Prepaid Cards offer lower FX fees for online shopping than PayPal
FairFX.com are expecting an increase in the lead up to Christmas this year with more customers turning to prepaid cards for online shopping from abroad. Using debit and credit cards for online shopping from overseas can cause worry with consumers over the security of their funds. This combined with poor exchange rates offered by the high street banks means consumers are turning to prepaid currency cards for shopping on foreign websites.
FairFX offer Euro and Dollar cards which have no foreign transaction fees and also provide market leading exchange rates whilst purchasing from overseas. Consumers that load these currency cards when the exchange rates are most attractive are set to make substantial savings when buying products from overseas.
The Sterling ‘Anywhere’ card that FairFX provides also is significantly more competitive than not only regular debit cards, but also popular online payment provider PayPal.
Method of Payment Online Foreign Transaction Fee/s
FairFX Anywhere Prepaid Card 1.4%
Natwest Platinum Credit Card 2.75%
Halifax Standard Debit Card 2.75% + £1.50
Lloyds TSB Standard Debit Card 2.99% +£1
PayPal fee is dependent on the country you are buying from.
Stephen Heath, FairFX CEO said “Last year we became aware of customers using our prepaid cards for buying items abroad online. Given many providers continue to offer unattractive exchange rates and combined with the high level of market volatility, we are expecting even more customers to turn to their prepaid currency cards where they can lock in rates with our Dollar and Euro cards and also get better value on the Sterling Anywhere card.”
Client funds with FairFX.com are held in a special segregated account with Newcastle Building Society, governed by strict FSA rules. NBS cannot use this money for extending loans or for any purpose and it is 'ring-fenced' in the same way as money is protected in a solicitor's client account. Therefore, in the unlikely event of NBS running into financial difficulties, the money would be protected.