Cash or card in Australia: what's the best way to pay?

As a UK traveller, the question of cash or card in Australia is an important one to answer when you’re preparing for your trip. Whether you’re planning a road trip along the Great Ocean Road, visiting iconic landmarks in Sydney, or exploring the Outback, understanding how Australia handles transactions will save you from unnecessary fees and payment disruptions.

Card payments are accepted nearly everywhere across Australian cities and coastal towns, making them a safe and convenient way to cover most of your holiday expenses. However, because cash remains useful for remote Outback locations, coin-operated laundry machines, and small local markets, it's important to carry some physical currency in your wallet.

This guide breaks down the financial landscape Down Under, helping you navigate card acceptance, handle local tipping expectations, avoid dynamic currency conversion traps, and determine the best way to manage your holiday spending.

To discover how to spend easily and access competitive exchange rates in Australia, read this guide and get a travel money card for your trip.

18+, T&Cs apply. Exchange fees, fair-usage limits, and weekend fees may apply.

How cash-centric is Australia?

Australia has one of the most advanced digital payment infrastructures in the world. While physical banknotes were once widely used, cards have become the most popular payment method for everyday living.

The official currency of Australia is the Australian dollar (AUD, represented by the symbol $). While the Australian dollar is widely traded, exchanging British pounds for banknotes at UK high-street bureaus often means accepting marked-up retail rates and extra exchange margins.

Understanding Australia's cashless status: do they use cash in Australia?

The short answer is yes, but physical currency usage is declining rapidly. Most people in Australia pay by card, whether digitally or with a physical card.

However, card acceptance depends on the business:

• Card-first: major supermarket chains (like Coles and Woolworths), hotels, public transport ticket barriers, petrol stations, and city restaurants
• Cash-preferred: remote Outback roadhouses with unstable internet connections, weekend farmers' markets, coin-operated beach showers, and small regional stalls

Cash etiquette in Australia: tipping and small purchases

Understanding local customs around tipping and everyday transactions will help you determine how much cash to keep on hand.

Tipping in Australia

Tipping isn't traditional in Australia, as hospitality staff are paid high minimum wages under national regulations. Here's what you need to know:

• Cafes and casual dining: tipping isn't expected for coffee counter orders or light lunches. Most cafes keep a tip jar on the counter for loose change, but it's purely optional.
• Upscale restaurants: leaving a 10% cash tip for attentive table service at upscale dining establishments is appreciated, though never mandatory.
• Taxis: rounding up taxi fares to the nearest dollar is common practice.

Because card readers in Australia don’t always have an integrated option to add a tip to the transaction, keeping some $5 and $10 notes on hand is the easiest way to show your appreciation directly to staff.

Small purchases and weekend surcharges

Many small businesses, cafes, and bars apply a small surcharge (typically 0.5–1.5%) on card payments to cover the costs associated with them. Carrying banknotes will mean you're able to make payments without worrying about card machine surcharges.

You should also keep in mind that cafes and restaurants across Australia also often apply a 10–15% surcharge on public holidays and weekends to cover higher wage rates.

Card compatibility: paying in Australia with a UK card

Australian card readers run on international processing networks, making paying in Australia with your UK card simple and straightforward.

Understanding the major payment networks (Visa and Mastercard)

Visa and Mastercard enjoy acceptance across almost all Australian shops, restaurants, and transport systems.

• Debit cards: ideal for everyday spending of your own money and, crucially, for withdrawing local cash from ATMs.
• Credit cards: useful for hiring a car, hotel reservation security deposits, or as an emergency backup. Be aware that using a credit card for cash withdrawals at ATMs will result in higher fees and immediate interest charges from your UK card issuer.

Make sure your card spending is covered by a travel-focused account that gets you upfront exchange rates.

Can I use Monzo in Australia?

Yes. Cards from UK digital banks like Monzo, Starling, and Revolut all work on the Mastercard or Visa networks across Australia.

What about credit cards?

Other networks have varying support:

• American Express (Amex): accepted at major hotel chains, department stores (such as David Jones and Myer), and global petrol stations. Independent cafes and smaller shops often decline Amex due to higher merchant processing fees.
• Discover and Diners Club: these networks face limited support, so don't rely on them as your primary payment method.

