> Holiday makers could each lose out on over £120 this summer

> Regional airports rip off customers to the tune of 15%

Sun seekers heading abroad this summer could waste over £120* for every £1,000 of their holiday budget if they don’t buy their foreign currency from the cheapest provider.

As Britons look to stretch their holiday spending money that little bit further this year, FairFX.com are showing how using a prepaid currency card could give them an extra $209 or €143 for every £1,000 they spend.

Don’t be fooled

Unsurprisingly consumers are being misled by headline advertising for travel money such as “0% commission” or “no commission”, which often masks the true cost. Research shows that 44% of Britons think “0% commission” means the service is free, and almost six in 10 went on to base their travel money purchases on this misleading advertising.

The true cost to consumers is not only the advertised commission rate, but also how many Euros, Dollars or other currencies they receive for each pound exchanged, namely the exchange rate. In fact the true cost to consumers can range from 3% to 5% at High Street providers, 8% to 12% at London airports, and up to as much as 15% at some regional airports.

Stephen Heath, Chief Executive of FairFX.com, said: “No one likes to be fooled into buying something only to find out too late that they paid over the odds. ‘0%’ may well have become the standard advertising tag for currency providers, but savvy holidaymakers still have time to make the most of their holiday budget this summer.

“A prepaid card will give travellers not only the best rate available, but also added piece of mind. However, for those who want to take cash, make sure you shop around, by pre-ordering it online they could have an extra $209 or €143 with them when they jet off.”

Monday 29 June 2009, 05:30pm

Tags: birmingham airport, currency providers, currency rates, currency report, exchange rates, hidden charges, holiday charges

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

Tags: 0% commission, 0% myth, cash abroad, hidden charges, interest rate, opodo