Cash, Cards or Travellers Cheques? Planning your holiday expenditure in advance can save you unnecessary costs and charges this summer says No.1 Currency.
Many of us have had our holiday plans booked for sometime now. We often spend ages shopping around to find the best holiday deal, but then forget about getting the best deal when it comes to buying foreign currency.
Recent research from No.1 Currency suggests that we are being charged far more than we should for our foreign currency and purchases while on holiday.
When it comes to holiday spending there are number options open to us, from credit and debit cards, travellers cheques, and prepaid cards to good old fashioned cash. Each option has pros and cons to watch out for.
Knowing which option to use for a particular purchase will save you paying through the nose for your currency and avoiding unnecessary charges.
For a typical holiday spend of £500, shopping around to find the best deal can save as much as £35, when comparing various bank and bureau de change rates.
Here’s how it works.
Credit and Debit Cards:
Using credit and debit cards to make purchases abroad offers the most convenient and hassle free method of shopping. However, beware of hidden charges which will occur with every transaction you make.
Consumer groups are concerned that major banks are using a number techniques to squeeze more money out of holidaymakers relying on their banks cards this summer.
Most card companies charge two types of fees for the use of plastic abroad. Firstly a loading fee, this is similar to a currency conversion fee, typically at 2.75%. And a second charge is added for the transaction itself.
For an average spend of £500 on holiday, people who use credit ands debit cards face additional charges of up to £20.
For larger purchases abroad, £100 or more, using a credit card is a safe option as your purchase will be protected against faults by the Consumer Credit Act, but don’t forget to pay this off as soon as you return.
ATMs:
Using bank cards to withdraw money from an ATM is an expressive method of obtaining local currency. Not only does this option incur a 2.75% loading fee but most banks charge a handling fee of up to 2%.
The transaction costs of withdrawing the equivalent of £100 from an overseas ATM can be as much as £5. For some banks this charge can be even higher.
Using a credit card to make a withdrawal from an ATM should be avoided at all costs. It is the most expensive option for obtaining your cash, and interest will be charged from the date you withdraw the cash.
Travellers Cheques:
Travellers cheques have been largely superseded by plastic; however they still remain the safest way to take your money abroad. If lost or stolen, travellers cheques can be replaced and unlike credit and debit cards they are not linked to your bank.
Despite their risk free value, using travellers cheques is the most time consuming option for obtaining local currency and can be equally as costly.
You are usually charged commission when you buy them, and may have to pay a further commission when cashing them at your destination.
Prepaid Cards:
More recently there has been an option available on the market which allows you to combine the safety of travellers cheques with the convenience of bank cards; these are known as prepaid cards, or cash passports.
These cards require you to preload money onto the card before you travel, allowing you to use it as if it were a debit card for purchases and ATM withdrawals.
However, these cards also include a number of charges such as issue fees, loading and reloading fees as well as transaction charges. In essence you pay handsomely for this low risk, high convenience option.
Cash:
Cash is an essential item on your holiday check list and it’s always handy to have a bit of local currency when you arrive. Even for an all inclusive holiday package it’s worthwhile having a bit of spending money for drinks, excursions and gifts.
For small everyday items cash is crucial as it avoids surplus charges incurred by credit and debit cards, prepaid cards and even travellers cheques.
There are several options available for obtaining cash, these include getting it from your local high street provider, changing it at the airport or waiting until you’ve arrived.
There are huge variations between different Bureau de Change providers, choosing the right supplier can save you up £35 when changing £500 into foreign currency.
Leaving it until you get to the airport or using bureaux in touristy locations is an expensive method of obtaining local currency and can leave you feeling short changed.
According the foreign currency specialist, Mark McElney, getting cash before you go on holiday is essential.
“Most people do not shop around to find the best rate of exchange for their money, leaving it until they get to the airport or choosing to rely on their bank cards. This is costing them far more than it should.”
Shopping around to find the best deal on your local high street is by far the best option when it comes to buying foreign currency. This can be done by comparing exchange rates, commission charges and the option of a buy-back service.
If you’re still unsure which operator is offering the best deal, a safe bet is to seek advice from your local foreign currency specialist.
The Best Option:
According to Mark McElney of No.1 Currency, when it comes to spending holiday money, cash is still king.
