United Kingdom
Money in United Kingdom: currency, ATMs, cards and tipping
The UK uses the pound sterling (GBP, £). Pay by card or contactless almost everywhere, including buses and the Tube; keep £20–30 cash for the rare cash-only shop or market stall. Tip 10–12.5% in sit-down restaurants if no service charge is already on the bill, and nothing in pubs at the bar.
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GuideUnited Kingdom
Key facts
- Currency
- Pound sterling (GBP, £); 100 pence = £1
- Cards
- Contactless Visa and Mastercard accepted almost everywhere, including transport
- Cash
- £20–30 is enough for a whole trip; some places are card-only
- ATM fees
- Most 'cashpoint' machines are free; a few convenience-store machines charge £1–2
- Scottish and NI notes
- Sterling, but sometimes refused in England; spend or exchange them before leaving
- Restaurant tip
- 10–12.5% if a service charge is not already added
- Pub tip
- None at the bar; a 'keep the change' or 'and one for yourself' is optional
- Dynamic currency conversion
- Decline 'pay in your home currency' at card machines and ATMs
Summary table: by card, by cash and by month
Use this to decide how much cash to carry and when card-only rules bite. Amounts are 2026 estimates.
| Situation | What works | Watch out for |
|---|---|---|
| London, any month | Contactless card or phone for Tube, bus, cafés, museums | Some venues are card-only; keep one £10 note as backup |
| Small towns and villages | Card almost everywhere, cash for market stalls and car parks | Rural car parks and some tea rooms may be coin-only |
| Pubs | Card at the bar; order and pay as you go | Tipping not expected at the bar |
| Restaurants | Card; service charge often already on the bill | Check the bill before adding a tip |
| Taxis and minicabs | Card in most black cabs and app rides | Some small firms still prefer cash; ask first |
| December | Card, but book restaurants early | Christmas markets and busy pubs get crowded; cash speeds up stalls |
| July–August | Card; carry less cash | Seaside towns and festivals: ATMs can run out on busy weekends |
Step by step: cards, cash, ATMs and paying
Set up a fee-free card before you fly. A debit or credit card with no foreign transaction fee and no ATM fee gives you the interbank rate; a travel card you top up works the same way. Tell your bank you are travelling if it still asks. Contactless is the default: tap for the Tube, buses, coffee, groceries and museum tickets. Most terminals accept phone wallets, and the daily contactless cap on London transport means you do not need a separate travel card.
Carry £20–30 in mixed notes and coins. Cash is not needed for most of a trip, but it covers market stalls, small car parks, some rural cafés and the occasional card-only sign that turns out to mean 'card preferred'. Break a £20 note early; £50 notes are accepted less often and some shops refuse them.
Use ATMs, called cashpoints, at banks and supermarkets. Machines marked 'free cash withdrawals' charge no local fee; a few machines inside convenience stores charge £1–2, and the screen tells you before you commit. Your own bank may add a fee and a markup on the exchange rate, so withdraw larger amounts less often. Always decline the machine's offer to charge you in your home currency; that conversion rate is worse.
Scottish and Northern Irish banks print their own sterling notes. They are the same currency and are accepted in practice across the UK, but shops in England sometimes refuse them because staff do not recognise them. If you are given them as change, spend them in Scotland or Northern Ireland, or pay them into a bank. English notes are accepted everywhere.
Keep a backup. Carry a second card from a different network, stored apart from your main one, and save your bank's lost-card phone number offline. If a card is declined, it is usually a fraud block rather than a lack of funds; a quick call clears it.
- Check your card's foreign transaction fee before booking anything.
- Tap contactless for London transport; the daily cap applies automatically.
- Withdraw £100–200 at a time from a bank cashpoint, not £20 at a time.
- Decline 'pay in USD' or 'pay in GBP' prompts abroad; choose the local currency.
- Spend or bank Scottish and NI notes before leaving the UK.
