Currency exchange while traveling: why do some still carry wads of cash? (page 1 of 28)

Hi everyone,

In this age of zero-commission cards and fee-free accounts, I’m curious why some travelers still prefer to set off with a wallet stuffed with bills and exchange money on the spot.

I get it for those whose income comes from undeclared activities, but what about everyone else?

Between the risk of theft, scams at exchange counters, and fees that often end up being higher, I’m really puzzled.

The last time I traveled with a wad of cash was because I had to pay for accommodation in cash only, the local currency was the dollar (easy to exchange at a very low cost), and I was still paying some fees.

I’m still wondering about my next trip to Argentina because the situation there is very specific, but otherwise?

Is it an allergy to modern payment methods?

A budget so tight that an extra 20 € (the fees some local banks charge for withdrawals) on a 2000 € budget would be impossible to manage?

Thanks for shedding some light on this!

Good evening,

I like to have between 500 € and 800 € in cash. It’s comfortable, gives me a safety margin. Even though I have several cards, it’s not uncommon to have to resort to the second or third one to get what I need.

Michel

A comfort, a safety margin.

500 to 800 €, a safety margin???

I rarely have more than 50 € on me, so I’m a bit lost here.

It’s not uncommon to have to try the second or third one to get what you want.

For me, it’s more about two or three different ATMs than two or three different cards. Some countries prefer Visa, others Mastercard. It’s definitely better to have both.

I rarely have more than 50 euros on me, so I’m a bit confused.

Same here. Why does having cash on you bother you?

For me, it’s more about two or three different ATMs than two or three different cards. Some countries prefer Visa, others Mastercard. It’s best to have both, really.

For unpredictable reasons, it often doesn’t work—beyond just the Visa/Mastercard divide. I usually carry four cards.

Michel

Hi there, 500 or 800 euros—quite a bit of wiggle room, indeed. Doesn’t seem extraordinary to me.

Especially when you're traveling through areas or in ways that don’t guarantee ATMs or places that accept card payments everywhere.

What’s the problem with having money on you?

But I do have money on me. It’s in the form of a plastic card, but it’s still money. I can buy almost anything with it in France.

Abroad, it can be different, so I withdraw cash. 200-300 € at a time.

For unpredictable reasons, it often doesn’t work—beyond the Visa/Mastercard divide

If it’s happened to me 4 times since I’ve been traveling, that’s really the end of the world...

Plus a few scares from my bank, which I now notify before I leave.

You still haven’t answered the question, though. You have a backup in case.

But otherwise, ATMs or exchange bureaus—and why?

It’d be interesting to list the countries where you need cash. I don’t know any yet.

Lots of places in Madagascar, West Africa, Central Africa, etc. Even other, more touristy African countries, of course...

I’d add that if you risk running into money problems—which you’ve mentioned and is absolutely true—you can just as easily have issues with payment cards: the bank blocks them, you hit your limit, they get eaten by an ATM, or you simply lose them or have them stolen. Aside from loss and theft, all of these have happened to me. Sometimes leading to pretty stressful situations.

Bottom line: having a bit of cash can be a cushion in all these cases.

So I prefer to mix payment methods and have that cash buffer on top of other options.

Hi there,

Well, you do you, and I’ll do me—I have no problem carrying cash, it doesn’t stress me out, and I accept the risk without breaking a sweat. What’s the issue? I also carry cards like yours—several, always, at least three. Do I need to activate option three for a payment? It happens, quite often. Twice in the last twelve months: once in Georgia, once in Ukraine. ATMs with safety rules: always during business hours of the bank that issued the card I’m using. Currency exchange offices are often the best option—near train stations and markets, always commission-free. I never notify my banks about my travels; it’s none of their business.

Michel

Why does having cash on you bother you?

But I *do* have cash on me. It’s in the form of a plastic card, but it’s still money. I can buy almost anything with it in France.

Abroad, it can be different, so I withdraw cash. 200-300 € at a time.

For unpredictable reasons, it often doesn’t work, beyond the Visa/Mastercard divide

If it’s happened to me 4 times since I started traveling, that’s really the middle of nowhere...

Plus a few scares from my bank, which I now notify when I leave.

