Travel to Scotland Question: Money Exchange

[Knight]

Hi,

My wife and I are taking a ten-day (or twelve, we'll see) vacation to Edinburgh, Inverness, and London at the end of June. We've never travelled overseas before, and have zero experience with using anything but the greenback.

We've asked around our families for advice from other experienced travelers, and we even went into our bank today to ask for advice/assistance (that was a mess; they had no clue and spun their wheels for almost fifteen minutes trying to save face).

I've been told that banks have both higher and lower exchange rates. I've been told airport have both higher and lower exchange rates, but the Syracuse International doesn't have an exchange so that doesn't matter. I've been told that the exchange in Edinburgh ought to be fair, and that they scalp. It seems like no one can give advice that isn't contradictory to something else I've previously been told, and to be frank, I just want to know how to make sure my wife and I have a good time. I'm sort of at my wit's end with this, and we're running out of time.

Therefore, I was hoping that either one of the true-blue Scots or some of the seasoned travelers who've visited the country can give a younger fellow some advice on the subject. What is the best way--or at least most frugal--to exchange my US Currency for Scottish bank notes or GBP? Which should I use while in Edinburgh/Inverness and/or London?

Thanks!

[Jock Scot]

I am not sure that a local will know the best deals on exchange rates, but one thing you must do is let your credit card company know that you will be travelling abroad and between certain dates. It is not unusual for visitors to forget that and it can and does cause major complications for them. As far as I am aware any bank and post office will change Dollars to Pounds at the going exchange rate. No doubt you will change some--- most ---of your Dollars to Pounds at your own bank in America before you take off and you might get the best exchange rate doing that, but in truth I think it is a bit of a lottery.

[cck]

Certainly inform your credit card companies when and where you will be traveling. Some cards will not charge a foreign exchange rate. I have been told, but can't confirm, that ATM machines will not add a currency exchange charge, but they do charge a transaction fee.

[Macman]

When I travel, I go to my bank to get a "starter" wad of currency to see me through the first few days of travel. I don't like carrying huge amounts of currency. After that, I use ATMs and VISA in the foreign country. Could I get better exchange rates if I shopped around or looked into things further? Maybe, but I don't get too fussed about it, because I want to focus on enjoying my trip. The only time I really got skinned (that I knew about) was buying Chinese currency at Thomas Cook in my own town. I realized when I got to China that I could have a gotten a way better rate there.

When going to Scotland, I got GBP before leaving. Once that was spent, I got Scottish currency from ATMs. If you can't buy pounds before you go, don't worry; there are lots of banks around. I wouldn't bring US cash to the UK, though.

Two more things to note. Most debit cards have daily withdrawal limits, so time your ATM withdrawals judiciously if you spend lots of money. Also, I understand that American cards are not chipped; I was behind an American couple in a supermarket when their credit card didn't work in the machine. It got sorted out eventually because they had lots of cards to try.

[Father Bill]

Also, make sure that your P.I.N. has only four digits; our Canadian 5 digit is more secure, but would not have worked on the continent. Can't speak for Great Britain.

[Carlo]

Banks (at least swiss banks do) use two different exchange rates:
One for hard cash (coins and notes); the other for virtual money (credit-cards...)

When I pay with my credit-card I always ask to pay in £, because that way I get the better exchange rate.
I use ATMs for cash and because there is a transaction fee, it might be better to get a bit more at a time = less transaction fees.

Let your bank / credit-card company know where you are.
Check with your credit (debit)-card company if your card works over here.

My PIN is 6 digits long and it always worked.

Concerning Scottish vs English pounds.
I never had a problem with Scottish notes in England but I had problems with new looking English notes in London (they were out of date). So make sure you know how the notes should look

[ThistleDown]

Locals are probably not able to give you the best advice, but I live in both Canada and Scotland and spend time in Switzerland and Spain, so here's my advice. Wherever I am travelling I carry an amount in the currencies of the countries I am travelling to sufficient to make me comfortable for a few days. I divide the funds so I don't have a wack in the same place/pocket/sporran. I tell my credit card companies' security departments where I am travelling and roughly when. I don't use Visa or MasterCard when the retailer wants to charge me a fee. I use Visa and ATMs to draw instant cash (to the maximum daily limit to keep transaction fees low), but I have bank accounts in Canada, Scotland and Switzerland to fall back on. I do not use American Express or traveller cheques. I don't worry about two or three percentage points difference in exchange rates, but I demand the best rate from the bank I am using for cash transactions.

[California Highlander]

When going to Scotland, I got GBP before leaving. Once that was spent, I got Scottish currency from ATMs. If you can't buy pounds before you go, don't worry; there are lots of banks around. I wouldn't bring US cash to the UK, though.

Two more things to note. Most debit cards have daily withdrawal limits, so time your ATM withdrawals judiciously if you spend lots of money. Also, I understand that American cards are not chipped; I was behind an American couple in a supermarket when their credit card didn't work in the machine. It got sorted out eventually because they had lots of cards to try.

Note that my American card is chipped, but my bank required chip and sign, not chip and PIN. I only used my PIN once and had to sign the rest for my entire trip in Scotland!

