Despite the UK's shift towards near-cashless living, British holidaymakers are being warned that relying too heavily on card payments abroad could cost them more than they realise. From hidden fees to poor exchange rates and cash-only cultures, failing to plan ahead can quickly turn into an expensive mistake.
Expert warns of hidden costs
Mike Wiltshire, travel money expert at H&T Pawnbrokers, says many Brits are still making simple but costly travel money errors when heading overseas. He explained: "Brits are used to tapping their card for everything at home, so it can come as a real shock when their card is not accepted abroad. Even in well-developed tourist destinations, cash-only payments are more common than people expect."
He added: "It is important that you do your research ahead of time, so you're paying in the most efficient way. Making sure you have got some local currency before you travel means you're covered for any moments when payments by card isn't an option."
Five common travel money mistakes
Wiltshire identified five key mistakes that often cost Brits abroad:
1. Not being prepared for tipping culture
In some destinations, tipping in cash is expected. "In destinations like Egypt and Morocco, tipping in cash is expected for tours, hotel staff and drivers, therefore having some extra cash on hand is essential," Wiltshire said. He advised travellers to research tipping etiquette before their trip.
2. Relying solely on card payments
Even in popular tourist spots, card machines can be unavailable or unreliable. "This is particularly common in smaller towns, taxis, markets and independent cafes. Carrying some cash ensures you are never stuck and unable to pay," Wiltshire noted.
3. Not taking out local currency before you travel
Exchanging money in advance helps avoid international ATM fees and expensive airport exchange rates. "It ensures you have cash ready for essentials as soon as you land," he said.
4. Not paying in the local currency
When paying by card abroad, always choose the local currency. "Opting to pay in sterling often means poor exchange rates and extra charges," Wiltshire warned.
5. Not checking your card fees before you travel
Not all cards are designed for overseas use. Wiltshire advised: "Check whether your provider charges foreign transaction fees or cash withdrawal fees. Consider applying for a travel-friendly card that doesn't charge fees for overseas spending or ATM withdrawals."
Even where cards are accepted, costs can add up
Foreign transaction fees, poor exchange rates and dynamic currency conversion can all add unexpected costs to everyday purchases. Withdrawing cash at the resort or airport can also be expensive due to high ATM fees and unfavourable exchange rates. "Planning ahead and taking a small amount of local currency with you before flying can save you both stress and money," Wiltshire said.
Five holiday hotspots where cash is still king
Wiltshire also highlighted five popular destinations where cash remains essential:
Germany
"Despite its modern reputation, Germany still leans heavily on cash, especially for low-cost purchases. A surprising number of independent bakeries, shops and cafes often prefer cash over debit, especially outside major cities," he said.
Greece
Large hotels may accept card, but many smaller islands and family-run businesses do not. Tavernas, taxis and local craft stalls may only take cash, and card machines can be unreliable due to poor connectivity. ATMs can be limited in remote areas, so carrying euros is essential.
Morocco
Moroccan souks, traditional markets and street vendors operate almost entirely on cash. Taxis and small eateries rarely take cards, and cash is expected for tipping drivers, guides and hotel staff.
Egypt
Cash is widely used for market purchases, small shops and local tours. Tipping is a big part of the culture, so travellers need cash throughout their trip.
Romania
Cities like Bucharest are card-friendly, but traditional villages and rural areas rely heavily on cash. Local guesthouses, craft stalls, small restaurants and public transport often don't accept cards.