You didn’t answer the question, though. You have a backup in case.

But otherwise, ATMs or exchange offices—why?

I’d add that with 500/800 or even 1000 € in cash, you’re pretty far from a suitcase full of bills—unless you’ve got a tiny suitcase or the amount is in loose change...

We’re also not that far off from the cushion you yourself say you withdraw in cash, in chunks of 200/300 €.

Cash? Simply because bank fees are often prohibitive outside Europe. And, given my budget, I don’t need a suitcase to carry the bills... I have a Visa card just as a backup in case...

Even other more touristy African countries, of course...

Which ones? I’m thinking of going to Tanzania. Aren’t there any ATMs there?

So far, I haven’t needed to bring euros to South Africa, Mozambique, Namibia, Botswana, or Morocco.

Yet, there are plenty of discussions on the forum about exchanging money in those countries.

That’s what I don’t get.

Why take euros when the local system works just fine?

You and Tatra mentioned having a backup stash.

Sure, even if a quick call to your card service can help, and if you’re traveling in a group, the odds of getting robbed drop significantly.

But what about the rest? For normal situations?

Why all these discussions in the Southern Africa section about exchanging money upon arrival?

There are ATMs everywhere in South Africa. Enough in Namibia and Botswana too. Plus, the exchange rate is terrible at places that offer it.

So… what’s the deal?

Payment cards: the bank blocks them, limits are exceeded, they get eaten by an ATM, or you simply lose them or get robbed.

Yeah, theft, loss, and the bank blocking the card (which is why you should notify them beforehand). Personally, I don’t care if my card gets stolen—it’ll be replaced for free. Losing 800 €, though… that’s another story.

Exceeding the limit? I don’t see how. They’re pretty high, after all. And super easy to adjust.

I get the feeling that needing cash is mostly a solo traveler thing.

I think I’d also bring a small backup stash if I were traveling alone, since the risks are higher.

But I’d only use it as a last resort. ATMs and card payments would still be the norm.

Well, you do what you like and I’ll do what I like;

Yeah. The real question is why?

Currency exchange offices are often the best option—near train stations and markets, always commission-free.

Really? I’ve never seen anyone work for free. Sure, the sign says “no commission,” but since the exchange rate isn’t the best, it usually ends up costing more than using next-gen cards—especially if the local bank doesn’t charge for withdrawals, and there are still plenty of those. Plus, it’s possible to travel in many tourist-friendly countries (like I do living in France) with almost zero cash. In those cases, card payments are the most advantageous, except in places where under-the-table cash is the norm.

Then again, in Venezuela (and maybe now Argentina), the currency has become so worthless that exchanging money outside the official system is pretty much the only good idea.

I experienced that in Romania back in the Soviet days. It’s an interesting experience in every way—so long as it stays the exception. Same in Myanmar. Cards were basically useless, or nearly so. You really had to budget carefully. You’d start off being stingy out of fear of running out, then swing into feeling rich depending on how much cash you had stashed.

Simply because bank fees are often prohibitive

Really? 0% and no account maintenance fees is prohibitive?

I’m not saying some banks aren’t greedy, but like most consumer services, we have the choice not to be their customer.

Then, if you’re talking about fees charged by some local banks for withdrawals, yeah, it does cost the few euros mentioned in the original post.

So I should file you under the “10-20 euros won’t break the total travel budget” category?

Okay, we haven’t made much progress on the original question (currency exchangers vs. cards in the era of free, fee-less cards), but a few ideas have emerged to explain why some people still carry cash. (In addition to the famous card, of course.)

- Safety net for travelers (especially solo ones?) - Countries with failing or even nonexistent banking systems in certain regions (Africa, but others?) - Banking systems perceived as oppressive

The tone you're using is odd; it gives the impression you're judging people, like you've got some score to settle with I don’t know what or who...

The question is simply why?

Because I like it and want to do it that way. What exactly do I need to justify?🤪

Really? I’ve never seen anyone work for free. Sure, the sign says no commission, but since the exchange rate isn’t the best, it ends up being more expensive than the new-generation cards—especially if the local bank doesn’t charge for withdrawals, and there are still plenty of those.

You’ve got to keep an eye on the rate, but often, in the places I visit, it’s *very* close to the bank rate. They make their profit over time—it’s their business.

