Frequently Asked Questions About Travel Money

Planning a holiday involves plenty of excitement, but it also comes with questions—especially when it comes to your travel money. Should you take cash or a card? What’s the best way to get foreign currency? To help you travel smarter, we’ve answered some of the most frequently asked questions about travel money.

1. Should I Take Cash or Just Use My Card?

It’s always wise to carry some cash when you travel. While cards are convenient, they aren’t accepted everywhere—especially in rural areas, small shops, or markets. Cash also comes in handy for tips, transport, and emergencies.

Pro Tip: Compare exchange rates at CompareTravelCash.co.uk before you go to ensure you get the best deal on your travel money.

2. When Is the Best Time to Buy Travel Money?

Exchange rates can fluctuate, so it’s smart to plan ahead. Keep an eye on rates a few weeks before your trip, and buy when the rate is favourable. Avoid exchanging money at the last minute, especially at airports, where rates are typically much worse.

3. What Is the Best Way to Carry Money Abroad?

A mix of cash and cards is ideal. Cash is essential for day-to-day expenses, while a card is a great backup for larger purchases or emergencies.

Consider Prepaid Currency Cards: These let you lock in a good exchange rate before you travel and avoid foreign transaction fees.

4. How Do I Find the Best Exchange Rates?

The easiest way is to use a comparison service like CompareTravelCash.co.uk. It allows you to compare rates from multiple providers and find the best deal.

5. Is It Cheaper to Exchange Money in the UK or Abroad?

In most cases, exchanging money in the UK is cheaper. Rates abroad can be less favourable, and you may encounter additional fees. Planning ahead and ordering your currency online is usually the best option.

6. What Are Buyback Guarantees?

Buyback guarantees allow you to sell back any leftover currency at a fixed rate. This is a great option if you’re unsure how much cash you’ll need on your trip. However many online providers offer the best buyback rates without a buyback guarantee.  

Example: You purchase €500 for your holiday but return home with €100 unused. With a buyback guarantee, you won’t lose out if exchange rates have dropped.

Top Tip: Always compare buyback rates before you exchange your money back, there may be better deals from other providers than the one you were guaranteed at purchase!

7. Should I Pay in GBP or Local Currency When Using My Card?

Always opt to pay in the local currency. If you choose GBP, the merchant or ATM will apply their own exchange rate, often at a worse rate than your card provider’s.

8. What Should I Avoid When Buying Travel Money?

• Airport Exchanges: These offer the worst rates and highest fees.
• Dynamic Currency Conversion (DCC): When paying by card, avoid paying in GBP, as this adds hidden fees.
• Waiting Until the Last Minute: Rates are usually better when you plan ahead.

9. How Much Cash Should I Bring?

The amount of cash you need depends on several factors, including your destination, the length of your trip, and your planned activities. To estimate accurately, consider these key points:

• Cost of Living: The cost of meals, transport, and attractions can vary significantly between destinations. Check out resources like the Numbeo Cost of Living Index to gauge typical expenses for your chosen destination.
• Number of Days: A weekend getaway will require less cash than a two-week holiday.
• Number of People: Travelling solo, as a couple, or with a family will influence your budget.
• Dining Habits: Will you be eating out for every meal or cooking some yourself? Street food is often cheaper than dining at restaurants.
• Tipping Cultures: Research tipping norms in your destination—cash is often preferred.
• Shopping Plans: Are you planning a shopping spree or just buying a few souvenirs?
• Attractions and Activities: How often will you be visiting paid attractions, tours, or events? Consider entrance fees, guided tours, and day trips.
• Transport Costs: Factor in public transport fares, taxis, or car rental expenses.
• Emergencies: Always carry a little extra cash for unexpected costs, like medical expenses or last-minute purchases.

   

Pro Tip: For destinations where haggling is common, like markets in Turkey or Southeast Asia, cash is essential for negotiating the best prices.

By thinking through these aspects, you can work out a realistic cash budget for your trip. If you’re unsure, it’s better to bring a bit more cash than you think you’ll need—leftover currency can always be sold back. Don’t forget to use CompareTravelCash.co.uk to find the best exchange rates for your travel money.

10. Are Prepaid Travel Cards Worth It?

Prepaid currency cards can be a great option. They let you lock in exchange rates, avoid transaction fees, and provide a secure way to carry money. Just be aware of any card issuance or withdrawal fees.

11. What Happens If I Lose My Travel Money?

If you lose cash, it’s gone. That’s why it’s important to split your money between different places—carry some on you, keep some in your hotel safe, and use a card as a backup.

Tip: Make a note of your card provider’s emergency contact number in case your card is lost or stolen.

12. How Do I Exchange Leftover Currency?

Many currency providers offer buyback services for leftover cash. Compare rates at CompareTravelCash.co.uk to ensure you get the best deal when selling your currency back.

Travel money doesn’t have to be complicated. By understanding the options and planning ahead, you can avoid unnecessary fees and get the best value for your holiday budget.

Still have questions? Visit CompareTravelCash.co.uk for more tips, tools, and the best rates on travel money. Happy travels!