FairFX Press Releases > Cash abroad Related Posts
-69% of people say “every penny counts” when it comes to buying foreign currency
-Yet only 2% use the cheapest payment method for foreign currency – pre-paid currency cards
Despite the credit crunch putting a squeeze on everyone’s wallets new research from FairFX.com reveals British holiday makers still aren’t spending prudently abroad. 69% of people might say every penny counts when buying their foreign currency, but 98% still don’t use pre-paid currency cards – the cheapest way to spend abroad.
Two thirds (66%) prefer to spend foreign cash taken abroad with them, and a further 29% choose to withdraw foreign currency from a hole in the wall once they get overseas. Despite the extortionate fees involved, 21% of holidaymakers still choose to spend on their credit cards.
Stephen Heath, Chief Executive of FairFX.com, said: “Will 2009 be the year that travellers wake up to the savings they can make by using a pre-paid card for all their holiday spending? Two thirds of people might say every penny counts, but then don’t actually ensure they have the right tools to make it happen.
“A family of four could have an extra $300 or €200 to spend on their holiday this summer if they used a pre-paid card, more than enough to pay for a days entry for the whole family to Disneyland in Paris or Orlando.* What’s more, the FairFX.com card is the only card with no global surcharge.”
For example, a family of four planning to exchange £1,500 for their holiday, would get $2,347.50 or €1,691.25 using a FairFX.com card compared to only $2,170.35 or €1,575.15 if they exchanged at Heathrow airport.**
Before buying their holiday money just 9% of people check a comparison site, and 16% of people don’t bother to do anything and simply use the card they already have in their wallet – a costly mistake which will only come to light when they check the statement the following month.
58% say they look for a supplier that charges 0% commission when they get their holiday money, but simply opting for deals based on “0% commission” or “commission-free” doesn’t ensure the best rate of exchange, in fact in some instances they could lose up to 19% of their holiday cash value.
Sadly, a misplaced belief that there is little difference between the best and the worst rates (one in ten consumers), or the view that foreign travel is costly already so there is no point in penny pinching (one in twenty consumers), mean many people are simply not willing to shop around for their foreign currency despite the extra money they could have with minimal effort.
Stephen Heath, Chief Executive of FairFX.com, continued: “There seems to be quite a large divide between consumers’ desires to make the most of their cash, and the reality of their foreign spending habits.
“Many of us might intend to look for the best deals, but when it comes to the crunch people aren’t making the effort to get the best bang for their buck. But they might think twice if they knew they could save up to 18% if they use the FairFX.com card instead of changing their money at the airport – savings not to be sniffed at.“
Tuesday 26 May 2009, 02:05pm
As celebrities and media moguls flock to Venice, the ‘City of Water’, for the Annual Venice Film Festival starting 27th August, how they will pay their way during the celebrations is unlikely to worry to them.
However, mere mortals escaping to the city would be wise to ensure they’ve secured the best currency deal available to help them get the most out of their Euros while enjoying the festival.
FairFX.com offers Brits the best return on their cash, and any extra Euros are sure to come in handy when stretching their spending money as far as possible – especially as the Euro remains so strong against the Pound. Indeed, festival-goers could get an extra €41.10 for every £500 they spend if they use the FairFX.com currency card instead of waiting until they hit the airport to get their spending money.
Stephen Heath, Chief Executive of FairFX.com, said: “Anyone heading to Venice for the film festival this summer should make sure they pack their FairFX.com currency card if they want to stretch their Euros as far as possible.
“Brits will be keen to get the best rate possible for any trips to Europe at the moment. The spiralling cost of living combined with the strength of the Euro against the Pound has made the traditional cheap European mini-break increasingly expensive. Indeed, for many people a last minute jaunt to the Med might be out of the question due to rising costs.
“And I would warn anyone planning to get their Euros from the airport to think again. Brits who get their currency from the usual places like the airport, high street, or using their bank’s debit or credit cards overseas, may believe they are getting ‘0 per cent cost’ or ‘0 per cent commission’ foreign currency. However, the reality is they are paying hidden costs by way of the poor rate of exchange they receive.”
Stephen added: “Even celebs should think about where they are wasting their money. An entourage of 6 staying at a top Venetian hotel* could spend £10,400 on a week’s stay. However, they would have an extra €855 left over if they paid for their rooms with the FairFX.com card instead of using foreign currency purchased at the airport. Even film stars might be swayed by savings like these.”
Tuesday 26 August 2008, 10:35am
Want to hear more about the myth of ‘0 per cent commission’ charged by foreign currency providers? Looking for an expert to comment on foreign currency exchange issues? Want someone to identify and explain the cheapest ways for people to spend money abroad?