I also got some GBP to start out and for general spending. My bank had a decent exchange rate. I used credit card for almost everything I could and also asked to pay in pounds. No issues while there or upon return. Some places and situations require cash, so it was good to have it.

[Kanati]

I suggest using your bank and (depending on your bank) give them enough time to get it to the branch.
Also there is a difference between Bank of England and Bank of Scotland notes. Its not a problem in Scotland but if you get Bank of Scotland notes as change you could have a problem if you travel to London.
When I was last in Edinburgh I made a purchase and the clerk ask me if I was traveling outside to Scotland. She told me that some smaller establishments may not want to take Scottish notes.

It was all news to me. I had never paid much attention to my notes since I usually go to London first. I am sure one could always go to a local bank to switch notes.

[Fresh]

I work for a credit union in the U.S., and we serve a very international membership, so we deal with a lot of currency exchange issues. I'm also fairly well travelled in Europe. Much good advice has already been given, but here's my $0.02 (that's about 0.01 GBP):

1. Get some cash before you go. There are many exchange rates. Generally, big currency exchange firms get the best rates on the market, something at or near the interbank rate. You won't get this rate. ATM cash withdrawals will hover around 2% over the interbank rate, and other than maybe getting a deal from your bank, are probably about the best you will do. Credit cards are closer to 3% over the interbank rate, and kiosks at the airport or on the street are more like 5% over the interbank rate. Use these only if you're desperate. Note there are also buy and sell rates. Currency exchange places have to make money somehow, so they do this on the margin between what they will sell you currency for (higher rate) and what they will buy it from you for (lower rate). So you may see buy/sell rates listed at places, just realize that's why.

It's generally good to have some cash in the local currency--you never know when you'll have an issue with your credit card or you can't find an ATM. If you're staying in the big cities, will be less of a problem, but if you get out in the country, you could easily get hosed. (Not related, but if you travel to Greece, they will want cash and cash only a lot of places.)

2. Make sure you have chip cards. Much of Europe adopted Chip and PIN a long time ago as the standard, versus the simple signature transaction. You can and should set a PIN on them, if for no other reason than to withdraw cash from an ATM. This is a cash advance, and the interest rates on cash advances are notoriously high (and there may be fees as well), but if you're in a bind, it's a good option to have. Depending on where you are, they may ask you for a PIN, or they may accept a signature--it really depends on the merchant.

3. Using credit where you can is great for a couple of reasons. First, there is a zero liability policy. If you were charged erroneously or your card number is stolen and used improperly, you can always file a claim with your credit card issuer. This may not apply if you are not using a chip card--part of why the U.S. is moving to chip cards is because Visa is trying to combat fraud. The responsibility can fall on the merchant if they are not offering chip equipment, but if they are and you still use a standard 'swipe and sign' form of payment, that liability starts to fall on you if there is fraud. I'm not sure where policies are on this at the moment, and it may vary overseas, but as noted above, just get a chip card if you don't have one.

Second, it's a nice record of your transactions--the dollar amount will appear on your statement, so you'll have a true record of what you spent. Third, there are a lot of benefits that come with credit cards that many people aren't aware of. For instance, if you book a rental car with your card and pay for it, chances are your policy has insurance that covers any damage to the vehicle, so you can decline the extra insurance the rental car company always tries to sell you. Check your card benefits statement to verify, but it's pretty popular on both Visa and MasterCard cards.

4. Using credit cards can have some drawbacks. First, most cards charge a foreign transaction fee. This is a separate charge of typically up to 3% that is applied to your transaction, and is separate from the exchange rate, but most banks/credit card companies do not list it as a separate line item on your statement. Capital One Venture Card is aimed at travellers, and does not charge a foreign transaction fee. There are others out there that also don't charge a fee. Read your card agreement or ask your card issuer what the fee is on your card. It may be worth opening a new card without a fee and use it as your primary means for purchases.

5. As Jock noted, do give your credit/debit card issuers a heads-up when/where you will be travelling. There may be a form in your online banking system to do this, but if not, call them or stop in a branch. Card networks have pretty sophisticated fraud detection systems called neural networks that monitor not only general fraud trends (ie, people who visited a certain store are suddenly reporting fraud), but also your specific usage patterns. It would not be unusual for someone who does not travel or make purchases overseas very often to be flagged the first or second time they use their card in a new country if you haven't listed your travel plans. Many card issuers now allow you to receive these types of alerts (that your card was blocked due to suspected fraud activity) through e-mail, text message, or within an app on your mobile device. In the past, they always tried to call you, which is not always convenient when you're overseas. Even if you report your travel plans, your card may still be blocked. For that matter, if you fly across the U.S. and use your card for something you don't normally purchase, it could be blocked--this happened to me. It's another good reason to have cash on hand, just to tide you over until you get it sorted.

6. Keep a list of your card issuer contact information for lost/stolen cards and general services. Yes this info is on the back of your card. No, you can't read it off the back of the card when the card is lost or stolen. Many will have international toll-free numbers. Just make a list, print it out, and keep it with the photocopies of your passport you should also have for those just in case moments. Also not a bad idea to have the information for the local embassy (and/or consulate) in the areas you will be visiting, again, just in case.

7. No one uses traveler's checks anymore. Don't bother with them, even though you can probably find them in GBP.

Hope that helps. Have a great trip.