How to Exchange Money in the UK
Use cash., Use credit and debit cards., Use prepaid cards., Use traveller’s checks.
Step-by-Step Guide
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Step 1: Use cash.
It is always a good idea to take some cash in the local currency with you when travelling.
You will most likely need the cash to pay for transportation and food once you arrive at your destination.
Before traveling, convert your cash to the local currency.
It is best to exchange your money at your own bank, first.
Your bank will have lower exchange rates and fees when compared to other venues. -
Step 2: Use credit and debit cards.
Using a credit card to exchange money can be one of the cheapest ways to spend money abroad, if done correctly.
Save your money by obtaining a “travel friendly” credit or debit card.
If you use your usual card abroad, you can get hit with four different types of fees: a foreign usage fee, a cash withdrawal fee, credit card interest, and flat fees.
For example, your bank can charge you overseas usage fees from
2.75 to 3 percent of the amount charged to your card.Generally, though, credit and debit cards offer competitive exchange rates and are more secure than cash.Choose the best card for your trip by visiting your bank.
Tell them that you will be traveling and that you would like to know if your current credit or debit card is “travel friendly” or not.
If it isn’t, ask them about the cards they offer that are suited for travelling overseas.
You can also visit online comparison sites where you can get expert recommendations on which cards to use overseas. , If you want to avoid incurring the fee charges accompanied with using a credit or debit card, think about getting a prepaid card.
You can load prepaid cards in advance with cash before you travel.
And, if you preload them when the exchange rate is good, you can save a lot of money.
You can find prepaid cards that are designed especially for foreign travel.Choose from some popular prepaid cards:
American Express GlobalTravel Card, VISA TravelMoney Card, MasterCard Prepaid Travel Card, Travelex Cash Passport Card.
Prepaid cards are not without their drawbacks, however.
There are still fees that can apply depending on which card you get, such as an application fee, a withdrawal fee, an inactivity fee, or a monthly fee.
Check the fine print of each prepaid card. , Traveller’s checks are pre-printed checks with set amounts.
You can use traveller’s checks to pay for things or exchange them for cash.
They work very similarly to your regular banking checks.
You cannot buy something that is worth more than the amount of the traveller’s check, however.
You can visit a bank, a Post Office, a bureau de change, or a travel agent to purchase traveller’s checks.
One drawback of using traveller’s checks is that there are a limited number of places that will exchange them for cash.
Therefore, you will have to do some searching if you want to exchange them.
Another drawback is that you pay fees when you buy the checks, and a commission when you use them. -
Step 3: Use prepaid cards.
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Step 4: Use traveller’s checks.
Detailed Guide
It is always a good idea to take some cash in the local currency with you when travelling.
You will most likely need the cash to pay for transportation and food once you arrive at your destination.
Before traveling, convert your cash to the local currency.
It is best to exchange your money at your own bank, first.
Your bank will have lower exchange rates and fees when compared to other venues.
Using a credit card to exchange money can be one of the cheapest ways to spend money abroad, if done correctly.
Save your money by obtaining a “travel friendly” credit or debit card.
If you use your usual card abroad, you can get hit with four different types of fees: a foreign usage fee, a cash withdrawal fee, credit card interest, and flat fees.
For example, your bank can charge you overseas usage fees from
2.75 to 3 percent of the amount charged to your card.Generally, though, credit and debit cards offer competitive exchange rates and are more secure than cash.Choose the best card for your trip by visiting your bank.
Tell them that you will be traveling and that you would like to know if your current credit or debit card is “travel friendly” or not.
If it isn’t, ask them about the cards they offer that are suited for travelling overseas.
You can also visit online comparison sites where you can get expert recommendations on which cards to use overseas. , If you want to avoid incurring the fee charges accompanied with using a credit or debit card, think about getting a prepaid card.
You can load prepaid cards in advance with cash before you travel.
And, if you preload them when the exchange rate is good, you can save a lot of money.
You can find prepaid cards that are designed especially for foreign travel.Choose from some popular prepaid cards:
American Express GlobalTravel Card, VISA TravelMoney Card, MasterCard Prepaid Travel Card, Travelex Cash Passport Card.
Prepaid cards are not without their drawbacks, however.
There are still fees that can apply depending on which card you get, such as an application fee, a withdrawal fee, an inactivity fee, or a monthly fee.
Check the fine print of each prepaid card. , Traveller’s checks are pre-printed checks with set amounts.
You can use traveller’s checks to pay for things or exchange them for cash.
They work very similarly to your regular banking checks.
You cannot buy something that is worth more than the amount of the traveller’s check, however.
You can visit a bank, a Post Office, a bureau de change, or a travel agent to purchase traveller’s checks.
One drawback of using traveller’s checks is that there are a limited number of places that will exchange them for cash.
Therefore, you will have to do some searching if you want to exchange them.
Another drawback is that you pay fees when you buy the checks, and a commission when you use them.
About the Author
Frank Jones
Dedicated to helping readers learn new skills in lifestyle and beyond.
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