How to spend money abroad: finding the best way

You've booked the flights, secured the accommodation, and planned the perfect itinerary. The final piece of the travel puzzle is often the most confusing: figuring out how to spend money abroad without losing half your holiday budget to unexpected fees or poor exchange rates. It can be a genuine source of stress, especially if you travel often or are visiting multiple places with different currencies.

In this guide, we break down the 3 main options available to you, discuss their costs, and help you choose the best way to spend money abroad for your trip. Finally, we show you how a modern multi-currency account like ours can remove the guesswork entirely.

Ready to start spending money abroad and managing all your travel finances in one app?

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

Option 1: using cash

Even though card and digital payments are becoming more common, cash is still important for travel. This is especially true in places where card terminals aren't popular or if you're dealing with small local vendors. While sometimes essential, relying solely on cash can have its disadvantages.

The necessities of cash for travel

Cash is instant, universally accepted in local markets, and can be useful for tipping or small purchases where cards might have a minimum spend limit. It gives you a physical budget, which some people find helpful for tracking daily expenses.

However, cash comes with its trade-offs, including:

• Security risks: carrying large sums of money can make you vulnerable to theft. Unlike money in a digital account, if cash is lost, it's gone forever.
• Inconvenience: you have to queue to exchange your money before or during your trip. The exchange rate can also be very expensive.

Understanding foreign exchange bureaux and their costs

When you exchange your pounds (GBP) for a local currency at a high-street bank, airport kiosk, or local bureau de change, you are almost guaranteed to get a poor rate. These businesses need to cover their overheads, so they add a substantial mark-up to the real-market exchange rate.

The difference between the rate they offer you and the actual mid-market rate is a fee. This means that for every £100 you exchange, you lose money before you've even spent it. For travellers looking for the best way to spend money abroad, cash exchange is almost always the most expensive option.

How to keep your cash safe while travelling

If you do decide to carry cash, you should follow strict security protocols:

• Divide and conquer: never keep all your cash in one wallet or one pocket. Distribute it across several secure places, such as a travel belt, a secondary purse, and a safe in your accommodation.
• Avoid obvious counting: count your cash discreetly before you leave your hotel, and never flash large notes in public.
• Only use reputable ATMs: if you need to withdraw cash overseas, only use ATMs attached to established banks, and avoid standalone ones in quiet or poorly lit areas.

Option 2: using a travel debit card to spend money overseas

Using a debit card is safer and far more convenient than cash, but not all cards are created equal. A regular UK debit card, while functional, is designed primarily for use in the UK. When it's used internationally, it may trigger a chain of costly fees.

The foreign transaction fee challenge

A major drawback of using a standard UK debit card is the foreign transaction fee. This is a percentage charge (often 1–3%) that your provider applies every time you make a purchase in a non-GBP currency. For example, a bank charging you a 2.5% foreign transaction fee means a £50 purchase actually costs you £51.25 — as well as any mark-up on the exchange rate.

These‌ small fees add up quickly over the course of a holiday, making spending money abroad much more expensive than you planned.

The cost of DCC

When using a card abroad, you need to be aware of dynamic currency conversion (DCC). It's one of the biggest traps for travellers. Here's how it works:

1. The offer: a vendor or ATM asks if you want the transaction processed in the local currency (e.g. EUR) or your home currency (GBP).
2. The trap: choosing your home currency (GBP) means you're agreeing to the local vendor's or ATM operator's poor exchange rate, which is heavily marked up.
3. The solution: you should always choose the local currency. This forces the transaction to be converted by your own card provider (that's us if you have a Revolut card), ensuring you get a competitive exchange rate.

The benefits of a multi-currency travel card¹

A modern multi-currency travel money card is built to eliminate the problems of foreign transaction fees and poor exchange rates. We offer a digital solution that allows you to:

• Hold multiple currencies: exchange pounds to the local currency (euros, US dollars, etc.) at your convenience in-app. When you spend, the card deducts from the local currency balance, meaning you pay exactly the local price with no conversion needed.
• Get competitive rates: if you don't have the local currency balance, your card automatically converts the required amount from your GBP balance at a competitive exchange rate.²
• Spend money abroad without fees: our customers can enjoy spending money abroad without fees on all card transactions up to their plan limit.
• Fee-free ATM access: we also offer fee-free ATM withdrawals globally up to your plan limit, giving you access to cash when you need it without worrying about withdrawal fees. Remember, a local ATM provider might still charge their own fee, so always check the ATM screen first. You can also look for our in-network ATMs in-app to avoid third-party surcharges.³

Using a multi-currency card gives you the control and clarity you need to manage your money well while you’re away.

