Halifax, part of the Lloyds Banking Group, has launched the Halifax Clarity card, a new no usage fees credit card.

According to the company, the new card will cut the cost of travel money for holidaymakers. New Halifax Clarity credit card will not charge a foreign exchange fee on any transaction or a cash withdrawal fee when using a cash machine abroad.

The overall card package features include: no usage fees, which includes no cash withdrawal fee, no foreign exchange fees, no balance transfer fee and no annual fee; and one simple and competitive rate of 12.9% APR for all transactions including purchases, balance transfers and even cash withdrawals.

Halifax will offer an additional GBP5 monthly cashback reward for its qualifying current account customers, when they spend GBP300 or more on the card in each statement period.

The Halifax Clarity Credit Card will be issued and administered by Bank of Scotland pursuant to a license from MasterCard.

Mark Powys, spokesman of Halifax Credit Cards, said: “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 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.”