Travel Money: Cash vs Card Abroad — What to Use Where
Quick answer
Use a card for most spending, carry a modest amount of local cash for the things cards do not cover, and always choose to be charged in the local currency. Keep a second card in a different bag as a backup, and treat airport exchange desks as a last resort rather than a plan.
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The single biggest saving: decline currency conversion
When a card terminal or ATM asks whether you would like to be charged in your home currency, it is offering dynamic currency conversion. It sounds helpful — you see a familiar number — but the rate is set by the merchant's payment provider, and it is normally worse than the rate your own card issuer would have used. Choosing the local currency lets your bank do the conversion at its own rate.
This one habit typically saves more over a trip than any amount of shopping around for exchange desks.
Where cash still wins
- Small independent cafés, markets and street food.
- Local buses, some taxis and rural transport.
- Tips, luggage porters, and attendants at small attractions.
- Places where a card terminal exists but is unreliable.
- Emergencies — a phone with a flat battery cannot pay for a taxi.
How much depends entirely on the destination. Some countries are near-cashless and a small note or two will last days; others still run largely on cash outside the main cities. Check the norm for where you are going rather than applying your home habits.
A simple money setup that works almost anywhere
| What | Where you keep it | Role |
|---|---|---|
| Primary card | Wallet | Day-to-day spending |
| Backup card | Different bag or hotel safe | If the primary is lost, blocked or cloned |
| Local cash (small amount) | Wallet | Transport, markets, tips |
| Emergency cash reserve | Separate from the wallet | Getting yourself out of trouble |
| Phone wallet | Phone | Contactless where accepted |
The principle is redundancy: no single loss — a stolen wallet, a dead phone, a bank security block — should leave you with no way to pay.
ATM tactics
- Prefer bank-branded machines inside or attached to a branch. Standalone machines in tourist areas often add their own surcharge.
- Withdraw larger amounts less often where fixed per-withdrawal fees apply — but only as much as you are comfortable carrying.
- Decline the machine's conversion offer, exactly as with card terminals.
- Cover the keypad and give the card slot a quick look; skimming devices do still exist.
- Skip the airport exchange kiosk for anything beyond the taxi fare into town.
Before you leave
- Check your card's foreign transaction and ATM fees so you know what you are paying.
- Set a travel notice in the banking app if your bank offers one.
- Make sure you can log in abroad — check whether your two-factor method works without your home mobile network.
- Save your bank's official contact details offline, from your own statement or app, not from a search result.
- Note your card's contactless and PIN limits, which differ by country.
It is also worth confirming that any card you plan to rely on will not expire mid-trip, and that a card left with a hotel or car-hire company as a deposit is not your only means of paying.
Staying safe with money on the road
Split your money across places rather than carrying everything in one wallet. Be sceptical of unsolicited calls or messages claiming to be your bank — legitimate banks will not ask you to move money to a "safe account". And never let a card leave your sight in a restaurant if a portable terminal is available.
Frequently asked questions
Local currency or home currency at the terminal?
Local currency, every time. The alternative is dynamic currency conversion at a rate you did not choose.
How much cash should I carry?
A day or two of small spending plus a separate emergency reserve — more in cash-preferring destinations, less in card-heavy ones.
ATM or exchange desk?
A bank ATM usually beats an airport kiosk. Withdraw less often to spread fixed fees, and decline the machine's conversion.
Do I need to tell my bank I am travelling?
Often not required any more, but a travel notice in the app reduces the odds of a block.
What if my card is lost or blocked?
Freeze it in the app, use the backup card you stored separately, and contact the bank only through its official app or your own saved number.
The bottom line
Good travel money handling is unglamorous: card first, local currency always, a little cash for the gaps, and a backup stored somewhere your main wallet is not. Sort it before you fly and it becomes a non-issue for the whole trip. Search flights on ScanFlyGo, browse the popular routes, and track your flight when the day comes.
Some links on ScanFlyGo are affiliate links — we may earn a commission at no extra cost to you. This article is general information, not financial advice; check the terms of your own bank and cards.