There is a shocking loophole that many holidaymakers will not be aware of - and it could cost you all your holiday money.
Customers looking to exchange their money online can leave themselves exposed to losing their spends.
If you purchase your foreign currency from a web-based provider and they go bust before you receive your cash, you might not be able to get any of your money back.
Online currency companies are not regulated in the same way as other firms.
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The Financial Conduct Authority (FCA) does not have to check if the online firm is 'fit and proper', just that they have not committed any crime , leaving potential customers in the dark about their financial position and stability.
Which? , the consumer watchdog, said: "Foreign exchange is not a regulated service so there is no protection for your money if the online currency provider goes bust, meaning you might not get your money back.
"One of the problems is that these firms say on their websites that they are FCA 'registered', which is reassuring to consumers but doesn't actually provide them with any protection.
"Unlike regulated firms, there is no requirement for the FCA to check whether people running the registered institution are 'fit and proper' only that they have not been convicted of a financial crime, or been involved in money laundering or terrorist financing.
"This can affect not only holidaymakers, but also business travellers."
So what can I do to make sure an online retailer is safe?
You should check that they have been registered with the FCA anyway, as they have a variety of basic checks.
Most online currency providers have a number of safety checks, such a telephone confirmation of your purchase and signed for the delivery of your money.
If you can, buy on your credit card, then if the provider you have exchanged your cash with does go bust you can claim back under the Section 75 law, which means your credit card company must protect purchases over £100 for free.
