the holiday - and none of us know). I would say not, unless you have another £2k sitting around to avoid your holiday being spoiled. The impact of the total loss surely is far greater than the gain (if there is one) on the FX deal.
So if you rule out the potential FX gain aspect (we Brits do like to take a punt don't we?), you're left with the rationale that it's easier to have a visible decreasing balance to manage your holiday cash. I agree with Robert - surely risking all your holiday dosh is much worse than looking at a few receipts and doing a tally each day?
Anyway, everyone has their own way/view but I would follow the most sensible advice in investing (which FX speculating is), don't risk it unless you can afford to lose it. Or be 100% that you capital outlay is protected by law/regulation. You should also note that even if it is, it can sometimes take months/years to get your money back - no good for your imminent holiday if you can't raise the funds from elsewhere.
On all money advice sites, be wary if they don't price in or comment about the risk aspect. Crown Currency and Icelandic banks (paying super-rates) are classic examples.
grayster
20-01-2011, 13:55
<blockquote id="quote" class="ffs">quote:Originally posted by melfrank
I would ignore the negative sarcastic comments from SDJ about moneysaving-expert.Have a look at the site yourself. There are really good guides and advice. I've saved loads using it.
[/quote]
Hi Melfrank, such sites probably can save you a lot of money. I find many of them very useful for information. However, they have tended to concentrate far too much on maximising returns without enough coverage of the potential risk of total loss of capital. For most people, I think the latter is much more important. People need to ask why is it ABC Ltd can pay much better rates than all the other companies. There could be lots of legitimate reasons but it could be that they're sailing far too close to the wind, as it seems was the case with Crown Currency.