Caxton Card
Hi All
Just a quick question..If we pre-load our card in th UK with lets say €1000.00 would we get this out of the card when using ATM's in the Netherlands even if lets say if the pound crashes to lets say €.80 to the pound? if this makes any sense!
Thanks for replies
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I believe that once your card is loaded in euros, that's the value you have. I don't have a Caxton card, but that's certainly the way our Sainsburys currency card works. You'd only lose out if trying to cash it back in for Stirling.
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Yes, what you load is what you get at that days rate.
Word of warning though when withdrawing cash from an ATM make sure you with draw it in €'s do not convert back to pounds, it will cost you otherwise.
We use Caxton all the time when travelling abroad.
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Hi
The amount you load onto the card, is a fixed amount. Once loaded the value will not change, regardless of the exchange rate. Think of it as cash. If you purchased 100 euros in notes you’d have 100 euros, regardless of the rate changing next day, week, month etc.
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Hi All
Thanks for that, David your right this will be our first trip with caravan abroad so have booked everything and are trying to make it a great success and we thought it would be a nice end to touring this year.
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The only problem with a Caxton Card (speaking as someone who used to have one until recently) is that when we came to close it down and reclaim the money held on it we got a really lousy return rate.
We did have the odd issue with certain places in either Eastern Germany or Netherlands not accepting MasterCard but generally found M/Card more acceptable than VISA.
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Can’t see the point of prepay cards. The exchange rate isn’t brilliant and you have to judge how much currency you want. Also, you may regret buying so many Euros at a predetermined rate. Why not get a Halifax Clarity card (Mastercard). No transaction fees and full interbank exchange rate.
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Prepaid cards give peace of mind. If you're in EU land for a good portion of the year it makes sense. I'm in Spain for four months every year, it makes it easy to budget and I can withdraw 400 euros per day from an atm at a cost of one euro. My card on average offers 5 cents below the base rate on the day. Your rate is frozen at the rate on day of purchase.
Saves travelling the country with a lot of cash too. I've used this method for the last 8 years with no problem.
Cheers
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Agree but you have to guess how much you may need. If you are away for a long period and the the Pound strengthens you are going to be seriously annoyed that you committed so much cash. In effect you are gambling on the exchange rate. Use the right credit card, pay off the balance if you withdraw cash and you will get a better rate and zero transaction rate. Most people withdraw smaller amounts so 1 Euro on 100 is 1%. Not a lot but should be part of the calculation.
I think prepay is a rip-off. They have your money up front which they place on short term deposit without recompense, you don’t get the best rate and you pay for withdrawals. As long as you can still get Clarity or similar the credit card is a better deal, however, I know that many people are more comfortable with prepay so you should do what suits.
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But you don't HAVE to pre load it, you can load it minutes before withdrawing it. The card is linked to your current account so its easy just to move money across to Caxton. We have a savings account with Nationwide and a current account, its easy to transfer money from savings to current to Caxton. Money is safe back in the UK until we need to withdraw cash. Exchange rates we've always found to be good and no cost to withdraw.
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Totally agree, I have never understood the reasons why people use such things. We usually have enough cash from the last trip to see us through the first few days. I then use my Clarity Card to withdraw Euro's from a convenient ATM. I then just transfer the money via internet banking into the credit card account. I did get stung with .09 pence interest one month
When I don't need to use cash I put other purchases on a credit card. Clarity offers the full Interbank exchange rate and they don't add withdrawal fees. I suppose pre pay cards are a bit like Camping Cheques!!!David
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I have an FX pre-pay card lying in my draw that I haven’t used for a few years. I stopped using it when they started charging me for withdrawing my own cash, also, I had some problems in France where it either wasn't accepted or at an automatic fuel dispenser they deducted a notional 100 Euros which exceeded the cash available and blocked use of the card until it cleared. Good job I speak French. It still has some Euros on it which are too few to use so I have lost out. Maybe the Caxton card is better.
