How to pay abroad: cards, cash and phones, and when to use each

November 8, 2026 · 5 min read

You land in a new country with a card, a phone and a vague idea that you should have some local cash. At the first kiosk the card machine is broken, at the second the taxi driver only takes notes, and at the third the shop wants a minimum spend. Paying abroad is rarely hard, but it is easier when you have thought about it before the airport.

This guide covers the three ways most people pay, what each is good for, and how to set up so one lost card does not become a lost week.

Cards are the default almost everywhere

In most cities you can pay for almost everything by card: hotels, restaurants, supermarkets, trains, museums. Tap-to-pay is standard in a large part of the world, and in many places people hardly use notes at all. A card is also a safe way to carry money, because you can usually freeze it from your phone if it goes missing.

Before you leave, do three things:

Check whether your bank or card provider wants to know where you are going. Some still block unfamiliar spending abroad as a fraud check, and a notice in their app takes a minute.
Check that your card works for online and contactless payments, and that you know its PIN. Some places still ask for a PIN on chip cards, and a card you have only ever tapped can leave you stuck.
Look at what your card charges for spending in another currency. The next article, avoid fees when spending abroad, explains the kinds of charge to look for.

Cash still matters in some places

Cash is not dead. You will still want some for:

Markets, street food and small family-run places, especially in smaller towns.
Tips, taxis and tolls in countries where these are normally paid in notes.
Rural areas, islands and mountain huts, where the card terminal depends on a signal that is not always there.
Public toilets, lockers and small entry fees that only take coins.

How much you need depends on where you are going. Some countries run mostly on cards, and a small amount of cash is plenty. Others lean on notes, and you will want to withdraw more on arrival. The country guides say which is which: Japan and Portugal are good examples of two different habits.

Getting cash

The usual way is to withdraw from a cash machine (ATM) when you arrive, using your debit card. It is usually cheaper and simpler than exchanging notes at a desk. Some tips:

Use a machine attached to a bank branch, ideally during the day. Standalone machines in tourist areas are more likely to charge extra.
Withdraw a larger amount less often rather than small amounts every day, because an operator fee, where there is one, is often charged per withdrawal.
If a machine offers to convert the amount into your home currency, decline and choose the local currency. This is called dynamic currency conversion, and it almost always works out worse.
Keep your cash in more than one place: some in a day wallet, the rest in your room or bag.

Avoid changing money at the airport unless you need a few notes for the first taxi. Airport desks and street exchange booths tend to give the weakest rates. If you do change notes, compare the rate on the board with one you looked up yourself, not only the headline commission.

Phones and wallets

Paying with a phone or a watch works in most places that take contactless cards, because it uses the same terminals. It is convenient, often faster than finding your card, and it means the physical card can stay in a zipped pocket.

Do not rely on it alone. A phone can run out of battery, be stolen or lose signal at the wrong moment, and a few places only take a physical card or cash. Treat your phone as one payment method, not the only one.

Some countries also have their own popular payment apps, where locals pay by scanning a code. These are often tied to a local bank account and may not work for visitors. If you are told only the app works, ask whether they take a card; most places that cater to visitors do.

Pack a backup

Most money problems abroad are not about fees. They are about a single card that stops working: it is swallowed by a machine, blocked by a fraud check, stolen, or left in a hotel safe in another city. A simple setup covers nearly every case:

Two cards from different providers, ideally one debit and one credit, kept in different bags.
A small stash of cash in a currency you can use: some local notes, and a little of a widely accepted currency in case you need it.
The number to call if a card is lost, saved somewhere other than the phone you might lose. Your bank's emergency line is usually on its website, and many cards let you freeze them in the app.
A photo of your passport and cards (front only, never the security code) stored securely, not loose in your gallery.

If you are travelling with friends, it also helps to agree who pays for shared things so you are not all using different cards for the same dinner. The habit is covered in how to split travel costs with friends.

Spotting the traps

A few situations come up again and again:

Dynamic currency conversion. At a till or machine, you are asked whether you want to pay in your home currency or the local one. Choose the local one. The home-currency option looks helpful, but the shop or machine sets the rate, and it is usually worse than your bank's.
Card minimums. Some small places set a minimum for card payments. Ask before you order, not after.
Surcharges. Some businesses add a fee for card payments. It should be shown before you pay; if it is not, ask.
Pre-authorisation holds. Hotels and car hire often reserve a large amount on your card. It is not a charge, but it reduces what is available, so avoid using a card with a low limit for these.
Tampered machines. If a cash machine looks odd, has a loose part on the card slot or something stuck over the keypad, use another one and cover the keypad when you enter your PIN.

Before you go

Make a short list: which cards you are taking, where each will be carried, how much cash you will pick up and where, and how you would reach your bank. It takes ten minutes and removes most of the stress. Then read about avoiding fees when spending abroad so the money you do spend goes further.