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There are numerous ways of purchasing travel money, with the market becoming more competitive particularly here in the UK where the exchange rates of the most common currency's have been significantly impacted due to the downturn. This has meant that consumers are shopping around more to get the best value for money. 
Traditionally there have been two main ways of purchasing travel money:
- Over the counter at a Bureau de Change or Bank
- Travellers Cheques

Both of these methods are coming under increasing pressure from new entrants to the market, and with advent of the internet as a viable option to purchase products online. In recent months and years the traditional outlets and methods have become under increasing pressure. In particular travellers cheques are becoming increasingly obsolete, with providers offering pre-paid cards (similar to debit/credit cards) as a viable alternative. An additional advantage to a consumer of these is that they are fully aware of the rates of exchange that are available.

In addition the Bureau de Change counters that have for a long time been a feature of our airports and high streets are also under some pressure. Their business model works in a very simple way: They purchase funds regularly, then charge a premium over the exchange rate at which they purchased the funds as their margin, some providers will also charge a commission % over and above the rate charged. These outlets have traditionally been expensive, however whilst they had a virtual monopoly on the market this would not have been challenged.

For the best rates for travel money please click here
In recent years with the internet providing a more secure platform for online transactions the internet has began to offer extremely competitive rates of exchange for the purchasing of travel money. In a recent survey conducted it is possible to make a saving of around £50 just by purchasing online and selecting the right provider. An example of the types of exchange rates available online is available here.

Quite often the online providers of travel money will not charge commission, offer free secured postal of funds, and offer significant improvements to the rates that they provide over the retail market. It is expected that this method of purchasing funds will both save consumers money and will become the norm for purchasing foreign currency.

It is recommended by the larger travel companies to take a "mixed wallet" on holiday with you, so you have some cash, but also debit and credit cards. Primarily due to a combination of convenience and security, as some providers of the pre-paid travel cards will offer a free top-up service if the card is lost or stolen.

Please visit the moneyvine.co.uk for more information to these products and services.