Travel exchange money at 0% may not be what it seems

Published: 4 April 2009 By MoneyhighStreet Staff Leave a Comment
Updated: 15 August 2011

According to FairFX.com, the prepaid currency provider, those going for ‘0% commission’ on their travel exchange money could be paying over the odds.

Travel money exchangeWhilst the headline of ‘0% commission’ may grab a travellers attention, the issue is, what is the underlying exchange rate – just how many Euros or US Dollars will their pound buy?

Chief Executive of FairFX.com, Stephen Heath, said ‘People may think they are paying ‘0% commission’, but that couldn’t be further from the truth.’

He added ‘Quoting ‘0% commission’ has become the normal advertising tag line for currency exchange providers, but most people don’t understand what it actually means. Providers are using this naivety to increase their bottom line.’

According to FairFX information, the true cost to consumers of their travel exchange money can range from

  • 3-5% at High Street foreign exchange providers
  • 7-12% at London airports and
  • 15% at some regional airports

Worryingly, the information also shows that 44% of Brits think ‘0% commission’ means the travel exchange money service is free and some 58% of people base their travel money purchase on ‘misleading’ advertising.

FairFX Plc is an internet based foreign exchange business which allows customers to buy their foreign exchange online using debit / credit cards or internet bank transfer.

By cutting out the traditional methods of travel exchange money at Travel Exchange bureaus or kiosks, customers are offered better business/commercial type foreign exchange rates.

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