Managing money while travelling involves more options than it used to, and choosing the right mix of cards and cash can noticeably affect how much you actually spend on fees alone.
Why standard debit and credit cards can be expensive abroad
Many standard UK cards charge a foreign transaction fee on purchases made abroad, and sometimes an additional fee on cash withdrawals, plus a less favourable exchange rate than the interbank rate. These charges are often not obvious until you check your statement afterwards.
Travel-friendly cards
Several UK banks and dedicated travel cards offer fee-free spending and withdrawals abroad, using close to the real exchange rate. Setting one of these up before a trip, rather than relying on your everyday card, can meaningfully reduce costs, especially on longer trips.
When cash still matters
Even in card-friendly destinations, having some local cash is useful for small vendors, tips, or rural areas where card machines aren’t always available or reliable. Exchanging a modest amount before you go, or withdrawing locally with a fee-free card, tends to work out better than exchanging cash at airport kiosks, which often offer poor rates.
Currency exchange tips
Airport currency exchange counters are usually among the most expensive places to convert money, comparing rates through your bank or a reputable comparison site beforehand can highlight better options, whether that’s exchanging before you go or withdrawing cash once there with a fee-free card.
The takeaway
The biggest travel money mistake is defaulting to your everyday card and airport currency exchange, both of which quietly cost more than the alternatives. A small amount of preparation, a travel-friendly card, some cash sourced sensibly, makes a real difference over a trip.