Credit vs. Cash: How Travelers Navigate Purchases Abroad [2026 Survey]

When you’re traveling abroad, paying for everyday purchases can become a headache when you need to navigate exchange rates, payment options, and fees. A purchase that seems simple at home can involve a maze of decisions like whether to use a card, where to find local cash, and whether or not to accept less favorable exchange rates.

To better understand how travelers handle those decisions, Upgraded Points surveyed 1,500 international travelers to explore how they plan for purchases, manage cash, use cards and mobile wallets, and approach currency exchanges — all while trying to make the most of the international trip they’ve been planning for months.

Keep reading to see how travelers prepare for international spending, where financial disruptions arise, and why airport exchange desks remain a convenient option even when the rate may not be ideal.

Key Takeaways

• 49% of travelers have felt ripped off while exchanging currency for an international trip.
• Just 35% of travelers feel very confident understanding exchange rates abroad.
• 81% carry cash in their destination’s currency
• 34% have paid more than expected because of an exchange rate.
• Only 10% often or always use airport currency exchanges, while 64% of users say the rates aren’t ideal but the service is convenient.

How Travelers Plan for International Purchases

International purchases can bring unfamiliar exchange rates, different payment preferences, and added card fees. Many travelers start preparing for those details months before departure.

Payment Planning Often Starts Months Before a Trip

Nearly 1 in 3 travelers start planning how they’ll make purchases abroad 3 to 6 months before their trip begins. Travelers who are U.S. residents are more likely to begin planning well in advance.

• 32% of travelers start planning 3 to 6 months before departure.
• 20% of travelers from the U.S. start planning more than 6 months before a trip, compared with 12% of non-U.S. travelers.

Exchange Rates, Cash Needs, and Card Fees Lead Pretrip Research

Before traveling, respondents most often focus on the costs and payment options that could affect their spending abroad.

• 68% research exchange rates.
• 63% research whether they’ll need cash at their destination.
• 61% check whether their credit cards charge foreign transaction fees.
• 68% of U.S. travelers notify their bank or credit card company before an international trip.

Hot Tip:

Hot Tip: A pretrip checklist can help travelers sort out payment needs before departure. Review these international travel tips before you go.

Travelers often try to avoid payment surprises before they leave. But as we all know, planning can only get you so far, and problems are sure to arise. Next, we’ll look into the financial disruptions travelers experience most often.

When International Payments Get Complicated

Planning ahead can reduce surprises before a trip, but it can’t guarantee a smooth transaction at the checkout counter. Once you’re abroad, a card alert or a higher-than-expected total can quickly complicate even a well-prepared budget.

Cards Can Still Create Friction

Travelers most often reported hearing from their bank or card company when making purchases abroad. Other common issues directly affected the final cost of a purchase or whether travelers could complete it at all.

• 38% were contacted by their bank or card company about a purchase.
• 34% said the final cost was higher than expected because of the exchange rate.
• 29% were charged an unexpected foreign transaction fee.
• 26% had a card declined.

A bank alert can help stop unwanted card use, but when it isn’t about preventing fraud, all it’s doing is delaying — or canceling — a purchase. Exchange rates and foreign transaction fees pose a separate challenge because they can push the final total above the price a traveler expects to pay when they haven’t done their homework.

Exchange Rate Confidence Varies

Before travelers can make sense of an unexpected total, they need a clear sense of what their money is worth. Just 35% feel very confident understanding exchange rates when traveling internationally.

That confidence also differs across demographic groups:

• 44% of men feel very confident understanding exchange rates, compared with 26% of women.
• 28% of Gen Z travelers feel very confident, compared with 40% of Gen X travelers and 37% of baby boomers.

When travelers aren’t fully comfortable converting prices, judging whether a meal, taxi, or hotel charge is reasonable can become even less straightforward

Payment planning doesn’t end at departure. It shifts to adapting to card alerts, exchange-rate changes, and unexpected fees along the way. Next, we’ll look at the payment methods travelers turn to while abroad and get an answer as to whether cash is still king in some places.

Cash Use and Preferred Payment Methods for International Trips

Card alerts, exchange-rate surprises, and added fees may complicate a trip, but travelers can’t totally abandon credit or debit cards. Instead, most rely on a mix of payment methods that can work across restaurants, markets, transportation, and other day-to-day purchases.

