Money Matters: Navigating Cash, Cards, and Currency in the UK

Ready to unlock the secrets of managing money during your travels in the UK? This episode is packed with essential insights for navigating cash, credit, and debit card payments efficiently. We start by diving into the intricate world of British currency, outlining the different denominations of the pound sterling and the importance of understanding its nuances - especially when it comes to recognising banknotes from different regions like Scotland and Northern Ireland.

You'll hear about the practicalities of using cash versus cards, highlighting the pros and cons of each method. Many visitors wonder whether cash is still relevant amidst the rise of cashless transactions, and we explore that dilemma while providing practical tips on when to use each form of payment. 

We also shed light on the best practices for using cards in the UK, emphasising the necessity of choosing sterling over your home currency to avoid hefty fees and ensuring you're primed for seamless transactions. 

Whether you're a first-time visitor or a seasoned traveller, this episode offers valuable tips to enhance your travel experience, from where to withdraw cash safely to strategies for avoiding unwanted charges. Our engaging narratives aim to make your trip financially satisfying and tension-free. 

Join us as we unravel these money management tips and ensure your visit to the UK is unforgettable. Don't forget to subscribe and share your thoughts! Happy UK travel planning!

📝 Show Notes - Episode 144

🎧 Listen to next

• Episode 132 - London 2025: 12 Essential Tips for Planning your Perfect Trip
• Episode 47 - Practical Tips for visiting the UK
• Episode 7 - Tips for first time visitors to England

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Episode Transcript

Speaker 1 (00:00):
wondering how to manage your money when visiting
the UK.
In episode 144 of the UK TravelPlanning Podcast, I'm answering
one of the most commonquestions we get how to pay for
things during my visit, fromusing cash, credit and debit
cards to contactless payments.
I'll cover the pros and cons ofeach option, plus share some
essential travel money tips.

Speaker 2 (00:21):
Welcome to the UK Travel Planning Podcast.
Your host is the founder of theUK Travel Planning website,
tracey Collins.
In this podcast, tracey sharesdestination guides, travel tips
and itinerary ideas, as well asinterviews with a variety of
guests who share their knowledgeand experience of UK travel to
help you plan your perfect UKvacation.

(00:44):
Join us as we explore the UKfrom cosmopolitan cities to
quaint villages, from historiccastles to beautiful islands,
and from the picturesquecountryside to seaside towns.

Speaker 1 (01:03):
Hello and welcome to this week's episode of the
podcast.
Today we are diving into one ofthe most common questions we
receive from travellers viaemail or in our UK and London
travel planning Facebook groupshow should I bring money to the
UK?
Understanding the best way tomanage your money while
travelling is key to astress-free experience, and in
this episode I'll break downeverything you need to know

(01:24):
about using cash, credit anddebit cards and contactless
payments in the UK.
We'll also cover the pros andcons of different payment
methods, the cards we use abroadand why, and essential travel
money tips.
So let's jump in.
So let's talk about UK currency, what you need to know.
So let's start with the basics.
The currency used in the UK isthe British pound sterling.

(01:45):
You'll see it abbreviated asGBP.
Although the UK was part of theEuropean Union for many years,
it actually never adopted theeuro.
So pound sterling banknotescome in four main denominations
£5, £10, £20 and £50.
Paper banknotes are not legaltender in the UK anywhere.

(02:07):
Only the new, more durablepolymer notes are accepted, so
make sure no one tries to giveyou change using paper notes.
That's really important.
I will also just say at thispoint as well is that if you are
traveling over and your bank inthe US or Australia has given
you 50 pound notes, if you aretraveling over and your bank in
the US or Australia has givenyou 50 pound notes, ask for

(02:29):
smaller notes, because actuallytrying to break up a 50 pound
note can be quite difficult.
So ask for 20 pound or smallerif you bring any cash with you.
So there are also eightdifferent coins.
One pence and two pence coinsare made from copper.
Five pence, 10 pence, 20 penceand 50 pence are made from
silver.
1 pound and 2 pound coins aredual colour and made from a kind

