Travel money terms explained
Cut through all the jargon with Tesco Travel Money. From exchange rate basics to key travel money terms.
Published: 27 May 2026
Confused by travel money terms?
Travel money doesn’t need to be confusing, but it can feel like there’s lots of jargon. From exchange rates, fees and currency buy back to closed currencies and more.
In this guide, we explain some of the key terms when buying, spending and selling travel money. You’ll also learn how things work with Tesco Travel Money, so you’ll know what to expect when you buy currency from us.
1. Exchange rate basics
Need a hand with the basics? Here’s the lowdown on your currency exchange rate.
What is an exchange rate?
It’s the price of one currency compared to another. For example, £1 = €1.15.
You can learn more about exchange rates in our Currency exchange guide.
Why does the rate change?
Rates can move up or down during the day because of things like the global economy or demand for a currency.
Clubcard exchange rate
With Tesco Travel Money, you’ll get a better rate on foreign currency with your Clubcard. Both online and at a Tesco Travel Money Bureau in-store.
Live exchange rate
The live rate is the exchange rate right now.
Rates can change frequently. The rate you see when ordering online is the one you lock in at checkout.
2. Key travel money terms
Find out what some of the key terms mean to help with your holiday money.
Foreign exchange (FX)
Another way of saying ‘currency exchange’. Swapping one currency for another.
FX rate
Another term for exchange rate.
Commission
A fee some travel money providers charge you for exchanging currency.
Tesco Travel Money doesn’t charge commission.
Buy rate vs sell rate
- Buy rate - the rate you get when you buy foreign currency with Pounds Sterling.Buy rate - the rate you get when you buy foreign currency with Pounds Sterling.
- Sell rate - the rate when you sell foreign currency back to us after your trip, using Currency Buy Back.Sell rate - the rate when you sell foreign currency back to us after your trip, using Currency Buy Back.
With our Buy Back Promise, the Sell rate is guaranteed to be the same as the Buy rate.
Mid market rate
This is the ‘middle’ rate set between banks. It’s not usually the rate offered to customers. It’s used as a benchmark.
Base currency
Your home currency - for UK customers, this is usually GBP (£).
(GBP stands for Great British Pound. Also known as Pounds Sterling.)
Spot rate
The price of exchanging currency right now, not in the future.
Forward rate
A rate fixed for an exchange in the future. This is mostly used by businesses, not holidaymakers.
Floating exchange rate
A rate that moves up and down freely depending on the market. Most world currencies work this way.
Closed currency / restricted currency
A closed currency is money you can’t easily buy or sell outside its home country.
- You can’t usually get a closed currency before you travel.You can’t usually get a closed currency before you travel.
- You normally get the money after you arrive in the country - using ATMs or currency exchange services.You normally get the money after you arrive in the country - using ATMs or currency exchange services.
- You won’t be able to exchange any leftover currency when you get back.You won’t be able to exchange any leftover currency when you get back.
Examples of a closed currency:
- Vietnamese dong (VND)Vietnamese dong (VND)
- Cuban peso (CUP)Cuban peso (CUP)
- Ethiopian birr (ETB)Ethiopian birr (ETB)
A restricted currency has rules and limits on how much you can buy before you travel.
- You might be able to buy some money before you go.You might be able to buy some money before you go.
- You might need proof of travel.You might need proof of travel.
- There can be rules about bringing it in or out of the country.There can be rules about bringing it in or out of the country.
Examples of a restricted currency:
- Moroccan Dirham - you can only take up to 2,000 MAD into Morocco.Moroccan Dirham - you can only take up to 2,000 MAD into Morocco.
- Indian rupee (INR) - you can take up to 25,000 INR into India, but only if you’re arriving in the country at an airport.Indian rupee (INR) - you can take up to 25,000 INR into India, but only if you’re arriving in the country at an airport.
- Indonesian rupiah (IDR) - you can take up to 100 million IDR in or out of Indonesia.Indonesian rupiah (IDR) - you can take up to 100 million IDR in or out of Indonesia.
Closed vs restricted currency
- Closed currency = You deal with it mainly in the country.Closed currency = You deal with it mainly in the country.
- Restricted currency = You can buy it before you travel, but with limits or rules.Restricted currency = You can buy it before you travel, but with limits or rules.
Buying a restricted currency
You can check the availability of restricted currencies at a Tesco Travel Money Bureau in-store. But please note:
- You can’t add a closed or restricted currency to our prepaid Travel Money Card.You can’t add a closed or restricted currency to our prepaid Travel Money Card.
