Foreign currency

[pmjnh]

What is the best way to obtain British pounds? Since we will be in Britain for only 2 nights, we will only need a small amount. I have read that the exchange counter at Heathrow is a very expensive way to convert currency. What about an ATM machine at the airport? Or should I obtain it while still in the US before departure.

 

Thanks for any advice.

Edited June 20, 2015 by pmjnh

[WatchHill]

There are lots of ATM's at the airport and in London. Use a bank ATM instead of the generic - also check with your bank about fees abroad. My MA bank will recourse up to 5 foreign ATM fees per month and is part of the same network as Royal Bank Of Scotland. So, when I left LHR and got to Paddington Station, I found an RBS ATM and used it for pounds.

 

Darcy

[Cotswold Eagle]

Good advice, but there are no 'bank' ATMs at Heathrow. They are all operated by ForEx firms and use Dynamic Currency Conversion (so the ATM operator sets the rate at the time of transaction and, guess what, they use the same rates as at their kiosks). ATMs at main London railway stations are a mixture of bank and non-bank installations.

 

Of course, even with pretty poor rates, you have to factor in convenience, especially if you are only in town for a short time.

[LondonTowner]

Why bother to change money at LHR you can easily get to your destination by using CC. If you are staying in central London look up Thomas Exchange Global. They have the best rates of exchange and a few branches in London, so you could change a minimal amount.

 

I have a couple of CCs without any foreign transaction charges, so check with your bank.

[FritzG]

Also check with your bank. We got pounds and euros from our bank for our upcoming British Isles/TA. The rate was good, and it was much easier than looking for an ATM. Also our private car from LHR to London was cheaper if we paid cash so we need cash when we arrive.

[Pet Nit Noy]

Also check with your bank. We got pounds and euros from our bank for our upcoming British Isles/TA. The rate was good, and it was much easier than looking for an ATM. Also our private car from LHR to London was cheaper if we paid cash so we need cash when we arrive.

 

Here's an anecdote that may or may not apply to your situation:

 

For the convenience, I was willing to buy Kroner, both Danish and Swedish, at my local US bank. I asked how much lead time I would need to give our bank for our request. The banker told me if I wanted foreign currency to get it through my AAA membership. The banker claimed this is a less costly way to get foreign currency than through the bank.

 

I don't know if this applies to GBP. We typically keep either/both GBP and Euro when we come home to the US. We'll be back soon enough to make inventorying small amounts of money worth the convenience.

[pmjnh]

Why bother to change money at LHR you can easily get to your destination by using CC. If you are staying in central London look up Thomas Exchange Global. They have the best rates of exchange and a few branches in London, so you could change a minimal amount.

 

I have a couple of CCs without any foreign transaction charges, so check with your bank.

 

We would normally just use a CC but we are using a car service x2, need a cash gratuity, and we will have the need 2 take short ride taxis , both of which do not take CC.

[insanemagnet]

In London if you don't want to be bothered with using black cabs that don't take credit cards, just use Uber.

[FritzG]

Here's an anecdote that may or may not apply to your situation:

 

For the convenience, I was willing to buy Kroner, both Danish and Swedish, at my local US bank. I asked how much lead time I would need to give our bank for our request. The banker told me if I wanted foreign currency to get it through my AAA membership. The banker claimed this is a less costly way to get foreign currency than through the bank.

 

I don't know if this applies to GBP. We typically keep either/both GBP and Euro when we come home to the US. We'll be back soon enough to make inventorying small amounts of money worth the convenience.

 

Our bank has euros and GBP on hand; I don't know about other currencies.

Before we went to the bank we checked the AAA rate, and it was higher than our bank so it pays to check.

 

I would not recommend travelers' checks if your AAA or bank still have them. We cashed some old ones in at the same bank where we bought them, and it was a huge hassle. The teller had to call AmEx for authorization, and it took over 45 minutes while she had to check numerous times to be sure they weren't counterfeit. No one at the bank from the manager on down had ever seen travelers' checks before, and everyone was coming over to look at them. It actually got quite comical, but the poor teller was nearly in tears from the grilling she received from AmEx.

Edited June 21, 2015 by FritzG

[pmjnh]

As far as AAA goes, they do require a minimum $200 US for conversion but they dont buy currency back.

 

Our local bank does issue currency as well with a 3 day turnaround- the difference is they will buy currency back once returning to the US.Not sure what the minimum is, though, and we only want a small amount because we do plan on using CC unless no accepted. After our cruise, we stop in Iceland and I have one lodging facility in that is cash only (ISK)

 

Good advice about Uber. I will check that out.

 

Thanks for your replies.

[Bob++]

I think that people get hung up about exchange rates sometimes. With small amounts, why does a few points matter? Clearly, fees are best avoided, but convenience may well outweigh the trouble of getting the best deal which might save five dollars.

