Discovering the U.K.

Page 15

Payment Methods

Most payments in shops, restaurants, and petrol stations are made by debit or credit card.

You will be asked to enter your personal identification number (PIN) into a handset or sign a

card payment slip. The PIN is the same one used to withdraw cash from ATMs. The PIN is

issued to you on opening an account and can be changed at an ATM. You can usually also

order statements, look at your balance and order cheque books from ATMs. All major banks

also provide on-line and telephone banking

In some larger retailers you can pay using contactless technology if both your card and the

retailer's card machine shows the contactless logo.

Hold your card briefly over the card machine when instructed, and the payment will be taken

with no need to enter your PIN. There is a transaction limit of £20 but no limit on the number

of transactions per day. Every now and then, you will be asked to enter your PIN for

additional security. Visa, MasterCard, and American Express all support this system.

Automatic Teller Machine (ATM) and Debit Cards

Almost all banks have ATMs (cash machines) through which you can withdraw cash (sterling

only) using your PIN. (Note some cash machines charge a fee for withdrawal). Provided your

debit card bears the Visa or MasterCard symbol, you will be able to use it in virtually any

machine. However, to arrange cash transfers, standing orders, and other cheques, you will

need to go into your own bank or use online banking. You can use your credit card to draw

cash out but this will incur a significant fee

Credit Cards

The major international credit and charge cards are widely accepted for goods and services.

Debit or Switch cards are also popular, as an alternative to paying by cheque. Many

expatriates have experienced difficulties in obtaining a credit card in the U.K.

Almost all providers have a credit scoring system and newly arrived foreign nationals may

find they do not score enough points. It is worth noting that the NatWest Bank has a

dedicated service to streamline account services for foreign nationals coming to the U.K. It

may also be helpful to seek assistance from a branch of your bank in the U.K.

Credit History

Banks require proof of identity and references to open an account, which is needed to

establish a credit rating. We recommend asking your home country bank for a letter of

reference before departure. Alternatively, your employers may help with an introduction.

Bringing copies of your home country bank statements can make this process easier.

Helpful Hint:

When paying for goods in a supermarket or convenience store with a

debit card and pin number, it is often possible to request up to £50 “cashback” rather

than having to withdraw money from an ATM or bank.