Wayne, is there a similar risk with a fairfx card?
Not the same risk but I believe same with FX cards they are not protected(anyone know any different?) by The Financial Services compensation scheme but the money is held in the Newcastle Building Society.
This letter was sent out to FairFx customers last year explaining the company.
In light of the recent turmoil in the global financial markets, we at FairFX thought it would be useful to clarify both the current position and the outlook for FairFX.
The question "Why is my money safer with FairFX?" is best answered in two parts. Firstly, money that customers have loaded onto FairFX prepaid currency cards is actually held by Newcastle Building Society and therefore we will explain their financial position and the status of funds held on your currency card. Secondly, we will describe the outlook and financial health of FairFX itself.
Newcastle Building Society (NBS) is a well capitalized 'mutual' Building Society. As such, NBS is regulated under the Building Societies Act of 1986 as amended at the end of 2003, as well as by the Financial Services Authority (known as the FSA). Under the terms of the Act a company can only be called a Building Society if "its purpose or principal purpose is that of making loans which are secured by residential property and are funded substantially by its members". The Act goes further and stipulates that at least 50% of the funds raised by a Building Society must be raised from deposits from the members. In this respect, the Building Societies are much more conservative than Banks and therefore far less risky.
Some casualties of the recent turmoil such as Northern Rock, Alliance & Leicester and Bradford & Bingley were formerly Building Societies that 'de-mutualised' and became Banks. This means they became companies listed on the London Stock Exchange with shareholders seeking the maximization of profits rather than Building Societies like NBS that re-invest any profits made and exist for the benefit of members. These Banks were no longer restricted by the terms of the Building Society Act and could lend far more aggressively. Newcastle Building Society does not fall into this category and carries excellent credit ratings from all the major agencies.
When monies are loaded on to FairFX prepaid cards, these funds are deposited at NBS on behalf of our customers. The funds are held in a 'client money' account at NBS. This is a totally segregated account which is governed by strict FSA rules regarding Client Assets. 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. Indeed, the following statement has been made by NBS directly - "We are able to guarantee the safety of all prepaid card balances as this money is held completely separately in a designated client account, which would not be affected even in the event of the Society experiencing financial difficulty"
FairFX itself is currently privately funded and has no bank borrowings of any nature. As such, it is in a very sound financial position. The outlook for FairFX is extremely positive with growing numbers of customers using the FairFX Currency Card to get market leading exchange rates and we are extremely confident about the future.
In the meantime, wed like to thank you for using FairFX and we will continue to offer unrivalled value, convenience and security to our customers.
Yours sincerely
Stephen Heath
Chief Executive Officer, FairFX Plc
Ian Strafford-Taylor
Chief Operating Officer, FairFX Plc
Have you thought about using crown currency
. There rates are a lot better but you do pay in advance and have your money deliverd before you go. I ordered $1900 at 1.58 in may. Some people say its a risk but a lot of people use them and have used them in the past so im entrusting the guys on here as never used them before.
DB also gonna put £200 on a fairfx card-will get the £7.50 cashback then.
). I got 17.5% back on my travel insurance and some other purchases too, including quite a nice % on the airport lounge. I have no clue how to collect payments but the total so far is sitting nicely under my account details which has pleased me enough to serve as a reminder to use it now! 
So do you use Quidco as your preferred site now?
Have $1900 coming from them
oh dear I hope nothing happens between now and the 3rd september. Have enough bad luck as it is
Heard such good reports about them.
