Accommodation, car rental, airfare – these are some of the big-ticket items to budget and pay for when preparing for a trip. However, the most important, yet often overlooked aspect of planning a holiday is – your travel money. If you don’t get it right, you are risking throwing away a fortune. When you do get it right, you can prevent rip-offs and even save some money. Here are the top 6 travel money mistakes British holidaymakers should know about.
Buying money at the airport shouldn’t be on your list, except in the case of an emergency. The rates travellers get at airport exchange desks are very unfavourable. When we compare the average market rate to the airport exchange rate, you can get as much as 19 - 29% less money when exchanging your money here. For example, you could lose around £180 at the airport when exchanging £1,100 for euros.
For months now, the currency market has been volatile like never before. There is a lot of uncertainty around buying the local currency of your final destination. If you are lucky to buy a currency when the pound is doing well against it, you won’t be losing money. On the other hand, you will be losing money if you pick the wrong day.
Take the guesswork out. Lock the pound rate on your prepaid card the day it is doing well and you won’t have to worry about losing your hard-earned money when going abroad.
ATMs charge high withdrawal fees that can drain your money before you know it. You should check whether your card provider is a partner with ATMs at your travel destination. However, if you are using a credit card, you are going to get stung for exchange fees no matter whether it is on the partner list or not. It is always best to carry some back-up cash with you so you don’t have to use ATMs.
Paying in pounds may seem simpler when paying at a hotel or a bar but it would be better the other way. Pay in the local currency and you will avoid double conversion here. If you get the bill in pounds, write down “DCC rejected”. DCC stands for Dynamic Currency Conversion, a profit-generating scheme that costs travellers. You can avoid DCC completely by getting a prepaid currency card.
Street vendors are looking for a way to make some extra money. If you are a tourist without a clue as to where you should exchange your money, you will end up losing pounds this way. Buying from street vendors is not cost-effective at all but ordering your money and having it delivered to your door before travelling overseas is. You will get the best rates and save a lot of time and hassle.
Most British holidaymakers get back home with a decent amount of holiday cash. What to do with leftover currencies? Sell them! But sell them at the best rates. Alternatively, you can get a prepaid card and store your leftover money on it for your next trip.
With Ace-FX, you can get the best lock-in rates on your prepaid card, manage what you spend, have your travel cash delivered at your door, and even sell your leftover currencies. With us, you can avoid all of these travel money mistakes. Contact us for more info!