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cash vs. credit

We are starting to make reservations at B&Bs in Britain and a lot of them are offering to give a small discount if we pay in cash. However, we've also read that paying with a credit card gives a better exchange rate. Any thoughts on which is the best way to go?

Posted by
9363 posts

They do that because it takes awhile to get reimbursed by the credit card company, and because they have to pay a fee to the company in order to accept credit cards in the first place. They are offering to take less in cash rather than wait for repayment, and it works out better for them because they are paying for your breakfast NOW, not later. The difference in exchange rate isn't going to be enough to worry about, so I'd be more inclined to pay in cash and take the discount. B&Bs are very small businesses and as such, have more flexibility to make such offers than hotels do.

Posted by
3580 posts

If you are using an ATM card from a bank or credit union that doesn't charge for ATM transactions, paying your hotel or B&B with cash should save you money. Some hotels offer this discount and some don't. I always ask, and if they don't offer a discount for cash, I just pay with the credit card and let them figure out that they would be ahead to offer a discount for cash.

Posted by
934 posts

Almost all hotels and B&Bs require a credit card to reserve a room but then many tell you they want cash.Many times they quote a price that is cash and many only take cash.The exchange rate is the same depending on what the credit card company adds as a fee and what the bank adds for getting euros.

Posted by
157 posts

I prefer to use credit cards as much as possible. I do not liking walking around with loads of cash and ATMS frequently have fees. Sometimes the ATM fees can offset cash discounts. Also, credit cards give you rewards, $ back, FF miles etc. If you pay cash you lose those options.