 

I would buy a couple of hundred dollars worth of GBPs at wherever is the most convenient before I left.

[wowzz]

I think that people get hung up about exchange rates sometimes. With small amounts, why does a few points matter? Clearly, fees are best avoided, but convenience may well outweigh the trouble of getting the best deal which might save five dollars.

 

I would buy a couple of hundred dollars worth of GBPs at wherever is the most convenient before I left.

 

Totally agree - folks spend $6000 on a cruise and then worry about $10 on fx transactions. Do not sweat the small stuff

[lio]

exchange in Heathrow is ridiculous expensive. to withdraw from the ATM is expensive too. there are lots of places to exchange money in Oxford street with good rate. but keep in mind in London you could just use your credit card in most (if all) places!!

[Bob++]

I wonder if there as a culture difference here. I am aware that many Americans are used to dealing largely in cash and there is a widespread feeling of wanting to keep to the old ways (why else would they still use paper currency for such small amounts). We abandoned the ten bob note in 1969, when it could buy a great deal more than a 50p coin does now.

 

I am sure that many (most) of people who travel are well used to using plastic in its various forms, but Americans might be a little surprised at just how far the 'cashless' society has gone here in the UK. I use very little - mainly tips (I like to tip wait staff in cash) and the odd coffee - although I now use a contactless card in my usual café.

Edited June 29, 2015 by Bob++

[Pet Nit Noy]

I wonder if there as a culture difference here. I am aware that many Americans are used to dealing largely in cash and there is a widespread feeling of wanting to keep to the old ways (why else would they still use paper currency for such small amounts).

 

Not sure where you're getting your information about Americans dealing largely in cash. I'm representative of my circle of friends. At home in the US, if I'm walking around with more than $5 in my wallet that's a remarkable situation.

 

Perhaps Americans tend to carry more cash when traveling because we're simply uncertain when we'll need cash and when we'll be able to use credit cards. I'm someone who carries more than the GBP or Euro equivalent of $5 when traveling, but I prefer to use plastic.

 

Of course, I'm less compulsive about spending down all my foreign currency. We always try to leave a visit to the UK or Euro zone countries with 100-200 GBP or Euro. We simply put the money in our safe deposit box and retrieve it when we leave for our next trip. For unique currencies that I have no plans to visit in the forseeable future, I simply give the money to charity in the airport/cruise terminal/on the air plane.

 

As for why we still have $1 bills, I can only speak for myself. I hate the weight that considerable amounts of change add to my handbag. If I accumulate too many coins, I'll convert that to dollar bills at my earliest opportunity.

 

... Americans might be a little surprised at just how far the 'cashless' society has gone here in the UK. I use very little - mainly tips (I like to tip wait staff in cash) and the odd coffee - although I now use a contactless card in my usual café.

 

In the US, in addition to the obvious places for using a credit card, we can now use a credit card to pay in parking lots and, most recently, for parking meters at on-the-street parking. Ditto for paying tolls on some highways.

 

What places can you use a credit card in the UK that Americans might find surprising?

[Bob++]

I frequent another forum largely populated by Americans. This subject has come up there several times and the consensus seems to be - not that CC payments are not available, but that many people simply prefer cash.

 

As to the weight of coins - we had exactly the same complaint here. In practice I rarely, if ever, have more than two or three pound coins in my pocket. When smaller coins accumulate, I decant them into a pot in the kitchen and give them to charity. I am told that many Americans do the same, or take them to a store where they can load them into a machine (for a charge).

 

None of this is intended to be in any way disparaging. Vive la différence.

[Pet Nit Noy]

I frequent another forum largely populated by Americans. This subject has come up there several times and the consensus seems to be - not that CC payments are not available, but that many people simply prefer cash.

 

I find this point of view just as unfamiliar as you do. Certainly nothing quintessentially American about it.

 

We'll agree to disagree about the wisdom of making national generalizations based on the people who participate in a forum. This reminds me of the way people on cruise line specific boards talk about the importance of Cruise Critic posters to that cruise line. Reliable-seeming statistics suggest that CC participants make up less than 5% of any cruise. You certainly wouldn't get that impression from reading the forum threads.

 

As you say, everyone to his own taste when it comes to spending on a trip.

Edited June 29, 2015 by Pet Nit Noy

[2ashevillesailors]

What is the best way to obtain British pounds? Since we will be in Britain for only 2 nights, we will only need a small amount. I have read that the exchange counter at Heathrow is a very expensive way to convert currency. What about an ATM machine at the airport? Or should I obtain it while still in the US before departure.

 

Thanks for any advice.

 

ATM is the way to go, they do not charge ATM fees and the exchange rate is very good. We were charged $5 from our bank in US. We knew that before we used it. Told our bank we would use it while in England.

[Cotswold Eagle]

ATM is the way to go... and the exchange rate is very good.