Cash and Cards Work Side by Side

Cash in the local currency and physical credit cards are nearly tied as the payment methods travelers use most often abroad. Mobile wallets also have a place in the mix, particularly among younger travelers.

• 71% use cash in the local currency.
• 69% use a physical credit card.
• 44% use a mobile wallet.
• 35% use a physical debit card.

Mobile-wallet use also varies widely by age. While 56% of Gen Z travelers use a mobile wallet abroad, only 22% of travelers age 61 and older do the same.

Cash Covers the Gaps

Despite the broad use of cards and digital payments, 81% of travelers carry cash in their destination’s currency. For many, it serves as a practical backup for purchases where cards may not work.

• 69% carry cash for places that don’t accept card payments.
• 64% use it at street vendors, markets, or small businesses.
• 55% use it for tips and other customary cash payments.
• 53% carry it for emergencies.

Travelers generally avoid carrying a ton of cash at all times. While 44% exchange enough for several days, only 26% exchange enough for the full trip all at once. Among travelers from the U.S., 24% typically carry the equivalent of $100 to $249 in foreign cash, while 19% carry $250 to $499.

Leftover Cash Can Still Have Value

At the end of a trip, 30% of U.S.-based travelers exchange leftover foreign cash back into their home currency. Another 28% save it for a future trip, and 16% keep it as a souvenir.

Travelers who live outside the U.S. take a different approach.

• Nearly half, 44%, save leftover cash for another trip.
• 21% exchange it back into their home currency.
• 16% spend it before returning home.

Travelers who live outside the U.S. often have more opportunities to visit another country on relatively short notice, particularly in close-knit regions such as Europe. That ease of access makes it more practical to save leftover currency for a future trip instead of as a keepsake.

Familiar Names Lead Credit Card Use

Among U.S. travelers, Visa was the credit card network they used most often for international travel, at 24%, followed by American Express at 15%. Chase was the issuer respondents named most often, at 21%, followed by Capital One at 19%.

Cash remains essential for many travelers, but getting it can come with a tradeoff. Some travelers leave a currency exchange feeling shortchanged, while others accept less favorable airport rates for the convenience.

Why Travelers Still Turn to Airport Currency Exchanges

Exchanging currency doesn’t always feel like a fair deal. Airport exchange counters offer a quick way to get cash, and that convenience can outweigh concerns about the rate.

Airport Exchanges Are a Backup, Not a Habit

Nearly half of travelers, 49%, have felt shortchanged while exchanging currency for an international trip. Yet most don’t rely on airport exchanges regularly.

• 10% use airport currency exchange services often or always.
• 32% have never used them.

The remaining travelers use them sometimes or rarely. For most, airport exchanges appear to be an occasional solution rather than part of their usual travel routine.

Convenience Drives the Decision

Among travelers who have used an airport currency exchange, convenience was the main reason by a wide margin.

• 44% said it was the most convenient option.
• 23% needed cash immediately.
• 14% didn’t plan ahead.

When travelers need local currency quickly, the ability to leave the airport with cash can matter more than securing a more favorable rate elsewhere.

Few Travelers Expect a Good Rate

Airport exchanges may solve an immediate need, but travelers generally recognize the tradeoff.

• 64% said the rate wasn’t ideal but the service was convenient.
• 21% said they felt ripped off.
• 15% said the rate was fair.

Airport exchanges are not preferred, but they solve a real problem when travelers need cash quickly.

Methodology

To better understand how Americans navigate purchases while traveling internationally, we conducted an online survey of 1,000 U.S. residents who had traveled abroad within the past year. Respondents answered a series of structured questions about their preferred payment methods, cash habits, credit card use, airport currency exchanges, and confidence navigating exchange rates.

We also surveyed 500 adults from countries outside the U.S. who had traveled internationally within the past year. We asked them similar questions so we could compare how Americans’ travel payment habits differ from those of international travelers.

To ensure relevant responses, only individuals who reported traveling internationally within the previous 12 months were included in the final analysis.

The survey was conducted in September 2026.

Final Thoughts

International travel spending involves more than choosing between cash and a card. Travelers need to understand exchange rates, prepare for fees and card disruptions, carry cash when it makes sense, and recognize when convenience may cost more.

Upgraded Points helps travelers make those decisions before takeoff. From finding travel rewards cards without foreign transaction fees to navigating payment options abroad, a little preparation can help travelers protect their budgets and get more from every trip.

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