Ani

When we arrive in London we will be renting a car and driving to York. I am wondering what the easiest, cheapest, fastest way would be to exchange our currency upon arrival at Heathrow?

Ellen

Don't bring currency, bring your ATM card.

Ani

OK-could you elaborate? I've never been overseas and am not sure how that works. Luckily my ATM card has a Cirrus sign on the back which I think is pretty important for UK, but are you suggesting using that straight away at Heathrow? Do you know what the charge is to do this? Forgive my ignorance-you'll just have to spell things out for me. Thank you!

Ellen

Yes, there are ATM's at airports so it's very handy to use them just as you would in the US -- except that pounds pop out! <BR><BR>British banks are forbidden from charging a fee, so just check what your bank might charge (mine didn't charge anything!) and while you're at it, make sure that you have a 4-digit PIN, as there are serious rumors that longer ones don't work. <BR><BR>Some people like to take along some travelers checks just in case something goes wrong -- but take them in dolars so you aren't stuck if you don't need them. <BR><BR>You can also get a cash advance against your credit card if worst comes to worst, but those fees can add up, since most American issuers charge a $3 transaction fee plus a percentage of the loan. <BR><BR>But each ATM and CC policy is different so you'll have to check yours. They'll almost certainly be cheaper than the old-fashioned strategies.

wes fowler

Just one other key point. You have no option as to from where ATMs will withdraw your money. All withdrawals will be from your checking account, not your savings account. I'd suggest you bring more than one card in the event one is lost, stolen or "eaten" by the ATM.<BR><BR>For the best exchange rates, use your credit card, i.e., Amex,Visa, to pay for accommodations, meals, shopping. Use your ATM debit card as a second option. Don't make small withdrawals since you'll probably incur a charge from your bank. Withdraw every other day or so rather than daily to minimize those charges.

bob brown

I suggest checking with your bank to see what kind of "conversion" fees it adds to non dollar denominated credit card purchases.<BR>In the past, Visa and Master Card charged 1% of the value of the purchase to convert it US $$. Last year some banks started adding 2% more. Lately someone posted on Fodors that Visa is now charging a 2% fee for the privilege of using one of its cards. (I have not verified this fact.)If the issuing bank adds 2% and Visa itself adds 2%, you end up with a compounded 4% extra charge on all your credit card transactions.<BR>You might argue that $40.00 is a trivial surcharge for a $1,000 worth of purchases, but if someone on the street lifted that much out of your pocket and made off with it, I think you would protest.<BR>Given that such one conversion takes about 150 nanoseconds or less of CPU time and less than .0005 of a cent of actual expense, conversion fees are virtually pure profit.<BR>Beats interest rates, that is for sure!!<BR>

Ani

Thank you-will use this advice well!

Ellen

Wes' point is well taken -- the British ATM's will not offer you a choice of which account to take the money from. But i'm pretty sure that they'll automatically take it out of your PRIMARY account. Although this might be your checking, it might not be, and you'll have no option to transfer funds from one acct to another, so this is another thing to check with the bank before you go -- which acct is the primary one for the ATM card, and have your travel funds in that acct.

JEFF SHERMACK

A couple of points:<BR><BR>1. The best way to go is via ATM. The ATM's are very very plentiful in London and can be found on almost every corner.<BR><BR>2. The rules of the shared teller networks (Cirrus) prohibit the dispensing bank from imposing a charge on ATM cards issued outside the country of the machine.<BR><BR>3. Some banks rip you off by charging as much as $5 for withdrawing your money. I wouldn't pay that' nor would I pay one red cent for this. Many banks do not charge for this.<BR><BR>4. Visa and MC in converting foreign purchases into US currency use the interbank rate (this is usually the rate in the paper) and add 1%. Some unscrupulous banks (Citibank, Chase, AT&T, Bank of America, First USA) impose an additional 2%. What this fee is for nobody knows as it is Visa/MC that do the actual currency conversion. When the charge reaches the bank, it has already been converted so they can't claim this is to protect the banks against currency fluctuation. Some of the customer reps as these banks lie and tell you things like this is standard policy. It is not.<BR><BR>Let me make it very clear, you should never use credit cards issued by banks that pulls this garbage. The biggest credit card company that does not pull this is MBNA. If you use a credit card issued by any of the banks that impose the additional 2% charge, you are just throwing money away.<BR><BR>To the poster who said Visa is now charging 2%, no they are not. Perhaps the poster's bank sent such a notice...this is a decision of the bank; not Visa.

greg

Ellen,<BR>I do not think PRIMARY account is sure. I opened an account linked to an ATM card. One account-one card, you think it is PRIMARY?, NO, but that does not mean it works with foreign ATM despite pestering the Branch office that it would work and pestering the 800 number twice that it would work. After I complained, AFTER THE FACT, that the ATM would not give me money, the Bank finally admitted that it was not "DDA" type of account, whatever that stood for and foreign ATM can only do that type of withdrawals, duh... So why did they not set up that way and tell me that before the trip? I ended up changing the type of account to a simplest checking account, making sure it was "DDA" type of account during the trip and was finally able to use the ATM machine. What a hassle.

