Cashpassport

[Fred114]

It turns out, as I depart to travel overseas, that the cashpassport that has recently come onto the market is issued as a debt security. The money you 'load' on your card is actually a loan to Travelex, and as such, they have issued a prospectus.

http://www.cashpassport.com/1/Docume...mended.%20.pdf

The debt is unsecured, and unrated. Clearly, in 'loading' funds, ie. accepting debt security, you would have to satisfy yourself that the organization can pay it back. In my case, I was looking to 'loan' then about NZD2000. The prospectus only covers the period to Dec 2011, with an amendment going forward from Feb 2013. In other words, there is no data to explain the effect of their amendment. They have constructively prevented a financial understanding in the new arrangement. We're unable to assess this.

I wondered if someone would like to comment on the risk of these products? thanks