Friday, May 11, 2012

Why choose Kalixa instead of PayPal when shopping online?


PayPal is one of the great internet brands in terms of it’s longevity in the market place, brand awareness, and let’s be honest – functionality. As a method of buying /selling goods over the internet from a complete stranger, it was and still is, a great tool.

Outside of eBay, PayPal is now visible on many small and large websites alike as a payment method. As a consumer, we are no longer required to have a PayPal account, but instead can use a debit or credit card online, using the PayPal checkout.

This route is becoming increasingly popular on small sites, because of the ease of integration for the online retailer. And as a consumer, we trust the PayPal brand as much as the old guards: MasterCard, Visa and Amex. But despite the comfort of seeing PayPal, then we must consider the costs of using this payment method, specifically when shopping overseas.

If you are making a purchase from an overseas website, such as in the US then PayPal will convert the transaction using their own exchange rate. If you make the payment with Kalixa, and opt to use the exchange rate offered by your card provider (i.e. Kalixa) then you will make a saving of over 3% on the transaction.

Why? Simply because Kalixa passes on the interbank rate to its consumers – so unlike PayPal (and other payment providers) there is no mark-up on the exchange rate. The chart below illustrates the savings made on purchases using exchange rates on the 9th May 2012.

When you've searched for a great bargain online, why not make sure you make savings with your choice of payment method too? Pay with your Kalixa prepaid MasterCard and you can save 3% compared to PayPal.


Aside from the savings, Kalixa offers similar benefits to its cardholders as PayPal does when shopping online. The Kalixa prepaid card is not linked to your bank account, so, in the unlikely event of your Kalixa card details being lost or stolen, then the impact of fraud is mitigated as it’s not connected to any of your other accounts or your personal identity.
And if the card is lost or stolen, then simply call the 24 hour number and your card will be blocked immediately, and a replacement card sent out to you – your funds are fully protected.

So, aside from the benefits and the savings you can make with Kalixa – but what would be the other costs associated with the Kalixa card? There is the registration fee of £6.95 – this buys you the Kalixa contactless Prepaid MasterCard, shipped to your door within 7 days. Then there are the costs of putting funds onto your card – loading via bank transfer in branch at Barclays, or via internet banking is free and the funds are typically available the next working day. Unlike many other prepaid cards, there are no monthly or annual card fees.

While we’re not suggesting you get a Kalixa Card for a single purchase from a US website, we think that if you regularly shop online, then it makes a lot of sense. What’s more, the same great exchange rate applies when you go on holiday abroad too – no matter where in the world that is.

We think it’s worth considering when you next decide to purchase online. If you're interested, you can apply for your Kalixa prepaid MasterCard online

Note: You can check the exchange rate on Kalixa either today, or historically online