Spending in London, England

[MikeAg]

Hi:

This question is directed to all the expert travelers to London and the financial experts.

A. What is the best way to spend in London.

1. Get CAD converted to GBP in Canada (at airport or banks).
2. Get CAD converted to GBP in UK (at airport or banks).
3. Which place will have the best exchange rate.
4. Using Canadian credit or debit card in London.

Any other tips to save while in London.

B. Same 4 questions above for travelling from London to Paris.

[FunSave22]

Bring a couple days worth of pounds (and maybe euros) with you.

Once in Europe, use your credit card whenever you can. When you need more cash go to an ATM machine and withdraw a few days worth using your bank card.




You'll pay a bit to withdraw money with your ATM card. And the exchange rate for using your credit card and ATM will be good, although not the absolute best. Best it's just so much easier than anything else.

And the amount of money you'll save trying you find the absolute best will be small and it isn't worth the time needed to try to find the absolute best.

[herrdude]

Never exchange at the airport.

[Pete_Coach]

Funsave22 hit all the points.
Get enough cash from an ATM using your debit card to last you a while. Never ever use a credit card for cash, it is considered a loan and incurrs credit card interest the moment you take the money (18 to 22 or more %).
Chasing exchange rates is a waste of effort and more importantly time during your vacation. They are all very close. Really, will 1% make a difference? It should'nt or you shouldn't be there if money s that tight.
Pay most larger items and expenses with yoru credit card. They offer a fair exchange rate.
Do the same for Paris.
One last thing, England is expensive but, it will look not so bad. The prices will look familiar except they are in pound vice dollars. A T shirt will be 20, not so bad but...in pounds not dollars (31 dollars by the way).

[Manatus]

Also don't forget that using your credit card will still get you the regular credit card rewards, which will help to offset the exchange charges. All in all unless you're spending tens of thousands of dollars, it's not worth wasting your vacation time comparing rates.

[GemInite]

One last thing, England is expensive but, it will look not so bad. The prices will look familiar except they are in pound vice dollars.

I remember my first time going to London in '06 when the exchange was. at 2.5. $4 pound sandwich = $10 Canadian.

At least exchange is at 1.6 these days.

[JumpinBug]

FunSave22 is all knowing. :D

Credit card for some bigger stuff such as hotel, etc. Debit machines for day to day cash. Make sure you check your cash limit before you go, so you can minimize the number of withdrawals... such as if your limit is $500 Canadian, getting 300 pounds out.

[herrdude]

Yaaaa, I was there around that time. I remember a combo at Subway was almost 10 pounds or 26 bucks!! I knew one way or another I was going to shed a few pounds. :D

[ken1025]

Just went there last year.

Before you leave, dont get exchange at either bank or airport, worst rate is London, so many extra fees and taxes on top in Europe. Best rate is get it change at local exchange shop.

Also beware of that all credit card company will charge at least 2% on top for foreign convenience, TD card is the worst, they charge 5% on top. They usually won't show on your bill, but will be add to the asking on your bill.

Their is only one credit card in Canada that won't charge the 2% fee, its the Amazon.CA visa card, also will give you reward, super easy to apply. Its a green color visa card.

Hope this help.

[FunSave22]

Also beware of that all credit card company will charge at least 2% on top for foreign convenience, TD card is the worst, they charge 5% on top.
Most Canadian credit cards charge 2.5%. This includes TD.

If you don't believe me, go to the TD website and apply for one of their cards. Right at the beginning of the online application is the info sheet where they will indicate that they charge 2.5%.


Be aware the most Canadian credit cards calculate the exchange rate on the posting date. For international transactions the posting date can often be a few days after the transaction date. So if you are making a comparison between what you were charged and the exchange rate on the date of the transaction this will often be wrong, as the transaction may have not posted immediately.



And there are other cards that charge less than 2%, such as Desjardins which charges 1.8%. But yes, the Amazon card is the best deal right now for international transactions.

[Truemana]

Use your credit card as much as you can, but remember European merchants don't use credit cards like we do. Lots of places will have minimum charge or won't accept credit cards at all.

