Should you pay by card or withdraw cash abroad? The answer depends mostly on your destination. In some countries cards are accepted everywhere; in others, cash is still king. Here's how to decide without getting it wrong.
When to favor the card
With a card that has no foreign fees, paying directly is often unbeatable: the network (Visa/Mastercard) applies a rate very close to the interbank rate, with a markup usually under 1%. Favor the card for hotels, large retailers, transport and car rental.
When cash is still essential
In many destinations, a large share of daily spending is settled in cash: small restaurants, markets, taxis, local transport, tips, rural sites. This is typically the case in Japan (still very cash-attached outside big cities), Thailand, Vietnam or Morocco.
The rule, on screen and at the counter
Whether you pay by card or withdraw cash, if you're offered a conversion into your home currency ("pay in euros/dollars"), always decline: let your bank convert. The on-the-spot conversion (DCC) costs on average 5–7% more, sometimes much more.
The best strategy: combine both
- A fee-free card for payments and withdrawals.
- One cash withdrawal on arrival, in a large amount, for daily spending.
- A small emergency cash fund, stored separately.
Before leaving, check your destination's withdrawal fees on our country pages to calibrate how much cash to plan for.