You can now change unwanted foreign money into pounds by using this clever machine

Let’s face it – one of the most frustrating elements of international travel is the vast assortment of foreign coins and bills that find their way into our bags, wallets, and purses when we return. Given the lofty commission rates and exchange fees that are often found in both high street banks and local exchanges, many individuals simply do not attempt to convert this money back into local currency, effectively rendering it useless. The times are changing, however.

Recently, a series of new kiosks are being installed throughout London which will allow users to convert a variety of foreign currencies into dollars, pounds or euros. Given the fact that these three currencies are considered staples within the money exchange industry, these kiosks allow for simple, no-hassle transactions for those seeking some of the more common exchanges.

When asked to describe the reasons why these kiosks were originally developed, co-founder Jeff Paterson explained, “The idea was born out of frustration…I had a whole lot of money lying in a drawer that I could do nothing with as the value of exchanging it outweighed the value of the money.”

Although it seems as if the need for a kiosk such as this has been around for as long as anyone can remember, the actual development of this machine is ground-breaking. The new kiosks will, literally, be the first of their kind.

The company behind the development of the kiosks, Fourex, has received valuable support and publicity from a number of high-profile organisations, one of the most noteworthy being Virgin Media. In fact, Fourex recently won Virgin Media’s acclaimed “Pitch to the Rich” competition using this kiosk.

In the upcoming months, kiosks will be installed in various tube stations, beginning with King’s Cross and Blackfriars. Fourex’s plans on have at least 400 kiosks in London by the end of 2017. Although the process of installing and fine tuning these money exchange machines will likely take some time, the fact that Fourex has remained focused on their singular goal is proof enough that this operation will be a resounding success. Although some customers and foreign exchange experts remain curious as to exactly what rates these machines will offer, most are in agreement that they will likely be far more affordable than more traditional money exchange businesses. Believe it or not, the world of money exchange is about to become significantly more convenient.

Major bank set money aside to refund customers for wrong foreign exchange payments

If there wasn’t enough grief already in the world of foreign exchange, the latest news emerging from Barclays is likely to cause a new round of complaining and frustration amongst British travellers. According to a recent report, an internal probe within Barclays discovered that the company had been exchanging currency for their customers at incorrect rates between the years of 2005 and 2012. Essentially, customers who had visited the bank during this period in order to exchange domestic funds for various international currencies were likely given less money in return than they had rightfully deserved. Now that the probe has unearthed this controversial information, Barclays has announced that they are setting aside nearly 290 million pounds sterling in order to ensure that they can properly compensate all of those who may have been “short-changed” by this oversight.

It seems as if stories such as this are abundant throughout the foreign exchange industry. Over the past several years, a number of high-profile controversies have occurred regarding the rigging of the wildly frenetic foreign exchange markets and bureau de change locations. In many of these scenarios, banks found guilty of illegal actions in the fx markets are now being sued by their former customers.

It is also important to note that this is not the first substantial monetary loss that Barclays has incurred this year. In May, Barclays was forced to pay a 1.53 billion pound fine due to accusations of fx market fixing. In another recent incident, it was discovered that Barclays employees were verbally offering customers less than optimal exchange rates on foreign currency and then keeping the difference between their stated rate and the actual exchange rate at the time.

According to David Buik, a broker with Panmure Gordon, the fact that Barclays has taken the initiative and announced this new compensation package for their clients is an attempt to minimize the fallout from the situation at large. Transparency has also been an issue in the fx markets, and yet, in recent years, it seems as if bureau de change locations and other foreign exchange services have developed a particular dubious reputation. It will be very interesting to observe what, if any changes will be made in both the short and near future to ensure that these types of problems are properly dealt with before they become a public grievance. If banks such as Barclays are to preserve their relationship with the general public, scandals such as this must come to an end as soon as possible.

Has a major newspaper been used as a front to scam people of money?

In what is likely going to be one of the most alarming and noteworthy stories in recent months, it has been discovered that a series of frauds have been perpetrated by criminals pretending to be members of the journalism staff at The Sun. According to a number of victims who have come forward, these fraudulent calls have involved the criminals making claims that the victims would be allowed to feature in the paper for a fee that would later be refundable.

What is so fascinating about this particular scam is the degree to which the criminals were able to mimic the staff at The Sun. According to one of the victims, “What made this so shocking and clever was that they called me from the Sun’s number and emailed from the Sun’s email address…” With this information in mind, it seems much more reasonable why these victims were convinced that the offer they were receiving was, indeed, genuine.

