The greatest travel scam
Many travellers aren’t aware of how much money they are losing in currency exchange fees when travelling. That’s because traditional methods such as banks and exchange offices want to keep it that way. They hide their fees or profit by telling you they don’t charge a commission or will only give you the amount depending on how much you exchange. This way you are kept in the dark and many people don’t think of asking the difference between the official rate and the bank’s exchange rate.
At the Barcelona Airport, the exchange fee markup is 20%. So if you are changing 1000$ US for your two weeks in the United States, you are loosing 200$. Below you can see a picture of an exchange office in New York’s JFK airport. They charge 14% on top of the official rate plus a 10$ commission. Can you detect a breakdown of the fees in the image? This is exactly how they get away with charging its clients excessive currency exchange fees.
Deceiving banking practices
When exchanging currencies, your bank will never tell you that they charge a fee. They will tell you that they do not charge a commission for currency exchanges and they leave it at that. You think you’re getting the best deal. What the banks actually do, is charge a rate higher than the official rate.
TD banks (Toronto Dominion) with locations in Canada and the US have a fluctuating exchange rates on a daily basis. This does not mean that you will receive a different amount for your exchange every day based on the daily exchange rate. This means that their markup will fluctuate every day. For example, today, they will charge you 2.5% more than the official exchange rate. Tomorrow, they charge you 3.5% more than the official rate. It makes it really hard to keep track and know exactly how much they are charging you. You should always research the official rate online before going to exchange currencies. You can do this either on the Cambexo homepage or XE exchange which is the authority online for official currency rates.
Luckily, more and more people are becoming aware of these strategies to fool the consumer and are looking for different solutions. One of these solutions is Cambexo, In this era of collaborative economies, the platform offers a great way to avoid excessive currency exchange fees and trade your money at an honest rate.