Saturday, June 15, 2024

Ziglu: More Than A Third Of Business Travellers Lose Out On Expenses

More than a third of business travelers are losing out on expense claims with poor exchange rates and bank charges for using personal cards being blamed, new research (1) from UK-based banking, crypto, FX and investment app Ziglu shows.

Around 36% of workers who have travelled overseas for business in the past five years say they have ended up personally out of pocket as a result, the study found.

Average losses are around £200 on expense claims from foreign trips, with one in seven (14%) of those who have lost out saying they were more than £500 worse off after overseas trips.

Ziglu’s study found just 31% of business travelers used corporate credit cards for spending overseas, whilst 24% received currency from their employers to fund some of their spending. However, 31% rely on personal credit cards and 29% personal debit cards which they then reclaim as expenses.

The research by Ziglu, which offers fee-free US dollar and Euro accounts enabling business travelers and tourists to spend without being hit by currency exchange charges, found business travelers blamed issues with exchange rates and bank charges.

Around 40% said exchange rates worsened while they were away and 38% say that the exchange rate offered by their employer was worse than the one they had used. A further 32% blamed charges from their bank. Around one in four (25%) said their expense claim  had been cut.

Most UK debit and credit cards are subject to a range of fees in the US and Europe, including non-sterling transaction fees and non-sterling purchase fees. Customers converting pounds into dollars or Euros can be charged commission and margins on the exchange rates, as well as receiving uncompetitive exchange rates.

Mark Hipperson, Founder and CEO of Ziglu said: “Travelling for business should not mean employees ending up out of pocket.  This is not only unacceptable for the employee but unsatisfactory for the employer, as staff who have lost out are likely to be dissatisfied.

“Employers cannot control exchange rates, but they can ensure staff do not have to rely on their own debit or credit cards, which in most cases will end up meaning extra fees and charges.

“Supporting staff when they are travelling for work should mean helping them to manager their expenses whether that is supplying foreign exchange or credit and debit cards.”

Ziglu’s market-leading fee-free US dollar and euro accounts are aimed at saving money for business travelers, tourists, and British expats.  Customers can open accounts and exchange money from their sterling account instantly and at highly competitive exchange rates, without any spreads, margins or commission added on.

Customers do not need to carry an additional card as the Ziglu Mastercard debit card automatically takes funds from their US dollar or euro account without applying any spreads, fees, or commissions – truly spending like a local. Ziglu customers can also make fee-free instant US dollar payments to other Ziglu customers.

Ziglu, which offers current account services, FX, investments and enables customers to buy and sell a range of cryptocurrencies, believes increased regulation is crucial to the long-term future of the market. Ziglu is regulated by the Financial Conduct Authority and fully authorised as an Electronic Money Institution and is also one of the world’s first cryptocurrency platforms to comply with the Anti Money Laundering and Counter Terrorist Financing standards set by Financial Action Task Force (FATF), implemented in over 200 jurisdictions. As with any investment, capital is at risk.

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