When asked to comment on the issue, a member of the staff at The Sun stated, ““We have had about 15 [cases] reported to us and, as soon as that has happened, we have referred them to the police.” Have more incidents of this particular fraud occurred? The stigma associated with fraud victimisation has likely led many individuals who may have been affected in this particular case to remain silent. Many of those who have come forward have also chosen to remain anonymous.

Although the details of each scenario outlined by those victims who have come forward varies slightly, one particular incident is quite interesting. According to one of the victims, who has chosen to remain anonymous, a man pretending to be a member of the staff at the paper contacted them and explained that the paper was currently running short on content. In order to meet its pending deadline, the individual explained, the paper would send a reporter to interview the victim. That being said, the fraudster then explained that the reporter must be paid for by the victim. However, following the acceptance of the story by the paper, the funds would be returned. According to the victim, “He asked me to email him an image of the bank transfer to the writer. I did. He told me she [the freelance journalist] would call me shortly. I waited. I waited. My heart started beating. I called the Sun and, after a second attempt, they finally said there was a scam going on like that and that they were investigating…”

In retrospect, of course, it may seem slightly more obvious that such a claim would, indeed, be fraudulent. However, given the degree of authenticity which the scammers were able to display, it is no surprise that so many have been duped by them.

The Sun has released yet another statement claiming that every case of fraud related to this particular incident has now been forwarded to the UK’s national fraud and internet crime centre, referred to as Action Fraud. Although the perpetrators behind this scheme have yet to be apprehended, the paper hopes to spread awareness of the scam in order to ensure that others can remain vigilant and be on the alert in the event a similar call comes through to them.

Is there a method by which an individual can fully protect themselves against internet or telephone fraud? Given the fact that so many of these schemes are quite elaborate, it can be difficult to say with 100% that any individual is truly “protected”. Organisations such as Action Fraud continue to emphasise that those who have any doubt at all regarding the claims of a caller or in-person encounter should contact the appropriate authorities before engaging in a transaction. Only through such early actions can the likelihood of fraud be reduced nationwide.

Where is the best place to exchange your money?

If you are thinking about travelling to an exotic location for the holiday season or buying a home in a foreign country, you may want to forget about Europe and consider countries in the lines of Brazil, South Africa or Malaysia. The reason for this being you will get more value for the money exchange.

Over the course of past 12 months, the Pound has gained considerable value against currencies from other countries. Topping the list of places where the Pound has strengthened most is Brazil with a rise of 42% against the local currency (Real). The above information is in agreement with data compiled by the Post Office. Their online exchange rates for purchases between £500-999 show that on the 17th of November this year, 1£ was buying 5.26 real as opposed to 3.71 real, the same time last year(2014).

Other countries on the top ten list include Russia, Turkey, Malaysia, S. Africa, Norway, Mexico, Australia, New Zealand and Hungary. Currently, the Sterling pound has gained against 75% of its best-selling currencies across the globe when its performance this year is compared with 2014’s; this is according to Post Office Travel Money’s, Andrew Brown.

In recent weeks, the pound has gained substantially against the South African rand and Malaysian ringgit; that is good news for holidaymakers visiting these countries as they will have over an extra £100 when they exchange £500.

The Euro, on the other hand, did not make it into the top ten list; nonetheless, the pound had gained 14.1% to it when it closed at 1.38 on November 17th, 2015 compared to 1.21 on the same date last year. Thus, leaving Britons with an extra £61.91 for every £500 money exchange transaction they make. This makes it high time to book your next winter break in Europe. Or, if you dream of buying a holiday home in the havens of Spain or France, you stand to enjoy buying at lesser prices. For instance a €350,000 house will go for about £253,623 unlike 12 months ago when it was £289,256; thereby saving you a hefty amount of about 36,000.

Despite the pound’s impressive performance against some currencies, it appears to have weakened against others. For instance, it had declined against the Hong Kong dollar by 3% that was considered its biggest fall against the currency. In November this year, £1 bought 11.05 Hong Kong dollars a drop from 11.38 during the same period last year. Other gainers against the pound include the U.S, U.A.E, Qatar, Oman, Barbados and Jordan. When comparing the pound against the US dollar, the pound lost 2.4% over the past 12 months. However, this is not something to stop Briton shoppers from utilising the pre- Christmas sale offers coming up in the coming weeks.