 

Not at the airport it isn't :)

[2ashevillesailors]

Not sure where you're getting your information about Americans dealing largely in cash. I'm representative of my circle of friends. At home in the US, if I'm walking around with more than $5 in my wallet that's a remarkable situation.

 

Perhaps Americans tend to carry more cash when traveling because we're simply uncertain when we'll need cash and when we'll be able to use credit cards. I'm someone who carries more than the GBP or Euro equivalent of $5 when traveling, but I prefer to use plastic.

 

Of course, I'm less compulsive about spending down all my foreign currency. We always try to leave a visit to the UK or Euro zone countries with 100-200 GBP or Euro. We simply put the money in our safe deposit box and retrieve it when we leave for our next trip. For unique currencies that I have no plans to visit in the forseeable future, I simply give the money to charity in the airport/cruise terminal/on the air plane.

 

As for why we still have $1 bills, I can only speak for myself. I hate the weight that considerable amounts of change add to my handbag. If I accumulate too many coins, I'll convert that to dollar bills at my earliest opportunity.

 

 

 

In the US, in addition to the obvious places for using a credit card, we can now use a credit card to pay in parking lots and, most recently, for parking meters at on-the-street parking. Ditto for paying tolls on some highways.

 

What places can you use a credit card in the UK that Americans might find surprising?

 

I mainly use a Bank Debit card for most of my purchases here in the US, otherwise a credit card. I do use cash but not much. I bring foreign currency, many tour guides require cash. I like to have the cash for presents that I bring home, don't want to pay a conversion fee, although I do have a card that does not charge me the fee. I will use the credit card when travelling abroad.

[2ashevillesailors]

Not at the airport it isn't :)

That is good to know, is that all airports? I don't think I have used an ATM at the airport. What about train stations? I have done that there and thought it was reasonable. Thank you for your information, it is very helpful.

Edited June 29, 2015 by 2ashevillesailors

[2ashevillesailors]

Our bank has euros and GBP on hand; I don't know about other currencies.

Before we went to the bank we checked the AAA rate, and it was higher than our bank so it pays to check.

 

I would not recommend travelers' checks if your AAA or bank still have them. We cashed some old ones in at the same bank where we bought them, and it was a huge hassle. The teller had to call AmEx for authorization, and it took over 45 minutes while she had to check numerous times to be sure they weren't counterfeit. No one at the bank from the manager on down had ever seen travelers' checks before, and everyone was coming over to look at them. It actually got quite comical, but the poor teller was nearly in tears from the grilling she received from AmEx.

Now I really feel OLD!! I remember when we alway took travelers checks with us on trips. I am sure it was quite comical. At first when reading this I am thinking everyone has seen travelers checks, then thought and I am sure my daughters, who are adults have not seen them. Interesting.

[john watson]

I am thinking it may be less hassle to get a small amount of Sterling before travelling. The other problem I foresee is that London Buses DO NOT ACCEPT CASH. It's generally Oyster Cards now for travel or pay cash and travel in cabs.

 

If you are thinking about travelling around London a detailed look needs to be made into the logistics beyond simply obtaining cash.

 

Regards John

[Hatters cruiser]

If you have a contactless credit card you may be able to use it as if it was an Oystercard.

I use my UK card in this way, and am debited the same amount as would be charged from an Oystercard for the same journey on Tube, London Overground or Bus.

Transport For Londons website may help you tell weather your card could be used, for instance all Amex contactless cards are accepted according to them.

 

https://tfl.gov.uk/fares-and-payments/contactless/what-is-contactless?intcmp=8610

[Cotswold Eagle]

That is good to know, is that all airports? I don't think I have used an ATM at the airport. What about train stations? I have done that there and thought it was reasonable. Thank you for your information, it is very helpful.

 

Railway stations (London main ones certainly) tend to have a mixture. At Paddington there are both ATMs operated by banks and some by ForEx companies (most of which are at least dual currency - € and £ - from memory). The latter will use DCC.

 

The ForEx companies look for sites with large international passenger footfalls - so hotels and some shopping centres are also attractive to them. I have posted this before, because some people don't believe me - this is a direct lift from Travelex's corporate website (my bolding) - all Travelex ATMs use DCC, so guess how they are driving the revenue :)

 

Our ATMs are primarily located at:

Major transport hubs such as airports and ports

Busy tourist hotspots such as the Tower of London

City hotels with a large proportion of international guests

Shopping centre locations

 

Working with new partners

We are keen to expand into new sites where there is significant international footfall and/or demand for foreign currency. With our superior ATM technology and experience, we are the expert in driving revenue from ATMs by deriving maximum return on each transaction.

- See more at: http://www.travelex-corporate.com/EN/What_we_do/ATMs/#.dpuf

Edited June 30, 2015 by Cotswold Eagle