Travel Money Jargon Buster

At moneysupermarket.com we don't just want you to randomly exchange your Sterling for euros, dollars, and the rest and find yourself short-changed. We want you to make an informed choice about your travel money options and that’s why we have compiled a glossary to help you bust through the currency jargon.

ATM

"Automated Teller Machine" or "hole in the wall". This is an electronic device that performs basic banking operations such as cash withdrawals and balance inquiries.

ATM/Cash withdrawal charges

The amount (normally a percentage) you are charged for withdrawing cash on a credit, debit or prepaid card. This charge will normally increase overseas.

Commission charges

This is the fee the currency converter will charge for its services. Commission charges are also often applied to travellers cheques.

Credit cards

- A card that indicates that the holder has been granted a line of credit to make purchases or withdraw cash. There will be a pre-arranged limit to this amount and the cardholder can pay off the amount accrued in full or in part by the end of a specified period. Interest is charged depending on the terms of the card and there are often additional fees such as annual fees, cash withdrawal fees and loading fees.

Currency converter

This will give you an estimation of the amount of foreign currency you will receive in exchange for your Sterling. Check the date on the currency converter to see the date the currency was last updated.

Currency exchange

See foreign exchange.

Dynamic currency conversion

If you are using a credit or debit card overseas, some retailers will offer to convert your bill into your home currency (ie Sterling). This process is known as 'dynamic currency conversion' - allowing you to see the exact price in your home currency, but usually the retailer will apply a higher exchange rate for this service. You might not always be asked - so check any slip or bill before signing or entering your PIN. If the retailer has converted the bill into Sterling, ask to be billed in the local currency.

Exchange rate

The price of your home currency in terms of another country's currency. For example, how many dollars will you get for your pounds? The 'best exchange rate' will allow you to get the most foreign currency for your pounds.

Exchange rate calculator

See currency converter.

Foreign currency

The money used in a country that is not your own.

Foreign currency converter

See currency converter.

Foreign exchange

This is the purchase or sale of one country's currency against another.

Handling fees

This is the money charged by the seller to carry out the exchange into foreign currency.

Holiday money

See travel money.

International exchange rate

See exchange rate.

Loading fees

When a card makes a conversion to foreign currency a 'load' is often charged - this is usually about 2.75%.

Prepaid cards

Prepaid travel cards work in the same way as a prepaid gift card or a prepaid phone card. The concept it simple - you load money on to a card with a top-up voucher, at a bank or retailer, or using your debit/credit card. You can then use the card at retailers or online merchants. The advantage is that you have control over the money on your card - therefore limiting the amount you can spend. You cannot run into debt by using a prepaid card.

Spending charges

A charge for using a card overseas to make a purchase.

Sterling

The currency used throughout the United Kingdom, normally referred to as 'pounds'.

Travellers cheques

An alternative to foreign currency and considered a safer way of carrying money abroad. They are bought in the UK (at a bank, building society, Post Office, etc) and are signed on receipt. This allows you to take them abroad and then present the cheque as payment, signing in front of a cashier as proof that you are the person who bought the cheque. As with cash you will receive change but the advantage is that if your cheques are stolen you can report this to the affiliate you bought them from and they will replace them as long as you have noted down the cheque numbers.

Travel money

This is the money you take overseas. You could choose to change your Sterling into foreign currency, carry travellers cheques, or a debit, credit or prepaid card.