Skip to main
University-wide Navigation
MyEA

Money Abroad

Which Should I Use? Cash or Card?

Each country is going to be different in how they handle money. Some countries run entirely on cash, some will have credit card terminals everywhere, and some are a mix. Research your destination country(ies) ahead of time and be prepared for both options. 

You should plan on using a combination of cash and card while abroad, typically with more than one card (e.g. a debit card for purchases and cash withdrawal, plus a credit card for backup.)

cash and cards

Section 1: Cash

One essential item on your pre-departure list should be to figure out what local currency you'll need, and how you'll get it.

Exchange Rates

In some countries, your money may be worth the same with one U.S. Dollar equal to one unit of the local currency. In other countries one U.S. Dollar may be worth more or less than one unit of local currency. For example, one U.S. Dollar may be worth 6 Chinese Yuan but only .5 British Pounds.

Exchange rate sites:

  • XE - well-regarded website and phone app.
  • Oanda - similar to XE, but can be overwhelming. Website only.
  • Google - just type directly into google. E.g., "500 Euro in USD"

 

How to Get Foreign Money

Whatever you decide, you need to have some cash before you leave the airport.

Option 1: Purchase Before Departure

You can buy the currency at your local U.S. bank or travel vendor (like AAA) before you go. To buy the currency, you'll give the bank or travel vendor your U.S. cash, and they'll exchange it for the appropriate amount of foreign currency. You may need to order the currency in advance and it can take a couple of days for it to reach your bank so don't wait until the last minute to buy currency.

Option 2: Purchase at Exchange Booth

You can also buy foreign currency at a cash exchange booth at your U.S. departure airport or at the arrival airport in your host country. Many airports have a Travelex booth, but you can also visit www.travelex.com to get your cash beforehand, and even have it put on a currency card.

NOTE: Exchange booths typically provide the worst exchange rate of all options. You're paying extra in fees for the convenience. 

Option 3: ATM Withdrawal In-Country

You can withdraw cash from an ATM in your host country. Talk to your bank before you leave the USA to make sure your card will work abroad, find out what fees may be added for international withdrawals, and what the maximum amount of cash is you can withdraw on a single visit. 

NOTE: This is typically the best exchange rate you'll receive, but you run the risk of your debit card not working with ATMs in-country. Have a backup option and don't rely on this as your only choice. 

  • Advantages: Local ATMs typically give a favorable exchange rate compared to currency exchange desks.
  • Backup Plan: Always carry more than one bank card (debit or credit) because some cards may be declined or incompatible with certain foreign ATMs.
  • Fees: Expect a foreign withdrawal fee, plus any ATM operator fee. Check your bank’s policies and look for partner banks that might waive some costs.
  • Coins: Use up any local coins before returning home—U.S. banks generally won’t exchange foreign coins.

Section 2: Credit Card

Overview: Credit cards can be a lifesaver for big purchases and emergencies, but be aware of potential foreign transaction fees and acceptance issues.

  • Foreign Transaction Fees: Many cards add 3% (or more) to every purchase made outside the U.S. A “no foreign transaction fee” card can save significant money.
  • Emergency Use: Carry at least one credit card for situations where cash isn’t enough or if your debit card is declined.
  • Chip & PIN vs. Signature: U.S. cards often require a signature instead of a PIN. In some places, however, signature-only transactions may not be accepted. Know your card’s capabilities.
  • Notify Your Provider: Let your credit card company know where and when you’ll be traveling to avoid automatic blocks on your account.

Note: You can apply for an international no-fee card 1-2 months before departure. 

University of Kentucky Homepage A link to return to the University of Kentucky Homepage
An Equal Opportunity University
Accreditation
Directory
Email
Privacy Policy
Accessibility
Disclosures
© University of Kentucky
Lexington, Kentucky 40506