Do I convert dollars to British pounds in the US or London before my trip?
 

Sorry, this was probably taught in Travel 101, but I'm having a serious brain cloud. :)

I'm going to England next week. Does it matter if I get the bulk of my currency converted in the U.S. before I leave, or do I just get a small amount for immediate airport needs and then wait until I get to London to get the rest? Where are the best places as far as fees and rates on both sides of the Atlantic (I'm thinking about going to my local AmEx office in Atlanta--or do I go to a bank?).

Thanks for your help.

Best is from an ATM there. Use cash as sparingly as possible. Use credit cards for most purchases. Watch out for being charged in dollars by merchants, restaurants or innkeepers as they can set an exchange rate very unfavorably. You have the right to protest this practice; other threads can tell you how best to deal with those who try to do it.

Best wishes,

Rex

Safety concerns aside; convert cash $s in UK. Rates will be best away from hotels and airports. Rex's advice is best! Educate yourself. Try/shop for exchange prices.

Since this is Travel 101:

Other than maybe &pound;40 or &pound;50 &quot;walking around money&quot; which you can get at AMEX, your local bank, at your departure airport, or the airport in London -- You should not convert $ to &pound; <b>anywhere</b>.

Just leave your money in your checking account and use your ATM card to get cash as you need it in London.

&quot; Use cash as sparingly as possible. Use credit cards for most purchases.&quot;

Just the opposite. Use your credit card as little as possible. The credit card company marks up the amount 1-1.5% and then the bank takes another 2-2.5%. These fees are also rising rapidly and who knows what they will be next month.

Some cards are much better than others, so research is necessary.

definitely don't! use your ATM.

however it wouldn't hurt if you mentally review what you are buying here, for the next week, and multiply by two. (lunch for 20 bucks? no, 40 bucks. a drink for 8 bucks? no, 16 bucks.)

just to get yourself prepped!

The ATM is a wonderful thing for travelers and if you check with your bank they may have a partnership with an English bank chain where you can access your money with no ATM fee. You just put your card in punch up the number of pounds you want and they make the currency conversion at a really good rate.

I use an ATM when I arrive at Heathrow airport.

Thanks, everyone. I'm still a little confused as to the whole credit card versus cash thing, but since I'm not a big shopper or diner, my purchases (and the resultant fees) would tend to be pretty minimal, I think it sounds safest to carry a small amount of cash which I will get from the ATM, and use my credit card at merchants and restaurants after I confirm about exchange rates and fees. I hope.

By the way, does anyone know if credit cards are accepted and safe to use at the museums and other major attractions,and with BritRail?

Blimey mate! We're past the painting ourselves blue and chucking spears stage over here now you know!

You can use your credit card pretty much anywhere - the only problem you will have is if you try to buy something small in a small shop (ie sweets or a newspaper). Most very small shops have a minimum spend - usually around a fiver, other than that you can use them everywhere (although not Amex or Diners - they're not that common).

And as others have said - by golly you're going to need them!

The misinformation that abounds on these boards is amazing...

Somebody said not to use credit cards as the banks charge fees...true...the largest fee is about 3% above interbank rate...guess what, the best you will ever get for exchanging cash is 8 or 9% above interbank and on top of that many exchanges charge fees on top of that.....

The only way to travel in the 21st century is:

1. Upon arrival at Heathrow pull cash from an ATM. &pound;50 should do.

2. Use credit cards everywhere they are taken and they are taken almost everywhere. BTW most museums in London are free now so you don't need credit cards for admission. Pubs don't take credit cards for drinks at the bar but many do for food, some fast food chains don't take credit cards but that's changing (as it is in the US)..most internet cafes don't take credit cards, convenience stores usually don't take credit cards to buy odds and ends but groceries do.

Although it's not a big problem in London yet, make sure that on the credit card slip they ask you to sign you do not see an equivalent amount in US dollars; they are trying to rip you off with a scam called dynamic currency conversion or dcc. You can read other threads as to what to do if they try to pull this near criminal activity on you.

Why wouldn't it be safe to use credit cards on British Rail? Don't understand that question.

So to review

1. credit cards everywhere they are taken and they are taken most everywhere.

2. Small amounts of cash to supplement as needed from ATM's. Make sure you are not using a bank which charges for withdrawing from an ATM. The British banks, for the msot part, won't charge you. Ask your bank how much they rip you off to use your ATM in a foreign ATM, it should be $0 but some banks charge as much as $5 with many about $2....get a bank which charges the proper fee for accessing your money which is $0.

David, I'm so disappointed about that spears and blue paint thing; I guess there's no need to bring my camera now :).

