Are You Losing on Your Holiday Travel Money?
Published: 23 May 2012 By Julian Stone Leave a Comment
Do you realise you could be losing over £50 every time you go on holiday as a result of poor exchange rates for your holiday travel money or because of the fees associated with using your debit and credit cards abroad?
That’s the finding from research by currency provider FairFX.com.
Are you drawn in by ’0% commission’ deals on your travel money at the airport? You’re not alone, many are.
With over 36 million Britons holidaying abroad each year, it is estimated that consumers are losing between 3-5% of their total holiday spending money on foreign exchange fees.
The average family of 4 spends some £1,000 whilst on holiday abroad for over 7 days. This means that if they got a prepaid currency card ahead of their travel, rather than wait and exchange money at the airport, they could save up to £85 – in other words they would be £85 better off.
A prepaid card will mean you’re better off too when compared with using a credit/debit card. The fees associated with using credit or debit cards when abroad can be significant.
FairFX CEO Ian Strafford-Taylor says “Even with the improving Euro exchange rate benefiting families travelling to Europe over summer this year, it is still very important to check the actual exchange rate before buying your travel money to ensure you are getting the best deal.
“Unfortunately with the banks levying charges on debit card usage abroad and the airport terminals still promoting ‘0% commission’ deals, it remains hard for consumers to understand exactly what rate they are getting. For the best currency deals and the greatest transparency consumers need to go online.”
MoneyHighStreet.com comments: “Growing numbers of holidaymakers are switching to use prepaid currency cards. Not only can they save money as covered above but they also offer the security of Chip and PIN and cash withdrawal, meaning you no longer need to take large amounts of currency with you when you travel.
“A FairFX Prepaid Mastercard would normally cost you £9.95 – but click on the link in this sentence and it’s free for Moneyhighstreet readers.
“Prepaid currency cards are a great way to handle money when you’re abroad, but they’re not the only thing you need to worry about when you travel.
“Check out our feature on 3 Things to Tick Off Before You Go On Holiday to find more of the best deals for when you travel.”