¹18+, T&Cs apply.

²Fair usage limits and weekend fees may apply. T&Cs apply.

³No fees within plan limits. T&Cs apply. Third party may charge ATM fees.

Option 3: spending abroad with a travel credit card

A credit card can be a powerful tool for travellers, providing benefits that neither cash nor a standard debit card can match. However, they also carry a unique set of risks, which means they should be used carefully.

Credit card fees: cash advances and interest rates

While some credit cards offer low foreign transaction fees to attract travellers, they do have other fees to be mindful of, including:

• Cash advance fees: using a credit card to withdraw cash from an ATM is treated as a cash advance. This usually incurs an immediate fee (a percentage of the amount withdrawn) and, importantly, interest starts accruing on that amount right away, often at a higher rate than purchases.
• Interest on purchases: if you don't pay off your balance in full each month, you'll be paying interest on your foreign spending, which can quickly negate any initial fee savings.

Credit cards essentially offer a form of short-term debt, and you should only use one if you're confident you can repay the balance quickly.

Section 75 protection: a key credit card benefit

One benefit of using a credit card is the protection offered under Section 75 of the UK Consumer Credit Act. This protection applies to purchases over £100 (and up to £30,000).

If you pay for something with a credit card — for example, a package holiday, a flight, or a large electrical item — and the retailer or service provider goes bust or the goods are faulty, the credit card company is equally liable for refunding you.

For smaller, everyday travel purchases like a coffee or a bus ticket, a travel debit card is usually the more practical and cost-effective choice.

Your essential travel money checklist

Preparation is the key to stress-free spending abroad. Before you even step into the airport, you should have your finances secured and your security settings locked in.

Pre-trip currency conversion and limits

When you use us, you can manage your money ahead of time:

• Check and set up currency pockets: tap + Add new currency to set up a new currency account for your destination.
• Monitor exchange rates: wait for an exchange rate you're comfortable with and exchange a portion of your money before you leave for your trip. This locks in your rate and provides an instant local balance. If you want to check real-time exchange rates before you travel, our currency converter can help.
• Review your plan limits: every plan has a limit for fee-free currency exchange and ATM withdrawals. Review your plan details and consider upgrading if you anticipate high spending. Knowing your limits prevents surprise fees later.
• Budgeting tools: use our in-app budgeting tools to set a realistic monthly or weekly spending limit for your trip. This helps you track your spending in the local currency and keep your finances in check.
• Upgrade for more travel benefits (optional): check our paid plans. They have additional travel benefits such as ‌travel insurance and higher limits for conversions and withdrawals.

18+, T&Cs apply.

Fair usage limits and weekend fees may apply. T&Cs apply.

Insurance policy T&Cs (incl. exclusions) apply.

Instant control: in-app security features

Digital control offers a level of security that cash simply can't match. You have the power to instantly protect your money from your phone:

• Instantly freeze and unfreeze: if you misplace your card or suspect unauthorised use, open your app and freeze the card instantly with a single tap. This prevents anyone from using it. You can then unfreeze it when you find it, or report it lost or stolen in-app and order a replacement.
• Use virtual cards for online purchases: use a virtual card — which can be instantly deleted and replaced — for any online booking or purchase you make with an unknown local vendor (like a last-minute taxi app or hotel booking).
• Location-based security: turn on location-based security in-app. This feature uses your phone's GPS to ensure your card can only be used in the location where your phone is. If someone tries to make a fraudulent transaction in another country, it'll be rejected automatically.

Taking these simple, proactive steps can remove all the anxiety that comes with spending money abroad.

Start spending money abroad with us

To take us along with you on your travels, follow these quick steps:

1. Download the app. You can find it on the App Store or Google Play.
2. Tap Sign up and follow the prompts to create your account and complete our identity verification process.
3. Once your account's open, tap Add money to move money from your previous account to your Revolut account.
4. Tap Cards (the card icon at the top of the main screen), then + Add new. Follow the prompts to order your physical card (delivery fees may apply). You can also get a virtual card and start using it right away for online purchases.
5. Tap Accounts (below your GBP balance), then + Add new. Choose Currency account to set up a new currency account (e.g. euros or US dollars). You can then exchange money in-app before you travel, or simply let the card convert it automatically when you spend.

The information provided is accurate as of 6 November 2025.

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.