And it’s possible to travel in many touristy countries, like I do living in France, with almost zero cash. In those cases, card payments are the most advantageous, except in places where under-the-table cash is the norm.

Again, do what you like, but you could also let others do what *they* like without making it seem like you’re judging them. What’s your issue, exactly?

Michel

- safety net for travelers (especially solo ones?) - countries with failing or even non-existent banking systems in some regions (Africa, but others?) - banking systems considered oppressive

So, we’ll add... A taste for bills, coins, and currencies—for what they represent in value and culture... ATMs’ tendency to charge fees on top of the bank’s foreign-exchange fees... Budget control...

There are plenty of reasons that might not make sense to you.

Michel

You say that if there are ATMs, you use them to withdraw 200/300 euros in cash; alright, okay. The difference: I travel solo or with family with 500 to 1000 € in cash before taking the flight.

Roughly, the difference is that I board the plane with money and don’t need to withdraw any upon arrival. A few hours of jet lag, it seems to me, and a few hundred euros. Mentally, it feels pretty much the same to me. Or does it?

There are parts of Tanzania where you won’t be able to pay by card. Same goes for some areas in Kenya. I’m not talking about Madagascar, West Africa, the DRC, or Burundi... It all depends on what type of hotel you’re staying at and what kind of trip you’re taking.

Losing your card or getting it stolen becomes a hassle, at least until you find a solution if you don’t have any cash at all. I prefer having cash. And I’d rather have some in advance before leaving so I don’t have to deal with that later.

For limits, it depends on the bank, I guess. But it annoys me sometimes having to keep track of how much I’m allowed to withdraw per day, per week, per month. Same for payments, which aren’t always the same amounts. It’s something you can plan for, but it’s the second time it’s caused me problems due to unexpected large expenses.

For everything else, I think I manage things the way you described: ATMs and card payments as much as possible.

The tone you're using is odd

The tone of a debate that should normally unfold without emotion given the topic. A factual tone.

What exactly do I have to justify? Crazy.

Why justify? If I ask you why you like wine, for example, do I ask you to justify yourself? Well, it’s not gonna be easy to discuss anything if we can’t talk about anything, if no one can share their opinion on anything.

we’re very, very close to the bank rate.

Very, very close but not at the rate. So, a loss of money compared to the card.

Let’s move on.

In your case (not unique), using exchange offices wouldn’t be to save money.

A taste for bills, coins, currencies, for what they represent in value and culture...

But apparently, it’s more about the pleasure of handling real currency.

Uhhh... if you withdraw from an ATM, isn’t that real currency too?

So, I still don’t understand.

ATMs tend to charge fees, on top of the bank’s foreign exchange fees on the card...

The introduction stated that the bank’s foreign exchange fees on the card were zero. This offer is available from many reputable providers. This isn’t about advertising for one or the other.

However, the fees from the ATM where you withdraw are a point in favor of exchange offices if they offer a good rate. (We’ve seen earlier that "no commission" doesn’t mean anything)

But that’s not always the case, far from it.

Let me take my example from Southern Africa. Exchange offices offer bad rates. Economically, it’s more advantageous to withdraw from an ATM with fees. And yet, travelers continue to use them.

What could their motivation be since it’s neither cheaper nor about the pleasure of paper money, since you get that in both cases?

Budget control...

I don’t quite see the link between exchanging at an office and budget control? Whether you exchange 100 € or withdraw 100 €, it’s the same amount to spend, right?

And budget control means going for the best value. If it’s the ATM, why exchange at all costs? (and vice versa...)

what’s your problem anyway?

Where did you read that I had a problem? I’m just trying to understand the *why* behind things.

Good evening,

The very title you chose ("Currency exchange while traveling: why keep carrying suitcases of cash?") frames the topic and carries a point of view. There’s nothing factual presented upfront, then.

I’m not entirely sure if the discussion is about cash payments vs. card payments or ATM withdrawals vs. exchanging money at a bureau de change. I suppose it’s a bit of both.

In the countries I frequent the most, the exchange rate at bureaux de change is so close to the interbank rate that you’d need to exchange thousands of euros for the difference to be significant.

Michel