Tipping: what to leave and where
Tipping in the UK is lighter and less expected than in the US. In sit-down restaurants, check the bill first: many add a discretionary service charge of 10–12.5%, and if it is there you do not need to add more. If it is not, 10–12.5% is the normal amount for table service. You can ask for the service charge to be removed if service was poor; staff are used to the request.
In pubs, you order and pay at the bar and no tip is expected. If you want to, 'keep the change' or 'and one for yourself' when buying a round is the traditional gesture. Cafés with table service often have a tip jar or a card terminal prompt; £1 or rounding up is plenty. Taxi and minicab drivers are usually given the change rounded up to the next pound or two, or about 10% on a longer fare. Hotel housekeeping gets £1–2 a night if you choose to leave it, and porters £1–2 a bag.
Tipping is optional everywhere and no one will chase you for it. The one place it is close to automatic is a restaurant bill that already includes a service charge, which you pay unless you ask for it to be taken off.
| Service | Usual tip | Notes |
|---|---|---|
| Restaurant, table service | 10–12.5% | Nothing extra if a service charge is already on the bill |
| Pub bar | None | 'Keep the change' or 'one for yourself' is optional |
| Café, counter service | £0–1 or round up | Tip jar or card prompt |
| Taxi or minicab | Round up, or about 10% | Card payment often includes a tip screen |
| Hotel housekeeping | £1–2 per night | Leave it clearly, or hand it over |
| Porter | £1–2 per bag | Common in larger hotels |
| Tour guide | £5–10 per person | For a half-day or full-day paid tour |
Notes and pitfalls
The most common money mistake is accepting dynamic currency conversion. When a card machine or ATM abroad offers to charge you in your home currency, the rate is set by the machine, not your bank, and usually costs 3–5% more. Always choose the local currency, which here is GBP.
The second is carrying too much cash. The UK is close to cashless: buses in London no longer take cash, many small businesses are card-only, and some will not accept £50 notes. Cash still matters for a few car parks, market stalls and rural honesty boxes, but £20–30 covers that.
If you are asked for a PIN, most UK terminals accept chip and PIN and contactless; signature is rare. American visitors without a chip card can usually still tap, but a magnetic-stripe-only card may be refused at unmanned machines such as ticket machines and self-checkouts. Carry a chip card as your main one.
VAT is included in displayed prices, so the price on the shelf or menu is what you pay. Visitors from outside the UK can no longer claim VAT back at the airport on most purchases; the retail export scheme was withdrawn for most goods, so do not plan a shopping trip around a refund. Check current rules before relying on this.
Questions people ask
What currency is used in United Kingdom?
The pound sterling, written GBP or £, divided into 100 pence. Scottish and Northern Irish banks issue their own sterling notes; they are the same currency but are sometimes refused in England.
Should I use cash or a card in United Kingdom?
Use a card or contactless for almost everything, including London transport and buses. Carry £20–30 cash for market stalls, small car parks and the rare cash-only shop. Some places are card-only.
How much should I tip in United Kingdom?
In sit-down restaurants, 10–12.5% if the bill does not already add a service charge. Nothing at a pub bar. Round up or about 10% for taxis, £1–2 a night for housekeeping. Tipping is always optional.
Are Scottish and Northern Irish banknotes accepted in England?
They are sterling and are accepted in practice across the UK, but some English shops refuse them because staff do not recognise them. Spend them in Scotland or Northern Ireland, or exchange them at a bank.
Do UK ATMs charge a fee?
Most bank and supermarket cashpoints are free and say 'free cash withdrawals'. A few machines inside convenience stores charge £1–2, shown on screen before you confirm. Your own bank may add its own fee.
Can I pay for the London Tube with a contactless card?
Yes. Tap the same contactless card or phone in and out on the Tube, buses and most rail in London. A daily cap applies automatically, so you do not need a separate travel card.
Is it better to pay in GBP or my home currency?
Always pay in GBP. If a card machine or ATM offers to charge you in your home currency, that is dynamic currency conversion and usually costs 3–5% more than your bank's rate.
Deep dive
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