1. Cards work, but check the fees first
Most cards can be used abroad, but many charge a foreign transaction fee of around 1–3% on every purchase in another currency. Some travel cards charge nothing at all.
Check the card agreement before you go: the fee applies per transaction, so it adds up on small daily purchases like coffee and transport.
2. Cash is still useful
Small shops, markets, tips and some public transport still prefer cash. Withdraw local currency from an ATM at the airport or in town rather than exchanging at hotel desks, where rates are usually worse.
Look for ATMs that belong to a bank rather than independent machines, and decline the ATM's own conversion if you are offered one—withdraw in the local currency.
3. Dynamic currency conversion (DCC)
When a card terminal or ATM offers to charge you in your home currency instead of the local one, that is dynamic currency conversion. The rate is set by the terminal operator and is usually worse than the card network's rate, plus a margin.
Choose to pay in the local currency and let your bank convert. The terminal may warn you that the exchange rate is unknown, but that is normally the cheaper option.
4. Know where the rate comes from
Card networks use a base rate close to the market mid-rate, then your bank adds its own margin and possibly a fee. The reference rates published by central banks give a rough idea of what the mid-rate is on any day.
When exchanging currency, compare the rate shown with the mid-market rate you can look up online; the difference is the cost you are actually paying.
5. Common mistakes
Common mistakes include paying in home currency without checking the rate, exchanging cash at airports without comparing, using independent ATMs with high fixed fees, and assuming a card without a foreign transaction fee has no conversion margin.
Another is carrying only one payment method: cards can be blocked or declined, so carry a second card and a small cash reserve.
6. Checklist before departure
Before departure: check foreign transaction fees on every card; tell the bank you are travelling if required; set up travel PINs and offline payments; carry a small cash reserve; and always choose to pay in the local currency.