Halifax Clarity Card

[MarkyM3]

I posted this in an older thread in the Chiang Mai forum but thought I would post here as well as didn't quite get the specific answers I was after:

I'm planning to use a Halifax Clarity card in Thailand in the near future. My account is set up to pay my balance in full each month. I was wondering about a couple of things:

1) If my account has a zero balance before I leave the UK, then I withdraw say £500 in THB, is there any merit in making an immediate transfer of £500 from my Haliax Reward current account back to the credit card account to minimise interest charged? Or would interest stll be charged at the same rate until the next statement date regardless?

2) Once the statement is produced, the payment isn't typically taken for 3+ weeks. Is it the case that interest won't continue to be charged past the statement date, provided I continue to pay my balance in full?

Would appreciate any clarification as Halifax staff don't seem trustworthy (the staff in the branch I visited didn't realise interest is charged on cash advances, despite this being stated on their own website....).

Cheers.

[Pib]

I'm assuming UK-issued credit cards are pretty much like US-issued credit cards in that a monthly credit card bill is issue each month on whatever day your card's monthly bill closing date is, and then your have an approx 3 week "grace period" before the bill's Payment Due Date. Pay before that Due Date and their isn't any interest charge on "purchases," but would be interest charges on any "cash" withdrawals...interest usually starts from the date of the cash withdrawal.

So, if you end up paying a credit card balance generated by a cash/THB withdrawal and make this payment say a day after the balance appears on your credit card's account, then making this early payment (say a day after the charge posts to the card account) to reduce the balance back to zero should stop any further interest charges accumulating until the monthly bill is generated. You would probably only have one day's of interest to pay on the cash withdrawal plus any assoicated cash/foreign transaction fee(s). UNLESS, repeat, UNLESS, you had other charges on the card due to "purchases"...most credit cards apply any payment, whether made early or when the bill payment is due, toward the purchases balance "first" and any leftover amount paid then goes toward the "cash" withdrawal balance/charges. I really depends on the terms of agreement/fee structure of the card. Cash withdrawals against credit cards can get pricey quick! A debit card withdrawal would be cheaper due to no interest...but would probably still have the foreign tranaction fee unless the card don't charge any such fee.

I googled up the Halifax web site to see if they had a terms of agreement/fee structure for the card, but I didn't see any "detailed" info...just basic/summary info. Good luck in figuring out what your evil bank will charge....I have to watch my evil bank in the States closely because they like fees just like UK banks. A bank fee a day keeps the customer from being able to buy an apple a day.

[MarkyM3]

Cheers Pib!

As you say, it is a minefield, complicated by the fact I do use the card for purchases as well! Will try and keep the account balance on zero once I have started taking cash.

I did use a debit card (Nationwide BS) previously but they have hiked their charges so no longer efficient.

[Pib]

Yea, everyday there seems to be fewer and fewer credit and debit cards that don't charge a foreign transaction fee/reimburse ATM withdrawal fees. I beginning to think we need to update that old saying that Nothing is certain other than taxes and death, to Nothing is certain other than taxes, bank fees, and death.

[mark131v]

Yea, everyday there seems to be fewer and fewer credit and debit cards that don't charge a foreign transaction fee/reimburse ATM withdrawal fees. I beginning to think we need to update that old saying that Nothing is certain other than taxes and death, to Nothing is certain other than taxes, bank fees, and death.

Pib,

you are already doing the right thing. The Halifax Clarity is about the best of all the UK cards for spending overseas, you have it set up to pay in full so you will not get hit with the intrest. There is a charge for getting money out of ATMs but the charge is far less than a debit card and by all accounts the exchange rate is good as well. It will not make a difference with you topping it up because you have already said you have set it up to pay in full. Other than bringing in a big bag of cash your doing the best thing, unfortunatly getting money overseas aint free. Google money saving expert that should give you a more informed view than mine

Mark

[mark131v]

Yea, everyday there seems to be fewer and fewer credit and debit cards that don't charge a foreign transaction fee/reimburse ATM withdrawal fees. I beginning to think we need to update that old saying that Nothing is certain other than taxes and death, to Nothing is certain other than taxes, bank fees, and death.

