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Travellers use currency cards to beat falling pound
Sri Carmichael, Consumer Affairs Reporter25.02.09
TENS of thousands of consumers are buying dollars and euros on currency cards to avoid high airport rates.
The new prepay cards are more than six per cent cheaper than most airport bureaux de change and can be used like a debit card in America and Europe.
They are also being used by holidaymakers who fear the pound could fall further against the dollar.
FairFX, one of the largest brokers, took on nearly 60 per cent more card customers last month than December.
High street lenders offer the prepay cards but business at specialist card brokers has surged since the banking collapse hit customer confidence.
FairFX chief executive Stephen Heath said: "The consumer mindset has shifted towards 'every penny counts' as people try to offset the rising cost of living by planning ahead."
He said that the tiny FairFX overheads - with only 15 staff - meant it had better rates than most banks and airport exchanges.
Last night it was offering 1.12 euros to the pound compared with 1.05 at Travelex in Heathrow Terminal 5.
The surge in popularity also comes amid fears of volatility in the currency markets. The pound is hovering at $1.40 but could slump to $1.30 by August - meaning holidaymakers would gain £50 extra by buying £500 of dollars now.
Freelance journalist Barry Keevins, 37, claims he has saved hundreds of pounds in the last few months by using his currency card instead of a credit card for shopping online.
Mr Keevins, from Catford, said: "British credit cards charge a transaction fee and offer a worse exchange rate. I think I probably save around £2 on every transaction."
Travelex said airport outlets have high rent and staffing costs, which are included in exchange rates.
The currency cards are affiliated to MasterCard.
The FairFX card costs £9.95 from the firm's website but is free via sites including moneysupermarket.com and moneysavingexpert.com.
Reader views (2)
The Banks always always charge more and try to give the impression that you have no choice. The same with the change buerues at the airports, which you would be a mug to use anyway. The same as duty free where the tax savings go into the shops coffers and you get no saving at all.
- Nick, London
Don't forget your friendly local bureaux. The one I use in Tooting Broadway charges no commission and is currently giving 1.145 euros to the pound. Beat that.
- Jack Spratt, Richmond, England
