Travel money — how you access cash abroad — can silently cost you 3-8% of every transaction. The right combination of cards and cash depends on your destination, trip length, and spending habits. This guide compares every option so you never pay more than you must.
Where Are You Going?
All Options Compared
| Option | Typical Fee | ATM Fee | Best For | Worst For |
|---|---|---|---|---|
| Wise / Revolut | 0–0.5% | Free up to limit | Most destinations | Remote areas (no ATM) |
| Charles Schwab / Starling | 0% | Refunded globally | ATM-heavy trips | Card-refused countries |
| Traditional bank card | 2.5–3.5% | $3–5 + 1–3% | Backup only | Primary spending |
| Airport currency exchange | 8–15% | N/A (cash) | Emergency only | Any significant amount |
| Credit card (no FX fee) | 0% | Not for ATMs | Hotels, large purchases | Street markets, tips |
| Local ATM (on arrival) | 1–3% | Varies | Cash-heavy destinations | High-fee ATM networks |
| Pre-ordered travel money | 1–4% | N/A (cash) | Common currencies | Exotic currencies |
How to Choose the Best Travel Money Option
The travel money industry is built on confusion. Airports and banks profit from travelers who don't know the real cost of currency exchange. Understanding the true fees behind each option lets you keep hundreds of dollars on a 2-week trip.
The Golden Rule: Never Exchange at the Airport
Airport currency exchange booths advertise "no commission" but hide their profit in exchange rates that are 8-15% worse than the mid-market rate. On $500 of spending, that's $40-75 lost before you leave the terminal. Use airport exchange only for a small emergency amount if you have zero local currency and need a taxi.
Best Option: Multi-Currency Fintech Cards
Cards like Wise, Revolut, and Monzo offer exchange rates within 0.5% of mid-market. Wise is particularly transparent — you see the exact fee before converting. Revolut offers a free ATM allowance (£200/month on the free tier) before fees apply. Set these up before your trip since online identity verification can take a day.
ATM Strategy: Always Withdraw in Local Currency
When an ATM asks "do you want to be charged in your home currency?" — always say NO. This is called Dynamic Currency Conversion (DCC), and it locks in a rate 3-5% worse than your bank's rate. The ATM operator pockets the difference. Always choose to be charged in the local currency and let your home bank handle the conversion.
Cash vs Card: Know Your Destination
Southeast Asia (Thailand, Vietnam, Cambodia) and Central America are still heavily cash-based — even mid-range restaurants may not accept cards. Japan is historically cash-preferred, though this is changing. Western Europe and North America are mostly card-friendly. Research your specific destinations before deciding how much cash to carry.
The Safe Setup: Two Cards Minimum
Always travel with at least two cards from different networks (Visa and Mastercard, or different issuers). Cards get declined, lost, or swallowed by ATMs. If one card fails at 11pm in a foreign city, your backup card is the difference between a problem and a crisis. Keep the backup card separate from your wallet.
FAQ
Is this travel money guide free?
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Is my data private?
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Should I use cash or credit card when traveling?
Use both: a no-foreign-transaction-fee credit card for most purchases (hotels, restaurants, larger shops), cash for markets, small vendors, taxis, and places that do not accept cards. In cash-heavy destinations (Southeast Asia, parts of Eastern Europe), bring more cash. In card-friendly destinations (Western Europe, Australia), you can rely mostly on cards.
Is Wise better than a regular bank card abroad?
Yes, for most international transactions. Wise uses the mid-market exchange rate with a small transparent fee (typically 0.5-2%), versus traditional banks that add 3-5% in foreign transaction fees and poor exchange rates. Open a free Wise account before travel for significant savings on international spending.
How much cash should I carry when traveling?
A good rule: carry enough cash for 2-3 days of basic expenses ($100-200 in most destinations). More in cash-heavy countries, less in card-friendly ones. Keep small denominations for tips, markets, and transport. Use ATMs to withdraw local currency as needed rather than exchanging large amounts at once.
Where is the worst place to exchange currency?
Airport currency exchange desks and hotel front desks typically offer the worst rates, with markups of 10-15% or more above the mid-market rate. Avoid them for large amounts. Use a Wise or Revolut card, or withdraw from a local ATM with a no-fee card, for the best exchange rates.