Credit card, debit card, or cash: What's best for travel?
Credit card, debit card, or cash: What's best for travel?.
Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure .
When you're traveling, the last thing you want is to worry about money. But depending on where you go, you could have a long list of money-related concerns to deal with, such as foreign transaction fees, poor exchange rates, and more.
How can you minimize your financial worries while traveling? The best approach is to take a mix of different payment methods with you, so you're prepared for any situation.
Credit cards can be great for travel, since they're so widely accepted. On top of that, most credit card issuers provide ample fraud protection that you don't get with debit cards.
In fact, most major credit cards have zero-fraud liability. That means if someone makes an unauthorized purchase on the card, you're likely to get all of the money back. You just have to report the incident in a timely manner.
The main drawback to using credit cards for travel is that, depending on the card, you may be charged foreign transaction fees. You'll also need to advise the issuer of your travel plans so you can avoid having the account flagged for suspicious activity.
Required for certain bookings, such as hotels and rental cars
Debit cards can be a necessity for travel, since they give you access to ATMs. So, carrying at least one debit card is crucial for making sure you can withdraw cash as needed.
However, debit cards should only be used when necessary during travel, since they have fewer protections than credit cards.
When you carry cash, you don't have to worry about having your payment method declined. In certain situations, like tipping a tour guide or booking a local taxi, a credit or debit card may not be accepted at all. Plus, there's no need to worry about fees when paying in cash.
However, the main risk of carrying cash is that you could lose it or have it stolen. Unlike with credit or debit cards, there's no guarantee you'll get that money back.
ATM fees, foreign transaction fees, currency conversion fees
Foreign transaction fees, currency conversion fees, cash advance fees
Before you head overseas, you'll need to look into the details of your chosen payment methods. Depending on where you're headed and which cards you use, you may have to deal with any or all of the following issues:
Before you leave, make sure you understand your credit card issuer's fees, and you know where you should go to get cash. Researching this information up front can help you make better choices about transaction methods and avoid unnecessary fees.
Read more: Traveling internationally? How to order foreign currency ahead of time.
The safest payment method for travel depends, in part, on your destination. In most locations, it's best to use contactless credit card options, like a digital wallet or a chip-and-PIN card that you tap.
Read more: Digital wallet vs. traditional bank account: Which is best for you?