Pib,

you are already doing the right thing. The Halifax Clarity is about the best of all the UK cards for spending overseas, you have it set up to pay in full so you will not get hit with the intrest. There is a charge for getting money out of ATMs but the charge is far less than a debit card and by all accounts the exchange rate is good as well. It will not make a difference with you topping it up because you have already said you have set it up to pay in full. Other than bringing in a big bag of cash your doing the best thing, unfortunatly getting money overseas aint free. Google money saving expert that should give you a more informed view than mine

Mark

Bloody hell take 2

sorry Pib should have sent to MarkyM3

[Rinrada]

Just got a new Halfax Clarity card and will give it a go on next visit but after talking to their so called experts I am getting "dissed" before reaching first base.

I made the usual suggestion that if I bung say £500 quid on it (load it up )..Will I be charged in a Bangers ATM..on witdrawal....Yes- NO -Yes...err Not sure......dont know ...will need to ask......Eh

Had a chat just this morning with a guy in the newest bank that has surfaced in London ...The Metro.. and he has assured me of no charge on oversea ATMs so will pop back in this week and give them a go and open an account...

Its the Principal ..init

[johng]

I can confirm that the Metro bank card is fee free and can be used in AEON ATM's to avoid the 150 baht Thai bank fee too

Edited January 5, 2011 by johng

[alantheembalmer]

I got myself a Halifax Clarity Reward Credit Card, (make sure you get the Reward one, as you get £5 every month you make purchases of £300 or more).

I withdrew 20,000 baht from a bank in Bangkok, (go inside the bank and do the deed, and there is no charge, unlike an ATM withdrawl, which is 150 baht). As soon as it appeared on my online statement I paid it off in full, and was charged a not unreasonble 13 baht in interest for the withdrawal. The Halifax charge a cash withdrawal interest on a daily basis, so the quicker it is paid, the less interest you pay.

I hope this is of help to you.

Alan

[alantheembalmer]

Just got a new Halfax Clarity card and will give it a go on next visit but after talking to their so called experts I am getting "dissed" before reaching first base.

I made the usual suggestion that if I bung say £500 quid on it (load it up )..Will I be charged in a Bangers ATM..on witdrawal....Yes- NO -Yes...err Not sure......dont know ...will need to ask......Eh

Had a chat just this morning with a guy in the newest bank that has surfaced in London ...The Metro.. and he has assured me of no charge on oversea ATMs so will pop back in this week and give them a go and open an account...

Its the Principal ..init

Rinrada

You cannot "load" this card. I wanted to do just that, but it is not allowed in the terms and conditions. As I understand it, if you do try and "load" the card, then it is automatically suspended from being used.

Alan

[MarkyM3]

Many thanks for all the replies. I spoke to a Halifax customer services rep via telephone who seemed to be much more clued up than the branch staff!!

As other posters have commented, interest is payable on a cash advance as soon as it is taken and will continue to be charged until the advance is repaid. Therefore, if you just pay your bill in full each month, interest will continue to be charged on cash advances (but not purchases, including overseas) until the statement is generated and monies are subsequently collected from your current account approximately 3 weeks later.

The most efficient way to proceed is to keep the credit card account balance at zero where possible by paying down any debt as quickly as possible, as per Alan's comments. If the card is also being used for purchases, these would also need to be repaid since cash advances and purchases are both charged at the same rate and therefore early repayments would not be allocated to the highest debt (usually cash advances) first.

Pre-loading the account balance to give a credit balance isn't allowed due to money laundering considerations and may result in the bank just returning the money to your current account and them charging interest anyways. Could also be cancelled, as per Alan's comments.

HTH.

Edited January 6, 2011 by MarkyM3

[endure]

I used a Clarity card in November. Each time I'd withdrawn 10,000bt from an ATM I waited a couple of days for it to appear on my Clarity account and then transferred £210 into the Clarity account (from a Nationwide Flexaccount - irony of ironies) to clear the Clarity account to ~£0. Altogether over a 3 week period I withdrew 80,000bt. It cost me a total of £1.52 in interest. By comparison I drew 10,000bt on the Flexaccount card to compare. The exchange rates were all but the same and the Flexaccount withdrawal cost £5.12

[MarkyM3]

Nationwide have taken a nosedve.

Apart from the charging for overseas ATM withdrawals, they now pay no interest on the Flexaccount, charge a high overdraft rate and limit Faster Payments to £1000 per day (everyone else I bank with is unlimited) - they were way behind the pack in introducing Faster Payments so best they could do is a decent implementation.

Another grip is money transfers out of the Flexaccount. I always have to use the card reader. Neither Halifax, RBS or HSBC make me do that.

Will be closing my account with them soon,

[roamer]

Many thanks for all the replies. I spoke to a Halifax customer services rep via telephone who seemed to be much more clued up than the branch staff!!