For exchange rates, just go to your local exchange place before leaving. I've traveled a bunch recently, and honestly even with the 2.5% exchange fee on credit cards, it was still better than the total rate for exchanging cash.

[GangStarr]

Funsave22 hit all the points.
Get enough cash from an ATM using your debit card to last you a while. Never ever use a credit card for cash, it is considered a loan and incurrs credit card interest the moment you take the money (18 to 22 or more %).

I wouldn't say never use a credit card, there are ways to use it correctly and minimize fees. Every ATM accepts VISA/MC, not every ATM takes stupid PLUS (and even the ones that do can have issues). You just need to be smart and keep your credit card in negative balance.

If you over pay your credit card, you can withdraw money against it paying only the forex conversion fee + local atm fee (if any). This works out better than paying the stupid $5 PLUS fee. Now if your credit card isn't in negative balance, you just need to pay back the amount + the rest of your invoice by your invoce due date. They will add a cash advance fee if your not in negative balance, but I find banks will waive that once or twice if you tell them you were having trouble with PLUS (which happened to me in recent travels). There are also certain cards that waive the cash advance fee. Check with your card, but as long as it's paid off on time they won't charge you interest, just the cash advance fee.

I say carry 2 credit cards when you travel, 1 for purchases that runs a regular balance, then a totally seperate card with it over payed to withdraw from ANY ATM, not just the ones that support PLUS. Screw PLUS, it's high fees, and lack of acceptance.

As a side tip, it may be worth calling your bank to see if there are any partner banks they have where they offer a lower fee. I'm not sure any of the Canadian debit cards have this, but my US Bank of America enjoys lower fees at select banks in Europe.

[GemInite]

If you have a select service account with TD you can use your debit card and they waive the PLUS fee. You only pay the local spread + whatever the local bank charges to use their ATM ($2-4). i did this all through South America using CitiBank

[Pete_Coach]

I wouldn't say never use a credit card, there are ways to use it correctly and minimize fees. Every ATM accepts VISA/MC, not every ATM takes stupid PLUS (and even the ones that do can have issues). You just need to be smart and keep your credit card in negative balance.

If you over pay your credit card, you can withdraw money against it paying only the forex conversion fee + local atm fee (if any). This works out better than paying the stupid $5 PLUS fee. Now if your credit card isn't in negative balance, you just need to pay back the amount + the rest of your invoice by your invoce due date. They will add a cash advance fee if your not in negative balance, but I find banks will waive that once or twice if you tell them you were having trouble with PLUS (which happened to me in recent travels). There are also certain cards that waive the cash advance fee. Check with your card, but as long as it's paid off on time they won't charge you interest, just the cash advance fee.
I say carry 2 credit cards when you travel, 1 for purchases that runs a regular balance, then a totally seperate card with it over payed to withdraw from ANY ATM, not just the ones that support PLUS. Screw PLUS, it's high fees, and lack of acceptance.

As a side tip, it may be worth calling your bank to see if there are any partner banks they have where they offer a lower fee. I'm not sure any of the Canadian debit cards have this, but my US Bank of America enjoys lower fees at select banks in Europe.
I have Visa (which I mostly use) American Express and, MasterCard, all high end cards, one set for business and my personal ones. I never carry a balance on my personal ones but the business ones sometimes don't get paid in time. Taking cash (on my business cards) is considered a loan and will always accrue interest. Although, I have never told them that I had trouble with Plus/Cirrus and asked for a refund of the interest, must try that one. I really don't know why they would care anyway, considering the credit card companies are a diffeent business than the bank. Maybe the bank will help just as a customer service?
I would never "overpay" or "prepay" my credit card, that is like paying next years taxes to the government today. Why let them have my money now?
The tip about affiliate banks is a good one but make sure you fully understand what the benifits of going to them are. Often there is none so why spend the time to hint them down.
I have no problem with Plus/Cirrus. Used properly it is a very convenient and cost effective way of travelling and getting sustenance funds. I know people, even here, who use the debit machines to take out $20 regularily. A $2 fee at the machine an a buck and a half from your bank does not seem to phase most people here so why would they care in Europe?