IMPORTANT - CASH CARD WARNING - FAIRFX etc

[Minxy]

Some important info If you have FairFX card, or any other card etc that may be affected by this:

Martin Lewis: 'Signs that Pockit, Anna Money, Fair FX and other Wirecard accounts may be unlocked this week'

Thousands of prepaid card users have been left unable to access their own cash after the Financial Conduct Authority today ordered Wirecard Card Solutions Ltd to suspend its operations in the UK and freeze customer funds, after a major accounting scandal at its German parent company.

www.moneysavingexpert.com

 

[Googlebot]

I have just emailed them.

Not good when we are planning to go in a few weeks. :-(

 

[John Barrett]

I just received the news. There's £500 on our FairFx card right now!

Hello John,
We have been advised by the Financial Conduct Authority (FCA) that they have temporarily suspended the regulated activities of one of our card issuers – Wirecard Card Solutions Ltd, the UK subsidiary of Wirecard AG.
This means that you cannot currently use your FairFX card.

 

[Richard n Ann]

Got about 400 on our fx card the app isn't working either.

 

[mikebeaches]

Hmm, I've always wondered about the security of putting cash on pre-paid cards...

Personally prefer to use an appropriate credit card for paying when travelling. And always carry at least a couple, in case one doesn't work for some reason.

Hope folk who have had money frozen can get safe access soon.

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[Langtoftlad]

Never really understood the point of pre-loading cash cards compared to regular bank cards... are these firms FCA protected?
Personally, I either use my Santander Zero credit card, or my Starling Bank debit card - no fee, no commission, interbank exchange rates.

Hope you guys get your money unlocked without too much delay.
I read that €1.9 Billion has disappeared !

Edited:
Not exactly reassuring:
https://www.moneysavingexpert.com/n...her-prepaid-card-customers-see-accounts-froz/
Edited again - oops, same link as OP

 

[Millcourt]

Thanks for the info Minxy Girl .

Have been using Fair FX for several years and have found it useful. I usually make an ATM withdrawal for as much of the balance as possible just before departing to return to the UK. Never seen the point of cash sitting on a pre-paid card for perhaps several months. Luckily, my balance on my FX Euro card is €2.67 and on my FX $ card $1.95. So, no great problem for me on this occasion...... for a change!

 

[irnbru]

Does this include CaxtonFX or Revolut?

 

[Googlebot]

I always loaded them when the rate went up. Was planning on using it in May but COVID put that on hold. I had just loaded with with £1500!

 

[kevenh]

Does this include CaxtonFX or Revolut?

Those are rivals to fairfx
Edit: and not part of the FCA story - yet! I’ll have to look at my revolut account now tho

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[Millcourt]

Thanks irnbru for the "Thumbs Up".

When we worked and lived in Scotland for almost 18 years, I often had to explain that Yorkshire Folk and Scots were very much alike........ the main difference being Yorkshire Folk were not quite as generous!

 

[John Barrett]

I always loaded them when the rate went up. Was planning on using it in May but COVID put that on hold. I had just loaded with with £1500!

I did the same thing: the rate was 1.16!

 

[The Lord Squid]

Details here of the FCA's requirements. It's been brewing for a while. Customers of FairFx probably had no idea that services were provided by Wirecard.

Wirecard can resume regulated activity

On 29 June 2020, the FCA provided written consent to allow Wirecard to resume issuing e-money and providing payment services. The restriction on activities will lift at 00.01 on 30 June 2020.

www.fca.org.uk

 

[Googlebot]

I did the same thing: the rate was 1.16!

Must have been around the same time.

Hoping they hurry up and sort it, we are off in 4 weeks. ;-(

 

[Clickem]

Does this include CaxtonFX or Revolut?

Caxton say that they are covered by the FCA, but I cannot get the link to work, it says

"Caxton FX Ltd is authorised and regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 ('FSMA') as well as the Payment Services Regulations 2017 ('PSR'). Read below for details on what this means for you."

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[Minxy]

Does this include CaxtonFX or Revolut?

Different organisations with no link to Wirecard fortunately.

They aren't covered by the FCS either though but to be fair anyone using these types of cars should already know that:

"However, such accounts are not protected under the official Financial Services Compensation Scheme like a standard current account or savings account."​

​

They should have a 'ring-fence' though to protect the customers' funds ... that's if they've been doing things correctly/legally.

 

[Flamenca]

my Starling Bank debit card - no fee, no commission, interbank exchange rates

Is that the Starling current account or Starling Euro account?

 

[Langtoftlad]

Is that the Starling current account or Starling Euro account?

Starling current account - they didn't have a Euro one when I opened mine.
I don't go to Europe often enough to bother getting one.

I'm very impressed... often my app shows the transaction before the paper receipt has finished printing...
I've only had one glitch where a transaction was charged twice... easily sorted out via online help, through the app.

 

[Flamenca]

Thanks Langtoftlad the Euro account would probably suit me better and it is covered by the FSCS protection scheme, unlike the Revolut account I have at present which does not have that protection. Time for a change I think.

 

[irnbru]

They aren't covered by the FCS either though but to be fair anyone using these types of cars should already know that:

Thanks I didn't know that. I better get my money out pronto.

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[Minxy]

Thanks Langtoftlad the Euro account would probably suit me better and it is covered by the FSCS protection scheme, unlike the Revolut account I have at present which does not have that protection. Time for a change I think.

