The FairFX Press Releases Blog

Summer Holidays Could Cost Less, If Brits Play Their Cards Right

Mon, 29 Jun 2009 17:30:13 GMT

> Holiday makers could each lose out on over £120 this summer

> Regional airports rip off customers to the tune of 15%

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.”

Make Your Gap Year Wonga Last For Longer

Wed, 17 Jun 2009 14:03:30 GMT

> Stretch your gap year cash on a shoestring

> Save up to €300 or $400 with the FairFX.com currency card

Gap year travellers could be wasting up to €300 or $400 unknowingly by having the wrong foreign spending habits. A better choice of travel money could give their budget some much-needed extra stretch.

As more gap year travellers head abroad this year than ever before, due to university deferrals and redundancies, FairFX.com, the foreign currency specialist, provides some handy tips to make the most of their money:

1) Pre-trip research: research your trip before you go – it’ll be easier to work to a realistic budget. Look at approximately how much you'll need on a daily basis for food, accommodation and activities, and then multiply that by the number of days you will be away. It's often better to over-budget in case of emergencies.

2) Carrying cash: A pre-paid card is the most secure form of travel money, but take a wallet for loose change and everyday spending. Wear a secure money belt under clothing for your valuable documents and any other cash.

3) Extras: If you're planning to do any adrenaline-junkie sports or extra activities, you'll need to take this into account as they’re often quite pricey. Make sure you’ve covered this in your pre-trip budget.

Stephen Heath, Chief Executive of FairFX.com, said: "No one likes to find out too late they could have got a better deal. Anyone heading off now on a gap year could get an extra $426 or €307 if they use a FairFX.com pre-paid currency card (assuming an average spend of £4,000)."

Britons Declare “Every Penny Counts” ... But Don't Practice What They Preach

Tue, 26 May 2009 14:05:22 GMT

-69% of people say “every penny counts” when it comes to buying foreign currency

-Yet only 2% use the cheapest payment method for foreign currency – pre-paid currency cards

Despite the credit crunch putting a squeeze on everyone’s wallets new research from FairFX.com reveals British holiday makers still aren’t spending prudently abroad. 69% of people might say every penny counts when buying their foreign currency, but 98% still don’t use pre-paid currency cards – the cheapest way to spend abroad.

Two thirds (66%) prefer to spend foreign cash taken abroad with them, and a further 29% choose to withdraw foreign currency from a hole in the wall once they get overseas. Despite the extortionate fees involved, 21% of holidaymakers still choose to spend on their credit cards.

Stephen Heath, Chief Executive of FairFX.com, said: “Will 2009 be the year that travellers wake up to the savings they can make by using a pre-paid card for all their holiday spending? Two thirds of people might say every penny counts, but then don’t actually ensure they have the right tools to make it happen.

“A family of four could have an extra $300 or €200 to spend on their holiday this summer if they used a pre-paid card, more than enough to pay for a days entry for the whole family to Disneyland in Paris or Orlando.* What’s more, the FairFX.com card is the only card with no global surcharge.”

For example, a family of four planning to exchange £1,500 for their holiday, would get $2,347.50 or €1,691.25 using a FairFX.com card compared to only $2,170.35 or €1,575.15 if they exchanged at Heathrow airport.**

Before buying their holiday money just 9% of people check a comparison site, and 16% of people don’t bother to do anything and simply use the card they already have in their wallet – a costly mistake which will only come to light when they check the statement the following month.

58% say they look for a supplier that charges 0% commission when they get their holiday money, but simply opting for deals based on “0% commission” or “commission-free” doesn’t ensure the best rate of exchange, in fact in some instances they could lose up to 19% of their holiday cash value.

Sadly, a misplaced belief that there is little difference between the best and the worst rates (one in ten consumers), or the view that foreign travel is costly already so there is no point in penny pinching (one in twenty consumers), mean many people are simply not willing to shop around for their foreign currency despite the extra money they could have with minimal effort.

Stephen Heath, Chief Executive of FairFX.com, continued: “There seems to be quite a large divide between consumers’ desires to make the most of their cash, and the reality of their foreign spending habits.