(02:51):
of cupric nickel and brass.
Nickel P stands for penny andthere are 100 pennies in a pound
.
Now, it's not thatstraightforward.
Things do get interesting.
Scotland also issues its ownbanknotes, but they're still
considered to be pound sterling,so they're legal currency
throughout the UK.
That said, some retailers inEngland might be hesitant to

(03:13):
accept Scottish notes, so keepthat in mind.
English banknotes are acceptedin Scotland.
Northern Ireland also producesits own banknotes, but these are
rarer than pound sterling notes.
You won't be able to spendthese outside of Northern
Ireland, and if you still havesome notes when you leave
Northern Ireland, you can swapthem for English notes at a bank
.
If you'd rather avoid thisconfusion altogether, using a

(03:35):
credit or debit card is honestlythe easiest option.
So question should you use cashin the UK?
Now let's talk about cashversus card.
Many travellers wonder if theyshould bring cash to the UK, and
the answer is it depends.
There are some benefits to usingcash in the UK.
Firstly, it's easy to budgetyour daily spending so you can

(03:56):
keep track of your finances.
You'll find some smallbusinesses.
Taxis or parking meters maystill only accept cash.
Another reason is that a fewretailers, especially smaller
shops and cafes, don't acceptcards for purchases under £5,
plus.
Banknotes and coins make agreat souvenir if you're
traveling in the UK.
However, the drawbacks of usingcash in the UK is that many

(04:19):
places are now cashless,especially in London.
Carrying cash can be bulky andless secure, and if your cash is
lost or stolen, it's harder torecover and you might also be
left with leftover money at theend of your trip.
Now my recommendation is usecards if you can, but bring a
small amount of cash for thingslike tips, small purchases and
places that don't accept cards.

(04:40):
Some tour guides, taxi driversetc.
Will accept tips on a cardmachine, but many will prefer
cash, and obviously that's inpound sterling if you're going
to leave a cash tip.
But generally speaking, formost transactions, especially
large ones like entry to anattraction, a meal out or a
theatre ticket, you'll be betteroff using a card.
And you know, I use my card allthe time.

(05:03):
I can't even think about thelast time that I saw any cash,
because most of the time, well99.9% of the time, I will just
use my card or contactless.
Now let's talk about cards, whatyou need to know about using
cards in the UK.
So credit and debit cards arethe most convenient way to pay
in the UK.
Visa and MasterCard are widelyaccepted, but be aware that

(05:26):
American Express is lesscommonly accepted outside major
cities or in smaller shops orrestaurants.
So let's go through someessential do's and don'ts when
paying by card in the UK.
First of all, always pay inpound sterling.
If you're given the option by acashier or by a cash machine to
pay in your home currency orpounds, always pay in pound
sterling.
If you're given the option by acashier or by a cash machine to
pay in your home currency orpounds, always choose pounds.

(05:48):
Otherwise you could be hit withan unfavorable exchange rate.
Always notify your bank beforetraveling to the UK.
This avoids your card beingflagged for fraud and then
putting a stop on it.
Thirdly, check forinternational transaction fees
before you travel.
Some banks charge fees forforeign transactions in addition
to an exchange rate fee.
So if your card is one of these, consider signing up for a

(06:11):
travel-friendly debit or creditcard.
These cards should ideally haveno foreign transaction fees, so
you won't have to worry aboutracking up high fees when
spending abroad.
So I recommend bringing atleast two payment methods with
you, such as one Visa and oneMasterCard, just in case things
don't work or aren't accepted.
And remember, don't rely solelyon Apple Pay or Google Pay.

(06:32):
Have a physical card as abackup just in case your phone
dies or malfunctions.
Now let's talk about ATMwithdrawals and exchange rates.
If you do need to get cash,withdrawing from an ATM is the
best option.
These days, they're much morecommon than bank branches, and
you'll find cash machines atmost banks, supermarkets and
train stations.
However, there are a few thingsto keep in mind.

