OK, so I’m going to London for a week. Is it better to exchange money at the airport or just go to a ATM and take money out while there? (Letting the ATM do the exchange.)
I’ve been to England twice in the last few years, and just relied on ATMs to get money. The ATMs that I’ve used (at Heathrow, and at several banks) didn’t even charge for their use.
Airports have pretty shitty rates overall. The ATM gives you the best rate, but there usually is some sort of international service fee charge (1 or 2%). There may also be a flat non-bank ATM fee in addition to that. Check with your bank.
From my experience, I’ve always gotten the best overall rate, fees inclusive, by using the ATM.
ATM. Beware though, in central London I notice that a lot of ATMs are the type that charge you to use them, on top of any currency exchange fee. Seek out a regular Barclays/LLoyds/HSBC/NatWest/etc. ATM instead.
You might want to check with your bank and ensure it will work overseas. I’ve heard, but no cites, that some will not work without prior arrangement.
Better safe than sorry.
Using an ATM card for exchange is, in my opinion, the best way to go, as it’s often easier to find one than an exchange bureau. Especially at airports, which often have terrible rates.
Avoid using credit cards (or debit cards on a credit card network). They almost always charge percentage fees; some debit cards don’t. Mine only charges a fixed fee for exchange, so if you take out enough it’s okay.
There are a few other things to think of when using ATMs while traveling:
Make sure your card works in the country you’re going to. Check for the symbols like “Interlink” and “Plus” on the back. Note that in Japan, for example, the networks are different despite having the same name.*
The ATM will usually dispense fairly large denomination bills. This isn’t a problem in London, of course, but when you’re in a country of much poorer people the smaller bills become more valuable than the larger ones.
You can occasionally be at the mercy of the network, or find out that your card just doesn’t work despite being told it should.
It’s always best to carry some other forms of money, just in case you’ll need it. Don’t rely on one form alone (although I suppose cash would be okay if you don’t mind carrying all your money in your pocket).
*For anyone going to Japan (at least from the US) - the ATMs in the Post Office will probably work with your card.
I have used my ATM card in the UK before (although not in London.)
Last time we went we had to change my dad’s PIN - it was five digits and in Europe evidently it needed to be 4. A simple phone call can save you a monster problem.
I would recommend using the Post Office (English side). They offer exchange with 0% commission. There’s also a special travel Visa card you can buy (at the PO too), haven’t tried it myself but it may meet your requirements.
I live in Colombia and find that any ATM will give me the same rate of exchange. I pay a very small ATM fee at the ATM, but at my Credit Union in the US, the charge is 1% of the total amount of dollars taken out of my account. Of course, here in Colombia, the exchange rate changes daily and the amount of Pesos that I receive today depends on the average of the rate the day before the transaction. Anyway, the ATM is the best way to exchange dollars for the local currency. Going to an exchange house to get the local currency is quite costly and should be avoided at all costs.
I wouldn’t recommend using the Post Office. For cash they are currently quoting 1.70-1.91 for GBP to USD. Meaning that for $100 you would get ₤52.36, then if you changed it back immediately to USD you would get $89.01. Hardly “commission free”.
Using your ATM card is much better for withdrawing cash, you’ll only get charged something like 1%, plus whatever the exchange rate spread is. If it’s a Visa/MC then just use it for straight purchases and you won’t generally even get charged the 1%.
I’ll be going there soon for just a couple of days and plan to use my credit card. Can anyone tell me if the taxi’s there generally accept credit cards; or will I be stuck with using cash.
I’m just going here to repeat what I read almost every time I visit a travel board where people give advices to American travellers in Europe :
-Make sure your card has the logo of major network accepted almost everywhere, like for instance Visa.
-Know your PIN in digits. There are normally no letters on European ATM keypads. Also, they accept only 4 digits PIN.
-Warn your bank that you’ll be oversea if you usually don’t travel. Some banks have be known to block cards used in foreign countries without warning.
