I was surprised on my last UK visit to discover “credit card only” with many merchants and cafes. After years of always carrying cash, I’ve had to readjust my thinking to using a credit card more frequently, and carrying less cash.
Cash
If I do use cash, it’s tends to be in a small town rather than in a city, and for highway tolls if I am driving. Some remote lodging only accepts cash, or it’s cheaper to pay in cash. When booking, the lodging establishment will usually state their payment policy.
My son encountered a situation in Germany when he had no cash, and the public bus did not accept credit cards. He was stuck.
I also don’t bring foreign cash from home, but rather withdraw cash in Europe. Although US banks aren’t charging a disclosed fee, I have found they have an inflated exchange rate.
ATM’s
Upon arriving and exiting customs in my European destination, I look for a bank ATM. I avoid Euronet, Travelex ATMs, and Exchange Booths, since their fees are high. To withdraw cash, I use an ATM with the universal banking emblems. A bank typically charges a lower fee or no fee at all. Large cities have more bank ATMs, whereas small cities will have limited. I know my US bank daily withdrawal limits and remember that exchange rates impact the withdrawal amount allowed.
Credit Cards
All credit cards are not accepted, and I am keenly aware of transaction fees or conversion costs they may charge. I try to bring at least two credit cards, checking the expiration dates weeks prior to leaving. Having two cards is better than one, in case something happens. And I typically use Visa.
Fees and Taxes
There are several taxes included in meals, lodging, and transportation that increase the bottom line cost. Local, country, and VAT taxes just to name a few. The VAT, or value added tax, is included in good and services in Europe, and can be quite high.
I always scan through these added costs when I look at the details and total cost when making reservations. I have recouped some of the VAT charges on purchased goods by submitting a reimbursement form at the airport. Because the laws change, I review this option prior to traveling.
DCC or dynamic currency converter is when a merchant offers to convert a purchase into your own country currency. It sounds convenient. But, I decline this offer because hidden fees could be included. Therefore, my receipt will be reflected in the European currency, and I will have an idea of the cost simply by using the exchange rate.
Finally, I keep a copy of the credit card information on my phone, and I use an app to freeze lost credit cards if necessary.
