Credit cards
Using credit cards in the U.K.
Yes, Britain takes plastic.
Every merchant from the museum gift shops and train ticket machines right on down to the majority (though not all) of the mom-and-pop shops, hotels, B&Bs, and pubs.
Using credit cards is by far the cheapest way to pay for things in the U.K.—indeed, any foreign country.
The exchange rates average 9% better than even cash withdrawals from an ATM (the second cheapast way to pay for things).
You do, however, have to be careful of foreign transaction fees (which can add on 1% to 4%), the chip-and-PIN revolution in Europe that is rending many North American credit cards obsolete, cash advance fees, and remember to take a few minutes to notify the bank of your foreign travel plans to avoid having your cards frozen while you're on the road.
More on each of these issues below:
- Findabetterbank.com - Site to find credit unions and other local banks. These often have low or no foreign transaction fees on their credit cards and ATM fee–refund policies.
- Capitalone.com - Offers cards with no foreign transaction fee, and chip-and-signature enabled (making it easier to use in Europe).
- Bankofamerica.com - Offers cards with no foreign transaction fee, and chip-and-signature enabled (making it easier to use in Europe).
- Madfientist.cardratings.com - Good simple search engine to find travel-worthy cards, from no foreign fees to the ones with the best points.
- Ally.com - Online-only bank (and the one I use), with ATM feee refunds and no foreign transaction fees. Sadly, no credit cards (yet)—though you can use your MasterCard-branded bank card as a debit card.
- Usaa.com - Online-only bank open to current and former U.S. military personnel and their families; ATM fee refunds, and credit cards with only 1% foreign transaction fees.
- Schwab.com - This famous brokerage firm also offers online-only checking and savings accounts with ATM fee refunds.
- Asmarterchoice.org - Credit union–finding site. Credit unions often have low or no foreign trasnaction fees on their credit cards, ATM fee–refund policies, very few fees, and interest-bearing checking accounts. In other words: What a bank should be.
- Findabetterbank.com - Site to find credit unions and other local banks. These often have low or no foreign transaction fees on their credit cards and ATM fee–refund policies.
- Ncua.gov - All about credit unions.
- Credituniondb.com - Bare-bones credit union-finding database.
