Be Clever With Your Cash, the financial website, has surveyed travellers abroad. The study found that 39% of holidaymakers require physical cash while abroad. They often fall into situations where cards are not allowed.
Some of the common scenarios include taxi fares, shopping at local or independent sellers, tipping, and more. While specialist travel cards and prepaid cards are extensively promoted as fee-free alternatives, however, when people need emergency withdrawals or to exchange currency, they often face additional charges.
The research was conducted by Opinium among 2,000 UK adults who travelled abroad from the UK. The survey showed that some travellers faced ATM charges or poor exchange rates after returning to the airport exchange desk.
The problem has become more concerning in rural or remote areas, where card acceptance is limited.
The website said that moving outside major cities can also include challenges. The survey highlighted that the most frequent instances require physical cash.
A money expert at Be Clever With Your Cash, Amelia Murrey, said that there is still a blind spot when it comes to cash. Many travellers suspect that having a fee-free card is enough for your foreign tour, but that can be a false economy if you use an ATM abroad that charges poor exchange rates.
The money expert also added that the fact is not about carrying wads of cash, it is about being prepared for those moments where a card simply can’t help you anymore.
Ms Murray suggested that the travellers pack a cash cushion, a small amount of local currency. The cash cushion can be helpful for tipping, local travel, etc. Also, if the holidaymakers face any issue where cards are not acceptable, the cash cushion can help them out.
She suggested that holidaymakers must ensure they understand their card’s policy on fees, terms, and conditions. Holidaymakers also understand the currency conversion before they travel.