As other posters have commented, interest is payable on a cash advance as soon as it is taken and will continue to be charged until the advance is repaid. Therefore, if you just pay your bill in full each month, interest will continue to be charged on cash advances (but not purchases, including overseas) until the statement is generated and monies are subsequently collected from your current account approximately 3 weeks later.

The most efficient way to proceed is to keep the credit card account balance at zero where possible by paying down any debt as quickly as possible, as per Alan's comments. If the card is also being used for purchases, these would also need to be repaid since cash advances and purchases are both charged at the same rate and therefore early repayments would not be allocated to the highest debt (usually cash advances) first.

Pre-loading the account balance to give a credit balance isn't allowed due to money laundering considerations and may result in the bank just returning the money to your current account and them charging interest anyways. Could also be cancelled, as per Alan's comments.

HTH.

This is what I was told. However they couldn't explain to me why I was able to use one of these pre-loaded, My link and in fact I do. Has a $2 atm fee but exchange rate is second to none and I top up by debit card online.

Also the new fee free debit card from Norwich & Peterborough BS may be of interest.

http://www.moneysavingexpert.com/news/travel/2011/01/norwich--peterborough-launches-cheapest-holiday-debit-card

Edited January 6, 2011 by roamer

[endure]

Nationwide have taken a nosedve.

Apart from the charging for overseas ATM withdrawals, they now pay no interest on the Flexaccount, charge a high overdraft rate and limit Faster Payments to £1000 per day (everyone else I bank with is unlimited) - they were way behind the pack in introducing Faster Payments so best they could do is a decent implementation.

Another grip is money transfers out of the Flexaccount. I always have to use the card reader. Neither Halifax, RBS or HSBC make me do that.

Will be closing my account with them soon,

You also used to be able to buy Sterling traveller's cheques for just the cost of delivery (£3.50). They stopped that last July. They've also closed ALL their agency sites which means my local agency has lost its ATM, gone out of business and is up for sale. I can't wait for the next AGM. If they're turning into a bank perhaps we ought to start agitating for them to demutualise and turn themselves into a real bank.

[endure]

Many thanks for all the replies. I spoke to a Halifax customer services rep via telephone who seemed to be much more clued up than the branch staff!!

As other posters have commented, interest is payable on a cash advance as soon as it is taken and will continue to be charged until the advance is repaid. Therefore, if you just pay your bill in full each month, interest will continue to be charged on cash advances (but not purchases, including overseas) until the statement is generated and monies are subsequently collected from your current account approximately 3 weeks later.

The most efficient way to proceed is to keep the credit card account balance at zero where possible by paying down any debt as quickly as possible, as per Alan's comments. If the card is also being used for purchases, these would also need to be repaid since cash advances and purchases are both charged at the same rate and therefore early repayments would not be allocated to the highest debt (usually cash advances) first.

Pre-loading the account balance to give a credit balance isn't allowed due to money laundering considerations and may result in the bank just returning the money to your current account and them charging interest anyways. Could also be cancelled, as per Alan's comments.

HTH.

This is what I was told. However they couldn't explain to me why I was able to use one of these pre-loaded, My link and in fact I do. Has a $2 atm fee but exchange rate is second to none and I top up by debit card online.

Also the new fee free debit card from Norwich & Peterborough BS may be of interest.

http://www.moneysavingexpert.com/news/travel/2011/01/norwich--peterborough-launches-cheapest-holiday-debit-card

I don't know anything about money laundering regs but you're not comparing like with like. Clarity is a credit card - FairFx is a preloaded currency card. I don't know which card you have but I see that as of March 2011 the Sterling Anywhere card charges are changing from 1.5% to 1.4% but they're charging £1 for ATM use.

[roamer]

Many thanks for all the replies. I spoke to a Halifax customer services rep via telephone who seemed to be much more clued up than the branch staff!!

As other posters have commented, interest is payable on a cash advance as soon as it is taken and will continue to be charged until the advance is repaid. Therefore, if you just pay your bill in full each month, interest will continue to be charged on cash advances (but not purchases, including overseas) until the statement is generated and monies are subsequently collected from your current account approximately 3 weeks later.

The most efficient way to proceed is to keep the credit card account balance at zero where possible by paying down any debt as quickly as possible, as per Alan's comments. If the card is also being used for purchases, these would also need to be repaid since cash advances and purchases are both charged at the same rate and therefore early repayments would not be allocated to the highest debt (usually cash advances) first.

