TRAP 2: IN THE UK

ANOTHER swindle is emerging on home soil and comes from the multi-currency cashpoints found at tourist hotspots, such as airports.

Many Britons now travel with prepaid cards loaded with a foreign currency. But those who want some holiday money in cash before they land often use these cards at multicurrency machines in the UK.

For example, a customer with a prepaid card who has already converted their pounds to euros might withdraw €100. However, they will find an extra sum is deducted from their card. This is because the ATM converts the sum twice – from euros to sterling, then back to euros again. This means their money has been converted three times over.

Hickman says: ‘It is shocking. We have had customers contacting us to ask what is happening, but it is a charge from the ATM vendor, not the card provider.’

WHY IS THIS ALLOWED?

DYNAMIC currency conversion lets travellers choose who sets their exchange rate – the merchant or cardholder’s bank. It is also simpler

for business travellers claiming expenses in pounds.

But customers who choose this route lose out nearly every time – and are not given fair and simple information about the costs.

The European Consumer Organisation has called for a ban on the practice, saying ‘there is very little added value to a dynamic currency conversion service’. It said: ‘The evidence shows the price paid for this service is extortionate. All bodies dealing with consumer i ssues are unanimous – consumers should never accept dynamic currency conversion.’ In March, the European Commission proposed new rules for how the choice between exchange rates will be shown to customers. It should mean a customer knows instantly whether it is cheaper to pay in the local currency or their home currency – which could effectively kill off the practice. These rules could be made law by January, but firms will have three years to comply. During that time a temporary cap on conversion rates may be introduced.