The best way to spend money abroad 

You’ve booked the flights, packed your suncream, and even opened that language app you swore you’d use. But as you wheel your suitcase out of the airport, you have a nagging question at the back of your mind, what’s the best way to spend money abroad? From cash to cards to clever travel hacks, the way you spend can make or break your budget. Don’t worry, we’re here to help you relax so you can enjoy your holiday even more. We’ve spent decades helping travellers get the most from their holiday money. This guide will walk you through every option so you can sip your sangria or slurp your pho without worrying about hidden fees nibbling away at your wallet. 

Using cash abroad 

Carrying local currency has long been a traveller’s classic go-to. It’s universal, tangible, and often the simplest way to pay, especially in places where card machines are rarer than a seat on the Tube at rush hour. But it’s not without its downsides. Let’s weigh the pros and cons. 

Pros 

• Universal acceptance: From bustling street markets in Marrakech to tiny mountain villages in the Alps, cash is almost always welcomed. 

• Budget control: There’s something satisfyingly old-school about counting out notes. It helps keep spending in check far better than the tap-happy blur of digital payments. 

• Fee-free purchases: Using cash avoids those bank transaction fees that can sneak up on you like a cheeky service charge. 

Cons 

• Theft risk: Carrying wads of cash can make you a target for pickpockets. Once it’s gone, it’s gone. 

• Exchange woes: Airport counters are notorious for poor exchange rates and high fees. 
• Trickier to track: Unlike with a card, there’s no spending log. Blink and you’ll wonder where your cash went. 

Using debit cards abroad 

For many, debit cards are the middle ground convenience without the bulk of cash. But are they the best way of spending money abroad? Let’s break it down. 

Pros 

• On-demand funds: With ATMs scattered across the globe, you can withdraw local currency as you need it. 

• Competitive rates: Banks often offer favourable exchange rates when using your debit card abroad. 
• Less to carry: No need to travel with a wad of notes tucked into your socks. 

Cons 

• Fees galore: International transaction and ATM withdrawal fees can pile up faster than your holiday snaps. 

• Security risks: Debit cards link directly to your bank account, meaning fraud or theft could drain your funds quickly. 
• Frozen funds: Some banks get jumpy with overseas transactions, occasionally freezing cards mid-trip. 

Using credit cards abroad 

Credit cards have become the faithful sidekick of many seasoned travellers. Packed with perks, they’re popular for good reason, but they do have pitfalls. 

Pros 

• Fraud protection: Credit cards usually come with stronger security and the ability to dispute dodgy charges. 

• Rewards & perks: From air miles to cashback to free insurance, credit cards often sweeten the deal. 

• Widespread acceptance: Ideal for hotels, restaurants, and larger shops. 

Cons 

• Foreign transaction fees: Typically, 2–3% per purchase, which soon adds up. 

• Not everywhere accepts them: Smaller vendors and rural areas may insist on cash. 
• Temptation to overspend: It’s easy to go a bit wild when the bill won’t hit until you’re back home. 

Using prepaid travel money cards abroad 

Ah, the modern traveller’s secret weapon: prepaid travel money cards. Products like the Travelex Money Card, powered by Mastercard®, combine convenience with control, offering peace of mind on your journeys. 

Pros 

• Locked-in exchange rates: Fix your rate before you fly and avoid nasty surprises from currency swings. 

• Multi-currency budgeting: Perfect for multi-country trips; load several currencies on one card. 

• Security: Lost card? Freeze it instantly and get a replacement. 

Cons 

• Acceptance gaps: Some hotels or car rental companies may insist on credit cards. 
• Retailer restrictions: Some merchants will only accept prepaid cards from major card providers like Mastercard.  

How to spend money abroad without fees 

The golden travel grail: fee-free spending. While not always possible, you can dodge many unnecessary charges with some savvy planning: 

• Choose the right card: Many banks and providers now offer cards with no foreign transaction fees, worth hunting down before your trip. 
• Withdraw wisely: Take out larger sums less often to cut down on ATM fees. 

Our top travel money tips 

Using cash machines abroad 

When withdrawing money, always opt for the local currency instead of sterling. Choosing sterling often means the ATM slaps on an unkind conversion fee. Travelex doesn’t charge overseas ATM fees when you withdraw using your Travelex Money Card.  

What to do with your leftover cash 

Don’t let cash languish in a drawer at home. Spend your last notes on treats, or use Travelex buy-back promise to return unused currency for a fair rate. 

Tipping abroad 

Customs vary wildly. In Japan, tipping is often seen as rude, while in the USA it’s practically mandatory. Research your destination so you don’t over or under tip. 

Sterling vs local currency 

Always, always pay in local currency when given the choice. It keeps costs down and avoids sneaky markups. 

Foreign currency payments made easy, with the Travelex Money Card 

Still wondering about the best way to spend money abroad? The Travelex Money Card could be your answer. With ease of use, locked-in rates, and no overseas ATM fees charged by Travelex, it offers peace of mind wherever your adventures take you. It’s the traveller’s ultimate companion, keeping your holiday spending simple, secure, and stress-free.