For most UK travellers to most destinations, the right answer is: primarily card with a small amount of local cash. Here is exactly how to think through the decision.
The Case for Fee-Free Cards
A fee-free travel card (Starling, Monzo, Chase, or a travel credit card) provides:
- Better exchange rate than any cash bureau
- Zero foreign transaction fees (with the right card)
- Real-time notifications — you know immediately if fraud occurs
- Instant freeze — lost or stolen card stopped in seconds via app
- Spending records — useful for budgeting and expense tracking
- No physical cash to lose or carry
For any country where card acceptance is widespread, fee-free cards beat cash on every metric that matters.
When Cash Is Necessary
| Situation | Why cash is needed |
|---|---|
| Markets, street food, small vendors | Card readers rare or unreliable |
| Rural or less-developed areas | Infrastructure supports cash only |
| Tips and gratuities | Convention is to tip in local cash |
| Taxis (some drivers) | Prefer cash or charge extra for card |
| Emergency card failure | Backup cash gives resilience |
| Entry to some tourist sites | Still cash-only in some countries |
Destination Guide — Cash Dependency Level
| Destination | Card acceptance | Cash recommendation |
|---|---|---|
| Western Europe (France, Spain, Portugal) | High | £100–£150 for incidentals |
| Germany, Austria | Moderate | £150–£200 (higher cash culture) |
| Scandinavia | Very high | Minimal cash needed |
| Southeast Asia (Thailand, Vietnam, Cambodia) | Low–moderate | £300–£500 for 2 weeks |
| USA | High | Minimal |
| Japan | Moderate | £200–£300 (transitioning) |
| Eastern Europe | Moderate | £150–£250 |
The Recommended Combination
For most trips to developed destinations:
- Primary: Fee-free travel debit card (Starling or similar)
- Backup credit card: Fee-free travel credit card (Section 75 protection on big purchases)
- Local cash: Withdraw £100–£200 equivalent from a fee-free ATM on arrival
This combination gives you the best rates, protection, and resilience against card problems.
Keeping Your Money Secure Abroad
Whether you use cards, cash, or both, security matters more when you’re in an unfamiliar environment.
Cards:
- Enable real-time transaction notifications (Starling, Monzo, Chase all do this automatically)
- Set a PIN and memorise it — do not write it down
- Use contactless and Apple/Google Pay where possible — the card never leaves your hand
- Know how to freeze your card instantly via the app before you travel (test it)
- Enable travel notifications with your card provider if required
Cash:
- Never carry your entire cash supply in one place — split between wallet and hotel safe
- Use a hotel safe for large amounts; carry only what you need for the day
- Avoid ostentatious displays of cash in busy tourist areas or markets
- Keep a small emergency reserve (£50–£100 equivalent) entirely separately from your main wallet
General:
- Always carry at least two cards from different networks (Visa and Mastercard ideally)
- Note your card issuers’ 24-hour emergency contact numbers before you travel — most UK apps have this in-app
- Consider a travel money belt for carrying a backup card and emergency cash
What to Do if Your Wallet Is Stolen Abroad
Immediately:
- Freeze all affected cards via their apps — this takes seconds with Starling, Monzo, or Chase
- Call your card issuers on their emergency numbers (available on the FCA website or in your banking app)
- Report the theft to local police — you will need a police report reference number for insurance claims
- Contact your travel insurer — most policies cover cash theft up to a limit (typically £200–£500) with a police report
To access money:
- If you have a backup card with a different issuer: use this immediately
- Western Union or MoneyGram: friends or family in the UK can send emergency funds internationally within minutes
- Your travel insurance emergency assistance line may be able to help with emergency cash advances
Prevention: Keep a digital photo of your passport, card numbers, and insurer contact details stored securely (e.g. in encrypted notes on your phone or in a secure email folder). This is invaluable if everything physical is stolen.
Contactless and Mobile Payments Abroad
Contactless payments (and Apple Pay / Google Pay) are increasingly accepted worldwide but coverage varies:
| Region | Contactless/mobile pay acceptance |
|---|---|
| UK, Western Europe, Scandinavia | Very high — nearly universal |
| USA | High in cities; lower in rural areas |
| Australia, New Zealand | High |
| Japan | Improving rapidly; still mixed |
| Southeast Asia | Lower; major cities OK |
| Eastern Europe | Moderate |
Mobile payment wallets (Apple Pay, Google Pay) work with most fee-free travel cards. Adding your Starling or Monzo card to your phone’s wallet means you can pay without the physical card — useful if the card is lost.
Getting Cash Abroad — ATM vs Bureau
| Method | Rate | Fees | Recommendation |
|---|---|---|---|
| ATM abroad with fee-free card | Real rate | £0 | Best — do this |
| ATM abroad with standard UK card | Real rate | 2.75–3% + £2–3 | Expensive |
| Airport bureau | Poor rate (8–12% margin) | Usually none | Avoid |
| High-street bureau (pre-trip) | Moderate rate | Small margin | If you need cash in advance |
| Online currency order | Good rate | Small margin | Order 2+ days before travel |
The key rule: withdraw cash from ATMs abroad using a fee-free card rather than exchanging at a bureau. The rate is better and there’s no commission.
See Best Way to Exchange Currency UK for the full exchange comparison, and Travel Money Guide UK for the complete strategy.