“Many of us might intend to look for the best deals, but when it comes to the crunch people aren’t making the effort to get the best bang for their buck. But they might think twice if they knew they could save up to 18% if they use the FairFX.com card instead of changing their money at the airport – savings not to be sniffed at.“

FairFX.com Offers Holiday Makers $1.5 For Every £1, So Get Your Dollar deal Now Before Its Going Going Gone...

Wed, 06 May 2009 10:16:11 GMT

Anyone planning to spend dollars in the coming months is urged to get their cash immediately and lock in the fantastic rate of more than $1.5 for every £1* - only available from FairFX.com.

Stephen Heath, Chief Executive of FairFX.com, said: “Credit crunched holiday makers have had a tough time trying to stretch their finances of late, as the Pound’s continued decent against the Dollar and the Euro has made trips abroad even more expensive. However, there is some good news for anyone planning a trip to the states in the coming months – FairFX.com is offering the fantastic rate of $1.5 to £1.

“Savvy consumers looking to take advantage of this amazing rate should act quickly and buy their currency online now from FairFX.com – the only provider currently offering this rate. Even if they aren’t planning to use it for a while they should buy it now to take advantage of the rate and keep it until they want to start spending.

“Given the recent volatility in the currency market, anyone planning to spend US dollars in the coming months could save themselves a bundle by buying their currency online now while this great rate is available.”

Heathrow Flies Below Parity On Euro

Fri, 13 Mar 2009 15:15:48 GMT

Travellers flying from Heathrow could find buying their holiday money comes at a hefty price tag. New analysis from FairFX.com reveals anyone buying foreign currency from Heathrow Airport will get less than parity at just €0.9831 to £1.

Stephen Heath, Chief Executive of FairFX.com, said: “Following last week’s base rate cut and the introduction of quantitative easing, the Pound is being traded at just €1.0831 to £1. However, Brits buying their holiday spending money from Heathrow Airport will get even less bang for their buck, just €0.9831 to £1.

“Airport travel money bureaus have long taken advantage of travellers who leave buying their holiday cash until they reach the airport by offering far worse rates than outside the terminal. And now Heathrow Airport has become the biggest airport out of many to offer below parity.”

Currently, you can still get €1.0725 to £1 with the FairFX.com currency card, 7% above the average airport rate, and 9% better than Heathrow Airport.

FairFX.com and Matalan Team Up To Offer Holidaymakers A Free Fiver As Family Finances Come Under Increasing Pressure In 2009

Thu, 12 Feb 2009 12:06:22 GMT

To help Brits make the most of their holidays this year, FairFX.com is offering Matalan Reward Card holders a free prepaid currency card (normally costing £9.95) loaded with £5 to help them stretch their holiday spending money even further. This exclusive offer can be applied for online via Matalan.

Stephen Heath, Chief Executive of FairFX.com, said: “Brits are facing a tough year ahead and for many people holidays will be the last thing on their minds. While we can’t make the outlook for 2009 look any less gloomy, we can help people stretch their holiday spending money that little bit further by offering free FairFX.com cards preloaded with £5 to Matalan Reward Card holders.

“The FairFX.com currency card offers market leading exchange rates, secure access to cash worldwide and could save people up to €70 or $90 per £1,000 spent*; and now people can get the card for free with a fiver thrown in to boot there is no reason why holidaymakers can’t get the biggest bang for their buck with Matalan and FairX.com .

“FairFX.com’s new offering with Matalan is the next step in partnering with brands with a shared ethos. We share the same commitment in helping our customers get more for their money, be it on holiday or in the shops, in a fair and transparent way particularly in tougher economic times.”

How does the FairFX card work?

The FairFX Currency Card is a MasterCard chip and pin enabled prepaid debit card. It differs from regular debit cards in two ways. Firstly, the cards are issued in either Euros or US dollars and secondly, funds must be loaded onto the card before they are available to spend. The currency to be loaded is obtained simply by logging on to www.fairfx.com and can be paid for by any sterling debit or credit card or internet bank transfer.

