Why you still need travel money abroad

We surveyed 3,000 British holidaymakers about their experiences with money abroad and 38% revealed they’ve been caught without cash when they needed it most.

Planning a European trip? Here’s a quick look at where you’ll still need local currency:

Here’s what you can expect across other popular destinations in 2026:

Just so you know… This table reflects a general traveller experience in 2026. Card acceptance can vary widely even within a country, particularly in rural areas, on public transport and at independent businesses.

Even in countries with high card acceptance, there are common travel situations where cash remains the easier or only option. 61% of Brits surveyed found they needed cash when shopping at local markets, 58% for tipping, and for paying in smaller shops and restaurants.

Apps like Uber accept cards, but local taxis, minibuses, rickshaws and shared transport almost always require cash. In many destinations, drivers may not carry change or may not have card readers at all. Having some local currency set aside for transport can save hassle, especially on arrival.

In the US, tipping is an expectation in their service culture, and having dollar bills makes it straightforward. In Europe, tipping is more variable but having a few coins or small notes can help in restaurants and with hotel staff. In Asia and parts of Africa, tipping is common in tourist areas and is almost always done in cash.

To prepare for tipping customs before you travel, see our guide - How much should I tip abroad?

Some of the best travel experiences happen at local markets, night food markets and street stalls, which are rarely card-friendly. Whether you're browsing the souks of Marrakech, a night market in Bangkok or a farm shop in rural Italy, you’ll need some local cash.

Independent cafés, small tour operators and local shops often don't have card machines. This is true even in card-friendly countries. Germany is a well-known example where many restaurants still operate as cash only, even in cities.

The further you travel from airports, city centres and resort strips, the less reliable card acceptance becomes. If you're planning to hire a local guide, visit a rural market or take a scenic bus route, having local currency on hand helps.

Yes, in most cases your UK debit or credit card will work abroad, but it's worth understanding the costs involved before you travel.

Many standard UK bank cards charge a foreign transaction fee of around 2-3% on every purchase made in a foreign currency. Over a two-week holiday, this can add up. Some travel-specific cards and travel money cards charge no foreign transaction fees, which can save you money if you travel regularly.

Withdrawing cash from overseas ATMs typically incurs a fee from your own bank and sometimes from the ATM operator too. Limiting how often you withdraw, and taking out a larger amount in one go rather than making multiple small withdrawals, can keep these costs down.

This is one of the most common traps for travellers. When a card machine or ATM asks whether you'd like to pay in pounds rather than the local currency, always choose the local currency. Paying in pounds through dynamic currency conversion means the overseas bank sets the exchange rate, which is almost always worse than your own bank's rate.

A travel money card lets you load a set amount in foreign currency before you travel and spend it like a debit card abroad. Because you lock in the exchange rate when you load the card, you know exactly how much you've converted and what you have to spend.

The Multi-currency Cash Passport Travel Money card can be used for all of your holiday spending. Using a travel money card can help you avoid foreign transaction fees that some bank cards may charge, which may help reduce overall spending while travelling.

The short answer is - don't rely on just one method. A hybrid approach that combines travel money, a travel-friendly card and some local cash gives you the most flexibility and the best protection if something goes wrong.

"While we’re all used to paying with our phones and cards at home, travelling abroad often means going back to basics. Being caught without cash can turn a relaxing holiday into a stressful experience, whether you’re trying to buy something at a market or simply pay for a taxi.

The best approach is a ‘hybrid wallet’, bring your cards, but make sure you’ve got some local currency too. A little preparation can make all the difference between a smooth trip and an unexpected hassle."

Ban Mahsoub, Partnerships Director at Tesco Insurance and Money Services

Exchanging your travel money before you leave the UK is one of the simplest ways to get better value. Here's why it makes a difference.

These are convenient but consistently offer some of the worst exchange rates available. The rates reflect the captive audience, and the fees can be significant. If you need currency urgently at the airport, try to exchange only a small emergency amount.

Using your UK bank card to withdraw cash from ATMs abroad comes with multiple potential costs - a foreign transaction fee from your own bank, a withdrawal fee from the overseas ATM operator, and sometimes a less favourable exchange rate. Withdrawing larger amounts less frequently reduces fees, but it's rarely the cheapest option overall.

Exchange offices in busy tourist areas and hotel lobbies almost always offer unfavourable rates. They can be convenient in a pinch, but the rates reflect that.

Ordering your travel currency in advance through Tesco Travel Money means you can compare rates ahead of time, collect from a Tesco store near you and arrive at the airport already prepared. You'll avoid queues and last-minute stress, and you'll typically get a better rate than you would on arrival.

To learn more about foreign currency exchange, see our Currency exchange guide.

Based on feedback from UK travellers, these are the pitfalls that are most likely to affect your holiday budget, and how to avoid them.

Small costs add up quickly when you're away. Meals, transport, activities, drinks and incidentals can all exceed your initial estimate, particularly if you haven't accounted for cash-only spending. Planning a rough daily budget before you travel helps you stay on track and decide how much cash to carry.

Relying entirely on your bank card can cause real problems if it's declined abroad, lost or blocked. Your card may be rejected, particularly in countries with lower use of contactless. Having a backup in the form of travel money or a separate card provides reassurance if something goes wrong.

Many travellers don't realise their standard bank card charges foreign transaction fees until they see their statement. Before you travel, check what your bank charges for overseas transactions and ATM withdrawals. If the fees are significant, a travel money card or fee-free travel card may be worth considering.

Always choose to pay in the local currency when a card machine gives you the option. The GBP option is almost always more expensive because the exchange rate is set by a local bank rather than your own.

Many destinations now charge tourist taxes that aren't included in your hotel booking. Venice, Barcelona, Amsterdam and many other popular cities charge a nightly fee per person, often payable in cash at check-out. Researching destination-specific charges before you travel helps you budget accurately and avoid surprises.

If you need to withdraw cash abroad, use ATMs located inside bank branches, hotels or supermarkets where they're more likely to be monitored. Always cover the keypad when entering your PIN and check for anything unusual around the card slot before you use it.

Yes. Setting aside a small amount of cash you don't plan to spend is a great idea before a trip. Unexpected costs come up on almost every holiday, from delayed flights and missed connections to medical costs, or lost luggage.

A buffer of £50-£100 (in local cash) kept separately from your main holiday spending, along with comprehensive travel insurance, means you're covered if something unexpected happens.

Before your next trip, run through these steps to make sure you're covered.

Whether it’s a pint in Prague or patisserie in Paris, get a feel for how far your travel money might go by finding out more about foreign currencies.

You can order your holiday money easily online with Tesco Travel Money. Or pick it up in-store with the weekly shop.

To learn more about taking cash abroad, take a look at our guide – Tips for spending money abroad.

Exchange rates may vary during the day. Rates will vary whether you're buying in-store, online or over the phone. They'll also vary depending on whether you're buying cash or a prepaid currency card.

We buy back most currencies we sell in most banknote values. Excludes closed currencies.