Should you pay by card or withdraw cash abroad? There's no universal answer: it depends on your destination, the type of spending and your card. The same habit can save you money in one country and trip you up in another. Here's how to decide wisely — whatever your home currency.

When the card wins

With a fee-free travel card, paying directly is often unbeatable: the Visa and Mastercard networks apply a rate very close to interbank (a margin of about 0.5–1%), far better than any exchange desk. You carry no cash, every purchase is tracked, and a stolen card is blocked in one tap. Favour the card for "safe" spending: hotels, big retailers, supermarkets, transport, car rental, online tickets.

When cash is still king

In many situations, cash remains essential: small restaurants, markets, taxis, local transport, tips, temples, festivals, rural areas and small shops that don't take cards (or set a minimum spend). A little cash also saves you if the merchant's terminal is down or the signal is poor.

The geography of payment: a two-speed world

Habits vary enormously from one country to the next, and that should guide your cash-vs-card mix:

  • Very "cash" countries: Germany remains strongly attached to cash (around 7 in 10 Germans use cash regularly, and roughly half of all transactions are settled in cash); Japan is modernising in big chains but keeps cash as king outside major cities (temples, small shops, street stalls); the same goes for Thailand, Vietnam and Morocco for everyday spending.
  • Nearly "cashless" countries: the Nordics are at the opposite extreme — in Norway barely 3% of people still use cash regularly, and in Sweden some shops no longer accept it. There, the card (or phone) rules.

So research your specific destination rather than applying a single rule.

The anti-fee reflex: at the till and at the ATM

Whether you pay by card or withdraw cash, if you're offered conversion into your home currency (DCC), always decline and choose the local currency. That on-the-spot conversion costs about 5% more on average, sometimes 10–13%. The trap exists on payment terminals just as much as on ATMs.

The winning strategy: combine the two

  • A fee-free card (online bank / neobank) for payments and withdrawals — watching the free-withdrawal cap.
  • A cash withdrawal on arrival, in a large amount where ATM fees are flat (e.g. 250 THB per withdrawal in Thailand, whatever the amount).
  • A backup card (a different network if possible) and a small emergency cash reserve, stored separately.
  • Withdraw at a bank's ATM, not the independent machines at airports (high fees + DCC).

How much cash should you carry?

No need to set off with a thick wad: bring enough to cover the first 24–48 hours (transport from the airport, first meal, tips), then top up at an ATM locally — almost always cheaper than exchanging before you leave. Adjust the cash share to the country's "cash culture".

Before you go, check your destination's withdrawal fees on our country pages to size the cash you'll need.

👉 Compare withdrawal fees at your destination and travel with peace of mind.