Base Rate Drop Helps Sterling Rally - Holidaymakers will see Pounds stretch further

Thu, 05 Feb 2009 17:28:46 GMT

Commenting on the Pound’s recent rally, Stephen Heath, Chief Executive of FairFX.com, said: “There appears to have been a change of sentiment towards the Pound. Sterling is fighting back despite the base rate cuts, and today alone the Pound has strengthened from a low of $1.4365 to over $1.4650. Against the Euro, Sterling has appreciated from €1.12 to over €1.1440.

“The Pound has rallied 8.5 per cent against the Dollar since it bottomed out at $1.35 to £1 in January. There might finally be some good news for holidaymakers planning a trip to the Med, with the Pound gaining over 12 per cent against the Euro since December, when it traded down to an all time low of €1.02 to £1.”

Pound Trades Against DollarAt Lowest Levels Since 1985

Fri, 23 Jan 2009 15:44:48 GMT

Commenting on the Pound’s fall against the Dollar, Stephen Heath, Chief Executive of FairFX.com, said: “Sterling has continued to collapse against the Dollar falling to just $1.35 to £1 earlier today, its lowest rate since 1985. When measured against a basket of currencies Sterling has collapsed by approximately a quarter, more than any previous devaluation in the past century.

“The escalation in the banking crisis and news that we have officially entered recession has led to investors dumping Sterling in favor of more secure assets and the Pound falling to its lowest rate against the Dollar in almost a quarter of a century.“

Dollar Dashes Sterling Strength

Tue, 20 Jan 2009 16:49:10 GMT

Commenting on the Pound’s fall against the Dollar, Stephen Heath, Chief Executive of FairFX.com, said: “Despite getting off to a good start in 2009 the Pound looks to be in a sorry state again already, falling to just 1.3950 against the US Dollar – a seven year low – and 1.08 against the Euro. Sterling is also trading at an all time low against the Japanese Yen.

“After a horrific day for the UK banking industry yesterday, traders have failed to keep Sterling supported against the US Dollar. Investors around the world are beginning to cut exposure to the weakening UK economy and its distressed banking sector.

“We are close to the 2001 low of $1.3685 to £1, making the heady days of $2 to the Pound seems like a distant memory. The financial markets are expected to remain volatile at least for the first half of the year, and travellers should plan foreign currency purchases carefully to ensure they stretch their Pounds as far as possible. Brits would need a crystal ball to accurately predict the currency swings and roundabouts we are seeing at the moment, so until things settle down Brits should try to buy their currency in small increments on a periodic basis to try to protect their wallets from rate fluctuations.”

Sterling Rallies Amidst Base Rate Cuts

Thu, 08 Jan 2009 13:34:02 GMT

Commenting on the Pound’s further gains against the Euro, Stephen Heath, Chief Executive of FairFX.com, said: “The Pound has rallied amidst news of the base rate cut, gaining one per cent against both the Euro and the Dollar. The Pound is now trading at €1.1211 and $1.5232 to £1 – and it is expected to claw back further gains in the coming months as Europe and America start to look as vulnerable as rival economies.”

Sterling Set To Rise Phoenix-Like From The Ashes

Thu, 08 Jan 2009 09:20:39 GMT

Commenting on the Pound’s gains against the Euro, Stephen Heath, Chief Executive of FairFX.com, said: “The end of 2008 saw the Pound beaten down to a measly €1.0195 to £1 on 30th December. However, 2009 is looking brighter for the beleaguered currency and we have already seen gains of more than 7.5 per cent since the lows of December.

“In the past few days, investors have been selling Euro-based assets and have taken an interest in Sterling instead. By the end of yesterday, the Pound had clawed back another three cent on the Euro to reach €1.11 to £1.

“Analysts expect the Euro to remain weak in the short-term as the European economy looks as vulnerable as its rivals. And despite predictions of further interest rate easing by the European Central Bank, traders do not expect recent Euro gains to be sustained.

