Should you use a card or travel money outside the UK?

If you're heading on a trip outside the UK, you might be wondering whether to use your debit card or credit card, or take travel money. See some of the benefits of each and information worth knowing.

Debit and credit cards are accepted in a wide range of shops and restaurants so they're convenient – especially in larger towns and cities. You can also use your debit card to withdraw cash from ATMs while you’re on your trip.

You may be charged a non-sterling transaction fee when making purchases on both debit and credit cards and also when withdrawing cash from ATMs. Charges vary according to the bank you're with and the type of account you hold, so look closely at what they may be before you go.

Tip: If you’re using your card outside of the UK you may be given the choice of paying in sterling or in local currency. If you choose local currency, you’ll avoid dynamic currency conversion fees and in most cases will get a better exchange rate.

If your card is lost or stolen, you should have the same level of protection when travelling overseas as when you’re in the UK. Before travelling check how you can report any issues with your bank, it may also be a good idea to put their contact details in to your mobile phone for easy access.

If you’re an HSBC customer with mobile or online banking you can block or cancel your cards instantly should they be lost or stolen.

If you like to keep a close eye on your spending and are registered for digital banking, you can log on to online or mobile banking to keep track of your finances while you are away. This way you can act instantly on any issues you see and also manage things like bills and Direct Debits.

Almost everywhere should accept cash and you won't need to worry about finding an ATM when you arrive or you’re heading to any of the local shops or markets.

If you've decided to stick to a fixed budget while you're away, taking travel money with you makes it easier by limiting the overall amount you have available to spend. Plus, once you've exchanged the amount you want, there are no further fees to pay for using your money abroad. 

Carrying large amounts of money around with you when you’re abroad can be very risky as cash can be lost or stolen and is difficult to track. If you are taking a large amount of cash with you, consider using a Safe deposit box so you can minimise the amount you’re carrying around from day to day. If you have travel insurance, it may also be worth looking at how much cash you are covered for carrying.

Also, if you've only got cash and no alternative spending options, you may run out of money before your trip is over and then be stuck.

Cards and travel money both have advantages and disadvantages. It may be a good idea to use a mix of both while you’re outside of the UK. That way you’ll have cash on hand when you arrive at the airport, but also the security of a card while you’re on the trip.

Make sure you're aware of any outside of the UK fees and charges, and also let your bank know if you’ll be planning on using your card outside of the UK.