Currency exchange and cards abroad: how to pay without extra fees
You’re back from vacation and can’t figure out where the money went. The exchange rate at the currency exchange, the ATM withdrawal fee, and the conversion markup at the counter each look trivial on their own.
Together they quietly eat a noticeable chunk of your trip budget. We’ve put together the rules that help you pay abroad at a fair rate. Some apply to cash, some to bank cards, and together they cover the main places where travelers lose money for no good reason.
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1. Bring local currency with you
💡 In short:
- Exchange the bulk of your cash before the trip or once you’re in the city, but not at the airport.
- Keep some money on a card and some in cash: that way one card failing doesn’t ruin your vacation.
- Check your card’s fee schedule in advance, because the conversion markup is written into your agreement.
- Rates, fees, and payment rules: 09/2026, verified in the EU regulation text
You need the local currency right away: taxi, bus, water on the first day. On arrival you rarely get to choose the rate; you take whatever is on the board. So bring a small amount for the journey in advance, and exchange the rest in portions. In the eurozone it’s simpler: one currency for several countries, and you’ll hardly see any exchange offices along the way. For other destinations, exchange cash in the city, where the rate is closer to the market rate.
2. Don’t exchange money at the airport
Airport and train station counters sit in the most expensive locations, and travelers pay for that. The exchange office recovers its rent either through a wide spread between buying and selling rates or through a separate fee. On a single transaction the difference seems tolerable, but over a trip you lose more than you’d spend on local transport tickets.
AIIllustrative image: AI-generatedIf you need cash urgently, exchange just enough for a taxi and water, and wait until you’re in the city for the rest. There, compare two exchange offices on the same street: the difference between them can be significant. Before the transaction, ask them to state the amount you’ll receive, not just the rate on the board.
3. Calculate the fee, not just the rate
Even if the sign says "no commission," the transaction can still be expensive: the exchange office builds its fee into the rate. So don’t compare the numbers on the board; compare the amount you actually get in your hand. Ask for the final amount before signing the receipt: if a noticeable chunk of what you expected is missing, you can walk away from the transaction, though not every office will accept that. In Sweden and Turkey exchange fees are common, so check the terms in advance.
Where | Rate | Fee | When it works |
|---|---|---|---|
Airport and train station | worse than market | often a separate fee | only for urgent expenses |
City exchange office | close to market | depends on the country | the bulk of your cash |
Bank | varies, exchange may be unavailable | possible | if the bank handles currency |
Card at the counter | at your payment system’s rate | conversion markup | everyday purchases |
ATM | at a marked-up rate | percentage plus fixed fee | last resort |
4. Look for an exchange office, not a bank
Exchanging at a bank branch seems like the reliable option, but in Czechia, Turkey, Sweden, and Norway this work is done by exchange offices. A bank may simply refuse your transaction or offer a poor rate. So don’t spend your vacation hunting for the right bank; look for exchange offices near a square or market. Leave bank branches for cards and transfers.
5. Don’t exchange leftover currency back
Leftover local currency tempts you into exchanging it back, and that’s the most expensive transaction of the trip. So it’s better to spend the remainder at the airport or keep it as a souvenir.
6. Exchange money as you go
Don’t exchange the whole amount on day one. The rate changes during your trip, and you may simply not need some of the currency. Keep your money in portions and exchange as needed. That way you lose less on exchanging back and you’re not carrying the entire amount at once. Count card purchases as spending from the same budget, otherwise your finances will drift.
7. Check which cards will be accepted
Abroad, Visa and Mastercard are the most widely accepted. Before your trip, check with your bank that foreign transactions are enabled on your card. You don’t want to find out at the airport checkout.
When you book accommodation in advance, you pay by card and depend less on cash: hotel search on Trip.com will show options with online payment.
A terminal can have several modes, and not every merchant is familiar with your card. If a payment doesn’t go through, try another terminal or the next checkout: sometimes it’s the specific machine, not your account.
8. Don’t rely on a card alone
A card fails at the worst possible moment, for example when the bank blocks transactions. Split your money. One card and some cash in your wallet, a second card and the rest kept separately. Then one failed transaction won’t leave you without funds for several days. You can also cover the first ride from the airport in advance: check transfer options on Kiwitaxi, and on the first day you’ll only need cash for small things.
9. Always pay in the local currency
At a checkout or ATM you’ll almost always be offered a choice: charge the amount in the local currency or in your own. Choose the local one. Then your payment system processes the transaction at its own rate, rather than a third-party bank at its rate. If you agree to on-the-spot conversion, a third-party bank sets the rate with its own markup. Under EU rules this markup is shown as a percentage before payment (as of 09/2026, regulation text), so you can compare the options before confirming the transaction.
The same rule applies online. If a store offers to charge you in your card’s currency, decline and choose the seller’s currency: the third-party platform’s rate is almost always worse than the payment system’s rate.
10. Withdraw cash rarely
Withdrawing from a foreign ATM is almost always paid: a percentage of the amount plus a fixed fee per transaction (as of 09/2026, Finanztip). Stiftung Warentest compared bank terms and notes that fees for withdrawals abroad vary widely (as of 09/2026, test.de). Take cash in one large transaction so the fixed fee doesn’t repeat. And look for a bank’s ATM rather than a private network: their fees differ.
11. Check your card’s fee schedule before you leave
Your bank earns money on conversion, and the terms are written into the fee schedule: the markup for transactions in a foreign currency and the fee for withdrawals abroad. Check these two items in the app or in your agreement before the trip, not in your statement after it. Merchant card fees in the EU are capped: 0.2% for debit cards and 0.3% for credit cards (as of 09/2026, EUR-Lex), so cards are accepted even for small amounts. You can also raise your withdrawal and payment limits in advance.
12. Keep a second card and know your PIN
Make the second card from a different bank and a different payment system: if Visa doesn’t work, Mastercard usually does. Know your PIN by heart rather than digging through messages from the bank, because in Europe it’s asked for at the checkout more often than a signature. Before you leave, turn on transaction notifications so you see a fraudulent payment right away, not a month later. If you’re renting a car, the deposit is usually blocked on a card, so compare car rental terms and prices in advance.
⁉️🤔 Frequently asked questions
Where is it better to exchange currency: at the airport or in the city?
In the city. At the airport take only the minimum for a taxi and water, and exchange the rest at an exchange office near a square or market.
What should I do if my card stops working abroad?
Try another terminal or another bank’s ATM, then call your bank. In the meantime, your second card and the cash kept separately from the first one will get you through.
In which currency should I pay by card abroad?
Always in the currency of the country you’re in. If a terminal or ATM offers to charge the amount in your card’s currency, decline and choose the local currency.
Should I withdraw cash from a card abroad?
Sometimes you can’t avoid it: markets, small shops, and taxis in some countries only take cash. Withdraw rarely and in large amounts from a bank’s ATM.
How much cash should I take on a trip?
Enough to cover the first day and the case when your card doesn’t work. Keep the bulk of your money on a card, and exchange cash in portions as you spend. That way you won’t end up with leftover currency that you’d have to exchange back at a bad rate.
In short: what’s worth booking
Money on a trip isn’t saved by a single trick but by a habit: exchange currency in the city, pay in the local currency, and keep your backup money separate. Check your card’s fee schedule and limits before you leave, and take cash in portions.
- If you have a connecting flight: find a flight on Kiwi.com.
- If you’re traveling to a country with expensive healthcare: compare insurance options.
A small editorial team writing guides for independent travel. We travel ourselves, but we haven’t been everywhere, so we check prices, opening hours and how to get there against official sources.