“Sterling has also rallied against the US Dollar and is now trading at $1.52 to £1 due to US confidence being hit by weak economic data and the Federal Reserve having hinted at concerns of deflation.”

Why Tell Banks Your Travel Plans?

Wed, 07 Jan 2009 13:54:24 GMT

Commenting on bank customers being asked to disclose travel plans to cut fraud, Stephen Heath, Chief Executive of FairFX.com, said: “There is no doubt any measures holidaymakers can take to reduce fraud are a good idea. Indeed, it is sound advice for all Brits planning to use credit cards abroad to alert providers before travelling to avoid cards being declined.

“However, time poor travellers who want to avoid the inconvenience of ringing their card provider each time they go abroad should consider using a prepaid currency card such as the FairFX.com Currency Card instead. The FairFX.com card is designed specifically for use abroad so people do not have to alert us when they travel.

“The FairFX.com card is also a safe way to spend abroad - the chip and PIN technology makes it much harder for fraudsters to clone cards and the fact it is prepaid, with no credit facility beyond that which is loaded onto the card, means potential losses are limited. The card is particularly useful for people planning to go to the States where chip and PIN hasn’t been introduced and fraud is much more prevalent.

“As well as being the most convenient option and offering superior fraud protection, the FairFX.com card also offers people the best bang for their buck. FairFX.com is currently offering €1.0825 to £1, and $1.4775 to £1 for every £200 exchanged, beating most other providers hands down.”

How Low Will It Go? Sterling falls to €1.1096 to £1

Mon, 15 Dec 2008 15:19:39 GMT

Commenting on the Pound falling to just €1.1096 to £1, Stephen Heath, Chief executive of FairFX.com, said: “For the first time since the launch of the Euro, Sterling has fallen below €1.11 to £1, and at €1.1096 to £1 it is at its weakest position. I fear we won’t have long to wait until we see the Pound fall to just €1 to £1, and perhaps slip even lower.

“Anyone who is planning to buy Euros in the near future should consider buying at least half their foreign money now before rates get even worse, and buy the rest later just in case Sterling regains some strength.”

Brits flying from Birmingham airport get just €1 to £1

Thu, 11 Dec 2008 17:40:03 GMT

Travellers flying from regional airports could find buying their foreign cash comes at a hefty price tag. New analysis from FairFX.com reveals changing £200 at Birmingham Airport will only get holiday makers €199 after charges – less than €1 for £1

Stephen Heath, Chief Executive of FairFX.com, said: "It's probably only a matter of time before the Pound weakens to a point of currency exchange rate parity with the Euro. However, Brits buying holiday spending money from Birmingham Airport will be faced with this dire exchange rate before the rest of the country, with Liverpool and Luton airports not far behind.

"This is because regional airports have long taken advantage of travellers who leave buying their holiday cash until they reach the airport by offering far worse rates than outside the terminal

"Brits planning a European skiing holiday in the New Year might want to buy half their Euros now at today's rates to limit the pain should Sterling fall even further, and the rest before they depart just in case Sterling should improve."

Currently, you can still get €1.12 to £1 with the FairFX.com currency card, seven per cent above the average airport rate, and 12 per cent better than Birmingham Airport.

Is Sterling Set For A Winter Of Discontent?

Fri, 05 Dec 2008 15:32:39 GMT

Commenting on the future of Sterling after yesterday's base rate cut, Stephen Heath, Chief executive of FairFX.com, said: "Yesterday was key for understanding where the Pound is heading. All the key technical indicators show we might see Sterling strengthen against the Dollar. However, November set a precedent and the markets are expected to rally behind the Pound if it falls to around $1.44 to £1.

"The $1.44 mark is currently a key technical trigger point for traders who will start to support Sterling heavily at that rate for the short to medium term. It is possible there will be further falls next year, but I doubt we will go below $1.30 to £1.

"As yet the Euro has not shown any sign of weakening against the Pound, so fundamentally we have no reason to expect Sterling to begin to strengthen against the Euro for a while to come.

"All in all the Pound isn’t looking strong, but the markets aren’t going to let it go under just yet."