Perhaps you’re looking for comment on:
• Foreign currency exchange rates
• Hidden charges levied on foreign currency purchases by providers
• The myth of 0 per cent currency exchange commission
• Pre-paid cards or foreign currency cards
• Pre-paid cards versus debit/credit cards
• Brits spending habits abroad
• New innovations in the foreign spending arena
• Top tips for getting more for your money when abroad
FairFX Plc is an internet based foreign exchange business with a technology platform that provides UK travellers with market leading foreign exchange rates. FairFX's core product is the FairFX Currency Card which is denominated in Euros and US$. The card is a Prepaid MasterCard issued by Newcastle Building Society.
Customers can buy online using debit/credit cards or internet bank transfers. By eliminating traditional methods of providing foreign currency such as Travel Money bureaus and kiosks, customers are offered business level foreign exchange rates rather than paying up to three per cent on typical UK Bank debit card usage, five per cent more on the High Street, or even up to 12 per cent more at UK airports.
FairFX has been established by a group of people committed to giving the consumer a fair deal. The business is owned by very experienced private investors and Directors. All FairFX Directors are substantial investors in the Company. FairFX is a Public Limited Company and has a Money Service Provider Licence issued by HMRC (Her Majesty's Revenue and Customs).
Monday 23 June 2008, 05:08pm
• Luton, Newcastle, Liverpool, Leeds, and City are UK’s most expensive airports for foreign currency purchase*
• Save 11 per cent on foreign currency by buying online
• Strong Euro makes summer sunshine breaks dearer
Credit crunched British families planning a break in the Spanish sunshine face a double blow this half term. Faced with a weak Pound against the Euro and extortionate airport currency exchange rates their holiday money might not stretch as far as hoped.
Brits flying from Luton, Newcastle, Liverpool, Leeds, and City airports could be paying well over the odds for their holiday money. Prepaid currency card provider FairFX.com has discovered these airports are the most expensive UK departure points for buying foreign currency ahead of the half term rush to sunnier climes.**
Travellers planning to head abroad over the summer half term holidays could be paying as much as 11 per cent more for foreign currency if they leave it until they get to the airport compared to organising beforehand.
FairFX.com’s league of the UK’s most expensive foreign exchange bureaux: 1 Luton, ICE 2= Newcastle, Travelex 2= Liverpool, Travelex 2= Leeds, Travelex 2= City, Travelex 2= Bristol, Travelex 7 East Midlands, Travelex 8 Birmingham, Travelex 9 Birmingham, ICE 10 Edinburgh, Travelex
Indeed, many travel money providers claim they offer travellers 0 per cent commission but, as the FairFX.com analysis shows, this hides the true margins they add to wholesale currency rates when providing foreign exchange for travel purposes.
According to research*** conducted for FairFX.com by YouGov three quarters (74 per cent) of travellers typically use cash when they spend abroad. Travel cash bought outside of the airport can also be overpriced. Most high street providers charge, on average, a five per cent premium. The one in four Brits who favour plastic (29 per cent with Visa, 25 per cent with a debit card and 22 per cent with MasterCard) will also be paying a premium to use their cards abroad, usually around three per cent.
Prepaid currency cards offer a different solution. They work just like a debit card but can be topped up via the internet or by text. The FairFX currency card offers rates for Euros and US dollars at less than one per cent margin above wholesale rates – i.e. giving all users ‘business’ level foreign exchange rates.
Stephen Heath, Chief Executive of FairFX.com, said: “Since the second half of April the Pound has gained over a 2.5 per cent against the Euro and lost over a 2.5 per cent against the Dollar. Despite the Pound’s current weakness we will hopefully see some better rates for holidaymakers travelling to the Euro-Zone in the next few weeks, but this is of little help to hard up Brits going away now.
“Most providers rely on the fact holidaymakers will be in a complete rush when preparing for a trip abroad, and either fail to organise currency before they get to the airport or opt to use costly credit or debit cards for their foreign spending. Our analysis shows to what extent this approach could be costing travellers dear.
“Whichever way you look at it UK travellers are losing out when they buy currency.”
How does the FairFX card work? The FairFX Currency Card is a MasterCard chip and pin enabled prepaid debit card. It differs from regular debit cards in two ways. Firstly, the cards are issued in either Euros or US dollars and secondly, funds must be loaded onto the card before they are available to spend. The currency to be loaded is obtained simply by logging on to www.fairfx.com and can be paid for by any sterling debit or credit card or internet bank transfer.
