Cash or card: What’s best to use when traveling?

When traveling, credit cards and cash can both be useful payment options. Credit cards generally offer benefits and security you don’t get with cash. But you might need cash for certain purchases. 

As you plan your next trip, consider what you’ll use to pay while you’re away.

What you’ll learn:

• Credit cards are accepted in many parts of the world.

• Some credit cards offer travel-related insurance and other protections in case of an emergency.

• Having access to cash while you travel can help if credit cards aren’t an option.

• Other payment options to consider bringing on your trip are debit cards, digital wallets and traveler’s checks.

Credit cards can offer convenience and protection, like security alerts and $0 liability for unauthorized charges, whether you’re traveling within the U.S. or abroad.

You can use your card at any merchant that accepts the payment network linked to your card. Paying with a credit card could offer multiple benefits. Depending on your card, these might include:

• Rewards: You may be able to earn cash back or other types of rewards on your purchases.

• Potential to build credit: Using a credit card responsibly and consistently paying bills on time and in full can help you build a positive credit history. 

• Travel-related protections: When using an eligible card to book travel, you could receive coverage like travel accident or car rental insurance. 

• Security features: Every Capital One credit card offers a number of security features, including card lock, which lets you lock a card online to stop it from being used for purchases.* Unlocking it is just as simple.

• Unauthorized charge coverage: Some credit card issuers, including Capital One, offer $0 liability for unauthorized charges.* If your card is lost or stolen, you won’t be responsible for charges you didn’t authorize.

These days, credit cards are widely accepted around the world, whether you’re headed to France, Mexico or somewhere else. 

But there are a few other things to keep in mind when using a credit card internationally. For instance, foreign transaction fees may come into play. Capital One doesn’t charge a fee for using your card for foreign currency transactions. View important terms and disclosures. But other credit cards might.

If you use a card abroad, you should also watch out for dynamic currency conversion (DCC) fees. Merchants might offer to convert the foreign price to your home currency. But they usually charge for it. And if you’re using a credit card, it’s not really necessary anyway.

Credit cards can offer you benefits, flexibility and protection if your card is lost or stolen. But there may be times when it helps to have cash on hand. 

For example, you might want to make sure you have cash before visiting local markets. And it could be nice to have cash for tips after a meal or when you’re taking a tour.

In addition to credit cards and cash, you have other payment options while traveling. Here are a few to consider:

A debit card could be a good alternative for making purchases. You can pay using money you already have without carrying cash. Or you can use it to withdraw cash. 

Some checking accounts may charge a fee when you use your debit card at ATMs abroad. And some banks might also charge a foreign transaction fee. Even if your bank doesn’t charge ATM fees, the foreign ATM operator might.

Using a mobile or digital wallet, you could get the benefits of a credit card without actually carrying the card. Depending on the wallet, you may be able to store things like credit cards, debit cards, prepaid cards, boarding passes, hotel reservations, event tickets and other personal data. 

Mobile wallets can add an extra layer of security because they often use advanced technology that doesn’t rely on your actual account numbers. But some merchants might not accept mobile wallet payments.

With a prepaid card, the card isn’t connected to your checking account like it is with a debit card. You can load money onto a prepaid travel card and use it for purchases or to withdraw cash.

Like some credit and debit cards, some prepaid cards may offer $0 liability for unauthorized charges if you register the card. You may also be able to load the account with a foreign currency to lock in an exchange rate.

Traveler’s checks might be another option, but they’re not as common as they used to be. You can buy these checks at certain financial or travel-related companies. Then you can use the checks where they’re accepted to make a purchase or cash them when you reach your destination.

Traveler’s checks are generally printed with a unique serial number—which means you may be able to get a refund if your checks are lost or stolen.

Be sure to check the terms and conditions to understand any restrictions or fees that might apply. And remember that some companies no longer issue or accept these checks. Plus, you can get similar safety features with other payment options.

Still have questions about whether to use cash or a credit card when traveling? Here are answers to some frequently asked questions:

Credit cards can be great travel companions. They may reward you for your purchases and offer peace of mind if your card is lost or stolen. But it still could be helpful to have cash on hand during parts of your trip. 

Compare Capital One travel credit cards to learn what might be a good fit for your next trip. You can also see whether you’re pre-approved. It’s quick and won’t hurt your credit.