The “cards vs cash” debate is really about fees, acceptance and what happens when things go wrong. Most experienced travellers use both: a well-chosen card for the majority of spend and some local currency for the edges where plastic is awkward.
Travel cards: strengths and catches
Prepaid travel cards, debit cards with low foreign fees and some credit cards can offer competitive exchange rates plus Section 75 or chargeback protection on bigger purchases.
Watch for:
- ATM withdrawal fees and monthly card fees.
- Weekend mark-ups on some fintech rates.
- Hotels and car hire placing large holds on credit rather than debit.
When cash still matters
Tips, beach bars, market stalls, rural taxis and emergency taxis often prefer notes. Keeping two stashes (wallet and hotel safe) reduces drama if a pocket is picked.
Buying that cash before you fly — via our comparison — usually beats airport impulse buys; see UK airports for why.
Build a simple combo
- Order part of your budget as physical currency from a competitive provider.
- Use a card for meals, hotels and shops that take Visa/Mastercard.
- If the terminal asks whether to pay in pounds, choose local currency instead.
Deep dives: when to buy holiday money, euros, dollars.
Extras are part of the stack
Cards do not help if you miss the car park or skip insurance. Book parking, lounges and cover alongside your currency plan so the whole trip is funded sensibly, not just the spending money.