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[title]Whether you’re hitting the road or flying the skies, it’s always best to be prepared. We’re not just talking about things like travel documents and water (and of course snacks); this applies to payments, too. Make sure you have more than one way to pay. If you’re heading overseas, this could mean a mix of debit and credit cards, digital wallets and cash (ideally in local currency).
Thinking about payments should be part of your travel planning. Of course, where you’re going, staying and how you’re getting there are at the top of the list. However, there are a series of questions about how you'll pay that we recommend ticking off the list—questions like asking how much local currency to bring, what the types of fees are and what backup payment options you should bring.
Why do I need more than one way to pay? Having local currency in cash can be especially useful in the smaller moments that are easy to overlook but help keep your trip running smoothly. Think of things like paying for a taxi, using local transit, shopping at a street market or even tipping at meals and hotels. It’s also especially useful as a fallback. You never know when an emergency might occur and you need a quick way to pay. That’s why local cash can be a useful backup when other payment methods aren’t available.
Where is it helpful to have cash? It does depend on the destination, but on the whole, larger cities and popular tourist areas are friendlier to cards and digital payments. In contrast, smaller places off the beaten path are more likely to rely on cash. That said, even in digitally advanced places, it is sensible to carry a small amount of cash, in paper and coins.
What should this mix look like? Consider carrying a backup card and some local currency. Depending on your destination and plans, you might consider carrying the equivalent of $50 to $100 USD per person per day. This can give you another way to pay when digital payments aren’t available or practical.
Local currency can be useful for transportation, tips, small purchases or when a merchant prefers cash. It can also help if you run into connectivity issues, technical problems or a declined card. You don't need to choose between cash and digital payments. Having both gives you more options while you travel.
What should I avoid? A few common mistakes can make it harder or more expensive to pay while traveling:
- Waiting until the last minute. Some currencies may take several business days to obtain; TD Bank recommends starting the process as part of your pre-trip planning. Ordering foreign currency early can help you avoid a last-minute search for cash.
- Carrying too much cash in one place. We suggest diversifying where you carry and store your cash. With everything in one wallet, the risks and stress increase in case something unanticipated happens.
- Taking only large bills. Some merchants may not accept large bills, so make sure to carry some smaller notes. Not all ATMs give you the option of choosing the size of the banknote; this is where handling these transactions in person at a TD foreign exchange center might be a helpful option.
- Using an unfamiliar or privately operated ATM. When possible, use an ATM operated by a recognized bank. Before completing your withdrawal, review any fees shown on the screen and check that the machine does not appear damaged or altered.
- Paying in your home currency. Some card readers and ATMs may offer to convert your purchases into your US dollars. This is known as dynamic currency conversion. Make sure to review the exchange rate and any fees before deciding which currency to use. The savings might not seem huge at the time but can be significant over the course of the whole trip.
The last thing you may want ahead of a vacation is more planning. But taking a few minutes to think about how you will pay can help your trip run more smoothly. It isn’t just helpful in avoiding tough situations; it enables you to focus more on fun rather than logistics. Dashing around a city should be to see the sights, rather than looking for a trustworthy ATM or a merchant who takes digital payments. When it comes to ways to pay, be ready to mix it up.