About currency conversion and exchange rates
How do you convert currencies?
You can convert one currency into another using an exchange rate. For example, an exchange rate of two New Zealand dollars to one British pound means that you could convert two New Zealand dollars into one British pound – or one pound into two New Zealand dollars. Pretty simple! In reality, you’ll get a slightly different exchange rate depending on whether you’re buying or selling a currency. To get to grips with the different kinds of exchange rate you might hear about, see our Currency Jargon section.
Why do different companies convert currencies at different rates?
A company providing foreign currency needs to cover all of the costs that come from supplying people with currency. The cost of supplying foreign currency online is usually less compared to a physical retail store, so you’ll usually get a better rate online.
If you leave exchanging money to the last minute before you depart, you’ll probably end up paying a little bit more, due to the costs involved in providing you this service, so it makes sense to plan ahead. Find out about buying currency online