The ‘ins and outs’ of Exchanging Your Currency

Ever since the Brexit results, the pound has suffered against the euro. This can make for a difficult and, oftentimes, confusing journey to exchange your sterling in anticipation of a holiday outside of the UK. The drop in the pound means many families had to refine their travel budgets to accommodate the change in what their pound will get them.

Some bureaux de change offices are offering barely above €1 for £1, especially if you wait till the last minute and changed your money at the airport, for example. On top of the poor exchange rate, you can count on high fees and charges being billed by some of Britain’s biggest banks, such as Lloyds. Lloyds charges 2.99% for every debit car transaction while abroad. It also adds a £1 standard fee on top of the percentage fee. It can cost you £4.50 each time you take money out of a cash machine in Spain. If you must make a cash withdrawal in another country, it is best to take out a large amount, once, than a lot of little withdrawals. By doing that, you can avoid the myriad of flat fees every time you use a machine.

Many people are unaware that you can order money online, ahead of time, and save a lot. Even the pricy airport exchange bureaux can be the best deal, if you order ahead and pick up your money at the airport bureau. There is a website that can help you find the best deal to exchange your currency. TravelMoneyMax.com will search, using your postcode, for the best deal near your house.

Ordering at least 24 hours ahead of time can mean the difference between €1.05 per £1 and €1.17. Some bureaux even offer next-day delivery if you are unable to get to the office in person. There is a small fee for this service but, compared to bank fees, it is a still a good deal. A good thing to keep in mind, whether you are walking up to counter to exchange or you have ordered in advance, is to never use a credit card to exchange. The transaction will be treated as if you were withdrawing money from another country and you will be hit with a lot of fees. Always use cash or a debit card.

No matter how diligent you are when making your vacation budget, something is always bound to come up. Plans change or you face unexpected expenditures. When this happens, it’s wise to be aware of the best way to withdraw money in another country. Most big banks with take off the top approximately 10% of the money you are withdrawing. One exception is Nationwide building society. If you have the society’s FlexPlus account, you can take money from cash machines with no fee at all and the exchange rate is near-pure market rates. There is a monthly fee for this account but it includes family travel insurance and coverage for a car breakdown. Other banks that are fairly cheap are Norwich & Peterborough building society and Metro Bank. It’s understandable that you may not want to switch banks just for a holiday or two. Research your options and you’ll be better off for it.

The last point, and perhaps one of the most important ones to remember, is that many cash machines abroad will ask if you want your transaction to be in pounds instead of in euros. Even in shops, the shopkeepers will ask you this. Always say no. If you say yes the bank or shop will apply its own exchange rate and that rate is guaranteed to be horrible.

Wherever you’re headed for your well-earned vacation, be informed and research before you exchange your money or use a credit or banking card in another country. You worked hard for your money, don’t let a currency exchange take a lot from it.

Impact of Politics on Currency Exchange

Politics can be seen to have what is called the butterfly effect. The election of Donald Trump, the results of the elections in France, the Brexit vote last June, and now the general election results of this month, among others, all play a part in how the currency is valued globally. In the aftermath of this most recent UK election, the pound sterling has slipped again. It was already low, have slumped and never recovered last year after the Brexit vote.

After exit polls predicted that the Conservative party would suffer a major blow in Thursday’s vote, the UK currency fell around 2 per cent. Investors have been spooked by uncertainty after this election ended in a hung parliament. This comes just days before the negotiations of Brexit begin. It slid a further 0.7% and failed to recover after the final results of the election were confirmed.

The Tory party had failed to secure a majority and the results on the markets were not good. The pound has lost more than 14 per cent against the dollar since last June’s Brexit vote. Some speculation surrounding a strengthening of the pound if the election results lead to a softer Brexit but there are many who remain skeptical about this. UniCredit’s chief UK economist, Daniel Varnazza, wrote in a note to clients: ““A ‘hard’ Brexit is almost a given,” “With Theresa May weak, the hard-line Euro-sceptics in the Conservative party, who are more organised than the Remainers, will be able to take the Prime Minister hostage in their pursuit of a hard Brexit. There isn’t any realistic prospect of this chaos leading to a rethink of the Brexit decision for the country.”

The current political uncertainty is having a dramatic impact on the pound and business leaders should take heed and come together to figure out ways to ensure the pound can be made more stable. There are many questions surrounding Brexit now, and the talks are going to have an even more unsettling effect on the markets.