- You can’t sell a closed or restricted currency to us using Currency Buy Back.You can’t sell a closed or restricted currency to us using Currency Buy Back.
Dynamic currency conversion (DCC)
This happens when you’re using your debit or credit card abroad and a shop or ATM asks if you want to: Pay in pounds or in the local currency?
You usually get a better rate by choosing to pay in the local currency.
If you have a prepaid Travel Money Card, you should always pay in the local currency.
3. Fees for spending money abroad
Find out about the fees you might be charged when spending money abroad - and how to avoid them.
You can learn more in our guide - Tips for spending money abroad.
ATM fees
You might be charged to withdraw cash at ATMs abroad. Your bank might also add a foreign transaction fee (see below).
Tips to avoid ATM fees
- Consider taking a Travel Money Card on holiday. There are no fees when you withdraw cash at ATMs abroad using our prepaid currency card. (Although some ATMs charge a fee, so it’s always best to check when you get there.)Consider taking a Travel Money Card on holiday. There are no fees when you withdraw cash at ATMs abroad using our prepaid currency card. (Although some ATMs charge a fee, so it’s always best to check when you get there.)
- Use ATMs in big banks rather than tourist hotspots to avoid fees.Use ATMs in big banks rather than tourist hotspots to avoid fees.
Foreign transaction fee
Some banks charge a fee when you:
- spend with your credit or debit card abroadspend with your credit or debit card abroad
- pay for something in a foreign currency using your credit or debit card, even if you’re at home in the UKpay for something in a foreign currency using your credit or debit card, even if you’re at home in the UK
If you take a Travel Money Card on holiday, there are no fees if you pay in a foreign currency you have on your card. See card fees and limits.
Money exchange fees
This includes any charges for buying travel money.
Tesco Travel Money doesn’t charge commission and shows your rate clearly.
4. Holiday terms that can affect your spending
All-inclusive
The following are included in the price of your holiday:
- Breakfast, lunch and dinnerBreakfast, lunch and dinner
- Drinks (often soft drinks, beer and wine - sometimes spirits)Drinks (often soft drinks, beer and wine - sometimes spirits)
- Snacks during the daySnacks during the day
- Some activities or entertainment.Some activities or entertainment.
Bear in mind, it might still be handy to have some cash for tips, taxis and extras.
Full board
The following are included in the price of your holiday:
- BreakfastBreakfast
- LunchLunch
- DinnerDinner
You’ll probably need spending money for drinks, snacks and activities.
Half board
The following are included in the price of your holiday:
- BreakfastBreakfast
- DinnerDinner
You’ll probably need spending money for lunches, drinks, snacks and activities.
Self-catering
No meals are included.
You’ll probably need more spending money for supermarkets and eating out.
5. Tesco Travel Money terms explained
Click+Collect
Order your travel money online and pick it up from a Tesco store with Click+Collect.
- Free collection from a Tesco Travel Money Bureau.Free collection from a Tesco Travel Money Bureau.
- Pick a collection day that suits you.Pick a collection day that suits you.
- Order Euros, US Dollars or selected in-season currencies before 2pm. Collect from most stores the next day.Order Euros, US Dollars or selected in-season currencies before 2pm. Collect from most stores the next day.
Home Delivery
Order your travel money online and get it delivered direct to your door with Home Delivery.
- Free delivery for orders of £500 or more.Free delivery for orders of £500 or more.
- Next-day delivery to most of the UK. Buy online by 2pm, Monday to Thursday (excludes bank and public holidays).Next-day delivery to most of the UK. Buy online by 2pm, Monday to Thursday (excludes bank and public holidays).
- Secure delivery by Royal Mail Special Delivery.Secure delivery by Royal Mail Special Delivery.
Price Match
If you find a better exchange rate from another provider, we'll match it at a Travel Money Bureau in-store. As long as it’s:
- within 3 miles of your chosen Tesco Travel Money Bureauwithin 3 miles of your chosen Tesco Travel Money Bureau
- available on the day you buy your currency in-storeavailable on the day you buy your currency in-store
Currency Buy Back
Turn your spare holiday money back into Pounds Sterling at a Tesco Travel Money Bureau. We buy back most currencies we sell, even if you didn’t buy it from us.