For a smooth travel experience, make sure you have at least one Visa or Mastercard debit card with you. Ideally, you should use a travel-focused card like ours to manage your currency exchange costs easily.

Reasons to use your card in Australia

Using a digital card instead of cash can save you money and help you track your spending and manage your budget.

Security and speed

Carrying stacks of dollars while travelling across busy tourist destinations can be risky, as your cash can easily get lost or stolen.

By comparison, card spending is much more secure. If you lose your Revolut card while exploring, you can instantly freeze it in-app to keep your money safe. Discover our security measures to learn more about how we protect your money.

Competitive exchange rates and clear spending

Most traditional UK banks charge a non-sterling transaction fee of 1–3% on foreign purchases. They may also apply their own inflated exchange rates, which can quietly erode your travel budget.

A dedicated travel card secures competitive exchange rates when you pay. Because we show you the conversion rate in-app in real-time, you always know exactly how much you’re spending in GBP, helping you manage your holiday budget easily.

Exchange and global transfer fees, fair-usage limits, and T&Cs apply.

Are contactless card payments common in Australia?

Yes, contactless payments (often called 'tap and go') are universal across Australia. You can tap your physical card, smartphone, or smartwatch at supermarket checkouts, cafes, and taxis.

Contactless payments are also fully integrated into public transport networks, such as Sydney's Opal network and Melbourne's transport system, allowing you to tap directly at ticket barriers.

Reasons for using cash in Australia

While card acceptance is widespread, physical cash is still a helpful travel companion.

The main reasons you'll want to carry cash in Australia include:

• Outback travel: internet coverage can drop along remote highways, causing card terminals at isolated roadhouses to lose connectivity
• Small local markets: weekend craft fairs and rural produce stalls may prefer cash
• Coin-operated amenities: beachside parking metres, public launderettes, and campsite hot showers often require physical $1 or $2 coins

How many Australian dollars do I need a day?

The amount of cash you need per day will depend on your travel style and itinerary. If you’re staying at city hotels and dining at modern restaurants, you’ll need very little cash. But if you're driving through rural areas and camping, you'll rely more heavily on cash.

We suggest carrying $30–60 (roughly £15–30) in cash per day for small purchases and tips, while using your travel card for accommodation, larger meals, and travel bookings.

A mid-range holiday budget of $150–280 (around £75–140) per day for food, drinks, and activities will allow you to explore comfortably using a strategic mix of cash and card.

Do shops in Australia ever accept pounds?

No, local Australian businesses don't accept British pounds for domestic payments. All physical transactions within Australia must be settled in Australian dollars.

If a souvenir shop near an airport offers to charge your card in pounds, they'll apply their own marked-up conversion rate. This acts as an expensive hidden fee. Always insist on paying in Australian dollars.

You should also be cautious of independent currency exchange counters located inside airports or tourist strips. Many kiosks advertising 'zero commission' bundle wide retail margins into their exchange rates. It's safer to withdraw dollars directly from an ATM owned by a reputable bank, via a travel card.

Using your card in Australia at an ATM

Withdrawing dollars directly from a local bank ATM is the most convenient way to get cash in Australia, provided you avoid common currency traps.

Our major warning: dynamic currency conversion (DCC)

The single biggest financial pitfall you'll encounter at ATMs and card terminals in Australia is DCC. Here's how it works:

The DCC prompt: when you insert your UK card, the ATM screen will recognise it as non-Australian and offer to charge your withdrawal in pounds (GBP) instead of Australian dollars (AUD), claiming it's a helpful service so you can see the exact cost in your home currency.

The result: if you select GBP, the Australian bank or ATM operator applies its own heavily marked-up exchange rate, which often includes a hidden markup of 5–8%.

The golden rule: when a terminal or ATM asks if you want to be charged in the local currency (AUD) or your home currency (GBP), always choose AUD. If the screen asks if you accept their conversion rate, select decline. When you choose the local currency, your card provider handles the conversion at its own competitive rate, saving you money.

Which ATM is best for foreigners to use in Australia?

Stick to major commercial bank machines, such as Commonwealth Bank (CBA), Westpac, ANZ, or NAB. These bank branches provide secure, modern cash machines. Avoid standalone, unbranded ATMs (such as those found inside pubs or convenience stores), as they add steep operator surcharges.

