Money is one of the most confusing parts of travelling abroad. "I'll just pay for everything by card" and "I'll take a pile of currency and be done with it" can both cause problems. For most trips, the safest and cheapest approach is to use both in a balanced way.
Short answer: Use a card for most everyday spending, but carry a backup card kept somewhere else and a little local cash for small expenses. Always choose to pay in the local currency, avoid withdrawing cash with a credit card, and find out your bank's foreign fees before you leave.
The advantages of paying by card
- Security: A lost or stolen card can be cancelled; lost cash is almost impossible to recover.
- Convenience: Contactless payment is widespread in much of Europe and many popular destinations, from supermarkets to public transport and restaurants.
- A record of your spending: Every payment appears on your statement, so it's easy to see what you spent at the end of the trip.
- Less cash to carry: You avoid the risk of travelling with large amounts of money.
The risks and costs of using cards
- Foreign transaction fees: Many cards add a percentage fee to purchases in a foreign currency. The rate varies from card to card, and some cards charge none.
- Your bank's exchange rate: The rate used to convert your purchase may differ from the market rate.
- Security blocks: Your bank may flag a payment from an unusual country as suspicious and temporarily block your card.
- Cards aren't accepted everywhere: Some small businesses, markets and rural areas take cash only or don't accept certain card types.
Before you leave: Check that your card is enabled for use abroad, review your online and contactless settings, make sure your limit covers the trip and find out your foreign transaction fee.
When do you need cash?
Even in countries where cards are common, cash comes in handy for:
- Small cafés, street food and local markets
- Some ticket machines and car parks
- Tips and public toilets
- Rural areas and small towns
- An emergency when your card doesn't work
Carrying your whole budget in cash, however, increases the risk of loss and theft. How much cash you need depends on your destination: very little in highly card-friendly countries such as those in Northern Europe, more where cash is still widely used.
The golden rule: pay in the local currency
When you pay by card abroad, the terminal sometimes asks whether you want to pay in your home currency or the local one. This is called dynamic currency conversion (DCC). If you choose your home currency, the merchant's provider does the conversion instead of your bank, usually at a less favourable rate.
The rule is simple: If you're given a choice, always pick the local currency (for example, euros in the eurozone). If a waiter or cashier makes the choice for you, ask them to charge you in the local currency.
Using ATMs abroad
- Use a debit card: Withdrawing cash with a credit card usually counts as a cash advance, which often comes with a fee and interest charged from the day you withdraw.
- Decline the ATM's "conversion offer": Like card machines, ATMs may offer to convert the amount into your home currency. Choose the option to continue without conversion.
- Prefer ATMs at bank branches: Independent ATMs in tourist areas can charge higher fees.
- Make fewer, planned withdrawals: If you pay a fixed fee per withdrawal, taking out small amounts often adds up.
- Read the screen: If a fee notice appears, check the amount before you confirm.
Buying currency before you go
Having a little local currency for your first day's transport and small purchases makes arrival easier. Airport exchange desks usually offer less favourable rates than banks or exchange offices in town, so avoid changing large amounts at the airport.
A balanced payment plan
- Main card: Enabled for use abroad, for most everyday spending.
- Backup card: From a different bank or a different network (for example, one Visa and one Mastercard), kept separately from your main card.
- A little local cash: For small expenses and places that don't take cards.
- Emergency money: A small amount kept separately from your wallet, at the hotel or in another bag.
What to do if your card is lost or stolen
- 1. Freeze or cancel the card immediately in your bank's app.
- 2. Call your bank's international helpline. Save this number before you travel.
- 3. Switch to your backup card.
- 4. If it was stolen, get a police report; you may need it for an insurance claim.
Common mistakes
- Paying in your home currency: The most common, and most expensive, mistake.
- Relying on a single card: If it's blocked or lost, you can't pay.
- Withdrawing cash with a credit card: It can lead to extra fees and interest.
- Keeping all your money in one place: One loss affects your entire budget.
Track every payment with BudTrip
In BudTrip you record each expense as it happens, with the currency you paid in, its category and whether you paid by card or cash, so your totals are always up to date. When the final amount appears on your card statement, you can update the record to see the real cost, including your bank's rate and fees.
Last updated: 6 October 2026
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