Paying for stuff in England
 

Planning a 2-week trip to England in July. Gathering all the info i can now. And trying to figure out how to cut all sorts of costs. What's the concensus out there of the cheapest and/or best way to pay for stuff and get currency exchange? (I was there 2 years ago and just wandered into banks and such, but I was on a tour and limited in my options.) I found that my credit card company adds a 4% charge for overseas transactions (plus the currency exchange fee). My bank does not charge a fee for using my debit card. Of course most ATM's will charge a fee. I used travelers cheques before (i get them free from my bank) but not sure if i want to mess with that. I am staying at a BandB that wants cash after i get there (which will save me the credit card charge but i'll have to find a bank very quickly---but we're very near Hyde Park/Oxford Street so that won't be a problem). I think the cheapest thing will be to use my debit card as much as possible and even use my debit card to get cash from a bank (not ATM). Any advice?

"Of course most ATM's will charge a fee"

That's not true, the fees come from your HOME bank.

Yes, using a debit card at an ATM is the best way to get cash in most situations.

When you do use an ATM, take out at least 50 GBP. You'd be surprised how fast it goes! EVerytime you use an ATM, you will be charged a fee, so make it worth that fee.

If you can get travelers cheques for free from your bank, you might want to take $500 or so. I often do that, since I can get my cheques free from Triple A.

&quot;<i>Of course most ATM's will charge a fee. </i>&quot; As suze said - that is absolutely not true. UK bank ATMs will not charge you anything. If in fact your own bank doesn't charge - then that is wonderful. But even if it does charge you, ATMs are still the best way to get cash. The worst is using your own currency to buy &pound;. The next worst is to use Travelers Cheques. Even if you get the TCs for &quot;free&quot; you will pay very steep fees to cash them.

I am curious which cc charges you 5% (4% plus the 1% currency conversion fee). Some do charge 3% plus 1% but I have never heard of one that charges 5%. Unless maybe you are talking about a pre-paid visa card.

But many ccs only charge 1%, and a few don't even charge that.

Here's a few places where you'll find ATMs that don't charge for usage

Banks
Building Societies
Supermarkets
Airports
Train Stations
Bus Stations
Shopping Malls
Branches of WH Smith

I am interested here as to who charges. I know most bank ATMs make no charges to users of UK Switch based networks so customers of bank A can withdraw free of charge from banks B,C,D and E. Does this apply to overseas accounts?

My experience, with Dutch bank accounts, is that the British banks do not charge me. Depending on the Dutch bank I use I will be charged nothing or €3 per withdrawal.

Of couse this only applies to ATM cards - taking cash out with a crdit card is a foolhardy thing to do, but it is good to know you can in an emergency.

My bank will charge me a flat $2 or $3 fee for using an ATM if it is not one of their banks or affiliates -- it doesn't matter whether I am in the States or out of country. If I use an ATM that is at one of their branches - no fee. Just as in the States, I can keep the amount I pay for withdrawals to a minimum by being selective about which ATM I use (not always an option when travelling), or using it as infrequently as possible.

My credit card charges a percentage for each transaction. That's after they convert the transaction using their exchange rate. I accept that as part of doing business in a non- USD currency, and consider that to be just part of the budget for travelling.

There are more than a lot of posts on this website concerning ATM / Foreign Exchange / Credit Card fees.

&quot;There are more than a lot of posts on this website concerning ATM / Foreign Exchange / Credit Card fees.&quot;
I'm a new poster so i haven't explored this website extensively, but thanks for heads up.

So let me see if I understand my options:
Credit cards--can be used anywhere but I will be charged a fee plus currency change fee
Credit cards for cash--yes, a foolish, expensive idea--not really an option except dire emergency
Debit cards--use instead of credit card--Anywhere? My bank won't charge a fee but there may be a currency change fee
Debit card/atm card for cash--at atms I will be charged by my bank but I may not be charged at the British site--Is this charge a flat fee or is there also a currency change fee in there?
Debit card for cash in a bank--I can walk into a bank and use my debit card for cash, right? I would expect a currency change fee?

Travelers checks--a &quot;safety&quot; option? I can get them free but in England, I think there's a fee for use plus the currency change fee?

I may be confusing some terms, but I know in some cases there will be a flat fee/charge for usage and in those same places or in other places, there will be a charge for the currency conversion. Right?

We almost never use our debit card here in the states and never use atms that charge fees here, so I may sound a little clueless!

Thanks for input

The way to get the best exchange rate is at an ATM when you need cash so you get the actual rate each day. Forget travelers checks. Given that our American dollars are now nearly worthless in Britain and your vacation is costing you essentially double the price, get as much cash each time as you can safely carry.

I have a Schwab Investor Checking account.

Zero currency markup on either purchases or ATM withdrawals
Zero fees on ATM withdrawals (they're rebated)
Zero International Service Assessment (Schwab absorbs the 1% fee)

In sum: zero cost to do business abroad.

Robespierre - I'll have to look into Schwab - Wachovia recently started charging a currency conversion fee for foreign ATMs on top of the $2.00 charge for using a non-Wachovia ATM.

Texas - I would say the best technique is an ATM card (I don't own a debit card) for cash withdrawals - get your maximum increased so you can take a lot out at one time - plus a credit card. I got a Capital One Visa card before my last trip - no foreign transaction fees, plus I get 1% cash back. And call the bank and CC companies before you go to let them know where you'll be traveling so the fraud dept. won't block your cards.

For a while I took TCs as back up, but I don't even bother with that now for Europe.

You will certainly need walking around money as lots of places in england have a minimum purchase requirement before you can use a card. Most small shops and pubs have a &pound;5-10 minimum. Don't assume you'll always be able to wave the plastic.

I'd want a minimum of &pound;20 in my wallet at any given time.

&lt;&lt;&lt; Debit card/atm card for cash--at atms I will be charged by my bank but I may not be charged at the British site--Is this charge a flat fee or is there also a currency change fee in there? &gt;&gt;&gt;

You probably WON'T be charged by the owner of the ATM, you may be charged by your bank for using the ATM, you will be charged a foreign currency fee

&lt;&lt;&lt; Debit card for cash in a bank--I can walk into a bank and use my debit card for cash, right? I would expect a currency change fee? &gt;&gt;&gt;

Same as for ATM - but unless you find yourself in the one place in the UK that has a bank but no ATM's it's something that you never have to consider doing.

You may BTW be able to get cash at supermarkets when buying goods (cashback)

Thanks all above--
One of my concerns is that I will have to have many pounds in hand fairly soon after we arrive; the cheapest way to pay for our BandB is to pay cash--the 2 week rate, while I think a pretty good bargain, will be 100's of pounds, so I'm imagining I will have to have access to a bank that will take my atm/debit card. I will check on my atm withdrawal limits, too, before I go.

Any other advice?

how many &quot;hundreds&quot; of &pound; ? Your bank will raise your daily limit if you ask them. And any landlady worth the title will cut you some slack it if you explain that you are limited to &pound;400 or &pound;500 per day out of a cashpoint and will need two days to pay the balance. No B&amp;B is going to take a 2-week cash booking for granted.