Travel cash professional reveals 5 errors that usually value Brits overseas

From hidden fees to poor exchange rates and cash-only cultures, failing to plan ahead can quickly turn into an expensive mistake

View Image

An expert has revealed the five costly travel mistakes that Brits keep making abroad – and why ditching cash could actually end up costing more.

Despite the UK’s shift towards near-cashless living, British holidaymakers are being warned that relying too heavily on card payments abroad could cost them more than they realise.

From hidden fees to poor exchange rates and cash-only cultures, failing to plan ahead can quickly turn into an expensive mistake. Mike Wiltshire, travel money expert at H&T Pawnbrokers, says many Brits are still making simple but costly travel money errors when heading overseas.

Mike said: “Brits are used to tapping their card for everything at home, so it can come as a real shock when their card is not accepted abroad. Even in well-developed tourist destinations, cash-only payments are more common than people expect.

“It is important that you do your research ahead of time, so you’re paying in the most efficient way. Making sure you have got some local currency before you travel means you’re covered for any moments when payments by card isn’t an option.”

These are the five most common money travel mistakes and how to avoid them:

1. Not being prepared for tipping culture

Mike said: “In some destinations, like Egypt and Morocco, tipping in cash is expected for tours, hotel staff and drivers, therefore having some extra cash on hand is essential. “Make sure you carry out some research before your trip to check what the etiquette is for tipping for your destination.”

2. Relying solely on card payments

Mike said: “Even in popular tourist destinations, card machines can be unavailable or unreliable. “This is particularly common in smaller towns, taxis, markets and independent cafes. Carrying some cash ensures you are never stuck and unable to pay.”

3. Not taking out local currency before you travel

Mike said: “Exchanging money in advance of going away can help you to avoid international ATMs, expensive airport exchange rates, and ensures you have cash ready for essentials as soon as you land.”

4. Not paying in the local currency

Mike said: “When paying on a card machine abroad, it will sometimes give you the option to pay in pounds or pay in the local currency. It is important that you always choose the local currency, as opting to pay in sterling often means poor exchange rates and extra charges.”

5. Not checking your card fees before you travel

Mike said: “Not all credit and debit cards are designed for overseas use. Before heading abroad, check whether your provider charges foreign transaction fees or cash withdrawal fees. “It is worth considering applying for a travel-friendly card, which don’t charge fees for overseas spending or ATM withdrawals, helping you to keep costs down whilst on holiday. “Even where card payments are accepted, using cards abroad is not always the cheapest option. Foreign transaction fees, poor exchange rates and changing conversions can all add unexpected costs to everyday purchases.

“Withdrawing cash at the resort or airport can also be expensive, due to high ATM fees and unfavourable exchange rates. Planning ahead and taking a small amount of local currency with you before flying can save you both stress and money.”

Five popular holiday hotspots where cash is still king

1. Germany: Mike said: “Despite its modern reputation, Germany still leans heavily on cash, especially for low-cost purchases. A surprising number of independent bakeries, shops and cafes often prefer cash over debit, especially outside major cities.”

2. Greece: Mike said: “Large hotels may accept card, but many places on the smaller islands and family-run businesses do not. Tavernas, taxis and local craft stalls may only take cash, and card machines can be unreliable because of poor connectivity. ATMs can also be limited in remote areas, so carrying some euros is essential.”

3. Morocco: Mike said: “Moroccan souks, traditional markets and street vendors operate almost entirely on cash. Taxis and small eateries rarely take cards, and cash is also expected for tipping drivers, guides and hotel staff.”

4. Egypt: Mike said: “In Egypt, cash is widely used when buying items at the markets, small shops and local tours. Tipping is a big part of the culture, so travellers need some cash on hand throughout their trip.”

5. Romania: Mike said: “Cities like Bucharest are card-friendly, but traditional villages and rural areas in Romania still rely heavily on cash. Local guesthouses, craft stalls, small restaurants and public transport often don’t accept cards, making it essential for travellers to have cash with them when visiting.”