International travel is full of good surprises, like discovering your new favorite beach while island-hopping in Greece, counting castles on a Rhine River cruise or deciding to go hot air ballooning in Turkey.
But trips abroad could also come with a few unexpected twists — sometimes involving money. Fortunately, with a bit of planning, those challenges are easy to sidestep.
Whether you’re concerned about theft protection, avoiding foreign transaction fees or choosing the preferred payment method in the country you’re visiting, both cash and cards have their place. We break down the pros and cons of each, so you can choose the best option to prepare for your next adventure.
Cash: Pros
- Many experiences may be cash-only, including transportation, dining and shopping at small establishments, including street vendors.
- Certain countries, including some in Africa, Asia and Latin America, are mostly cash-based, especially in rural areas.
- With cash, you’re less at risk for identity theft since there’s no digital trail that can lead to fraudulent activity.
TIP: If you are a AAA member, you can order foreign currency from dozens of different countries at your local branch. It usually takes up to three business days for delivery, so plan at least a week ahead to align with your departure date. It’s a good idea to arrive at your destination with the foreign currency equivalent of about $50 to $100 per person to cover incidentals and other expenses for a day or so.
Cash: Cons
- It’s unlikely you’ll recover cash that’s lost or stolen.
- If you’re cash dependent and you run out, searching for an ATM could be a time waster, especially in small villages.
- Staying on top of current exchange rates can become confusing, especially when traveling to several countries with different currencies.
- You’ll be carrying a thick wad of bills in countries where the bank notes are in small denominations, which is uncomfortable, inconvenient and a security risk.
- If your travel plans change and you are required to book a flight, train, ferry, rental car or hotel, cash may not be accepted.
Cards: Pros
- Cards are widely accepted all over the world.
- If your credit /debit card is lost or stolen, it’s relatively easy to replace and you may not be responsible for unauthorized charges.
- Slim, lightweight and, therefore, easy to carry, cards are convenient, especially when making large purchases, plus the transactions are faster than counting out cash.
Cards: Cons
- Not all cards are accepted by vendors. So, carry two different kinds. (American Express and Diner’s Club do not have broad acceptance.)
- Expect a foreign transaction fee with each purchase although the amount varies by card.
- Sometimes your bank can flag a charge as fraudulent — even when it’s not — requiring you to contact them so that your card isn’t frozen.
TIP: If you must withdraw cash from an ATM in a pinch, use your debit card at a major bank ATM to get the local currency. While there will still be a fee for each withdrawal, it will likely be much higher with a credit card. However, there is still some risk when using a debit card. If a fraudster has placed a skimming devise in an ATM, it could compromise your PIN and bank account information.
The Perks of Traveling With Both Cash and Cards
Your best bet is to travel with both cash and credit/debit cards. This gives you flexibility during your travels, no matter what situations may arise.
Tips to Keep Your Money Safe abroad
- Keep extra cash locked in your hotel room safe.
- Never carry a wallet in your back pocket, backpack or in a bag that dangles from your shoulder or that you grasp in your hand. These are all targets for pickpockets.
- Keep cash and cards in a waist pack, sling bag, travel wallet or money pouch that can be secured in front of your body, whether around your waist, cross-body or around your neck. Tuck into your jacket when possible.
- A vest with multiple zippered pockets or a travel scarf can also be great for securely carrying your vitals hands-free.
- Choose a travel accessory with zippers or strong Velcro closures, as well as numerous compartments. This will help you organize your essentials, so you aren’t rifling around as you look for what you need. Many of these accessories come with RFID-blocking materials or straps with steel wires that add extra layers of security.
- Get more tips for managing your money abroad.
Learn more about AAA foreign currency exchange. It’s just one of many services offered at your local AAA branch.
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A few other things travelers should think about:
Exchanging cash, be it in country or at a bank or AAA in the States, almost always carries fees or just a less favorable exchange rate. You’ll find in most situations these days, cards (physical or ApplePay/Google whatever) almost always give you the best exchange rate — and they are accepted almost everywhere.
Plan ahead to make sure you have a credit card that does not charge foreign exchange fees, which can cost you 1-3% per transaction or more.
Some local currency is useful and occasionally required, and bank ATMs/cashpoints abroad will almost always give you the going rate. Again, plan ahead to have a debit/ATM card that doesn’t charge foreign transaction fees (this is a little harder than finding a good credit card, but doable). It’s good idea to plan where you’ll find an ATM — using Google Maps, for example.
Good travels — and be a good traveler!