As we travel a lot a prepay isn't much use as I would need a multi-currency one and then it gets totally pointless. This year I have used the credit card in Australia, N Zealand, S Africa, and euro zone. Soon we will be on a cruise where we need US dollars and countless other currencies if we get off of the ship.
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You can do that with your 'holiday' bank account - like our Metro Bank debit card. There is a very small amount of money in my account at the moment - before we go away or at any time during the holiday I can transfer in a small amount, or a large amount, top it up or transfer it back whenever I want, withdraw it in Europe at the inter-bank rate, pay no fees or interest, and transfer it back to my main current account.when we go home or just spend it here.. And I can use my Metro Bank account to pay for fuel in pre-pay stations, or to pay tolls on the autoroute, and if I wish I can use in on a cruise, or in the USA (although I will pay a modest fee outside of Europe).
There is now no 'chasing around' to open an account - as my original post you can do it on line, just as you can with the pre-pay cards,
I don't understand, really, why some people seem to think it odd having more than one bank account - I've always had more than one account for a variety of reasons and as it costs me absolutely nothing it seems eminently sensible to me. To me it has all the benefits that people say are the reasons they use a pre-pay card, but none of the disadvantages.
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I like paying for things 4 or 5 weeks after the event so just use the same credit card wherever I am - in UK, Europe or the wider world.
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I don't understand, really, why some people seem to think it odd having more than one bank account - I've always had more than one account for a variety of reasons and as it costs me absolutely nothing it seems eminently sensible to me. To me it has all the benefits that people say are the reasons they use a pre-pay card, but none of the disadvantages.
Val
It is, of course, up to the individual what they wish to do with their own money but for me it seems an unnecessary complication. I am also confused as to how it actually helps. All we are talking about are people going on holiday for varying amounts of time from two weeks to generally up to a few of months. If its a case of saving money how much does that actually turn out to be over the course of a holiday and in relation to having the extra complication of juggling another bank account? Where is the advantage over a no fee credit card? As far as pre-pay cards are concerned the only advantage I can see is if someone is on a strict budget and that sort of card might help with budgeting.
David
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We would always take at least 2 ways of paying/getting cash when abroad, so generally have our 2 Clarity cards, and usually also an "emergency" 100 euros in an ordinary bank account that we could withdraw.
For that purpose, a Metro account would be a good idea for us.
We never withdraw from our main account when abroad.
Many couples may not have 2 separate CCs that are free to use like Clarity, so the Metro account, or some other account or card, for getting cash out would also be a good idea for them.
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I did some checking because your question interested me.
My 'other' account would charge me 2.99% plus 1.5% for Non-Sterling Transaction Fee and Non-Sterling Cash Fee on each withdrawal in Euros. So if used that card to take out the £1000 mentioned I would lose out to the tune of up to £44.90 (** of course this depends on the number of withdrawals). At today's rate I would get €1135.69 for the same £1000 at the MetroBank Mastercard rate, where the best pre-purchase of Euros would give me £1122.00 and the Caxton Card €1108.97. Not huge savings, I agree, but I think worthwhile. The saving over the Caxton Card would be enough to pay for a three course Menu with wine at our favourite restaurant and pay for a fancy coffee afterwards!
As to the advantage over a fee free credit card, we have those as well, but use those for larger spends not cash withdrawals. Our Metro Bank account means having the safety net of a free alternative if there are problems with a card - such as it having been stolen (which happened to friends), cloned (which did happen to us once), or being refused (an error). These can be quite difficult to resolve when you are on holiday.
And for us there's no 'juggling' involved. All that's involved is transferring money in when we need it and withdrawing it in cash or using the card as we would do at home when on holiday. The budgeting issue can equally apply to a Metro Bank account as well as a pre-pay card - you put in an amount you can afford and when it's spent, it's spent but if you don't spend it all it doesn't cost you anything to change it back into pounds!
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Hi All
Tammygirl we have the same setup! and think if the Caxton gets nicked then so be it! its not the end of the world and the main money is still safe in the UK! Not sure about taking a C/C still in thought mode on that one? can't see the point when if we want to but something then we will use our Caxton or Cash?
