Sorry, another Fair FX question....

[kristieuk]

I have done a search, but I seem to find conflicting information, and after the Crown Currency saga, I don't want to get my fingers burned again.

I understand that the Fair FX card is run by the Newcastle Buidling Society, but is the money protected if anything should happen to them? Of course I am not suggesting it will, but I just want to know where I stand.

 

[wickesy]

This was posted by a verified FairFX staff member on the DIBB yesterday

The only way in which customers could lose the funds held on their FairFX card is if our backer Newcastle Building Society (NBS) were to cease operating. This is very unlikely to occur due to the risk averse nature of Building Societies and the way they invest customer funds. Presently NBS hold a very strong financial position and have done for many years.

Here's a quick overview on the strength of NBS:

http://www.thisismoney.co.uk/savings...9&in_page_id=7

Thanks

FairFX

EDIT:
Having spoken to the guys at NBS, they confirmed that the funds would actually still be safe even if they were to go bust: customers would always be able to claim back their money, just not use it on the cards. However, there is almost no chance that they would ever go bust because of the strength of their financial position.

Hope this clarifies things for you guys.

Basically any money you put on your FairFX card is held in a desugnated client account which cannot be touched for any other purpose so the worst that would happen is that your money would be returned to you.

My tip would be to make sure you have a couple of sources of funds available to you while you are abroad - part on a FairFX card, part cash/travellers cheques and a credit or debit card to fall back on if necessary.

 

[kristieuk]

Thank you so much for your reply, I do appreciate it. We have cash already, always have a bunch of credit cards (that I try not to use because it is very easy to lose track!), and also have a FairFX card with $600-ish on, but I just cold feet earlier thinking I don't want too much on there if it could just go. I hear what you say though - a whole building society is in a different category to Crown Currency (I hope!).

 

[The Eighth Dwarf]

we're in the same sort of boat, have around $1200 on the card already and have the money to put another $1000 on.
Just don't know if its worth the risk, I know its a small risk but its still a risk.
We used fairfx last year and it was absolutely fine, there rates are far superior to the high street and we found it really convenient too.
I know that the chances are we would get a refund as the funds are in a segregated account but thats not much use to me if I'm trying to pay for my dinner at The House of Blues

 

[zippy99]

There is a small risk yes....

There is also a risk that the Volcano will erupt again and none of us will fly, there is a risk the air staff will strike, a risk the airline may go bust....

Some risks however are greater than others and with CCE there was always a bigger risk as was clearly pointed out by numerous users not only on the rates but also the lack of protection if something went wrong.

FairFX is a completely different kind of company and cannot be compared like for like your money is placed on your card and there to use at any time with instant access.

I am more than happy to use my card, one of the main reasons I do is rather than withdraw cash with my debit card and pay commission & fees. I can simply log on and top up - especially good this year as we cannot get as much currency in advance and both our pay days fall the day we arrive.

 

[jackieleanne]

As others have said fairfx is completely different in that once you have the card you can withdraw at any bank account or pay for any transactions. I just used mine to pay the balance to Dreams Unlimited on our December holiday and ill be topping up with them soon for our holiday money as well as taking some cash.

They are a different type of company completely and when you order travel money through them not just with the card they actually send the cash out to you straight away.