A new simple, no usage fees credit card which is claimed will cut the cost of travel money for holidaymakers has been launched by Halifax.
The Halifax says its Clarity
credit card will make using a credit card abroad a more appealing option by charging no foreign exchange fees on all transactions including all purchases, and no cash withdrawal fees when using a cash machine abroad. The Clarity card also charges one flat rate of interest across all transactions means that consumers will see no difference in costs for using their card whilst they are on holiday.
According to research carried out by Halifax, over 30 million holidaying Brits are still changing their sterling for the currency of their destination in advance of travelling.
Holidaymakers are relying on cash whilst abroad as they see it as the safest and most convenient form of payment; half of consumers (51 per cent) see this as the most convenient form of payment on holiday, and almost 40 per cent believe it is the most secure.
The research indicates that those consumers who are using credit cards abroad do so for the protection they provide. Just under half prefer not to carry large amounts of cash around and a quarter use cards specifically for the added security they provide.
However, the majority of consumers still believe cash is the safest form of payment whilst on holiday despite it offering no consumer protection, and only two thirds of consumers were aware of the additional security benefits credit cards offers consumers.
The overall card package features include:
- No usage fees. This includes no cash withdrawal fee, no foreign exchange fees, no balance transfer fee and no annual fee.
- One simple and competitive rate of 12.9 per cent APR for all transactions including purchases, balance transfers and even cash withdrawals.
- Plus, the benefit of an additional £5 monthly cashback reward for our qualifying current account customers, when they spend £300 or more on the card in each statement period
"Our research shows that three quarters of holidaymakers would be more likely to use a credit card abroad if they knew they wouldn't incur any fees,” said Mark Powys, Halifax Credit Cards.
“The Halifax Clarity card is the best value option for customers planning their holiday budget, and with no cash fees and a single low rate however you use the card it's a winner at home too."
Commenting on the latest credit card launch from Halifax, Andrew Hagger of Moneynet.co.uk said: “It's a refreshing change to see the launch of a good value no nonsense product such as this latest piece of plastic from Halifax.
“There are no confusing interest free introductory offers for purchases or balance transfers; instead Halifax is aiming for a longer term relationship with customers by offering straightforward good value, particularly for those who like to use their credit card overseas.
“Typically a £100 cash withdrawal overseas can cost you an almost an additional £6 by the time you take into account a three per cent withdrawal fee plus a foreign loading fee of typically between 2.75 per cent and 2.99 per cent.
“The APR for purchases at 12.9 per cent is well below the market average of 18.4 per cent and the cash rate also at 12.9 per cent is less than half that charged by many high street rivals.
“Whilst 12.9 per cent is the typical rate, bear in mind that some consumers with a less than perfect credit record may be offered the card at a slightly higher rate of 17.9 per cent or 21.9 per cent APR.
“This is a back to basics product and likely to prove a big hit with holidaymakers in the coming months providing the opportunity to draw cash abroad without having to shell out a small fortune in charges.
“It's also good to see loyal Halifax reward customers being given the opportunity to earn a further £5 bonus per month, simply by spending a minimum of £300 per month on their card - offering tangible added value for customer loyalty is something other providers could learn from.
“All in all, a big thumbs up from
Moneynet.”
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