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Val
Despite you comprehensive explanation I am yet to be convinced. Our method is simple. We take whatever Euro's we have left from the previous holiday, usually several hundred. I use my Clarity card to withdraw cash from ATM's and other credit cards to buy fuel and shopping. We both have separate credit cards and also debit cards should we need them. Although we avoid the latter as there are charges. When I had my wallet stolen a few years ago it taught us a few lessons so we now don't carry everything with us when we go out for the day we leave then secured in the motorhome so we now have a bit of a belt and braces approach.
I think we would all probably agree that it would be folly to venture into Europe with only one method of payment and a bit of cash. And as you say it might not just be a security issue that causes a problem. A card can be lost or damaged so always have a back-up
David
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I suppose if we didn't have a real credit card we wouldn't have bought the sapphire bracelet in Sri Lanka or the chunky gold necklace in Penang. Budgeting with a pre paid card would certainly save us money. But hey, she loves them. Oh, and I forgot the emeralds from Jaipur. ....and the time we shipped a sideboard home from Macao - they make such good look alike antiques over there. All done with the same card we used in Tesco this morning. Happy travels folks.
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I can see all of the points, specifically:
Not worth stressing bout any additional small costs in the context of a long holiday costing lots.
Pre-pay does allow you to drip in to "average out" the rate - pointless trying to out think the currency markets. We certainly wouldn't put a big slug of money one at once.
We DON'T like paying the total cost on credit cards a months later and AFAIK you have to pay interest on cash withdrawals straight away (so need to top up the credit card to avoid that?)
Pre-pay (Caxton):
No fees to withdraw abroad.
Safer than carrying cash.
Offers alternative method alongside cash and credit cards (need alternatives just in case)
Their service has always been excellent, card can be frozen if lost and your PIN is available on line.
I lost my wallet once and the Caxton was stopped. The wallet was handed in to the Police (minus a small amount of cash but all other documents intact) The Caxton was reactivated whereas the credit card could not be.
One other point is that, for example for Croatia and non-Euro countries, the rate for currency in UK can be poor so we have been told we can load up some £ then get Kuna out from a cash machine at the rate on the day.
Obviously horses for courses but having alternatives is good and you do what suits you.
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AFAIK you have to pay interest on cash withdrawals straight away (so need to top up the credit card to avoid that?)
Doug
That is correct but I suspect the amount of interest for taking out €300 from an ATM would be no more than the charge that I understand pre-pay cards charge to to make a withdrawal? I did deliberately leave off paying money into the account one month to actually see how much I would be charged. It worked out at .90p. As I tend to check my banking on a daily basis it is easy enough for me to transfer a payment into that account although I appreciate not everyone will want to do the same or perhaps even check their account that regularly.
David
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Last year was the first time we made the effort to pay off the Clarity cash withdrawals as we kept one card for cash and one for spending. I think over the 2 months we were charged a total of 3p in interest.
If you don't pay until the full amount is taken by DD, we found the cost was around £1 per £100 per month, if that makes sense.
For anyone new to Clarity and planning to withdraw cash, do not send cash to the card before withdrawing, it is against the T&Cs and could result in the card being blocked.
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We like to have the option of unplanned purchases, so prefer to use the credit card, which does have a more than extremely adequate credit limit!
It is good to keep the cash earning a bit of interest for as long as possible.
Last year we bought a new sat nav in Luxembourg, a new cordless vacuum cleaner (similar to a Dyson) at a factory outlet in Germany, and some new china at a Villeroy & Boch factory outlet.
Not quite as interesting as eurotraveller's purchases!
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works very well as a debit card
just check how much you can draw draw at a time
they say 500 euros we have always drawn 300 at a time with no problem but once we wanted to draw more (to pay a builder) and it didnt
the other thing is you cant draw over the counter has to be atm
some atm's charge a fee it shows you will be charged part way through so just cancel transaction and go to a different bank
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