How it works
- "0% commission" or "no fees" signage attracts travellers who assume this means a good deal
- The exchange rate offered is set well below the genuine mid-market rate, building the counter's margin into the rate itself rather than a separate visible fee
- Dynamic currency conversion at card payment terminals abroad — being asked "pay in pounds or local currency?" — often defaults to a worse rate if you choose your home currency
- Some counters add a minimum transaction fee that is not clearly disclosed until after you commit to the exchange
Red flags
- Prominent "0% commission" signage with no visible exchange rate displayed
- Reluctance to confirm the exact amount you will receive before you hand over cash
- A card terminal abroad defaulting to charge you in GBP rather than the local currency
- Significantly worse rates than the mid-market rate you can check on your phone beforehand
How to protect yourself
- Check the current mid-market exchange rate on your phone before exchanging any money, so you can judge whether a rate is fair
- Order currency online in advance for airport collection or home delivery, which is usually cheaper than an on-the-day counter
- Use a fee-free travel debit or credit card and withdraw or spend directly in the local currency
- Always choose to pay in the local currency, not GBP, when offered a choice at a card terminal abroad
- Only exchange a small amount at the airport for immediate needs, and do the bulk of your currency exchange elsewhere
If it happens to you
- This is usually a poor deal rather than unlawful fraud, so a refund is unlikely — the main protection is prevention
- If you believe you were actively misled about fees or the exchange rate given, you can report the operator to Trading Standards via Citizens Advice
Report to: Citizens Advice