How ‘0% commission’ SCAM could be costing you over £100 of your holiday money
HOLIDAY money exchange booths such as travel bureau and airports often offer ‘0 per cent commission’. However, new research reveals that the scam could be hiding fees which cost holidaymakers an extra £100 without even realising.
Travel money scams could be costing travellers up to £100 of their holiday money
Holiday money before a trip abroad can easily be exchanged now with travel bureaus and supermarkets.
Of course, certain places will always charge a higher rate, such as certain chains and airports.
Some even offer ‘0 per cent commission’, leading travellers to believe they are grabbing a bargain.
However, a recent investigation has found that this is, in fact, the opposite.
Currency expert FairFX found that the zero per cent commission con is stinging holidaymakers with other fees to make extra money from the exchanges
Some providers have been known to add on other admin fees of up to five per cent, which goes as high as a whopping 20 per cent when exchanging pounds at airports.
If Britons heading on holiday were to exchange £500 into euros at the airport, this could mean an additional £100 is lost when converting the cash even if it states it takes no commission.
If exchanging the same rate at some high street and holiday chains, travellers could still be losing between £8 and £23 when using zero commission branches.
Travel money exchanges that offer 0% commission could still hide extra charges
They get away with it as these fees won’t be called ‘commission’ but perhaps a currency or conversion fee
Ian Strafford-Taylor, CEO of currency expert FairFX, commented on the findings: “The crux of the matter is that the rates offered by these providers up and down the country already have fees built in so this is nothing but a smoke-and-mirrors sales tactic.
“They get away with it as these fees won’t be called ‘commission’ but perhaps a currency or conversion fee.
“It would be the equivalent of signing up to a broadband provider which offers free line rental but then charges a monthly admin fee; you’re still paying it but it’s hidden under a different guise.
“Consumers deserve transparency with upfront rates and no hidden fees so they understand exactly what they’re buying into.”
Travel money hidden fees are the worst at certain airports, up to twenty per cent
Holidaymakers can easily avoid being caught out by additional costs even when they’re on holiday.
The biggest switch that Britons can make is alway paying in the local currency when using a cash machine.
This then avoids sky-high conversion fees the card provider will usually charge.