“For everyday purchases on holiday, taking cash before you go will not only save time and hassle when you get there but it will actually save you money in the long run.”
“These days every hotel, apartment and villa has a security box to keep your money and passports safe, so the risk of carrying cash is greatly reduced.”
“Although taking your bank cards away with you, as an emergency back up, is advisable, good old fashioned cash remains No.1 on the holiday check list for foreign currency.”
Visit www.no1currency.co.uk for more information
Showing posts with label No.1 Currency. Show all posts
Showing posts with label No.1 Currency. Show all posts
Tuesday, 16 September 2008
Monday, 25 August 2008
No.1 CURRENCY PROTECTS BUSINESSES FROM CURRENCY FLUCTUATIONS
Recent research from No.1 Currency indicates that tough times lie ahead for Scottish businesses involved in international trade, as the pound falls to its lowest ever value against the euro.
According to No.1 Currency, businesses which rely on the import of international goods, to Scotland will struggle as the pound plummets in value.
Currency fluctuations can make a significant impact on business profits, especially for those small and medium-sized enterprises (SMEs) with typically low profit margins.
The down turn in the economy is having its biggest impact on local businesses trading from Scotland who have failed to protect themselves against currency fluctuations.
But Scotland is not alone, it is estimated that 60% of SMEs in the UK, that conduct some of their business in a foreign currency, have no formal strategy to manage the risks of the foreign exchange (FX) market.
Mark McElney of No.1 Currency, said, “International commerce has increased, both across the UK and here in Scotland. It is vital that all companies that rely on international export and import or deal in foreign currencies protect themselves against the risks of the FX market”
Scotland’s smaller and unprotected trade businesses, who rely on importing goods, will suffer the most from the current state of the economic climate.
At the beginning of the year, a company importing €100,000 worth of widgets would have cost approximately £70,000, however, today this import would cost £80,000.
For smaller companies with a low profit margin, this £10,000 extra cost to purchase widgets from abroad, could seriously affect the business’ bottom line.
For those forward thinking companies, Edinburgh-based No.1 Currency, a leading international foreign currency specialist, has been protecting Scottish businesses of all sizes from this down turn in the economy with its forward contract options.
A forward contact allows a company to fix an exchange rate up to year in advance. This enables companies to lock into favourable exchange rates, while providing the added security of knowing exactly how much a future transaction will cost.
Mr McElney said “Few companies these days are truly isolated from the volatilities of the FX market. Those companies with a direct involvement have a duty to protect themselves.”
“The forward contract is the most widely used option for currency hedging, this is because, at no cost to the customer, we provide a risk-free predetermined exchange rate.”
“Essentially we take on the currency fluctuation risk involved with the transaction, allowing our clients to plan and forecast their finances in a secured environment.”
Visit http://www.no1currency.com/ for more information
According to No.1 Currency, businesses which rely on the import of international goods, to Scotland will struggle as the pound plummets in value.
Currency fluctuations can make a significant impact on business profits, especially for those small and medium-sized enterprises (SMEs) with typically low profit margins.
The down turn in the economy is having its biggest impact on local businesses trading from Scotland who have failed to protect themselves against currency fluctuations.
But Scotland is not alone, it is estimated that 60% of SMEs in the UK, that conduct some of their business in a foreign currency, have no formal strategy to manage the risks of the foreign exchange (FX) market.
Mark McElney of No.1 Currency, said, “International commerce has increased, both across the UK and here in Scotland. It is vital that all companies that rely on international export and import or deal in foreign currencies protect themselves against the risks of the FX market”
Scotland’s smaller and unprotected trade businesses, who rely on importing goods, will suffer the most from the current state of the economic climate.
At the beginning of the year, a company importing €100,000 worth of widgets would have cost approximately £70,000, however, today this import would cost £80,000.
For smaller companies with a low profit margin, this £10,000 extra cost to purchase widgets from abroad, could seriously affect the business’ bottom line.
For those forward thinking companies, Edinburgh-based No.1 Currency, a leading international foreign currency specialist, has been protecting Scottish businesses of all sizes from this down turn in the economy with its forward contract options.
