Money & Payments in London

Good to Know

• Contactless is king: bring one contactless card and your phone set up for Apple Pay or Google Pay; you'll rarely need anything else.
• Cash is optional but practical: £20–40 covers buskers, market vendors, and emergency backup without leaving you with unused notes.
• Avoid ATM currency traps: always select 'charge in GBP' (decline dynamic conversion) to avoid 8%+ markups; use free bank/supermarket ATMs.
• Double-tipping risk: check your restaurant bill for service charge (usually 12.5%) before adding extra tip—many tourists accidentally tip twice.
• Service charge is legally removable: if unhappy with service, you can ask for it to be removed, though most people don't in practice.
• Tipping culture is relaxed: unlike the US, tipping is genuinely optional and based on whether service was good. Most Londoners tip 10–15% or nothing.
• Card minimums are rare: most places accept cards for any amount; a handful of small independents may have informal thresholds.
• Pubs don't expect tips: ordering at the bar, no tip is standard. Only tip if you felt service was exceptional or use the 'keep the change' option.
• Post offices offer free cash access: most UK cardholders can withdraw cash at Post Office counters free of charge, sometimes in odd amounts.
• Old notes and coins: paper money predating polymer notes is no longer legal tender; exchange at Post Office if you have old notes.