FairFX Press Releases > Travel money Related Posts
In a recent survey published on Facebook, 1075 UK consumers answered whether or not they felt that travel money companies should be able to advertise ‘0% commission’ without disclosing that additional charges are built into exchange rates. A total of 1000 people – 93% of respondents agreed that “this leading form of advertising should be banned”.
In the UK, many big name travel money companies like Travelex, Marks & Spencer and the Post Office commonly use “0% commission” as a strapline to advertise their services. However, as this doesn’t reflect the true cost to the consumer, many travellers are now calling for this practice to be banned.
Some of the Facebook comments from participants included...
John Carter: “Why is there no regulator for this 0% commission claim? Especially with the Olympics coming up there is a great opportunity for UK Government to set a Kite Mark standard.”
Phil Higham: “Companies should be prepared to be open about ALL their charges so customers can make an informed decision.”
David Edwards: “Misleading advertising is wrong in any circumstances. With particular regard to foreign exchange it highlights our nation as ‘rip-off Britain’. It is perfectly acceptable for a service provider to charge a fee but that fee should be completely transparent and fair comparisons should be accessible in plain simple English.”
Stephen Heath, CEO of travel money card provider FairFX.com added: “It seems that the lack of transparency in this marketplace has hit a nerve with consumers, and that a campaign needs to be started to come up a better way of comparing the overall cost of travel money.”
Wednesday 22 June 2011, 09:27am
> Stretch your gap year cash on a shoestring
> Save up to €300 or $400 with the FairFX.com currency card
Gap year travellers could be wasting up to €300 or $400 unknowingly by having the wrong foreign spending habits. A better choice of travel money could give their budget some much-needed extra stretch.
As more gap year travellers head abroad this year than ever before, due to university deferrals and redundancies, FairFX.com, the foreign currency specialist, provides some handy tips to make the most of their money:
1) Pre-trip research: research your trip before you go – it’ll be easier to work to a realistic budget. Look at approximately how much you'll need on a daily basis for food, accommodation and activities, and then multiply that by the number of days you will be away. It's often better to over-budget in case of emergencies.
2) Carrying cash: A pre-paid card is the most secure form of travel money, but take a wallet for loose change and everyday spending. Wear a secure money belt under clothing for your valuable documents and any other cash.
3) Extras: If you're planning to do any adrenaline-junkie sports or extra activities, you'll need to take this into account as they’re often quite pricey. Make sure you’ve covered this in your pre-trip budget.
Stephen Heath, Chief Executive of FairFX.com, said: "No one likes to find out too late they could have got a better deal. Anyone heading off now on a gap year could get an extra $426 or €307 if they use a FairFX.com pre-paid currency card (assuming an average spend of £4,000)."
Wednesday 17 June 2009, 02:03pm
-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
Commenting on bank customers being asked to disclose travel plans to cut fraud, Stephen Heath, Chief Executive of FairFX.com, said: “There is no doubt any measures holidaymakers can take to reduce fraud are a good idea. Indeed, it is sound advice for all Brits planning to use credit cards abroad to alert providers before travelling to avoid cards being declined.
“However, time poor travellers who want to avoid the inconvenience of ringing their card provider each time they go abroad should consider using a prepaid currency card such as the FairFX.com Currency Card instead. The FairFX.com card is designed specifically for use abroad so people do not have to alert us when they travel.
“The FairFX.com card is also a safe way to spend abroad - the chip and PIN technology makes it much harder for fraudsters to clone cards and the fact it is prepaid, with no credit facility beyond that which is loaded onto the card, means potential losses are limited. The card is particularly useful for people planning to go to the States where chip and PIN hasn’t been introduced and fraud is much more prevalent.
“As well as being the most convenient option and offering superior fraud protection, the FairFX.com card also offers people the best bang for their buck. FairFX.com is currently offering €1.0825 to £1, and $1.4775 to £1 for every £200 exchanged, beating most other providers hands down.”
Wednesday 07 January 2009, 01:54pm
Online travel provider Opodo.co.uk, has teamed up with FairFX.com to make customers’ holiday Pounds go further with market leading exchange rates using the FairFX.com Currency Card.
Opodo customers can now obtain a free FairFX.com Currency Card (normally costing £9.95) denominated in Euros or US Dollars by applying online at www.opodo.co.uk under Travel Extras (pre-paid currency cards).