Use our app to easily locate safe ATMs nearby.

ATM fees in Australia

The main fees for cash withdrawal at local machines in Australia come from 2 separate sources:

1. The local operator surcharge: Australia's 4 main banks have scrapped foreign ATM fees for domestic accounts. But international cards are charged an operator fee (typically $2–5) per transaction.
2. Your home bank fee: standard UK banks often charge an out-of-network withdrawal fee of 2–3%, plus fixed transaction charges.

With us, you get a monthly allowance of fee-free ATM withdrawals (the amount depends on your plan). This removes the provider's fee entirely for a large amount of cash. Even when using a Revolut card, you should still select a major bank ATM to avoid the local operator's flat fee, or look for our in-network ATMs in-app to avoid third-party surcharges.

Plan limits and currency exchange fees apply. Third-party providers may charge a fee.

Other payment methods for UK travellers

Read below to see the other payment options for UK travellers in Australia.

Mobile payments: Apple Pay and Google Pay

Using Apple Pay or Google Pay linked to your debit card is a convenient way to pay. Because mobile wallets require biometric authentication (like face or fingerprint ID), they add an extra layer of security. Contactless mobile payments are supported at almost all card machines.

Money transfers and digital wallets

If you're travelling with a group, like sharing a campervan rental or having dinner with friends, splitting costs can be complicated. With us, you can send money to other Revolut customers instantly, regardless of the currency. This is the perfect, cash-free way to split dinner bills, grocery runs, and activity costs during your Australia trip. Fees may apply.

What's the best travel money card for Australia?

Finding the best travel money card depends on your individual travel style, spending habits, and destination itinerary. While there's no single payment method that fits every holidaymaker, looking for competitive exchange rates, low foreign transaction fees, and strong in-app account security is essential when spending abroad. We offer a range of features designed to help you manage your dollar spending seamlessly.

The clarity of the exchange rate

The days of guessing exchange rates or carrying bulky cash envelopes are over. When you use your Revolut card, you get:

• real-time conversion: we automatically exchange your GBP to AUD at a competitive rate whenever you make a card payment or ATM withdrawal
• instant notifications: you get an immediate in-app notification showing the exact amount spent in AUD and the corresponding GBP equivalent deducted from your balance, helping you track your holiday budget easily
• multi-currency holding: manage, exchange, and hold multiple currencies in-app when the market rates look favourable, preparing your travel money in advance for your trip

Control your travel budget

Beyond competitive rates, we provide tools to keep your money safe whilst travelling:

• In-app security: if you misplace your card while exploring a beach or market, one tap in-app instantly freezes the card to protect your money
• Budgeting tools: set spending limits for specific travel categories so you can manage your holiday expenses effortlessly
• Virtual cards: generate single-use virtual cards for secure online train or hotel bookings, ensuring your physical card details are never exposed to third-party websites

So, what's the best way to pay in Australia?

The ultimate strategy for spending Down Under is a combination of both card and cash.

Use your travel card as your main tool for hotel bookings, main meals, petrol, and supermarket shopping to get competitive exchange rates and securely track your spending. At the same time, carry a small stash of dollars for remote roadhouses, parking metres, small tips, and coin-operated launderettes.

Spend smarter with Revolut

Money is the last thing you should be worrying about while you're exploring Australia.

Get competitive exchange rates combined with security and clarity on your trip and at home. Sign up for Revolut and start spending with peace of mind right away.

Here’s how to get started:

1. Download the app: get Revolut on the App Store or Google Play Store.
2. Set up your account: follow the simple steps to create a personal account and complete the necessary identity checks.
3. Get your card: order your physical Revolut card to use for contactless payments and ATM withdrawals. Delivery fees may apply.
4. Add money: instantly top up your Revolut account from your existing UK bank account.
5. Start spending: use your card in Australia and we'll automatically handle the conversion at a competitive rate.

The information provided is accurate as of 23 July 2026.

The content of this page is for general information purposes only and does not constitute financial advice. If you have any questions about your personal circumstances, please seek professional and independent advice. Revolut is not a financial adviser.