Paying abroad

[curlycurlymoo]

I haven't been abroad for well over ten years. Is it still the expectation that you taking your spending money with you? Or can I use my bank card to pay for things?

Check the charges with your Bank before you use your card, we are with Barclays and can sign up to use card abroad without being charged, but you have to register.

Card, unless you’re going somewhere off the beaten track where people aren’t likely to have card readers, and with few ATMs. I’m off to France later today and don’t have any cash other than whatever is in my purse.

Always take a mixture of local currency, card and emergency credit card.

Were in Turkey and using taxis and they only accept cash

Your cards should work fine. Always pay in the local currency on the card if given the choice as you'll get a better exchange rate.

Don't use your debit card, most likely your bank will charge you fees on each transaction. Best to get a credit card (the Halifax credit card is good), or a preloaded currency card like the Post Office one. I always take some cash on holiday but rare to find places that don't take card.

Credit card, and choose to pay in local currency on it not sterling.
It's sensible to take some cash as well though.

I always take some cash for tips, taxis, etc.

There are always some shops that don't/won't take cards.

Check MSE for the best cards to use abroad, some are much better than others.
If you are given the option of card payment in GBP or local currency, always go local.

Depends on your bank as to what charges they make for transactions abroad. The nationwide debit and credit cards we have don't charge extra fees on purchases so we use them and we take a small amount of local currency too

Get the Revolut app, and a physical card if you have time. It automatically gives you the best local rate.

It depends where you go and where you are spending money.

I'm on holiday at the moment and using my credit card in supermarkets and restaurants but need cash for the bus.

In Italy they don’t take for tips on the machine so you’d need cash for that. It used to be €10 minimum payment but now there’s no lower limit.

Your UK bank will charge you about 2.5% above the official "mid-rate" exchange rate to use your debit card. Check their website for exact numbers.

The main thing to avoid is if there is a minimum charge for a transaction, as it's annoying to pay €3.50 for two coffees and pay £1 extra in charges. I have a NatWest card and there is no minimum charge.

You can pay less than that 2.5% if you use a card like Revolut or Wise (about 0.4%), but unless you bank with them you will find yourself having to transfer money to them from your main online banking to keep it topped up. Also note that there are quite low limits on how much cash you can take out at a machine with these cards.

If the card terminal asks if you want to pay in Euros or pounds, always choose Euros. The terminal will add on a lot more than 2.5% to convert.

Using your card, even with the 2.5%, can work out cheaper than using cash, as you pay a decent percentage to convert the cash, and then again when you convert any unused money back.

Under no circumstances change money at a hotel, or an airport bureau de change, or use an airport cash machine to withdraw currency. The rates they give are horrible. Also avoid cash machines in the street at your resort. Use ones that are attached to a physical bank branch. There may be a charge of about €2.50 for each withdrawal, but the exchange rate will be OK. The ones at airports and in the resort give horrible rates.

One of the best places to get foreign currency in the UK can be your local high street pawn shop (seriously). But wherever you are looking to change money, ask "Here is £1000. Exactly how many Euros will I leave with?" and get a chit with that on before you hand over the cash. Too often there is an unmentioned % commission or £10 "handling fee" that you only find out about as you leave.

Have a read of this.
Some cards are better than others. I use a Chase debit card and Halifax clarity credit card, neither of these have fees and you get a good exchange rate. I usually take a bit of cash as well.
Remember ALWAYS pay in the local currency. So pay in Euros if in Europe. You will find that card machines ask "do you want to pay in Euros or pounds". It costs you more to pay in pounds. Some unscrupulous sellers will not show you that part.
It's easier now you can do contactless in most shops.

I opened a starling account for this purpose.
There are plenty of others.
Always pay in the local currency when asked. I haven't used cash much for years abroad. I always have a little for taxis, tips etc but I usually get that out of a machine abroad if I don't have some left from a previous trip.

Does your usual card charge you for each transaction abroad? I got a Revolut card for going abroad this summer and it was really easy. I got the basic free plan and it's very simple to load up money as and when you need it and then convert to euros, and you can see what the exchange rate is so if you have time before you go you can keep an eye on the rates and convert your money when the rates are good.

You do get charged a small amount if you convert in excess of £1000 per month which did catch us out a bit as I was just loading up and converting as we needed it and we did go a bit over £1000. In future though I'd preload the card and convert to euros over a couple of months before we travelled if I thought we'd spend over £1000 to avoid this.

Depends where you're going and what you're doing.
Europe city break in town centre shops and cafes, you'll be able to use apple pay or your card everywhere. Check with your bank about charges, and if they do charge you sign up for something like Revolut.
If you're going outside Europe, or a bit more rural then you'll be able to use your card in many places, but souks, markets, local eating places, taxis etc will still want cash. Just draw some out the ATM when you get there. You'll pay a fee but will get a better exchange rate so it usually cheaper (and easier) than messing around exchanging before you go.
If you're off the beaten track then cash and take some with you in case you have trouble finding an ATM.

Starling. No fees. I've not needed any cash abroad for last few years.

I keep a bit of cash for tips. Taxis and buses usually take cards.

Have absolutely no idea what my bank would charge as this query hasn't come up for years. I think I might be better off taking my bank card but mainly cash.

It depends where you are going. Be aware that even some touristy areas of Germany and Austria don't take cards. Last year our hotel in the Austrian tyrol didn't and I had to pay cash for a dentist appointment in the Rhine Valley

I use my card, I have zero exchange fees

Somalia, South Korea or Germany? The World isn't a homogenous mass.

Read this. I have a Chase account which I use abroad.
www.moneysavingexpert.com/credit-cards/travel-credit-cards/

Both is best, always handy to have cash as not everywhere accepts card. Xx