-You won’t get a choice between withdrawing from your saving account or from your checking account. Make sure you have enough money on your checking account.
-Ask your bank how much it charges for withdrawals in foreign countries. It varies a lot from one bank to another. Opening an account in another bank might be worth it.
-Have a back up in case your card would be lost, eaten by the ATM, etc… Another card, or, at worst, Traveller’s checks.
Once again, not direct experience, obviously (I wouldn’t even know one could have a PIN with letters, or might choose between a saving account or checking account, for instance), but these advices are consistently given all the time.
One thing I know, on the other hand, is that exchange booths (at airports or elsewhere) are a rip-off by comparison with using an ATM card. The network will charge a small %age above the interbank rate while the exchange booth will offer unappealing exchange rates (while at the same time proclaiming “no fee”. There are no fees because they buy your dollars well below their value to begin with).
Some do, I think most don’t (at least up here in Manchester). I’ve never used a card, but I believe the ones that do impose a service charge for the privilege. Much easier to just use cash. And it keeps the cabbies happy.
Also it might be worth knowing that in England you’re never really very far from an ATM. It’s not like you’re in Kansas or something.
Definitely use the ATM. I lived in Europe for 3.5 years, and since I worked on both US facilities and the German economy, I had both US Dollars and Euro in my wallet…ATMs were by far the easiest way to go, and almost always had the best exchange rate.
When i went to Europe while in the Navy, i used ATMs with no difficulty at all. I’m unsure of how its handled in airports, so i recommend the ATM route.
IIRC, the only bad thing about it was that you had to withdraw money in the native currency, rather a certain value in dollars, meaning you had to do the exchange rate before hand. Not a huge issue, except once when we stopped in Greece… I made the conversion in my head based on whatever the exchange rate was in the last country we stopped in, and grossly undervalued the currency, and then neglected to check the receipt. Blew something like $1000 worth of whatever they called their money in two days, all the while being amazed at how far a dollar went there. :smack:
Ofc, this was before the euro, so it should be easier to keep track of relative values.
One other thought. Probably won’t make any difference if you are only here a week but the way the pound is going against the dollar at the moment the later you leave the conversion the better so don’t get all your pounds when you arrive 
Not a Brit, but a European: I wouldn’t expect credit cards to be accepted for small stuff like Taxis. Not even all restaurants take them - certainly not the small pubs, and not mom-and-pub stores. The reason is that the stores (or the taxi, in that case) has to pay the device to read the card and a service charge to the credit card company, and for small sums that might not be worth it. So it’s usually cash**, or, in upscale restaurants*** and shops, purchases over … e.g. 20 Pd with credit card. Or, a small service charge if you want to use a card below that level. *
- Yes, I know that from reading this board that American credit companies forbid their merchants this practice. I haven’t read European credit card guidelines, but I have seen these signs often enough to assume they must be ok over here.
** At least in Germany, lots of stores accept the Eurocard debit cards instead - the money is directly transferred from my account once the card is swiped and I enter my PIN or sign the ticket.
*** In fact, an underhand way of advertisting how upscale the restaurant is the number of stickers outside proclaiming which companies they take - and the kind of stickers: Diners Club is better than normal MasterCard…
Oh, and from an Euro perspective: British coins are big and heavy, so if (as American) you aren’t used to that (the very heavy ones are 1 -pound coins!), make sure to take a pouch or similar, so’s not to ruin your trouser pockets.
By all means use ATMs. But be extremely wary of pickpockets; they case out ATMs in places like airports and relieve you of your wallet in record time. Wear one of those around-the-neck-and-under-the-shirt wallets. I learned that lesson the hard way.
Most (if not all?) black cabs in London do take credit cards. It’s been a while since I used one but I don’t think there is an extra charge for it. Actually having had a quick Google it appears that there is a charge of £3 or so.
But you do have to tell the driver you want to pay by card when you get in (so he can activate the special irritating-tourist hyper-rate on the meter 
).