Wayne

I think Wes and Ellen and Bob have all made good points, and you should follow up on them. But one thing I do, just for peace of mind, is make a small conversion in the US to currency of the country where I'll arrive, just in case there is a problem. ATM's are sometimes out of commission for a period of time, as an example. It's difficult to justify this on any basis other than a comfort level, but on the other hand the amount I convert in the US is typically only about $20. To me, the cost of having local currency ahead of time is justified by my peace of mind.

april

Okay, I don't understand everyone who has had such a rough time getting money in the UK.<BR><BR>Ani, I was in London last year and had no problem what so ever with using the same, regular ATM card there that I use at home. I guess I'm lucky to bank with an institution that will automatically draw upon my savings if I go over on checking.<BR><BR>My ATM card does only have a four digit pin number. I have also heard that longer or shorter pins do not work.<BR><BR>I also brought along travelers checks (just in case). You can avoid conversion fees if you cash them in at an American Express station. There's one on High Street Kensington, not far from Kensington Palace.<BR><BR>So, to answer your question, go ahead and use the ATM at the airport and you should be ready to go.

Ani

Thanks April and Wayne (and everyone else)-I actually talked to my bank today and she was very clear about which account the money would be drawn from and how to transfer (by phone) from savings to checking if need be and also what they would charge per transaction. So that is good. Now i need to check with the credit card companies we have to see what the policy is. I am wondering Wayne, where did you exchange money in the US prior to leaving?

Leslie

A lot of the major US banks do sell foreign currency. If you have an American Express Travel Office or Thomas Cook nearby, you can also get foreign currency or foreign travelers checks there too. Last option is if you belong to Triple AAA, you can buy foreign travelers checks there.

Jay

Just a word of warning for anyone that does use their credit card, CHECK YOUR CHARGES WHEN YOU GET HOME. <BR><BR>Just this week I had to pre-pay my hotel reservation because it is part of a package. Normally I wouldn't pre-pay anything, but I'm leaving in less than 2 weeks so it wasn't that big of a deal. Today I signed onto American Express to check my bill and the charge was already on my account, but it seemed just a little high so I called to check the conversion rate. The rep on the phone quoted me the exact rate used (.86742 Dollars to 1 Euro), but the math just didn't work. Somehow the conversion went thru using something more like .89778 instead. This came out to about a 3.5% conversion fee instead of the 2% they said they would charge. The rep on the phone was helpful and said she would credit my account for the difference, but you can bet I'll call back as soon as I get my billing that includes my trip charges and ask for the rate used on EVERY transaction.

dean

If I have American Express traveller's checks in BPS from AAA left before returning to the US, would I get a better conversion rate by turning them in for USD at the American Express Office near Kensington or just bring them back and cash them at the AAA Office here in the US?

Ellen

Dean, why not just take the traveler's check in US dollars in the first place, and convert to pounds if they're needed? That way, you might avoid conversion fees altogether.

rb

Make sure you have a 4 digit Pin before departing- if you don't currently then go to the bank and change it. Get some foreign currency before you leave-I usually get $50 (again, peace of mind). Then use ATM's and your credit cards for bigger purchases. It is so much easier and travelers checks are really not needed. Have fun.

Marilyn

P.S. I don't know if anyone mentioned that some credit cards have maximum withdrawals daily--around $200 from an ATM. I know my brother-in-law found his wouldn't work some times because he was requesting too much too often. M.

Dick Yeager

Just to reiterate what Bob Brown said about the fees charged by Visa/Master Card.<BR><BR>Visa/Master Card charges a 1% conversion fee on foreign purchases. My Capitol One Visa does not add any further fee. My Citibank Master Card adds an additional 2% (this works out to more than 3% add-on..(1%x$100=$1.00; then 2%x$101=$2.0.2......$1.00=$2.02=$3.02). <BR><BR><BR>No big deal? After two or three weeks in Europe it will add up to a nice dinner or a room upgrade, etc. Both cards give FF miles for purchases.<BR><BR>Guess which card I will use in Europe.<BR><BR>Dick