New Halifax Credit Card Cuts The Cost Of Travel Money

    LONDON, ENGLAND, July 24, 2010 /24-7PressRelease/ -- Halifax has this week launched the Halifax Clarity Credit Card, a new simple, no usage fees credit card. The new card will cut the cost of travel money for holidaymakers.

The Clarity Credit Card will make using a credit card abroad a more appealing option by charging no foreign exchange fees on all transactions including all purchases, and no cash withdrawal fees when using a cash machine abroad. Cardholders can also take advantage of the added protection using a credit card gives you.

Consumers still predominantly rely on cash abroad

According to research carried out by Halifax, over 30 million holidaying Brits are still changing their sterling for the currency of their destination in advance of travelling. Holidaymakers are relying on cash whilst abroad as they see it as the safest and most convenient form of payment; half of consumers (51%) see this as the most convenient form of payment on holiday, and almost 40% believe it is the most secure.

Card spending is on the rise

Despite the preference for cash amongst many holidaymakers, spending on debit and credit cards is on the rise. Credit cards saw a 5% increase in spending over the past 10 years with a third of British adults using a credit card whilst they are abroad: 10 million will use their card for shopping, 9 million for eating out, almost 8 million for unexpected expenses, 7 million for their accommodation costs and 3 million will use their credit card to withdraw cash.

Around 24 million people now turn to debit cards on holiday, compared to 10 million people 10 years ago.

Added protection cards offer is important but many still not aware of the benefits

The research indicates that those consumers who are using credit cards abroad do so for the protection they provide. Just under half prefer not to carry large amounts of cash around and a quarter use them specifically for the added security they provide, such as protection against fraud, the safeguards offered under Section 75 laws, the ability to replace stolen or lost cards without any hassle and the peace of mind that comes from knowing that you have access to funds to cover any unexpected expenses. However, the majority of consumers still believe cash is the safest form of payment whilst on holiday despite it offering no consumer protection, and only two thirds of consumers were aware of the additional security benefits credit cards offer consumers.

A simple, transparent card

The Halifax Clarity Credit Card launched this week aims to clear up any confusion consumers have around fees and spending on cards, meaning customers can have added peace of mind not only at home but when using a card abroad. The key features of charging no foreign exchange fees on purchases, no fees for cash withdrawals and one flat rate of interest across all transactions means that consumers will see no difference in costs for using their card whilst they are on holiday.

The overall card package features include:
- No usage fees. This includes no cash withdrawal fee, no foreign exchange fees, no balance transfer fee and no annual fee.
- One simple and competitive rate of 12.9% APR for all transactions including purchases, balance transfers and even cash withdrawals.
- Plus, the benefit of an additional GBP5 monthly cashback reward for our qualifying current account customers, when they spend GBP300 or more on the card in each statement period

Mark Powys, Halifax Credit Cards, comments: "Our research shows that three quarters of holidaymakers would be more likely to use a credit card abroad if they knew they wouldn't incur any fees. The Halifax Clarity Credit Card is the best value option for customers planning their holiday budget, and with no cash fees and a single low rate however you use the card it's a winner at home too."

Editor's notes:
Research conducted by ICM Omnibus survey between 11-13 June 2010, and is based on responses taken from 2, 011 adults, which is representative of a UK consumer population of 47,358,000.

Additional statistics:
- Travellers' cheques usage has halved in the last ten years; over half of holiday makers bought travellers' cheques 10 years ago compared to just one fifth now.

Halifax Clarity Credit Card:
- Halifax Clarity Credit Card offers a Typical 12.9% APR Variable (17.9% or 21.9% APR).
- Halifax Clarity Credit Card has no cash fee, no balance transfer fee, no foreign exchange fee and no annual fee. Overlimit and late payment fees will still be charged
- The GBP5 cashback facility is available to customers who, at the point of taking out the Clarity card, pay GBP1,000 or more each month into their Halifax current account, open or hold an Ultimate Reward Current Account, or move their current account to Halifax using the Halifax Switching Service and pay in GBP1,000 or more each month.
- Customers must spend at least GBP300 on purchases (net of any refunds or reversals) in a statement period, stay within their credit limit and make their payments on time in order to qualify for the GBP5 cashback.
- The issue of a Credit Card depends on our assessment of your circumstances. You must be 18 or over and a UK resident to apply.
- The Halifax Clarity Credit Card is issued and administered by Bank of Scotland plc pursuant to a licence from MasterCard
- MasterCard and the MasterCard Brand mark are registered trademarks of MasterCard International Incorporated. Bank of Scotland plc Registered office: The Mound, Edinburgh, EH1 1YZ. Registered in Scotland No.SC327000. Authorised and regulated by the Financial Services Authority.

For more information contact Claire Barratt, media relations manager, Lloyds Banking Group: 020 7661 4668 / [email protected]

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