A forward contact allows a company to fix an exchange rate up to year in advance. This enables companies to lock into favourable exchange rates, while providing the added security of knowing exactly how much a future transaction will cost.
Mr McElney said “Few companies these days are truly isolated from the volatilities of the FX market. Those companies with a direct involvement have a duty to protect themselves.”
“The forward contract is the most widely used option for currency hedging, this is because, at no cost to the customer, we provide a risk-free predetermined exchange rate.”
“Essentially we take on the currency fluctuation risk involved with the transaction, allowing our clients to plan and forecast their finances in a secured environment.”
Visit http://www.no1currency.com/ for more information
Thursday, 14 August 2008
Holiday Money - No.1 Currency Gets You More
As the pound falls to its lowest ever value against the euro, research from No.1 Currency shows its set to be an expensive summer for Scots holidaying throughout most of Europe this year.
High exchange rates coupled with steep bank charges for the use of credit and debit cards in foreign destinations mean that Scots will now be paying around 17% more for holiday expenses than they did at the start of 2007.
No.1 Currency, a leading international foreign currency service, can save Scots as much as 11% by changing their money before they get to the airport.
Founder and Managing Director of No.1 Currency, Mark McElney said, “Most people do not shop around to find the best rate of exchange for their money, leaving it until they get to the airport or choosing to rely on their bank cards. This is costing them far more than it should.”
No.1 Currency, recently listed as one of the top 100 fastest growing private companies in the UK, has a network of 245 Bureau de Change franchised outlets across the UK, offering the most competitive currency exchanges rates on the high street.
“We are the only foreign exchange service to use a franchise Bureau de Change model. This saves huge amounts in overheads and set up costs. We pass this saving onto our customers.”
With the use of travellers’ cheques diminishing and high bank charges for using plastic to make ATM withdrawals abroad, getting cash before you go is still an essential item on most people’s holiday check list.
Most people tend to change their holiday money with their bank or use the bureaux at the airport, however changing money at the airport drives up expenses because banks and foreign exchange outlets share a percentage of their income with the airport operator.
“With our unique franchise business model, 0% commission and the most competitive exchange rates in the marketplace, we can undercut our competitors considerably.”
The average Scot takes around £500 in cash for a week’s holiday to the continent. With an average* exchange rate of €1.236 to the Pound, No.1 Currency customers get €618 for their holiday money.
No.1 Currency operates 77 Bureau de Change outlets in Scotland alone, from Inverness to the Borders. These outlets can be found in all major cities and towns across Scotland. Visit www.no1currency.com to find your nearest store.
High exchange rates coupled with steep bank charges for the use of credit and debit cards in foreign destinations mean that Scots will now be paying around 17% more for holiday expenses than they did at the start of 2007.
No.1 Currency, a leading international foreign currency service, can save Scots as much as 11% by changing their money before they get to the airport.
Founder and Managing Director of No.1 Currency, Mark McElney said, “Most people do not shop around to find the best rate of exchange for their money, leaving it until they get to the airport or choosing to rely on their bank cards. This is costing them far more than it should.”
No.1 Currency, recently listed as one of the top 100 fastest growing private companies in the UK, has a network of 245 Bureau de Change franchised outlets across the UK, offering the most competitive currency exchanges rates on the high street.
“We are the only foreign exchange service to use a franchise Bureau de Change model. This saves huge amounts in overheads and set up costs. We pass this saving onto our customers.”
With the use of travellers’ cheques diminishing and high bank charges for using plastic to make ATM withdrawals abroad, getting cash before you go is still an essential item on most people’s holiday check list.
Most people tend to change their holiday money with their bank or use the bureaux at the airport, however changing money at the airport drives up expenses because banks and foreign exchange outlets share a percentage of their income with the airport operator.
“With our unique franchise business model, 0% commission and the most competitive exchange rates in the marketplace, we can undercut our competitors considerably.”
The average Scot takes around £500 in cash for a week’s holiday to the continent. With an average* exchange rate of €1.236 to the Pound, No.1 Currency customers get €618 for their holiday money.
No.1 Currency operates 77 Bureau de Change outlets in Scotland alone, from Inverness to the Borders. These outlets can be found in all major cities and towns across Scotland. Visit www.no1currency.com to find your nearest store.
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