Pre-loading the account balance to give a credit balance isn't allowed due to money laundering considerations and may result in the bank just returning the money to your current account and them charging interest anyways. Could also be cancelled, as per Alan's comments.

HTH.

This is what I was told. However they couldn't explain to me why I was able to use one of these pre-loaded, My link and in fact I do. Has a $2 atm fee but exchange rate is second to none and I top up by debit card online.

Also the new fee free debit card from Norwich & Peterborough BS may be of interest.

http://www.moneysavingexpert.com/news/travel/2011/01/norwich--peterborough-launches-cheapest-holiday-debit-card

I don't know anything about money laundering regs but you're not comparing like with like. Clarity is a credit card - FairFx is a preloaded currency card. I don't know which card you have but I see that as of March 2011 the Sterling Anywhere card charges are changing from 1.5% to 1.4% but they're charging £1 for ATM use.

Not comparing like with like re the use of cards, they are different, just that the moneylaundering aspect given as the reason for not being able to top up the card is a bit thin given the amount of pre-paid cards in existence. But top it up you definitely can not Found that out when I went to pay my bill online and rounded it up to the nearest pound as is my wont and the transaction was refused. Interestingly I have another Halifax credit card and have no problem doing the same with that.

The FairFX card I have and have used in LOS was the one first issued and looks like its been replaced by the Sterling Anywhere card, though as yet I have not been notified about any changes to the conditions, will keep an eye on it.

[endure]

Not comparing like with like re the use of cards, they are different, just that the moneylaundering aspect given as the reason for not being able to top up the card is a bit thin given the amount of pre-paid cards in existence. But top it up you definitely can not Found that out when I went to pay my bill online and rounded it up to the nearest pound as is my wont and the transaction was refused. Interestingly I have another Halifax credit card and have no problem doing the same with that.

It's not confined to Halifax. I had a variation of terms notice through on my Nationwide (them again!) CC a while ago saying that they are no longer going to allow pre-loading. It's another way for them to make a bit more profit. If you pre-load it they can't charge you.

[theoldgit]

Many thanks for all the replies. I spoke to a Halifax customer services rep via telephone who seemed to be much more clued up than the branch staff!!

As other posters have commented, interest is payable on a cash advance as soon as it is taken and will continue to be charged until the advance is repaid. Therefore, if you just pay your bill in full each month, interest will continue to be charged on cash advances (but not purchases, including overseas) until the statement is generated and monies are subsequently collected from your current account approximately 3 weeks later.

The most efficient way to proceed is to keep the credit card account balance at zero where possible by paying down any debt as quickly as possible, as per Alan's comments. If the card is also being used for purchases, these would also need to be repaid since cash advances and purchases are both charged at the same rate and therefore early repayments would not be allocated to the highest debt (usually cash advances) first.

Pre-loading the account balance to give a credit balance isn't allowed due to money laundering considerations and may result in the bank just returning the money to your current account and them charging interest anyways. Could also be cancelled, as per Alan's comments.

I suppose one way round this would be to monitor the account online, and as soon as the cash advance hit the account make an online payment without waiting for the due date, that would probably reduce the interest that was due.

[roamer]

Not comparing like with like re the use of cards, they are different, just that the moneylaundering aspect given as the reason for not being able to top up the card is a bit thin given the amount of pre-paid cards in existence. But top it up you definitely can not Found that out when I went to pay my bill online and rounded it up to the nearest pound as is my wont and the transaction was refused. Interestingly I have another Halifax credit card and have no problem doing the same with that.

It's not confined to Halifax. I had a variation of terms notice through on my Nationwide (them again!) CC a while ago saying that they are no longer going to allow pre-loading. It's another way for them to make a bit more profit. If you pre-load it they can't charge you.

Think your take on it there is right, profit the bottom line, money laundering just an excuse that doesn't hold water, no doubt quite a few folk been preloading the cards to avoid the charges. Lets not forget they need every penny they can get for the annual bonus round coming up.

"The government is resigned to UK banks paying out billions of pounds in bonuses this year, despite its calls to curb the payments, the BBC has learned.

The best the coalition can hope for is a declaration from the banks that they will pay out less than they would have without government intervention, said BBC business editor Robert Peston. Oh well that's all right then.

[Rinrada]

Bonus for bankers in UK is the sign of success for gross incompetance but they dont care after all they will be laughing all the way to the ...errr Bank.