Paying With Card Abroad

There’s multiple ways to avoid carrying cash while on holidays. Below we explain the pros and cons of the different alternatives when paying with card abroad. 

Withdrawing money

Pros: You can control your spending while still enjoying your travels.

Cons: The high charges link to withdrawing money abroad. Most banks charge you cash withdrawal, foreign exchange and interest charges each time you get money from a cashpoint abroad.

Debit card

Pros: You save time as you avoid going the cash point, omit the cash withdrawal fee and avoid the possibility of getting into debt from using a credit card.

Cons: You’ll still have to pay foreign exchange fee and interest charges every time you use your debit card. Also, be careful with dynamic currency conversion. Also be aware, retailers may use dynamic currency conversion to give you the option or automatically charge you in pounds. Always pay in the local currency, as you’ll be charged a higher rate conversion from using dynamic conversion.

Credit card

Pros: If you choose wise, you might be able to avoid withdrawal fees, interest charges, and obtain competitive exchange rates.

Cons: The inadequate use of credit cards can leave you in debt if you fail to pay your balance in full and on time.

Prepaid currency card

Pros: You can control your spending and pay less in charges. The exchange rate is locked at the time you top them online from your debit card.

Cons: You’ll need to buy more than one card if you’re planning to travel to more than one country with different currencies.