Whether you’re traveling to visit loved ones, returning to your home country, or exploring new places, one thing remains essential: knowing the best way to pay for your expenses while abroad. Should you carry cash, rely on your debit or credit card, or use a mix of both?
At Pangea, we believe your hard-earned money should go further. That’s why we’ve created this guide to help you choose the best payment method while traveling and avoid unnecessary fees.
Why Cash Still Matters
While digital payments have become more common around the world, there are still many places—especially in small towns or local markets—where cash is the preferred or only accepted method of payment.
Even in countries with growing digital infrastructure, some everyday transactions, like paying for a taxi, grabbing street food, or tipping, are often handled in cash.
Pros of using cash:
- Wider acceptance: In many countries, especially in Latin America, small vendors or local businesses prefer or only accept cash.
- Better budgeting: It’s easier to track your spending and stick to a budget when you’re using physical cash.
- No surprise fees: Paying with cash means no foreign transaction fees or unfavorable exchange rates imposed by banks or card issuers.
Cons of using cash:
- Security risks: Carrying large sums of cash can make you more vulnerable to theft or loss.
- Currency exchange hassle: Exchanging money at the airport may be convenient, but often comes with poor exchange rates. Finding better options may require additional time and transportation costs.
Tip: Exchange a small amount of cash before your trip for immediate needs like transportation or small purchases. Once you’ve settled in, you can find reputable currency exchange offices in town that offer better rates.
When Using a Card Makes Sense
Debit and credit cards offer convenience and security, especially for larger expenses like hotels, restaurant meals, and online bookings. If your card is lost or stolen, it can usually be canceled or frozen immediately.
Pros of using a card:
- Convenience: Easy to carry and accepted at most large businesses. Many cards can now be added to mobile wallets, like Apple Pay or Google Pay, to enable tap-to-pay functionality.
- Security: Cards come with fraud protection. Unlike cash, if a card is lost or stolen, it can be replaced.
- Rewards and perks: Many credit cards offer cashback or points for travel-related purchases—perfect for making the most of your trip.
- Backup option: If you run out of local currency, your card can provide a safety net in case of emergencies.
Cons of using a card:
- Foreign transaction fees: Unless you have a travel-friendly card, your bank may charge a foreign transaction fee of 1–3% per purchase abroad.
- Blocked transactions: If you forget to notify your bank of your travel plans, your purchases may be flagged as suspicious and your card could be temporarily blocked.
- Dynamic currency conversion (DCC): Some merchants may offer to charge your card in USD instead of the local currency. This often comes with poor exchange rates. Always choose to pay in the local currency when given the option.
The Smartest Strategy? Use Both
As we’ve seen, both cash and cards have their pros and cons. The smartest approach is to carry a small amount of local currency for everyday purchases and rely on your card for bigger or emergency expenses.
If you’re visiting family, sending money in advance through Pangea is a simple, secure, and cost-effective way to make sure they have what they need when you arrive.
Tips to Keep Your Money Safe While Traveling
- Notify your bank: Let your bank know your travel dates and destinations to avoid having your card blocked.
- Keep your money in more than one place: Don’t store all your cash and cards in the same wallet or bag.
- Use a no-foreign-fee travel card: With some advance planning, you can apply for a card that doesn’t charge foreign transaction fees—or consider a prepaid travel card for your trip.
Final Thoughts
Planning your finances before a trip can make a big difference in how smoothly things go. When you’re prepared—whether with the right card, enough cash, or a mix of both—you can focus more on enjoying the journey and less on how to pay for it.
At Pangea, we’re here to help you stay financially connected, no matter where life takes you. So before your next trip, think about how you want to pay—and how you want to support your loved ones while you’re there. Because every peso, quetzal, or any other currency goes further when sent with care and purpose.
DISCLAIMER – This content is for informational purposes only. Pangea and its affiliates do not provide financial, legal, investment, or tax advice.
