Money

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

Emergency Cash -- The Fastest Way -- If you need emergency cash over the weekend when all the banks and American Express offices are closed, you can have money wired to you from Western Union (tel. 800/325-6000; www.westernunion.com). You must present a valid ID to pick up the cash at the Western Union office.

Pounds & Pence

Britain's decimal monetary system is based on the pound (£), which is made up of 100 pence (written as "p"). Pounds are also called "quid" by Britons. There are £1 and £2 coins, as well as coins of 50p, 20p, 10p, 5p, 2p, and 1p. Banknotes come in denominations of £5, £10, £20, and £50.

As a general guideline, the price conversions in this book have been computed at the rate of £1 = $1.90 (U.S.). Bear in mind, however, that exchange rates fluctuate daily.

The British Pound vs. the U.S. Dollar, the Euro, and the Canadian Dollar

Conversion rates between the world's major currencies can and do fluctuate frequently, and their relative differences at the time of your visit could affect the costs of your trip. The chart below should be accepted only for approximate values of relatively small financial transactions. If you're planning on any major expenditures, check for updated ratios at the time of your trip. The chart below was compiled just before press time of this edition with the following ratios: 1 British pound was the equal of US$1.90, or of 1.50€, or of C$3.

ATMs

The easiest and best way to get cash away from home is from an ATM (automated-teller machine), sometimes referred to as a "cash machine," or a "cashpoint." The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe. Go to your bank card's website to find ATM locations at your destination. Be sure you know your daily withdrawal limit before you depart. Note: Many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Note: Banks that belong to the Global ATM Alliance charge no transaction fees for cash withdrawals at other Alliance member ATMs; these include Bank of America, Scotiabank (Canada, Caribbean, and Mexico), Barclays (U.K. and parts of Africa), and Deutsche Bank (Germany, Poland, Spain, and Italy), and BNP Paribus (France).

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, but high fees make credit-card cash advances a pricey way to get cash. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency). The Discover Card is not yet widely accepted in London, but most other major credit cards are.

Traveler's Checks

These days, traveler's checks are less necessary because most English cities and towns, especially London, have 24-hour ATMs, allowing you to withdraw small amounts of cash as needed. But if you prefer the security of the tried and true, you might want to stick with traveler's checks -- provided you don't mind showing an ID every time you want to cash a check. Note: Exchange rates are more favorable at your destination. Nevertheless, it's often helpful to exchange at least some money before going abroad (standing in line at the exchange bureau in the London airport could make you miss the next bus leaving for downtown after a long flight).

You can buy traveler's checks at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233 or, for cardholders, 800/221-7282 -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322 -- AAA members can obtain Visa checks for a $9.95 fee [for checks up to $1,500] at most AAA offices or by calling tel. 866/339-3378); and MasterCard (tel. 800/223-9920).

Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, useful if you're traveling to one country or to the Euro zone; they're accepted at locations where dollar checks may not be.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit, sets a maximum balance, and has a one-time issuance fee of $14.95. You can withdraw money from an ATM (for a fee of $2.50 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.