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 Halifax Clarity’s Terms and Conditions for spending abroad with our own, to help you make the right decision.
What is Halifax?
Halifax is a UK-based bank, founded in 1853. It became part of the Lloyds Banking Group in 2009.
Halifax features & plans
Halifax offers a range of cards, but for the purposes of this comparison we’re focusing on the Clarity Credit Card, which is free.
Halifax Clarity exchange rates & fees
Halifax rates include the card scheme foreign exchange rate that 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.
We don’t believe fees should ever be hidden- so we’ve done the calculations for you. Tests in Q3 2024 showed that on average, the markup built into the card scheme rate was 0.58% for Mastercard and 0.52% for Visa. Since Halifax uses Mastercard, this means that you're typically being charged 0.58% above the interbank rate when you use their card to spend abroad.
As Clarity is a credit card, using it to withdraw money can be very expensive. Halifax has not specified the amount they charge, but to withdraw money using credit cards in general, you’ll be charged:
- Daily interest: You will be charged interest on the amount of money you withdraw from the day you withdraw it until you pay off the balance in full. The interest rate for cash withdrawals is usually higher than the interest rate on purchases.
- Cash advance fee: This is usually a percentage of the amount you withdraw, or a fixed fee, depending on the amount of money you withdraw. This is charged each and every time you withdraw money on a credit card.
Using a credit card to withdraw money abroad may also have a negative impact on your credit score.
Halifax also charges a £12 late payment fee, which is standard for most credit cards. There is also a £500 a day withdrawal limit. Exceeding your credit limit carries an additional charge. There are no costs to replace your card or to receive your first one.
Is Halifax Clarity good for travel?
Halifax Clarity offers fantastic rates for spending abroad and can be a great option, especially for those specifically on the hunt for a credit card. However, the prohibitive impact of using a credit card for ATMs means you'll likely either use your regular bank card at ATMs or take out another bank account to minimise those fees. The end result is probably either going to be expensive, or a lot of hassle.
So, what is Currensea?
Currensea is a travel debit card that connects directly to your existing bank account. Currensea allows you to spend abroad just as you would at home, without needing to transfer or manage funds separately. You simply spend, and the money comes directly from your bank account.
Currensea’s pricing plans
Currensea offers three travel card options:
- Currensea Essential (free)
- Currensea Pro & Currensea Elite (paid plans with market-leading FX rates and exclusive perks)
For this comparison, we’ll focus on Currensea Essential, which is free free like the Clarity Credit Card.
Currensea vs. Halifax Clarity – What’s Different?
Unlike the Halifax Clarity card, your Currensea card is a debit card and so won't charge you interest on the amount you spend. Fees don't fluctuate or change depending on your credit history, and ATM use abroad is just like it would be at home with a regular high street bank card.
What Currensea offers is a card that partners directly with your trusted bank account. 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.
Currensea Fees & Limits
Card spend:
- Essential: £500/month fee-free at the Realtime Rate, then 1% FX fee
- Pro & Elite: Unlimited fee-free spending at the Pro Rate
ATM withdrawals:
- Essential: £200/month fee-free, then 2% FX fee
- Pro & Elite: Higher limits with only 1% FX fee beyond them
Delivery:
Currensea charges just £4.95 for the delivery of essential cards. Currensea Pro and Elite customers receive free delivery when they sign up.
So, which one is better?
Halifax and Currensea are fairly similar when it comes to fees for typical spend. Both products offer competitive rates that significantly undercut those offered by high street banks, and whichever product you choose there is no doubt that you'll save a significant amount when spending abroad.
However, given the prohibitive impact of using a credit card for ATM's, then you're either going to be using your regular bank card, or taking out yet another bank account just to minimise those fees. The end result is probably either going to be expensive, or a lot of hassle.
It's worth noting that the Clarity card does typically comes with a higher APR than the Halifax base card, so if you aren't planning on paying off your holiday spend balance immediately, then you may find the additional interest charged dwarfs any FX savings.
So if you’d rather:
- Know exactly what fees you’re paying when you’re spending abroad
- Have a card that's viable to use at ATM's abroad
- Avoid risking the temptation of overspending on credit
- Get a card that's dedicated to reducing your charges when spending abroad
... then Currensea is the right choice for you.