Of course I know credit cards are taken everywhere; I should have been clearer. I meant using the cards in terms of this new trend towards lots of extra fees and unfavorable exchange rates. I've been to London several times before in the distant past and this has never been an issue.

I think since I'm not dealing (hopefully) with a major budget, I'm going to quit fret about the small fees involved and concentrate instead on researching British history. That's a lot more fun.

On the pubs and credit cards thing – most pubs in London DO take CCs, but only if you spend a certain amount or buy food as well as booze. They put them behind the bar and you settle up when you leave. It’s only the dog-rough ones that don’t. Ask first – not after they’ve poured the drinks!

However if you use a credit card in a busy pub to order a round of Guinness’s you may learn some new words and be offered some suggestions that will be uncomfortable at best and life threatening at worst.

xyz - curious - if they've run your card, and ask you to sign something with the USD amount on it (presumably at a usurious exchange rate) and you refuse - what happens? what is to stop them from running it through anyway, etc - especially if you decline to take the article and walk out - if the only thing missing is a signature that would make me a little nervous.

in those cases I'd prefer to pay cash unless it's someplace like a hotel or train/plane trip where presumably they are more legit.

This is discussed on other threads about the near criminal dcc activity.

You tell them in no uncertain terms that they have just violated the rules of the credit card company by not offering you the choice of paying in local currency. They are trained to lie with such statements as of course you're been billed in local currency we are just showing you the US dollar amount as an approximation. Or it's done automatically by the terminal and we can't control it. You tell them to void the transaction and re do it properly. If they still say no, you demand to see the manager.

If all this fails simply write on the charge slip DCC rejected, circle the amount in local currency and sign the slip. When the bill comes, contest it with the bank saying you were not given the choice.

I refuse to fall into their trap....dcc without giving you the choice is fraud as the clerk must indicate on the terminal that you wish to accept dcc.

Up till now, after some hassling, the manager has come over, credit the fraudulent charge and run the charge properly.

But remember when you use cash, you are paying 8 or 9% + other fees above the interbank rate. When you use a credit card, at worse, you're paying 3% above interbank provided it is not done with the near criminal dcc garbage.

One other quick point...for the most part this scam has not yet spread to London or England just yet and without your signature on the merchant's slip, you automatically win in any billing dispute with the credit card company and the charge is sent back to the merchant.

When you refuse to sign a charge and walk out without the merchandise, but the merchant runs the charge anyway, the following happens:

The charge appears on your bill.
You dispute the charge with the issuer.
The issuer requests a copy of the slip from the merchant.
If the merchant doesn't produce your signature, the charge is erased.

unless it's forged... and overall, sounds like a huge hassle.

I use cash for smaller expenses, for instance that lunch w/ beer in a pub or a museum entrance. Especially if your ATM charges a 'per transaction' fee (like mine does) it is worthwhile to take more cash when you use one. I typically withdraw ~300USD worth, which takes care of me for several days.

I do use a charge card but prefer to save them for major expenses like the hotel or if I buy something expensive.

I used my Bank of America ATM card at Barclay's Bank ATMs and was not charged a transaction fee. Barclay's is an affilitate of BOA and ATM usage is treated as &quot;on net&quot; as nearly as I could tell.

I checked my statement, and there were no transaction fees.

Also, I checked the exchange rate and it was consistently about 1% above the wholesale rate, which is about as well as you can do.

I don't think you will save by buying &pound; in the USA. There are aTMs in the airports.

Before plunging into credit card buying without restraint, be sure you are not being charged a 3% conversion fee.

Earlier comments on this subject described the use of a Smith-Barney credit card as being free of extra markups.

I used a Capitol One card and paid 1%, which is the normal Visa add-on.

For the record: Salomon Smith Barney <i>debit</i> card. No markup on purchases or withdrawals; $1 ATM fee.

USAA Bank San Antonio Tx:

Free chequing account no minimum balance required.

Free ATM card (free debit card if you have a USAA credit card too)

No fee for first 10 or 15 withdrawals each billing cycle on their part and in addition

For those banks in the US that charge you for having the gall to use their machines, you will be rebated this obnoxeous fee. Of course since for the most part European banks do not impose this charge it is a non factor for European travel.

Personally I would never use my main bank for ATM's etc. while on holiday. I would open an account with a bank like USAA (there are others on the web), keep a minimum balance and just before my trip transfer or deposit into the account enough money + some to cover the cash portion of my trip and when I return home simply deposit into my main account the difference leaving again a minimum amount in the account.

This way, if something happens like a stolen debit card number and the account is emptied, you will get your money back with any bank but if it is your main bank, any cheques you might have written before turn to rubber.

