zwho

Our trip is only about 4 weeks off, but we are still coming up with questions. This one concerns our money. There is a small travel store whose owner exchanges dollars for pounds for a $15.00 fee here. He says its a good idea to arrive with some English money so we can get a cab, a cup of coffee, whatever, instead of looking for an atm first off. The fee is a one time only so if the 4 of us going each exchange $200.00, or I just do it myself, its still $15.00. He also says his rate is the rate legally posted for that day. What do you think? Then, the next question concerns travellers checks. Is there any good reason to get them and should we only stick to American Express, if we do? Third, is there any incentive to paying with cash rather then credit card in London? I'm speaking about the flea markets and independent stores only. Thanks in advance for all your help.

Patrick

I have no idea what "legally posted" rate means, but if you feel good about it go for it, especially for a $15 fee for $800.

I can't think of a single reason to get traveler's checks unless you enjoy nuisances like hunting up places to cash them without a fee.

You'd be smart to have an ATM to withdraw some money if you need from any ATM from your bank account.

The only real advantage I know of for using cash is that if your credit cards are like most, you will get hit with a 3% total exhange rate -- in theory more than the cash you're getting, and also more than the cash you'd get from an ATM.

Some flea markets might wheel and deal for cash over a credit card.

nytraveler

Before doing this I would find out a sample rate from the travel store - and then compare it to what you can get at one of the banks - even if not in your city - to be sure its not completely out of control.

there is no such thing as a "legal rate".

Kathie

You are virtually always better off getting your cash from an ATM. Believe me, the ATM won't charge you $15! ATMs are readily available at Heathrow.

xyz123

There are lots of paranoids around who throw out absurd statements such as who wants to look for an ATM after a long flight and willing throw away $15 or more for "peace of mind."

That is nonsense. When you arrive at Heathrow or Gatwick, you will find loads of ATM's available and ready for use.

Besides which, almost all airport shoppes take cc's. The Underground takes cc's. The Heathrow Express takes cc's. The Gatwick Express takes cc's.

So chances are you can get to your hotel using your cc's and then you will find there are ATM's on almost every street corner in London.

You could bring TC's as a back up but as a back up only just in case you have a problem with the ATM's which is most unlikely.

There is absolutely no advantage to using cash in London. Just make sure your cc does not come from the near criminal banks such as Citibank, Chase, First USA, Bank of America which are adding an additional 2% to currency conversions which is one of the biggest rip off fees there is as they do not do a thing in the currency conversion process. Use a cc from MBNA, Capital One, USAA or one of the many credit unions.

This is the 21st century and 21st century technology works very very nicely thank you.

nancy

For $15 for the 4 of you I'd say do it just to save looking for the ATM at the airport altho' they're usually readily available. I have finally given up on traveler's checks and only got them free at the Auto Club but always brought them home. The only reason to have them is if all the ATMs go down! American Express does exchange them without an additional fee and I found their exchange rate pretty good. Generally, the exchange rate is not good.

Don't know what his "legally posted" amount means but you will get the best exchange rate at the ATM followed by your credit card for charges (not cash withdrawals). You can check Oanda.com for their posted exchange rate that day.

In flea markets (small booths) and other small vendors, cash is usually your only option, in my experience. And, you may be able to bargain.

Patrick

While I'm one of those people who never gets cash in advance of a trip and who after years of travel has never NOT been able to get cash out of an ATM on arrival, I really do understand that it is worth it to some people to relax on the plane knowing they have some money on hand. Is $15 so much to pay for that peace of mind?
And yes xyz123 while you and I don't worry about it, many other people will worry about it -- so for them it IS peace of mind.

And let's analyze something a little further. Many people's banks DO charge a fee of something like $1.50 for a transaction. So for four people's transactions that's $6.00. If the supposed "legal rate" is really good it could be 1 % less than that gotten from a standard ATM, the add on to the fee being used by Visa Services and others who handle those ATM transactions. So that's another $8.00 for $800. So we are talking about a $1.00 difference between getting it ahead and getting it from ATMs. Big deal! I still say, if you feel good about, then do it!

xyz123

Oh yes, I forgot to mention. Make sure you get an ATM card from a bank which charges the appropriate fee for accessing your money i.e. $0 or in other words nothing. And there are lots of banks around who don't charge for ATM withdrawals. BTW if you use a bank's machine in the UK, you won't pay a fee to the UK bank.

zwho

Thank you for all your thoughtful replies. What I meant by legal rate is, if the day he takes our money 100USD=54GBP thats what he'll exchange plus $15.00 for doing that. As many times as I've travelled to Europe, (I'm ashamed to admit it) I just let my husband look for the atms, so I have no way of knowing how readily available they are. He says they're all over, but I honestly trust you guys more. He tends to underestimate everything. I like to think I'm a spontaneous person, but maybe not about money. I have to admit I like the peace of mind knowing I have cash on me just in case I need it. I do have a feeling once my friends read your answers, I may be paying the $15.00 by myself! Oh well...

suze

Change some money ahead if it makes you more comfortable. But there are ATMs and exchange booths everywhere in Heathrow (when you arrive you will walk past ATM machines or bring $100 USD and change it at a booth). I can't say which will save you 2 cents, but any of these methods work fine.

