Travel to Scotland Question: Money Exchange

[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.

[O'Callaghan]

Regarding the bank notes, the problem is that in most of the UK they are issued only by the Bank of England. In Scotland, however, unless they have changed things (?) there are several different banks that issue their own money believe it or not, and they actually look different and have the different bank names on them. Usually it is only when taking Scottish money to England that you may have a problem. Scottish money is valid in England (in theory), and is denominated in the same Pounds Sterling, but frankly many English businesses don't have any employees capable of recognising a Scottish banknote and telling whether it is real, LOL! If only one Scottish bank issued banknotes they would probably be able to recognise them, but there are half a dozen different ones and they never see any of them from one month to the next, unless I suppose they are near the border.

As for notifying your card issuer that you are travelling, as well as where and when, several people said this without saying why. This didn't used to be necessary, but because they are on the hook for fraudulent charges they tend to assume any charge from the wrong state, much less the wrong country, is fraudulent, and then they won't pay it. This is deeply annoying considering that they used to sell credit cards using the fact that they were valid worldwide. So tell them your travel plans, or you could be stuck somewhere overseas with a card that stops working.

There are far fewer places to exchange currency in the US than elsewhere, but your bank will probably change some for you, if you go to a branch in a major city, or maybe if you order it in advance. Finding somewhere overseas is also hit and miss, but any ATM should always give local currency using your card.

Banks in most countries should take an AmEx traveller's checque (check in American), but of course you do have to go inside the bank (only open 10-3 in England, not sure about Scotland), and don't expect them to take ones issued by your local bank, just American Express.

People who have travelled more recently may correct me on some of the above?

[Jock Scot]

On the Scottish/English bank note situation, I still travel between the two countries alot and have never had a problem in using English bank notes in Scotland, nor had I in using Scottish bank notes in England---until just! I think it was nothing more than a fraud concern, but usually the big shops in England will happily take Scottish notes. As a courtessy in England, I have always asked the shop keeper if they will take Scottish money before settling up and have never had a problem in 70 something years, but I did experience for the first time in my life, a marked reluctance to accept Scottish £20 notes in a shop in Gloucester(England) a week or so ago. Not a problem as I carry both English and Scottish money in my wallet as an unthinking matter of course .

[John_Carrick]

The biggest factor could be the result of the European Union Referendum on 23rd June about which I do not comment.

It is expected that if the UK vote to leave the EU there may be a sudden depreciation of Sterling on and around 24th June, which is good news for you.

Sterling may rally were were the UK to vote to stay in the EU.

No one knows which way it will go; the opinion polls are all over the place.

[Jock Scot]

That is pretty much how the money men are predicting things, depending on events, will go John, but I note that the Pound is already on the slide. So perhaps a win win situation for our visitors at the moment.

[Kiltedjohn]

A lot of good points have already been made. So just a few thoughts of my own:

1) there are various comparison web sites which will show the different exchange rates offered by different UK banks and other companies - it may be worth taking a look at those.

2) on the question of Scottish notes, I have had occasional problems trying to use them in England, so best to get English notes if you can. (Sometimes you can't avoid the Scottish ones, however - cash dispensers in Scotland often give Scottish notes.)

3) I have had bad advice from Thomas Cook when travelling abroad. I imagined they would be very knowledgeable, but beware!!

[ctbuchanan]

Others have given you very comprehensive answers so I will tell you on our trip this April this was the strategy I used. We too, spent far too much time thinking about this question and doing the following had no issues whatsoever.

Of course inform your bank card that you are going. Get a card with a chip if it is not too late, they always asked for it. I use a debit card exclusively so I only kept enough money in the account tied to it for daily use. Using my cell phone bank app I moved money into it as needed from a savings account.

I used the card for bigger expenses: car, rooms etc.

For daily expenses: meals, tickets, pubs etc I used currency to limit the number of times I had to use the card (paranoia).

I used ONLY bank based ATM machines to get out currency every few days. My bank assessed a flat fee for each exchange so it made sense to withdraw larger amounts and share it with my wife. Bank based ATMs gave us, by far, the best exchange rate.

I had Scottish notes when we ended up in London. Only one shopkeeper looked at them askance, the rest accepted them without question.

One last thing - the only big surprise we had was renting a car. You don't mention if you plan to but be aware that they will hit your card for a sizable deposit (hundreds of dollars). Which they will refund after the car is returned intact. Although you get it back it can put a dent in your available resources.

Have a great trip.
CT

[cessna152towser]

I would agree with Jock that Scottish bank notes are generally accepted in England. The further south you go, the smaller the establishment, and the larger the denomination of bank notes are the factors which might raise the prospect of them being refused. I live near the English border and am across in England frequently and have only twice had problems, in both cases, as Jock said, it is a fraud concern, as the sales assistant may be unfamiliar with Scottish notes and not know how to check for watermarks etc which would confirm the notes are genuine. You should not have problems with Bank of Scotland or Royal Bank of Scotland notes as both of these banks are associated with larger English banks. Clydesdale Bank notes are more likely to be refused as it is a relatively small independent bank headquartered in Glasgow which has very few branches in England.
There are nowadays direct flights to Glasgow and Edinburgh airports from a variety of USA airports, New York, Chicago, Philadelphia, Las Vegas, Orlando etc, but be aware also that if you choose to transit via Dublin or Amsterdam airports you could also need a few Euros as spending money in the airports.

