Cash or card – what’s the best way to pay abroad?

Wondering what the best way to spend money on holiday is? We’ll map it out for you.

Taking a combination of both cash and cards with you gives you the most flexibility.

From tipping and taxi fares, to spending at beach bars and markets - having some local currency is always handy. But, debit and credit cards offer you better payment protection and security for bigger transactions.

Always research the place you’re visiting before you jet off, too - different countries can more commonly use one payment method over another.

We’ll look at the pros and cons of each so you can decide what’s best for your next trip.

Cash vs cards – the pros and cons

Having some cash and your cards with you means your covered for all occasions.

Local currency is convenient for hopping on the bus or getting an ice cream, whereas debit or credit card payments might be better for hotel bills and shopping - or to fall back on in emergencies. But each method has their own advantages and disadvantages.

If you want to exchange your pounds for local currency before you go, travel money is available from first direct.

Advantages of using cash

cash is easy to use for everyday spending
cash is more commonly used in some countries and rural areas
handy to have some for smaller purchases – e.g. local taxis and trinkets at markets - places that don’t accept cards
easier to budget and keep track of how much you’ve spent as there are no hidden fees.

Cash considerations

research exchange rates before you buy - airport exchange rates can be poor
keep your cash safe - if it's lost or stolen it's harder to get back (it can sometimes be recovered on insurance - check your policy)
split cash out - only take out as much as you need for the day and always store the rest of your travel money in the safe in your room
ask for a combination of notes - high value notes can be refused in some places
have a back up plan for emergencies – you might not have enough cash if you find yourself with a big bill to pay.

Advantages of using debit/credit cards

no need to pre-order cash as you can arrive and start spending
debit and credit cards are widely accepted
if your card is lost or stolen you/your bank can easily block it
banks offer fraud protection
good for large purchases
less risky than carrying around large amounts of cash.

Card considerations

you may be charged hidden fees – both to withdraw cash at an ATM or dynamic currency conversion (DCC) fees when paying by card
you'll pay no first direct fees when purchasing on your first direct debit card or withdrawing cash from an ATM abroad. But, you may still be charged other fees ouside our of control. credit cards may occur additonal charges and interest
you’ll be asked whether you want to pay in GBP or local currency, choose local currency to avoid fees (DCC fees can add up if you're charged them)
cards might not be accepted everywhere.

It’s important to keep your money safe when travelling abroad, especially in crowded tourist areas and on public transport. Be aware of your belongings and never leave your bags unattended.

If your card gets lost or stolen, let your bank know as soon as possible and they should be able to help you block it. With first direct you can freeze it using your App.

Visit our travelling with your debit card page for more information.

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Get travel money

Order your travel money quickly and easily online. We offer home delivery too

Order travel money

Local currency or GBP?

Unsure about whether to choose pounds or local currency when using your debit card abroad? Our guide can help.

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Cash or card FAQs

Is it cheaper to use cash or card abroad?

Should I pay in local currency or pounds when I use my debit card abroad?

Local currency generally works out cheaper but it’s always worth doing your research, so you know what rates your provider charges and there aren’t any nasty surprises when you get home. Read our is it better to pay in local currency or GBP guide for more information.

Is it better to exchange money before I go?

It can be handy to get your cash before you go for convenience and easy access. If you buy before leaving the UK you're not leaving it to chance that the ATM machines will be offering a better exchange rate when you get there. However, sometimes it can be cheaper to do this when you're there, or to use your debit card to withdraw local currency from a cash machine. Again, the only way to know for sure is to do your research – check if your provider charges a fee and have a quick look online to make sure you can withdraw cash near your accommodation abroad. You'll pay no first direct fees when purchasing on your Mastercard® debit card or withdrawing cash from an ATM abroad. But, you may still be charged other fees outside our of control.