Buy Back Promise
With our Buy Back Promise, we’ll turn your foreign currency back into Pounds Sterling at the same exchange rate you bought it at.
You can add our Buy Back Promise when you buy travel money from us online or in-store.
Tesco Travel Money Bureau
A counter inside selected Tesco stores where you can buy and sell currency.
No need to book an appointment. Just pop in and see us when you you're doing the weekly shop!
Travel money card
A secure prepaid currency card. You can add currency to it before your travel and top up while you’re away.
It lets you:
- spend in multiple currenciesspend in multiple currencies
- avoid foreign transaction feesavoid foreign transaction fees
- keep track of spending more easilykeep track of spending more easily
Why buy from Tesco Travel Money?
You can order your holiday money easily online with Tesco Travel Money. Or pick it up in-store with the weekly shop.
- Competitive rates on over 50 currencies - Pick up popular notes like euros and US dollars, plus many more.Competitive rates on over 50 currencies - Pick up popular notes like euros and US dollars, plus many more.
- Clubcard Prices - Get a better rate on foreign currency with your Clubcard. T&Cs apply.Clubcard Prices - Get a better rate on foreign currency with your Clubcard. T&Cs apply.
- Buy online or in-store - Buy your currency online for Home Delivery or Click+Collect. Or buy in-store at a Tesco Travel Money Bureau. Fees may apply.Buy online or in-store - Buy your currency online for Home Delivery or Click+Collect. Or buy in-store at a Tesco Travel Money Bureau. Fees may apply.
- Price Match - at a Tesco Travel Money Bureau in-store. Terms apply.Price Match - at a Tesco Travel Money Bureau in-store. Terms apply.
- Multi-currency Cash Passport prepaid card - Add up to 22 currencies to our prepaid card for easy spending and ATM withdrawals abroad.Multi-currency Cash Passport prepaid card - Add up to 22 currencies to our prepaid card for easy spending and ATM withdrawals abroad.
- Currency Buy Back - Sell your leftover holiday money to us. Plus, add our Buy Back Promise when you buy your travel money, for peace of mind. Terms apply.Currency Buy Back - Sell your leftover holiday money to us. Plus, add our Buy Back Promise when you buy your travel money, for peace of mind. Terms apply.
Exchange rates may vary during the day. Rates will vary whether you're buying in-store, online or over the phone. They'll also vary depending on whether you're buying cash or a prepaid currency card.
We buy back most currencies we sell in most banknote values. Excludes closed currencies.
Travel Money with Clubcard Prices
Buy foreign currency online or in-store and get a better rate with your Clubcard. Choose from up to 50 currencies in cash or add up to 22 currencies to a prepaid currency card.
Important information
Tesco Travel Money ordered in store is provided by Travelex Agency Services Limited. Registered No. 04621879. Tesco Travel Money ordered online or by telephone is provided by Travelex Currency Services Limited. Registered No. 03797356. Registered Office for both companies: Worldwide House, Thorpewood, Peterborough, PE3 6SB.
Multi-currency Cash Passport is issued by PrePay Technologies Limited pursuant to license by Mastercard® International. PrePay Technologies Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 (FRN: 900010) for the issuing of electronic money and payment instruments. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Our Buy Back Promise
Our Buy Back Promise is only available if you’re:
- going abroad and coming back to the UK within 45 daysgoing abroad and coming back to the UK within 45 days
- spending a minimum of £75 on travel money online or £35 in-storespending a minimum of £75 on travel money online or £35 in-store
We’ll buy back your foreign currency bank notes at the same exchange rate you got when you bought your travel money from us, up to a maximum value of £250.
We’ll buy back most currencies* you have above the £250 limit using the rate available on the day, which you can see on our rates board in-store.
When you buy your travel money from us, you’ll see the exchange rate on your receipt.
*Excludes closed currencies, including Moroccan Dirham.
How does our Price Match work?
If you find a better exchange rate from another provider, we'll match it at a Travel Money Bureau in-store. As long as it’s:
- within 3 miles of your chosen Tesco Travel Money Bureauwithin 3 miles of your chosen Tesco Travel Money Bureau
- available on the day you buy your currency in-storeavailable on the day you buy your currency in-store
Price Match only applies in-store on a like-for-like basis on sell transactions. It doesn’t apply to exchange rates advertised online or by phone.
This is not available in conjunction with any other offer. We reserve the right to check the rate you’ve found and the 3-mile distance from our store (using a standard route planning tool).