Murphy Writing of Stockton University

The British pound (£) is the official currency of Great Britain. It is also referred to as the pound sterling and informally as the “quid.” The pound is divided into 100 pence or “p.” Coins are used in the following denominations: 1 p, 5 p, 20 p, 50 p, £1 and £2. Bills are used for £5 and higher. Have a look at your new best friends: http://projectbritain.com/money/banknotes.htm.

We have found the most affordable way to buy pounds is actually the simplest, by using a debit card at an ATM, informally known as a “Hole in the Wall.” You can get cash at one of the airport ATM machines as soon as you clear customs. It’s safe and convenient and you will get the best exchange rate.

British banks do not charge ATM fees, but your local bank may. That said, the occasional private ATM, e.g., in a pub, will charge a fee. Unless it’s an emergency, get your money from a bank ATM. They are clearly labeled.

Our local bank charges just $1 per international transaction, but yours may be more or, if you’re lucky, nothing at all. When you check on the fee, also check to see if your bank has a daily withdrawal limit, say $300, which means you will only be able to withdraw £200 or so, depending on the exchange rate. If so, you may need to make several withdrawals during your trip, depending on how much you plan to spend. That may be a better idea anyway than withdrawing all your cash at once.

Questions to ask your bank before your trip:

• Fee for international ATM withdrawals?
• Daily limit for withdrawals?
• Fee for using your debit card?
• Notify them of your dates abroad.

Exchange Rates
When we traveled to the UK in 2008, we paid $2.01 per £. Ouch! The good news about the slumping economy is that the pound has declined, so today the rate is $1.31. That’s great. You can check the drama of the dollar vs. the pound by googling 1 gbp in usd. There’s no need to be compulsive though; that’s our job.

Visa or MasterCard are accepted most places in the UK, but Amex is not as common. Most credit cards tack on an international transaction fee of 1-3% so when travelling abroad, we find it best to make most purchases with cash, especially since we often find ourselves eating at small cafes and sandwich shops. Our only exception to this rule is when making a large purchase and you want the customer protection many credit cards offer. In general, Capital One cards don’t charge a fee for international purchases, but it’s best to check with your various cards to see which one will give you the best rate. While you’re on the phone with them, it’s also a good idea to notify them of your travel dates.

Questions to ask your credit card(s):

• International transaction fee?
• Notify them of your dates abroad.

Sales Tax
The UK charges a Value Added Tax (VAT) on nearly all purchases, but it is usually included on the price listed for an item or service, so when you see a price listed on a shelf or a menu, that’s the price you will pay.