We waited till Heathrow and easily found an ATM to get pounds using our ATM/debit card. We used our Visa Credit card for most purchases, after checking that our credit union does not add more than Visa's 1%.

Be aware that even though &quot;museums&quot; in London are free, that doesn't apply to most tourist attractions, only proper museums. We found the entrance fees were substantial for places like Kensington Palace, the Tower and the Tower Bridge, Westminster Abbey.

And, we had no more problem using our Visa credit card in London than we would have found in New York. It could be a different story in the countryside, though.

Is this advice still up to date given the high fees most credit cards are now charging for currency conversion?

yes - the cc fees are still not nearly as high as one pays for exchanging cash or cashing travelers cheques.

The worst you'll pay for using a credit card is 3% above the interbank rate....the best you can do if you convert cash before fees is 7% above interbank.....

And you dont'r have to pay the 3%, just get a credit card from Capital One which charges the interbank rate.

&quot;The worst you'll pay for using a credit card is 3% above the interbank rate....the best you can do if you convert cash before fees is 7% above interbank.....&quot;

This is nonsense. Sure you'll get hammered at a bank, the airport or at some little storefront place. I go to a real currancy exchange company in the financial district where I live and do better every time.

If you are exchanging for some exotic currancy, then you might have a problem. But exchanging dollars for Euros is cheap, if you do it right.

We exchanged a small amount of dollars for euros yesterday, so we'd have cab fare in our pockets upon arrival in Italy, just in case the ATM is down at the airport.
My question is this: on-line the Euro yesterday was $1.22. But the bank insisted it was $1.32. What's up with that??

&gt;What's up with that??
It's simple, the're ripping you off. It's a lot nicer for them to claim they don't charge fees but instead they use their very special own exchange rate. Common practice.

What's up is the point that's being made here. It's still cheaper to pay a fee on a credit card that be forced to use the bad exchange rates for changing hard currency. But we all need to do it to some degree.

To answer my own question, I researched the &quot;mid-market rate&quot; definition of the $1.22 I saw yesterday. It's an inescapable fact of life-- sometimes we get ripped off!
Oh, well, we've covered all the bases we can, re: our credit union only passes through the Visa 1% fee, and we'll use our ATM and credit/debit cards judiciously. Bon voyage!

Yes, San366...get lots of British pounds BEFORE you leave the States. Much easier that way,,,just hang on to them!!!. Then charge your hotels, and use ATM for more cash if needed. (of course this is just our suggestion)
I always get lots of static with this from Fodorites,,but it works for us, so who cares.&gt;?
Your bank will order them for you and the pounds can be sent to your home or for you to pick up at the bank.
Saves hassle when geting to England.
Lots of people will say use ATM entirely in Europe when traveling....but &quot;to each his own&quot;

&quot;<i>Yes, San366...get lots of British pounds BEFORE you leave the States.</i>&quot;

Thank heavens San366 took her trip back in October so there is no danger she will follow this expensive advice. If one has money to burn and wants to carry thousands of $ worth of cash w/ them - go for it.

But first note MaureenB's post - you will pay approximately US10¢ - 12¢ extra per &pound; if you do this. Even on a modest trip one will pay $200 to $400 extra. Not my idea of a good use of vacation money.

That absolutely NOT true....at least the way we do it. ONe does perhaps pay a little extra, but we love having British pounds in hand (but NOT thousands as you said, I don't know where you got that) Sometimes we take 700- 800 dollars worth...and of course we use ATM machines within UK quite a bit. (so obviously we don't get all
that many pounds before leaving home.)

janisj: you have always given good advice about Scotland. Thanks!
BUT , we tend to differ on this money matter...and that is FINE. Let's just respect the others' opinions.

Anyway San366 has, as you said, been on her trip and returned, way back in Oct.
(I guess I'm ornery enough to always get a rise out of people when this subject comes up! (:&gt;)) Kind of fun!!!

Use an ATM hooked to your home checking account after arrival.

If you want to have something in hand before landing (although i have never had a problem finding a handy ATM machine at Heathrow) buy some GBP at home - ordered from AAA, your home bank, a currency exchange bureau like Thomas Cooke, AmEx, or at your home airport before getting on the plane.

Maureen,
There is no reason to fear arriving without euro and all the airport ATMs are inoperable. Just exchange enough dollars for euro to cover the taxi fare at a currency exchange counter at the arrival airport. It will likely be less of a ripoff than currency exchanges in the USA.
More than likely, though, you will find a working ATM and be on your way.

Platzman, you are absolutely right. Being a worry-wart, however, I got just 50EU, to have in my pocket for cab fare and snacks in case of starvation at the airport!