If you’re reading this, you’re interested in finding a new card to use when travelling abroad. Specifically, a card that doesn’t charge you high, or even worse, hidden fees when spending on your trip.
So we’ve compared Caxton's Terms and Conditions for spending abroad with our own, to help you make the right decision.
What is Caxton FX?
Caxton FX offers foreign exchange services such as global money transfer and their travel currency card. Since launching in 2002, the privately-owned business has offered foreign exchange services to both consumers and businesses.
For the sake of this comparison, we will be focusing solely on the Caxton FX multi-currency card business.
What card options and plans does Caxton offer?
Caxton currently offers two plans: Caxton Black, which is their free subscription, and Caxton Red, which costs users £5 per month. For the purposes of this comparison, we'll be focusing on Caxton Black.
Card scheme vs interbank foreign exchange rates
The card scheme foreign exchange rate is set each day by major credit card networks such as Visa and Mastercard.
While the value of currencies fluctuates throughout the day, the card scheme rate stays the same for the whole day. The rate will contain a mark-up to protect the card schemes from fluctuation risks. It’s difficult to figure out exactly how this rate is calculated as the information isn't shared, but this is included in the rate that Caxton uses.
The interbank rate, on the other hand, tracks the real-time value of currencies and is considered the fairest rate in the industry. It fluctuates throughout the day, and is the rate that Currensea uses, with an additional 0.5% markup.
So what does Caxton charge you to spend abroad?
We don’t believe fees should ever be hidden - so we’ve done the calculations for you.
Using data from January to March 2023, we were able to calculate the average markup over the interbank rate applied to the card scheme rates. We did this by comparing those rates with the average highs and lows of the daily interbank rate, using a selection of the most popular travel currencies. On average, the markup built into the card scheme rate was 0.54% for Mastercard and 0.6% for Visa- since Caxton uses Mastercard, this means that you're typically charged 0.54% above the interbank rate when you use their card to spend in a currency which you're not currently holding in their wallet.
On top of the card scheme rate, Caxton charge an additional 2.49% currency conversion fee
What other fees does FairFX charge?
Dormancy
For those not using the card regularly, a dormancy fee of £2 kicks in after 12 months of non-use.
What is Currensea?
Currensea is a travel debit card that allows you to spend money directly from your trusted bank account, rather than having to open up a new one or top up a prepaid card. It is based on open banking, which was introduced several years ago to promote innovation and competition in financial services so that you have access to a wider range of options and rates.
What card options does Currensea offer?
Currensea has three travel cards, including Currensea Premium and Currensea Elite. For the purposes of this comparison, we'll be focusing on Currensea Essential, which is free like the Caxton Black plan.
What is different about Currensea?
What Currensea offers is a product focused on providing you with the best possible rates as you spend abroad. Our card partners directly with your trusted bank account (unlike other travel cards), meaning that you can spend with your Currensea card abroad just as you would at home with your regular debit card. Funds come straight out of your bank account, and you can spend whatever balance you have.
Because it’s not a prepaid card, you never have to top up your Currensea card. You don’t have to worry about losing it and any funds that might remain on it, nor do you have to constantly top it up and remember how much you have on it: we offer travel, but without the hassle.
We also check how much your bank would have charged you to use your regular debit card abroad- and we can tell you exactly how much money you saved by using your Currensea card.
What does Currensea charge to spend abroad?
We convert your currency based on the real-time interbank exchange rate, with an additional markup of 0.5% per transaction no matter when you use it or how much you spend with it. No hidden fees, no weekend fees, no increases to the markup - just clear, transparent information on how much we charge and how much you save.
What other fees does Currensea charge?
Cash withdrawal
We charge our usual fee of 0.5% for withdrawals up to £500 a month, and for anything over this amount we charge 2%.
Replacement cards
While your first card is free, we charge a £5 replacement fee (but no delivery fees).
How does Currensea stack up against Caxton?
We compared how much it would cost spending with Currensea versus Caxton on a long weekend in Geneva for two. With a combination of card and cash spending, we found that using a Currensea card can save you just shy of £65 on FX fees compared to Caxton.
Take a look at the table to see the breakdown of spend- we've also included the card scheme rate that Caxton charges.
| |
Currensea charges |
Caxton charges |
| CHF 2650 on card spending |
£11.53 |
£57.42 |
| CHF 200 on ATM withdrawals |
£0.87 |
£4.33 |
| Card scheme rate |
£0 |
£13.39 |
| TOTAL |
£12.40 |
£75.14 |
Total saved with Currensea vs using Caxton: £62.74
% saved with Currensea vs using Caxton: 83.50%
In summary
Both Caxton and Currensea offer competitive rates that undercut those offered by high street banks, and whichever product you choose there is no doubt that you'll save when spending abroad versus a typical high street bank
However, if you are after the best foreign exchange rates possible, then Currensea is significantly better. Although Caxton uses the Mastercard card scheme rate, this includes a 0.54% markup over the interbank rate, and they also charge an additional fee of 2.49% per top up. We offer the real-time interbank rate with a markup of just 0.5%, meaning that you'll save at least 2.53% more with Currensea.
Since Caxton is a prepaid card, you'll need to remember how much is on it and faff around topping it up as you spend abroad. And if you don't spend all the money you top it up with, you'll also have to remember to take the unspent balance off your card when you get home (with any applicable charges). On average in the UK in 2023, prepay travel card users returned home with £78 on their card..
With Currensea on the other hand, you can spend abroad just as you would at home with your regular debit card, since your card partners with your existing bank account. We offer travel, but without the hassle.
Overall, if you're looking for a prepaid card to spend with while you travel and aren't that concerned by the FX rate, then Caxton could be a good option. But if you want a card you don't have to continually top up that focuses on providing the best rates possible, then Currensea is the right choice for you.
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