- All airport currency exchange rates are indicative of ‘walk up’ rates *See Airport Tracker above *Research conducted by YouGov Plc among 2,177 GB adults. Fieldwork was undertaken between 28th - 30th August 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Wednesday 21 May 2008, 02:48pm
• Bristol, Luton, Birmingham and London City are UK’s most expensive airports for foreign currency purchase
• Save 11 per cent on foreign currency by buying online
Brits flying from Bristol, Luton, Birmingham and London City airports could be paying well over the odds for their holiday money. Prepaid currency card provider FairFX.com has discovered these airports are the most expensive UK departure points for buying foreign currency.*
FairFX.com’s research reveals British travellers planning to hit the beach or slopes this Easter holidays could be paying as much as 11 per cent more for foreign currency if they leave it until they get to the airport compared to organising beforehand.
FairFX.com’s league of the UK’s most expensive foreign exchange bureaux:
1= Travelex, Luton
1= Travelex, Bristol
1= Travelex, London City
1= Travelex, Birmingham
5= Travelex, Leeds
5= Travelex, Liverpool
7= Travelex, Belfast
8 ICE, Manchester
9 Travelex, East Midlands
10 Travelex, Newcastle
Indeed, many travel money providers claim they offer travellers 0 per cent commission but, as the FairFX.com analysis shows, this hides the true margins they add to wholesale currency rates when providing foreign exchange for travel purposes.
Over the last 15 months the average profit margin on currency bought at UK airports is around seven per cent. However, while Heathrow typically offers the cheapest currency, the figures show customers using regional airports like Luton, Birmingham, Manchester or Bristol could needlessly be paying as much as 11 per cent for their ‘0 per cent commission’ currency.
According to research** conducted for FairFX.com by YouGov three quarters (74 per cent) of travellers typically use cash when they spend abroad. Travel cash bought outside of the airport can also be overpriced. Most high street providers charge, on average, a five per cent premium. The one in four Brits who favour plastic (29 per cent with Visa, 25 per cent with a debit card and 22 per cent with Mastercard) will also be paying a premium to use their cards abroad, usually around three per cent.
Prepaid currency cards offer a different solution. They work just like a debit card but can be topped up via the internet or by text. The FairFX currency card offers rates for Euros and US dollars at less than one per cent margin above wholesale rates – i.e. giving all users ‘business’ level foreign exchange rates.
Stephen Heath, Chief Executive of FairFX.com, said: “Whichever way you look at it UK travellers are losing out when they buy currency. Most providers rely on the fact holidaymakers will be in a complete rush when preparing for a trip abroad, and either fail to organise currency before they get to the airport or opt to use costly credit or debit cards for their foreign spending. Our analysis shows to what extent this approach could be costing travellers dear.”
How does the FairFX card work? The FairFX Currency Card is a MasterCard chip and pin enabled prepaid debit card. It differs from regular debit cards in two ways. Firstly, the cards are issued in either Euros or US dollars and secondly, funds must be loaded onto the card before they are available to spend. The currency to be loaded is obtained simply by logging on to www.fairfx.com and can be paid for by any sterling debit or credit card or internet bank transfer.
See Airport Tracker above *Research conducted by YouGov Plc among 2,177 GB adults. Fieldwork was undertaken between 28th - 30th August 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Friday 28 March 2008, 10:21am
Commenting on Thomas Cook’s new financial services push and its credit card, Stephen Heath, Chief Executive of FairFX.com, said: “Customers should beware if they plan to use this card for their holiday spending. Despite boasting three months interest free on purchases, the interest rate increases to an eye watering 17.9 per cent after that.
“Brits booking their holidays now should also be aware the consultants pushing these credit cards will be paid £10 for every application they get - regardless of whether the person is accepted or not.
“Brits looking for the best and most transparent way to spend their cash abroad should consider using a pre-paid currency card. They could save themselves a bundle compared with using a credit card with a typical rate of interest, and pre-paid cards offer added security when spending abroad or shopping over the internet.”
The FairFX Currency Card is a MasterCard chip and pin enabled prepaid debit card. It differs from regular debit cards in two ways. Firstly, the cards are issued in either Euros or US dollars and secondly, funds must be loaded onto the card before they are available to spend. The currency to be loaded is obtained simply by logging on to www.fairfx.com and can be paid for by any sterling debit or credit card or internet bank transfer.
Thursday 20 March 2008, 01:21pm
Latest 'Cash abroad' Posts
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26 August 2008, 10:35am
23 June 2008, 05:08pm
21 May 2008, 02:48pm
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