Volatility of the pound will continue while the government figures out who will lead the country. The Brexit talks and negotiations will have the same effect. Even though the economists factored in what they presumed to be the volatility of sterling during the Brexit talks, even they are uncertain of what will happen in the near future. This is not good for attracting investors to the UK.

“Theresa May’s electoral gamble has catastrophically failed,” said Tom Stevenson, an investment director at Fidelity International. The market reaction to this unwelcome outcome is likely to hit UK shares, bonds and the pound. Markets will likely remain on the back foot while the difficult job of putting together a workable government is undertaken.”

Political uncertainty, election results here in the UK and elsewhere, Brexit, and the effects of the global economy, all are part and parcel of an extremely volatile pound and does not bode well for the UK as business continues to try to attract investments, Investments that seem to be waiting for everything to calm down before repatriating assets into the UK.

Money Transfer Fees and What to Look Out For

It can be a tricky act to transfer money, especially large amounts of money. Fees are the biggest hurdle you have to overcome if you don’t want to throw money away. With the ‘global village’ that we live in, transferring sums of money is becoming more commonplace. The transfers are also becoming a lucrative business for banks and institutions. Ill-informed clients are some of their biggest gains. Don’t get caught up in that trap.

While using banks might be the first source people think of when preparing to transfer money, they may also be the most expensive. On top of the fees you have to pay to the bank for a wire transfer, there may also be hidden fees. These fees often are in the form of skewed currency exchange rates.

Some things to pay attention to are the bank’s exchange rates and their currency conversion fees. Every bank has its own exchange rate fee or currency conversion fee and these fees can be quite high. It’s up to the bank to decide these fees. Usually set as a percentage of the amount being converted and transferred, one must keep in mind that it doesn’t cost the bank more to transfer a large amount compared to a small amount. In other words, by using a percentage instead of a set fee, banks are reaping in profits based, basically, on a random number.

Exchange rates do not change with the size of a transfer, nor does the work involved. Using a percentage rate is just not fair to you. Keep this in mind as you consider what institution you will transfer your money through. Ask the questions and shop around for the best rates.

There are a number of companies opening up that provide a lower rate, compared to banks. As the number of these businesses increase, the tables are being turned in favour of you, the client. Competitive rates are great for people who need to transfer money frequently. These new businesses recognize a niche the banks have created and are taking advantage of new and expanding ways to transfer money globally.

Now is the time for those of us who need to make money transfers, whether they be small, recurring transfers or a large money transfer, such as for a house purchase, to be in control of how much they are willing to pay for that transfer. Its no longer just banks in the game.

Exchanging Money – How to Get the Best Rates in These Times of Turmoil

First the results of the referendum, followed by the triggering of Article 50, and now the unanticipated general election results. Following each of these, the pound has fallen and appears to keep falling. It is now at its lowest in over 4 years and no one is certain where it will land. Two years of negotiations will see the pound remain unstable and inflation rise to a high that has not been seen for many years. There are grumblings about a second general election and that could see the pound drop even further. The Article 50 negotiations will lead to a soft or hard exit and a soft exit could be beneficial for the pound.

All of this uncertainty and turmoil is making the exchange of the pound to another currency unpredictable and difficult for Brits to decide when a good time is for exchanging their money, mainly for travel as the season is upon us. Exchange your money now, before the pound falls further, or waiting and hoping that it rebounds is a difficult decision. With inflation as it stands now, people have to be very careful with their finances and ensure that they are getting the best rate possible to make their money go further.

If you don’t want to think about exchange rate movements and plan a strategy, buying at today’s price and simply ensuring you find the best rate on offer is one option. Keep in mind that the best rates will not be found at a bank or Post Office, and the worst place to exchange your money is at transport hubs such as airports. It is often the small, highly localised suppliers who have the best rates. Planning ahead can also save you money by ordering ahead of time, most exchange businesses will give you a good deal and, depending on the amount you want to exchange, will charge you lower fees.

Another option is to buy in stages. This will even out the rate as the pound fluctuates and you purchase at times when it is high and sometimes it could be low. This option won´t give you the best rate but it will prevent you from purchasing money during a temporary slump. Be aware that some fees are higher for smaller amounts and it would be wise to research these fees before opting to buy in stages.

The bottom line to purchasing currency is to do your research and make a plan. You want to ensure that you are getting the best rates and lowest fees for exchanging your money. After all, you´re going on vacation and the last thing you want to be thinking while on vacation is money and how, in hindsight, you should have done it differently.

