How much cash should you bring on your trip to London? In this guide I will explain the etiquette and culture of using cash and card in London and what is best to use and when.
I live in the outskirts of London and aside from my children needing to bring some cash into school for a charity day, I don’t actually remember the last time I used cash to pay for something. Since Covid, cash is actively discouraged now unless an independent shop doesn’t want to pay the card machine fees for accepting card. Mostly though, you can use card over a minimal amount (£5 for example) in most independent shops. My husband used a public toilet in St James Park recently and even paid the 20p fee by card!
Contactless Card Payments
Contactless card payments including Apple Pay and Google Pay have become the norm. You can tap and pay by credit/debit card on purchases up to £100, with the vast majority of retailers allowing you to purchase more than that using Apple Pay and Google Pay. If you spend over £100 in one transaction then you will just need to put your card into the machine’s slot and enter your pin.
You can use a card to pay in all shops, restaurants, cafes and pubs, tourist attractions, museums and even on public transport. It is quick and easy, sometimes too easy as it is hard to budget when you are just tapping away! American Express however, is not accepted at every outlet. Most larger retailers will, but not small, independent shops. Ask if they will accept Amex but always have a back up card.
Foreign Transaction Fees
Before you arrive, make sure you have a card that does not have foreign transaction fees and you can withdraw cash from an ATM if needed. Stick to major banks if you do need to withdraw cash as some independent cash machines charge you a fee to withdraw money.
If you are using a credit or debit card to pay for public transport, then the foreign transaction fees could add up as each tap counts as a separate transaction.
Read more: How to pay for each mode of transport
When you will need cash
You will probably need some English money (Pounds, Quid, £) to spend.
Local market stalls and street vendors sometimes don’t accept card. Each transaction costs them money to use the card machines so some prefer cash. Just ask if they don’t already have a sign up. If you want to haggle for a purchase, then paying in cash will sweeten the deal. Small independent shops and cafes prefer cash for small purchases and will have signs saying ‘Card Transactions need a minimum £5 spend’ for example.
Certain taxis would prefer cash, but the more reputable ones, including black cabs will all accept card as payment.
How much do you tip in London?
The main reason I take cash with me is to tip at a restaurant, although most of the time now, the tip is included in the bill and I pay by card. The tip on the bill is discretionary which means if you disagree you can ask for them to take the tip off the bill. I will mostly tip 10% or so in cash so it goes directly to the server.
Top Tips
If buying currency before you arrive, I would recommend asking for small denominations, £5 and £10 notes. You will find it hard to ‘break’ (receive change) from a higher value note.
I will always go out with just a small amount of cash ‘just in case’ and make sure I have a back up card to use in case of a transaction declined or worst case scenario, it is lost/stolen. My husband rarely goes out with anything other than his phone! I’m not at that stage yet.
The answer to how much cash for you to bring – is down to you, but I would suggest not much. If you’re planning on visiting lots of market stalls then you will need more cash but if you bring a card with no foreign transaction fees if you withdraw cash from a cash machine, then you can top up as you go. In these post-Covid times, a card is really all you need!
