Is it better to use cash or credit card when traveling in Europe?

Key Takeaways. European travelers should always have some cash on hand; getting it from an ATM abroad is usually the easiest, most advantageous way. If you need cash from an ATM, it's usually better to use a debit card, because credit cards often charge a high interest rate for a cash advance.



In 2026, it is overwhelmingly better to use a credit card as your primary payment method in Europe, but carrying a "backup" supply of cash remains essential. Most of Europe—particularly the UK, Scandinavia, and the Benelux countries—is now nearly cashless, with even street performers and tiny bakeries accepting contactless "Tap-to-Pay" via cards, Apple Pay, or Google Pay. Using a No-Foreign-Transaction-Fee credit card ensures you get the best mid-market exchange rate without the hidden 3–5% markups found at currency exchange booths. However, cash is still vital in specific regions: Germany, Italy, and rural parts of Central Europe still have many "cash-only" cafes, boutique shops, and coin-operated public restrooms. The "pro" strategy for 2026 is to use your credit card for 90% of purchases but keep roughly €50–€100 in small denominations in your wallet for emergencies or remote villages. Always remember to "Pay in Local Currency" if an ATM or terminal asks, to avoid "Dynamic Currency Conversion" (DCC) fees which can add 10% to your bill.

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Credit card transaction fees are typically higher than debit cards. Most banks charge an average conversion fee of 2% for a credit card payment, that's 1% more than for a debit card payment. Outside the euro countries, shops may also charge a payment fee. In that case, they're obliged to notify the customer in advance.

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If you prefer dealing in cash, then by all means get some euros out before your trip. But actually, you'll find that debit and credit cards are widely accepted in most European cities. Paying by card can be easier and more convenient, without the potential security risk of carrying cash around you.

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Should You Use Cash or Credit When Traveling to Europe? Most international travelers will end up using a combination of cash and cards when visiting Europe. While credit cards are accepted in most situations, currency can be more convenient for public transportation and small vendors.

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Resist the urge to buy foreign currency before your trip. Some tourists feel like they just have to have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.

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It all depends on where you're going and what you plan to do during your trip. As you can see from our travel costs table above, some European cities are cheaper or more expensive than others. As a general rule, though, it's a good idea to budget at least $100 a day for your vacation.

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To quickly recap, if you are traveling to Europe, you are looking at spending around 120 euros per day on average. However, once you have your itinerary in place (try using our convenient tour builder), you will have a tailored and accurate answer to the ever-relevant question - how much to budget per day in Europe.

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Advantages of using cash If your spending discipline breaks down when you use credit cards, cash may be a better choice while you let loose on vacation. No foreign transaction fees: Many credit cards charge an extra fee of up to 3% on purchases made outside the country, although you can find cards that don't.

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Currency exchange shops and kiosks in airports are not the best places to exchange money. For the best rates, try a local bank or a bank ATM to make your currency exchanges. Check to see if your U.S. bank offers foreign ATM fee refunds for using a foreign ATM.

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Leave Your Passport at the Hotel Although your passport is required as an ID when travelling abroad, you don't really need to carry it around with you everywhere. Consider moving around the city with your driver's license instead, and leave your passport behind in the hotel safe.

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Buy currency before you travel.
Doing so gives you time to shop around for the best rate. Plus, when you arrive, you won't have to immediately find a bank or currency exchange. Do some research ahead of time to see if US dollars are widely accepted at places you plan to go to.

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Restaurant tips are more modest in Europe than in America. At restaurants, check the menu to see if service is included; if it isn't, a tip of 5–10 percent is normal. In most places, 10 percent is a big tip. If your bucks talk at home, muzzle them on your travels.

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Start off with 200 or 300 Euros and then take some out as you need it from a Bancomat (bank owned ATM) and not from a money exchanger such as TravelEX. Use your credit card as much as possible for larger purchases and keep your cash (large denominations) and passport in your money belt or pouch.

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Before your trip, exchange money at your bank or credit union, which likely offers better rates and fewer and/or lower fees. See if your bank or credit union will buy back any leftover foreign currency for when you return.

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