(06:54):
Check if your bank chargesforeign ATM fees.
These can quickly add up overthe course of your trip and you
could get a nasty surprise onyour bank statement when you get
home.
Some ATMs, like those in smallerstores, charge withdrawal fees.
They're not huge, usually about£1.50 or £2, but I'd avoid them
if you can.
It will say on the ATM homescreen whether it charges a

(07:15):
withdrawal fee or not and, if indoubt, ask Always choose to be
charged in pounds rather thanyour home currency to get the
best exchange rate.
Now remember, when enteringyour PIN, be sure to shield it
from prying eyes and be aware ofyour surroundings when
withdrawing money from any ATMmachine.
And if you'd prefer to use abureau d'achance to get cash in
the UK, try to avoid using theairport currency exchanges

(07:38):
because you'll usually get aworse rate.
Instead, go to high street bankor post offices.
Some major supermarkets likeTesco or large department stores
like Mark and Spencer's alsohave a bureau de change desk.
And if you're exchanging alarge amount of money, I do
recommend shopping around onlineor in person for the best rate
if you've got the time.
Exchange rates will vary fromone bureau de charge to another,

(08:02):
so do check.
So best cards for travel in theUK.
If you want to avoid foreigntransaction fees and get the
best exchange rate, considerusing a travel-friendly debit or
credit card, as these aredesigned for travellers.
They usually have no foreigntransaction fees.
Another option is to sign upfor a pre-loaded card such as
Revolut.
Revolut offers competitiveexchange rates and no foreign

(08:23):
transaction fees.
Don't rely solely on Revolut,however, as it isn't accepted
everywhere.
The card that we use is the Wisecard.
It offers low fees and acompetitive exchange rate.
You also get a digital orphysical card and you can make
ATM withdrawals.
You can hold multi-currencyaccounts and move your money
from one account to another, andit is particularly useful if
you're combining a trip to theUK, so with a trip to the

(08:45):
Republic of Ireland or someother places in Europe.
So we've used Wise all over theworld and we do love its
flexibility and reliability.
If you do decide you want toapply for a Wise card for your
trip, make sure you apply a fewweeks in advance to a live town
for processing and delivery.

(09:05):
Now, before I wrap up, Irecently asked my UK travel
planning and London travelplanning Facebook groups for any
money-related questions they'dlike me to cover in this podcast
.
So I've covered most of themalready, but the following
questions were the mostfrequently asked.
So question one do I need tobring more than one credit or
debit card to the UK?
So mindset that is yes.
Always bring at least twodifferent payment methods one
Visa, one MasterCard.

(09:26):
And while we're on paymentmethods, I also recommend not
relying solely on your phone forcontactless payments.
If your phone gets lost,damaged or stolen, or simply if
your battery dies, you'll bestuck.
So always carry a backupphysical card.
Question two can I use USdollars or euros in the UK?
No, the UK only accepts poundsterling.

(09:48):
Some airports or tourist shopsmay take euros, but the exchange
rate will be terrible.
So bring pounds and pay inpounds, and that includes for
tipping.
Question three should I use acredit or debit card?
So credit cards are best forlarge purchases like hotels,
tickets and shopping, whiledebit cards are good for
everyday spending and ATMwithdrawals.

(10:08):
Just make sure your carddoesn't have high transaction
fees.
So in conclusion, to sum it up,the best way to manage your
money in the UK is to use acombination of a travel friendly
credit or debit card and asmall amount of cash.
Avoid airport exchanges, useATMs wisely and safely, and
always pay in pounds to get thebest rates.

(10:30):
If you're looking for more tipson traveling to the UK.
Check out our UK Travel Plannerwebsite for helpful guides or
join our Facebook groups forreal-time advice from fellow
travelers.
Now, thank you for tuning intothis episode of the UK Travel
Plan Podcast.
If you found this informationuseful, don't forget to
subscribe, leave a review andshare this episode with fellow
travellers.
That leaves me to say untilnext week.

(10:52):
As always, happy UK travelplanning.
Thank you for tuning in to thisweek's episode of the UK Travel
Planning Podcast.
As always, show notes can befound at uktravelplanningcom.
If you've enjoyed the show, whynot leave us feedback via text
or a review on your favouritepodcast app?
We love to hear from you and,you never know, you may receive

(11:15):
a shout out in a future episode.
But, as always, that justleaves me to say until next week
.
Happy UK travel planning.