Feeling-the-Inflation-Squeeze

Inflation in the UK is hindering the household budgets as it has climbed to a four-year high since the Brexit vote. When the pound fell sharply after the vote, the economy started to suffer. In May of this year inflation rose to 2.9%, above the 2.7% that was expected by economists. Inflation has been steadily increasing since the referendum result a year ago, which triggered a sharp drop in the value of the pound and pushed up the cost of goods imported from abroad. Inflation was 0.3% in May 2016, a month before the Brexit vote. That´s a growth of 2.6% in inflation in just a year.

While higher prices for oil have added to the upward pressure of inflation, it really comes down to the weak pound. UK households are seeing higher prices for food and electricity, leaving less to spend on travel and non-essential purchases. As manufacturers are being hit by the weak pound for purchasing goods from overseas, the price rise of their goods for production will mean higher prices for consumers. It appears to be a catch 22, as wages are not keeping up with inflation which leads to the inability to purchase goods that, in turn, help the economy to grow and for inflation to lessen.

There is movement to pressure the newly elected government to help households cope with rising living costs. The TUC general secretary, Frances O’Grady, said “The election showed that working people are struggling. And the biggest price rises in four years won’t provide any comfort.” She also stated that “Working people are still £20 a week worse off, on average, than they were before the crash, and now rising prices are hammering their pay packets again. The new government must stop the real wage slide. Ministers must focus on delivering better-paid jobs all around the UK.”

“Too often there is more month than money left after pay day. Ending the public sector pay freeze and making sure all workers are paid a decent wage is an absolute must and it needs to be on the agenda for the Queen’s speech. Tim Roache, general secretary of the GMB union said. The average wage growth of 2.1% in March is not keeping up with inflation and the inflation increase is expected to widen the gap even further.

The Brexit negotiations are hindering the UK´s ability to shrink the gap between inflation and wages and will continue to do so until everything is settled but that is a long way off. Even interest rates are being affected. The Bank of England is keeping the rate at the record low of 0.25%. Oliver Kolodseike, a senior economist at the Centre for Economics and Business Research consultancy, said: “Under normal circumstances, the Bank of England would have a sufficient set of arguments to justify an interest rate rise. “Under the current circumstances of high inflation and low wage growth, increasing interest rates would only harm consumers further, as they grapple with trying to pay their mortgage and rising bills.

Minimal growth in wages, big growth in inflation, and a weak pound, have all led to a lag in consumerism and the end is not in sight. Paul Hollingsworth, a UK economist at consultancy Capital Economics, is predicting an even higher inflation rate, at around 3.2% in the fourth quarter of this year. This is due to the forecast in costs of production and the price increases feeding down through to the shops and the consumers. All of the UK is in a standby position, holding their breath so to speak, to wait and see what happens once the UK leaves the EU.

What Exactly is a Bureau de Change?

We´ve all heard of, or at least seen the signs for, a Bureau de Change but what exactly is it and why is it in the French language? Well, it is a business for exchanging currency. The term is originally French but is now widely used throughout Europe and some parts of Canada. Unless you’re in France, you don’t have to worry about the people working in a bureau de change not speaking your language. It actually became the norm when the euro was adopted and is now a prominent name for many exchange offices.

A bureau de change is often located in an area where there are many people such as a bank, at a travel agent, an airport, railway station or large stores. All of these areas have people that might be in need to exchange currency. Airports and railway stations are the most common spots for a bureau de change.

Exchanging currency at a lower rate than what they, themselves, purchased it at is the business they are in and that’s how they make their money. They will often charge a fee for their service, on top of the exchange rate. This fee can be a percentage of the amount being exchanged or it can be a flat fee. Some bureau de change offices will charge both. With the rise of online exchange businesses, the bureau de change offices are feeling the bite into their business and their profit margins are dropping as they try to compete with the online world.

Changing money at a bureau is often a more expensive transaction. Being situated in areas such as airports allows this business to offer services to people in transit who have little choice in the matter. They are stuck at an airport or railway station and need currency exchange. Bureaus also offer the opportunity for money laundering and many countries require them to register as money service businesses so that they are subject to the anti-money laundering measures of a particular country.

You might think that you really don’t need to know about bureau de change but knowledge is power and the more you know about how different businesses conduct money exchange can only help you if you find yourself in need of currency exchange. There are many other businesses out there and you’d be wise to understand what’s best for you and your hard-earned money.

Category: Money Exchange Software