Stephen Heath, Chief Executive of FairFX.com, said: “For too long, customers have been getting a very poor deal when buying their holiday cash from currency exchange booths at UK airports. Also, they will have found advertising about the commission charged on currency purchases very confusing. However, Opodo and FairFX.com have formed this new partnership to help travellers looking for great value online not only for their holidays but their travel money as well.
“Opodo’s customers are savvy and expect convenience and good value, making FairFX.com the perfect partner. Whether people are looking for some winter sun or heading for the slopes, they should all be trying to get the most for their money, especially with the rising cost of living and strength of the Euro.
“The FairFX.com currency card offers market leading exchange rates, secure access to cash worldwide and could save people up to €100 or $120 per £1,000 spent; and now people can get the card for free there is nothing to stop them getting the most from their holiday spending money.
“FairFX.com’s partnership with Opodo is the next step in partnering with brands with a shared ethos. We are both committed to giving our customers the most for their money, in a fair and transparent way particularly in tougher economic times.”
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.
Tuesday 04 November 2008, 11:36am
• 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
• Last year Brits wasted £1.8 bn when spending abroad
• 56 per cent of travellers think foreign spending charges are unfair
Brits nipping off to NYC for a bit of Christmas shopping or jetting off to soak up some winter sun should be warned travellers wasted £1.8bn* when spending abroad in the last year.
Research conducted by YouGov on behalf of prepaid currency card provider FairFX Plc revealed Brits spent as much as £20bn cash and £10.3bn on credit and debit cards on foreign trips in the past 12 months.
However, sneaky charges imposed when withdrawing cash from foreign ATMs or using credit or debit cards mean Brits could unknowingly be wasting up to eight pence in every pound of their well-earned holiday cash. Indeed, the survey showed more than half (56 per cent) of travellers think these charges are unfair and one in 10 (11 per cent) find them confusing.
The research marks the launch of a unique new travel money service from FairFX Plc. The service is based around a brand new MasterCard card, the FairFX currency card, which is available in Euros and US dollars.
Typically, consumers buying currency before travel at the airport or on the 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. The reality is they are paying hidden costs by way of the poor rate of exchange they receive. The FairFX currency card is the first prepaid card to tackle this by providing a simpler, better deal for consumers.
Unlike a traditional debit or credit card FairFX offers greater fraud protection because the potential for loss is limited to any unused balance on the card – good news considering card fraud abroad has risen 126 per cent in the last year.**
Stephen Heath, Chief Executive of FairFX Plc, said: “Travellers get hit every way they turn when spending abroad. Either they have to rely on carrying unwieldy and unsecured amounts of cash, suffer punitive charges for withdrawing cash from ATMs or use a debit or credit card which not only inflicts more hefty charges but also subjects them to a growing risk of fraud.
“Prepaid currency cards are the modern way for consumers to spend money abroad. They are convenient, safe and in the case of the FairFX card, offer some of the best exchange rates around.”
The research also analysed how British travellers spend their holiday money. Handy cash is the preferred payment method for 74 per cent of Brits abroad, with 76 per cent saying they choose it for its convenience. 29 per cent spend on a Visa card, 25 per cent on a Maestro / Switch card and 22 per cent use a Mastercard.
With the growing use of prepay systems such as the Barclaycard One Pulse, more consumers than ever are expected to use prepaid currency cards for their holiday spending. FairFX’s research showed 40 per cent of Brits are prepared to consider using such a card.
Heath added: “We want to revolutionise the way currency is bought in the UK and launch a completely new proposition that is convenient and transparently-priced. Whatever people’s travel habits we expect a prepaid currency card will become the payment method of choice for savvy British travellers.”
FairFX offers an instant and simple-to-complete online application process. FairFX’s unique and innovative technology allows users simply to pre-load their card with a desired amount and use it when abroad as they would any debit card. Application and loading is all conducted online and users can check their balance whenever and wherever needed. FairFX will soon launch mobile top-ups via SMS.
Monday 19 November 2007, 10:52am
Latest 'Travel money' Posts
22 June 2011, 09:27am
17 June 2009, 02:03pm
26 May 2009, 02:05pm
07 January 2009, 01:54pm
04 November 2008, 11:36am
21 May 2008, 02:48pm
19 November 2007, 10:52am
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