This is the rate at which one currency can be exchanged for another. For example, if the exchange rate is 1 GBP = 1.15 EUR, you’ll receive €1.15 for every pound exchanged.
Tip: Exchange rates vary between providers, so use a comparison service like CompareTravelCash.co.uk to find the best rates.
A service offered by some currency providers where they agree to buy back any leftover currency at a pre-agreed rate. This can be useful if you’re unsure how much cash you’ll need and don’t want to risk losing out if rates change.
Example: You purchase $500 and return $200 unused after your trip. With a buyback guarantee, you’ll get a fixed rate for that leftover currency, avoiding fluctuations in exchange rates.
This is the fee a provider charges for exchanging your money. Some providers advertise “0% commission,” but make sure to check the exchange rate they’re offering—it might not be as competitive.
Tip: Even “commission-free” deals can hide fees in poor exchange rates. Always compare the total amount of currency you’ll receive.
When using your card abroad, some merchants or ATMs may offer to charge you in GBP instead of the local currency. This is called Dynamic Currency Conversion.
Why Avoid It: While it sounds convenient, DCC usually involves poor exchange rates and extra fees. Always opt to pay in the local currency when using your card.
This is the real-time exchange rate at which banks and financial institutions trade currencies. While you won’t get this rate when buying travel money, it’s a good reference to understand how competitive your provider’s rate is.
A prepaid card loaded with your chosen currency, allowing you to spend abroad without the need for physical cash. These cards often come with competitive rates and lower fees for transactions.
Example: You load £500 worth of Euros onto a prepaid card. You can use it just like a debit card for purchases or cash withdrawals while travelling.
The rate banks use to trade currency with each other. It’s often the most favourable rate but isn’t typically available to the public.
Tip: Aim for an exchange rate as close to the interbank rate as possible when comparing providers.
Some providers offer home delivery for your travel money, saving you a trip to the shop.
What to Check: Look for free delivery options and secure delivery guarantees when ordering online.
This refers to the two currencies involved in an exchange, such as GBP/EUR or GBP/USD. The order matters: GBP/EUR shows how much 1 GBP is worth in Euros, while EUR/GBP shows how much 1 Euro is worth in Pounds.
A shorthand for the foreign exchange market, where currencies are traded. While you’re not directly involved in forex trading, this market influences the rates you’ll see when buying travel money.
Being familiar with travel money terminology helps you avoid common pitfalls, save money, and make informed decisions. Whether you’re exchanging cash, using a prepaid card, or relying on buyback guarantees, knowing the lingo can give you an edge.
By understanding key terms like exchange rates, commissions, and buyback guarantees, you can make smarter choices and stretch your holiday budget further.
Start comparing rates today at CompareTravelCash.co.uk and take the stress out of your travel money planning!
CompareTravelCash.co.uk is a price comparison service that’s designed to help you save money – While we do our best to ensure the site is 100% up-to-date, we cannot guarantee this.
We advise you to carry out your own due diligence before buying or selling travel money.
