BEWARE THE REGIONAL AIRPORTS’ CURRENCY RIP OFF

• 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

Tags: airports, cash abroad, currency, exchange rates, foreign, heathrow, holiday, london city, luton, opodo