“Commission-free” travel money sounds straightforward and enticing. In practice, it tells you only that the retailer is not adding a separate commission on top of the exchange rate. “Commission-free” does not on its own tell you the overall cost of the deal.
That matters because travel money has more than one “price lever”. Some providers charge a specific fee. Others earn their margin through the exchange rate they quote.
What “commission” means when you exchange currency
In retail foreign exchange, “commission” usually means a fee charged in addition to the quoted rate. It might be a flat amount (for example, £5) or a percentage of the sterling value of what you’re buying. Some firms waive it above a minimum spend, or only apply it in certain channels.
UK consumer-protection guidance has long stressed that providers should make the total price clear, including any fees and commissions that apply. The Competition and Market Authority’s (CMA’s) price transparency guidance highlights that consumers should be given key price information at the point of deciding, including mandatory charges.
What “commission-free travel money” does (and doesn’t) mean
“Commission-free” normally means there is no separate commission line on your receipt. This is why clarity about charges is important. “Commission-free travel money” does not mean the retailer is working for nothing.
If there is no item shown as “commission” or similar, assume the provider is building their profit into the exchange rate you’re offered. That seems reasonable. It does not mean they are automatically poor value, but nor does it mean pricing is exceptionally competitive. The best approach is to check every aspect of the transaction.
Other charges you might still pay
Even if commission is not charged, other costs can still appear. Common examples include:
- delivery fees for cash, especially below a free-delivery threshold of, for example, £500
- different online and in-branch pricing. Some providers warn that branch rates can differ from online rates
- cancellation, refund, or collection terms that vary by currency and channel, and
- charges imposed by your card issuer if a transaction is treated as if it’s cash. This is separate from the currency retailer’s own pricing, but it is still part of your overall cost.
It’s worth noting that UK rules prohibit most retailers from adding card-payment surcharges simply because you used a credit or debit card.
Why “commission-free” can still cost more
Currency conversion is a business, so it’s not surprising that the exchange rates you’ll find in a bureau de change will be different to the reference exchange rates found in currency conversion apps online. And certainly, they will different to the indicative exchange rates published daily by the Bank of England.
Cash travel money is a physical object, and inventory must be found, delivered and checked. Further, retailers have the risk of holding currency in stock while rates change. Instead of showing those costs as a commission, they can be built into the exchange rate. Either way, the costs are real and are passed on to the customer.
How to read a “commission-free travel money” promise
Treat “commission-free travel money” as a description of a pricing structure, not a statement about value.
A practical way to compare offers is to fix one number and hold it constant. Either compare how many euros you receive for, say, £500, or compare how many pounds you must pay to receive €1,000. Avoid comparing labels.
A buyer’s checklist before you purchase travel money
Before you buy, check the details that affect the final cost and the practicalities:
- What exact rate will I get, and when does it lock in?
- What is the total sterling cost, including any delivery or admin fees?
- Are the online and in-branch prices different, and which one applies to me?
- What are the refund, cancellation, and collection rules, and how long can refunds take?
- If I need to show ID, what documents will be required at collection?
ID and anti-money laundering (AML) checks are common for larger orders. Many UK bureaux de change fall within money service business activity and, in most cases, must be registered with HMRC for money service activities and AML supervision.
A worked example: same holiday cash request, two offers
Imagine you want €1,000 in notes.
- Offer A: “commission-free” rate of 1 GBP = 1.12 EUR. You pay €1,000 ÷ 1.12 = £892.86.
- Offer B: rate of 1 GBP = 1.16 EUR, plus £10 commission. You pay €1,000 ÷ 1.16 = £862.07, then add £10. Total £872.07.
Despite the commission, Offer B costs £20.79 less for the same euros. The lesson is that the rate and fees work together. It’s always worth comparing the whole package.
By Declan Morton, writer and editor for Money4Travel
A quick look at Money4Travel
Money4Travel is a comparison and ordering platform for buying foreign currency. Money4Travel don’t sell the currency themselves but they do operate a marketplace for foreign currency retailers. Their Trust Centre explains how the marketplace works and what protections apply. You can use the travel money comparison journey to view local rates and choose a retailer. Your retailer is responsible for fulfilment and identity checks, and it is the retailer (not Money4Travel) that provides any buy-back arrangements or loyalty benefits.