Travelers checks are a pain unless they are requested to pay a hotel bill or plan to a bank to change them or in case of emergency.

For flea markets and independent stores, I'd have cash in my pocket. Not that other means couldn't work, but cash is a straight-forward universally accepted way to handle smaller daily expenses.

Flyboy

Regarding credit cards, there are places where I won't use one whether they accept them or not. These situations include flea market vendors and other small-time operations where I would generally use cash in the U.S., too. It's a completely subjective judgement on my part, I will readily admit.

StCirq

I guess I can count myself among the paranoid, but really, for me it's a matter of do I want to poke around an airport after an all-night flight looking for an ATM just so I can get enough money to take a cab to LEAVE the airport? I like to arrive ready to move on. I've also encountered situations in both London and Paris where the ATM machines were either out of order or the line to use them was long enough that I was afraid I'd miss a train connection. Paranoid, I know.
If you're exchanging $800, I'd say the $15 fee is worth it. Don't know what he means by "legally posted," but by going online to countless sites you can check daily what the official rate is - count on getting a slightly worse rate than the market one.
Definitely don't do traveler's cheques or pay in cash.

WillTravel

Does the store owner mean that he is exchanging at the interbank rate plus a flat fee of $15? Why not see what rate you can get from your bank or an exchange bureau?

I've already posted before that I can get British pounds, Euros, Scandinavian currency, and other currencies for a rate of 2% over the interbank rate from an exchange bureau. Considering my bank charges $3 CAD per ATM transaction in Europe, plus 1% over the interbank rate, this is very reasonable to me so I always get some currency before a trip.

obxgirl

zwho, If you're more comfortable spending a little up front in order to arrive with some cash then do it by all means. I agree with the others that TC's are just not necessary.

Are you flying into Heathrow? You'll practically trip over the the ATMs after you come through customs/immigration. I've never waited more than 30 seconds to use one.

Cab from the airport? zwho, it's not the fodors' way! Have you consulted the experts here??? Very expensive to take a taxi. Consider saving a bit and hiring a car service to meet you. Which service is a hotly debated topic here. Just ask. Regardless, cash should help you procure a lower fare than using your CC for the car service.

tashak

Heathrow has ATMs for at least 4 different banks/networks, so the chance that they are ALL down is infinitely small! (Unless the power is out...in which case you won't land there!).

This service may make sense for smaller airports and for countries with less banking infrastructure (if you were flying to...India? Zimbabwe?) but not for Heathrow/ England. ATMs are so available there...

By the way, with 4 of you travelling, you may want to talk to your bank and make sure that they have your daily withdrawal amount set to an appropriate high amount. Then one of you can make a larger withdrawal, and share it among the group to avoid those per-transaction charges. Most banks will go above $200/day if you ask...

GSteed

Expense Priority! Try working up a spread sheet with category costs. Currency, Transport, Lodging, Food, Entertainment and of course Air travel.
I believe that currency costs will be but a fraction of your total expense. Lodging may be the highest. Maybe rent an apartment instead of daily rate hotel room. Meals..food costs the same but when ambiance and service are added in total prices skyrocket. Take-out Fish and Chips cost less than in-shop consumption. Anomaly-travellers worrying about currency costs but buying small containers of bottled water.

rj007

>Very expensive to take a taxi from the airport. Use a car service>

I would also rate car services as very expensive. The tube is fine with me.

m_kingdom2

Justairports advertise rates of 26GBP from the airport, based on four people it's virtually the same price as the tube. This is an insignificant sum, especially considering the ease and comfort it'll offer.

TopMan

It all seems to be a matter of perception...if you were told, by others, that this small travel store is RUNNING A SCAM aimed at the unsure/paranoid/LAZY, etc., etc....would you even get close to them???

ira

Hi zwho,

I think that having $200 in GBP in your pocket when you arrive will make you feel better.

Check the exchange rate at
http://www.exchangerate.com/
This morning it is 56.39 GBP for $100.

Ask your shopkeeper what his rate is.

See if you are getting the bargain he is offering.

At worst you will lose a few dollars to have the money with you.