Holidays could cost less if you play your cards right

Sun seekers heading abroad this summer could waste over £120 for every £1,000 of their holiday budget if they don't buy their foreign currency from the cheapest provider.

As Britons look to stretch their holiday spending money that little bit further this year, FairFX.com are showing how using a prepaid currency card could give them an extra $209 or €143 for every £1,000 they spend.

Don't be fooled

Unsurprisingly consumers are being misled by headline advertising for travel money such as "0% commission" or "no commission", which often masks the true cost. Research shows that 44% of Britons think "0% commission" means the service is free, and almost six in 10 went on to base their travel money purchases on this misleading advertising.

The true cost to consumers is not only the advertised commission rate, but also how many Euros, Dollars or other currencies they receive for each pound exchanged, namely the exchange rate. In fact the true cost to consumers can range from 3% to 5% at High Street providers, 8% to 12% at London airports, and up to as much as 15% at some regional airports.

Stephen Heath, Chief Executive of FairFX.com, said: "No one likes to be fooled into buying something only to find out too late that they paid over the odds. ‘0%' may well have become the standard advertising tag for currency providers, but savvy holidaymakers still have time to make the most of their holiday budget this summer.

"A prepaid card will give travellers not only the best rate available, but also added piece of mind. However, for those who want to take cash, make sure you shop around, by pre-ordering it online they could have an extra $209 or €143 with them when they jet off."