One thing to bear in mind that with the Starling Euro account is AFAIK you'll get the € conversion rate at the time you put £ funds in, which may not be as good as the Revolut € rate as you can choose when to convert £ to €, however you could do this and then may be able to € funds from Revolut to your Starling Euro account.

We have a Starling £ account as a back-up just in case we need € cash for something and can't get it any other way without penalties - if needs be we can put some £ cash in it and draw it out at an ATM in € with no commission or fees, but of course that would be at the £ to € rate at the time.

 

[jessthedog]

Thanks I didn't know that. I better get my money out pronto.

Caxton are regulated by FCA

©2020 Caxton FX Limited. All rights reserved. Authorised and regulated by the Financial Conduct Authority for FSMA authorised business (FRN: 431844). The Electronic Money Regulations 2011 (FRN: 900663) for the issuing of electronic money and payment services. Registered office: 30 St Mary Axe, London, EC3A 8BF, UK.

Your Card is issued by Valitor Payment Services Limited whose principal office is 1 Fore Street, London EC2Y 9DT, United Kingdom. Valitor Payment Services Limited is authorised and regulated by the Financial Conduct Authority as an electronic money institution (reference number 900688) and is accordingly permitted to issue electronic money in the UK. Your Card is the property of Valitor Payment Services Limited and is not transferable to anyone else. Valitor Payment Services Limited is licensed as a principal member of Mastercard.

 

[Minxy]

Caxton are regulated by FCA

©2020 Caxton FX Limited. All rights reserved. Authorised and regulated by the Financial Conduct Authority for FSMA authorised business (FRN: 431844). The Electronic Money Regulations 2011 (FRN: 900663) for the issuing of electronic money and payment services. Registered office: 30 St Mary Axe, London, EC3A 8BF, UK.

Your Card is issued by Valitor Payment Services Limited whose principal office is 1 Fore Street, London EC2Y 9DT, United Kingdom. Valitor Payment Services Limited is authorised and regulated by the Financial Conduct Authority as an electronic money institution (reference number 900688) and is accordingly permitted to issue electronic money in the UK. Your Card is the property of Valitor Payment Services Limited and is not transferable to anyone else. Valitor Payment Services Limited is licensed as a principal member of Mastercard.

That's not the same as the FSA though which gives you full protection, same as current accounts etc.

 

[jessthedog]

That's not the same as the FSA though which gives you full protection, same as current accounts etc.

You are absolutley right
irnbru
Minxy is correct, though they are regulated, it seems that they don't come under the Financial Services Compensation Scheme.(FSCS). as per the banks.

This below is from the Financial Conduct Authority, reference to Wirecard, so I would check if it is the same with CaxtonFx.

Are my funds protected by FSCS?
No. The Financial Services Compensation Scheme (FSCS) only applies to certain types of activity which does not include issuing electronic money or payment services.

Under the EMRs and PSRs, there are rules on how customers’ money should be protected and these requirements are known as ‘safeguarding’.

Wirecard can resume regulated activity

On 29 June 2020, the FCA provided written consent to allow Wirecard to resume issuing e-money and providing payment services. The restriction on activities will lift at 00.01 on 30 June 2020.

www.fca.org.uk

 

[PhilandMena]

Those are rivals to fairfx
Edit: and not part of the FCA story - yet! I’ll have to look at my revolut account now tho

Caxton covered by FCA
Authorised and Regulated
Caxton FX Ltd is authorised and regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 ('FSMA') as well as the Payment Services Regulations 2017 ('PSR'). Read below for details on what this means for you.


Financial regulations; security of your funds
As part of our permissions, we offer clients who use our services the protection of the FCA's client money rules. Click here and here to view our permissions.

How does it work?

Caxton FX holds your funds in a segregated bank accounts, separate from our own money, on all currencies that we exchange.

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[Flamenca]

One thing to bear in mind that with the Starling Euro account is AFAIK you'll get the € conversion rate at the time you put £ funds in, which may not be as good as the Revolut € rate as you can choose when to convert £ to €, however you could do this and then may be able to € funds from Revolut to your Starling Euro account.

We have a Starling £ account as a back-up just in case we need € cash for something and can't get it any other way without penalties - if needs be we can put some £ cash in it and draw it out at an ATM in € with no commission or fees, but of course that would be at the £ to € rate at the time.

Thanks. I will take all that into account. Do you know whether the Starling app works on a tablet rather than a 'phone? I have had issues with 'phones the last couple of years and my tablet seems more reliable and easier to use. The Revolut app works fine on my tablet.

 

[DBK]

Does this include CaxtonFX or Revolut?

Revolut have used Wirecard in the past in certain regions but they issued a statement this week saying they have been reducing their reliance on Wirecard since 2019. I guess the way to find out would be to see if you can access your Revolut account.

 

[Chris]

Good luck to anyone caught up in this.

 

[Minxy]

Revolut have used Wirecard in the past in certain regions but they issued a statement this week saying they have been reducing their reliance on Wirecard since 2019. I guess the way to find out would be to see if you can access your Revolut account.

I've just gone into my Revolut account on my phone without a problem.

 

[kevenh]

Revolut have used Wirecard in the past in certain regions but they issued a statement this week saying they have been reducing their reliance on Wirecard since 2019. I guess the way to find out would be to see if you can access your Revolut account.

Sorry forgot to update here after my earlier post, my revolut account is live & OK - for now

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