[drctl]

Since I'm a bit of a road warrior, here are my thoughts:

• you lose money each time you exchange a currency. Therefore, the fewer times you exchange currencies, the better.
• Banks and credit card companies usually give the best exchange rates; currency exchange booths tend to give the worst, and local businesses will usually be below that since they'll have to take the funds elsewhere to be exchanged again.
• ATMs usually have a fixed service charge, so if you are going to withdraw funds, go for a large amount in one withdrawal rather than a series of smaller ones
• Once you arrive at the airport, it is a good idea to have some local currency on hand. Options are to order the currency from your bank before you depart, go to an exchange booth, or hit an ATM. Better not to leave the airport without some local currency on hand. Airports usually offer the possibility to exchange funds and that is one less thing you'll have to worry about when you are likely to be tired and disoriented.
• Credit cards work for the big purchases such as car rental, hotels, trains, etc. The exchange rate is normally better as well. Cash works for smaller purchases such as a pint in a pub or a cab and also reduces exposure of your credit card to fraud.
• I bring a minimum of two credit cards in case one is compromised. It is not a good idea to be in a foreign country without easy access to funds. I say this from experience.
• One way to ensure you don't wind up with a pocketful of foreign currency at the end of your trip is to put it all on your last hotel bill just before you head to the airport. Most hotels will allow you to pay part of the bill in cash and the rest by credit.
• Visa and Mastercard usually work well worldwide. Discovery and American Express may not.
• Better to use local currency than your own. You won't get any deals when using USD outside the US.

Hope this helps.

I couldn't have said it better myself. The only things I would add is:

Try to avoid exchanging money at the airports if you can, the rate is really bad there. I've made that mistake. I usually hit the ATM in the airport (there will be a fee) I take out a large amount of cash to last me for a while. My take on it is I don't want to pay multiple fees from ATMs. I don't take out so much money, however, that I will be dead in the water if it gets stollen. I find the ATM exchange rate is the best and I minimize handling fees.

Definitely tell your bank before, I've made that mistake.

Bring at least one CC with a chip in it. Europe uses the chip more than North America. Restaurants will bring the chip reader hand-held over to your table after dining, and process it in front of you. Some that I've traveled with find this odd, but I like it, my card is never out of my sight and reduces the chances for fraud. I've made that mistake too.

Scottish has two banks that print money. One is Clydesdale and the other is the Bank of Scotland. These are Sterling Pound notes, just like the rest of the U.K. Wales has their own currency and Northern Ireland does too. (I kept a 10 pound Clydesdale note that has Robbie Burns on it because I like the picture, you can Google if you like). Some places in England will try to refuse Scottish bills, they are legal tender and are accepted throughout the U.K. You have to be firm and insist they take it, or spend your Scot cash before heading down and get English notes. Or use a card.

On an unrelated note keep your passport in a safe location (hotel safe or well hidden on your person). Protect it at all costs, if you lose that you are sunk. I haven't made that mistake yet and don't plan on it.

General tips:
Use a phone not a paper map for directions, it labels you as a tourist and therefore a target.

Speaking of phones, the easiest way I have found to deal with cellular data is to bring an old phone that you have previously unlocked. To unlock you just go onto the cellular carrier's web and enter the ID number and they do it electronically, or you can take it into a store and do it there. You usually can not unlock your current phone.

Then, when you get there you can go to a cellular store (there is one called Carphone Warehouse that has locations everywhere and there are other stores too).You go in and buy a chip with a data plan for 20-50 pounds and that will cover your data for the trip. I think I paid 30 pounds last trip and had data left over. They sell these chips at news stands and stores too, but I would recommend going to a cell phone store so they can set it up for you. My wife bought one at a news stand and we never got it to work right (that was most likely user error). If you don't have an extra phone you can buy a burner for a few pounds more once you get there. Most international plans include cellular but not data and you will definitely need data.

[cessna152towser]

Wales has their own currency

There are no Welsh banknotes issued but Welsh coins are commonly seen and can be circulated anywhere in the Sterling Zone. All Sterling Zone coins are minted with the same planchets and will have the Queen's head on one side although the reverse side will differ for England, Wales, Scotland or Northern Ireland and all these coins can be used in all four countries or in any of the Crown Dependencies within the Sterling Zone. Watch out though for coins intended specifically for use in the Crown Dependencies, for example Jersey, Guernsey, Isle of Man and Gibraltar which are minted in England from the same planchets and turn up surprisingly often in change. Most outlets will accept them but some will not. Pre-2002 Eire coins which are identical in size and shape but do not have the Queen's head also still occasionally turn up and these are not legal tender.