Travel Money: Travel Money Frequently Asked Questions

Answers to Frequently Asked Questions

Where is the best place to buy my travel money?

You can buy travel money on the internet, on the high street, at the airport or even convert cash when you are abroad. However, if you really want to find the best deal then you should look online as this way you’ll find some of the best exchange rates and low commission fees - making your travel money cost less. If you decide to order your travel money online, there is also often a choice of home delivery or collection from branches or airports to make sure you safely have your travel money before you depart.

We recommend avoiding airports and local exchanges as the foreign exchange rates quoted here will be much worse, meaning you pay more for your foreign currency. If you are in a hurry, compare the rates on the high street before buying currency to make sure you get the best deal.

What should I be looking for when comparing travel money providers?

There are a couple of key things to look out for when comparing travel money providers, firstly the foreign exchange rate. This rate basically means the amount of foreign currency you can buy for £1. The higher the number, the better the rate. E.g. Provider A can give you $1.32 dollars for every £1, whereas provider B quotes and exchange rate of $1.38. By choosing Provider B you get the better exchange rate and more dollars for your pounds.

The second thing to think about is commission. Most providers don’t charge you commission these days, but some will still charge you a fee for exchanging currency, a commission fee. This is actually more common with travellers cheques than cash though.

Also, if you are buying online it is worth thinking about the delivery options. Most providers will give you free delivery if you spend over a certain amount, but there are some restrictions on delivering to a business address. So make sure you can be in to collect your money!

When I am looking for the best exchange rate, should I be looking for a higher or a lower rate?

When you are buying foreign currency, the best exchange rate will be the highest rate. However, remember to consider commission fees, as well as any other fees when you buy currency as this will impact on the overall conversion you receive.

Commission free buy back is a service offered by many travel money operators, and it is worth checking if your travel money provider offers this service when you initially buy currency.

Commission free buy back means that if you return from your trip with any excess foreign currency you can take it back to your travel money provider to exchange for pounds. No fee (commission) will be charged on the transaction, and the currency (dollars, Euros etc) will be converted at the quoted, daily buy back currency exchange rate of the provider.

What is the difference between a buy and a sell rate for currency exchange?

A sell rate is the foreign currency exchange rate when you buy foreign currency in exchange for pounds. Whereas a buy rate means the travel money provider will buy your foreign currency and give you pounds.

How often will the exchange rate change?

The foreign exchange markets vary continuously as does the exchange rate between different currencies. Your exposure to these fluctuations will depend on where you buy your travel money. If you buy currency online, you are likely to be quoted currency exchange rates over set time intervals, e.g. every 10 minutes. However, if you buy offline, at retailers such as the Post Office or M&S travel money booths you may be quoted a daily rate, allowing you to compare currency rates across different retailers in one day before you buy.

What are all the different products, and what are the best products to take with me?

There are a range of different travel money products: cash, foreign exchange currency cards and travellers cheques.

• Cash: It is always worth taking a small amount of cash with you on your travels, so you can pay for taxis, a coffee etc. at the airport and you are not stranded in a foreign currency with no money. However, avoid taking too much money as cash as if it is lost or stolen there is no chance of recovery.
• Foreign Exchange Currency Cards: These are still a relatively new phenomenon in the UK but are growing in popularity and it is easy to see why. These cards are powered by Visa or MasterCard and work just as a UK debit card would for payments and withdrawals. You pre-buy foreign currency at competitive exchange rates and then spend as you would with a debit card. Your money is secure, easily accessible and it is easy to top up. For more information visit our foreign exchange currency card pages.
• Travellers Cheques: Travellers cheques are currency denominated cheques which can be exchanged for cash in your destination country. They are primarily available in USD, GBP and Euros. The key advantage of travellers cheques has always been the security they offer. However, with the rise of foreign exchange currency cards a new secure, and more flexible, travel money option is here.

At Travel Money we recommend you taking a small amount of cash and a foreign exchange currency card. Then you can pay for initial, small purchases with cash while keeping your travel money secure and accessible.

Why do I need travel money, can I not just use my bank cards abroad?

You can use your UK bank cards abroad, you will just need to look out for the Visa, Mastercard, Amex etc. logo. When you use your cards abroad, you will be subject to some additional fees though, mainly a commission fee and foreign exchange loading charge making your purchases that bit more expensive.

The commission fee is a small fee for every purchase or ATM withdrawal and is usually a couple of pounds. However, as the size of your purchase increases so does the fee.

Foreign exchange loading fees make up the foreign exchange rate quoted on your bank statement, as the bank and the card operator will take a fee for the transaction. As a result these exchange rates are often worse than the rate you would have been given if you exchanged your money before you left. There are a couple of cards which give you a good deal abroad, mainly Santander’s Zero card and the Post Office Classic Card. However, do check the rates before you go and never, ever withdraw cash on a credit card abroad. You will be charged interest on this withdrawal whether you pay it back in time or not.

If you do plan to use your card abroad, make sure you notify your bank before you leave, otherwise your card may be locked over concerns of fraudulent activity. This is usually simple to do, either online or a quick phone call, and is worth the effort to protect your money.

What is dynamic currency exchange?

When you are making card purchases abroad you may be asked if you want to choose the currency in which you pay. This is dynamic currency exchange and should always be avoided.You will not be quoted an exchange rate and will often be given a very poor rate, meaning you pay more for your purchase.

I have heard of Foreign Currency Exchange Specialists, can I use them for my travel money?

Foreign currency exchange specialists are typically used for much larger transactions than your average requirements for holiday or travel. Conversions are typically in the region of £3,000+ catering to people emigrating, migrating capital to a foreign bank, purchasing property etc. For more information take a look at the money transfer FAQs or our comparison tables.

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