Cash Remains King in Several Global Destinations, Travelers Warned of High ATM Fees

While digital transactions are becoming more prevalent worldwide, cash remains the preferred method of payment in numerous travel destinations, potentially leading to substantial fees for unprepared travelers. Using cash can help individuals manage budgets, provide a reliable backup payment method, and avoid unexpected charges on everyday purchases like souvenirs, meals, and taxi fares. However, relying on ATMs abroad can incur significant costs due to hidden fees, unfavorable exchange rates, and Dynamic Currency Conversion (DCC), a practice where ATMs offer to convert transactions into the traveler's home currency at a poor exchange rate.

Cash Reliance in Key Destinations

Countries like Morocco see around 90 percent of purchases made with cash, particularly in rural areas and smaller establishments where card payments are not always accepted. In Albania, while cards are common in major cities, local currency is essential for smaller transactions, taxis, and in rural areas. Visitors may face charges of up to £7.20 per ATM withdrawal in Albania, with local ATM fees ranging from £4 to £7 per transaction. New limits on withdrawals are also set to be implemented in 2026.

Algeria, with only 12 ATMs per 100,000 people, requires local currency for most transactions, and international cards may not always be accepted. Cash machines there dispense Algerian dinars (DZD) at an official exchange rate that is approximately 30 percent lower than the black market rate. ATM withdrawal fees can reach up to £5 per transaction.

In Cambodia, credit and debit cards are seldom used by locals. While ATMs are accessible in tourist hubs like Phnom Penh and Siem Reap, withdrawal fees can range from £3 to £6.60 per transaction. Similarly, Egypt encourages the use of Egyptian pounds (EGP) for transactions in souks, shops, restaurants, and at attractions, despite having a moderate number of ATMs in urban areas. Opting for DCC in Egypt can result in an unfavorable exchange rate, and local ATM fees can add up to an additional 2 to 3 percent on top of bank charges.

European and Asian Travel Considerations

Despite being Europe's largest economy, cash is still widely used in Germany, with around 58 percent of transactions completed in cash in 2021. While ATMs are plentiful, travelers are advised to select 'No' or 'Without Conversion' to get better exchange rates. Some banks offer fee-free withdrawals at partner ATMs.

India, while seeing a rise in digital payments, still relies heavily on cash for many local vendors and small businesses. ATMs are relatively uncommon, especially in rural areas, and can be subject to technical issues or running out of cash. International card withdrawals may incur a local fee of up to £3, plus foreign transaction fees from the home bank. Total costs per withdrawal in India can range from £4 to £8, compounded by daily withdrawal limits that necessitate multiple transactions and charges.

Jordan accepts cards in major tourist spots, but cash is recommended for remote areas and markets. ATMs are sparse in desert regions. Fees for foreign card withdrawals can be up to £5 per transaction, with overall costs potentially reaching 10 percent of the withdrawn amount when factoring in exchange rates and bank charges. Daily withdrawal limits are often around £275.

North African and Southeast Asian Travel

Morocco is highly reliant on cash, with smaller businesses often requiring payment in local currency. The Moroccan dirham (MAD) is a closed currency, meaning it can only be exchanged within the country. ATM withdrawals can incur fees of up to £2.80 per transaction, plus an additional charge of up to 3 percent from the traveler's UK bank. Low withdrawal limits can increase the overall cost.

Tunisia also prefers cash payments, especially in souks, smaller restaurants, and petrol stations. While ATMs are available, it is advisable to use machines attached to banks to reduce the risk of fraud. Fees can be up to £3 per withdrawal, with limits of around £203. Like Morocco, the Tunisian dinar cannot be exchanged outside the country, making it important to withdraw only necessary amounts.

In Vietnam, cash remains the preferred method for transactions, particularly in bustling cities and for market finds. With only 27 ATMs per 100,000 residents, travelers are advised to arrive with local currency. While some banks offer low or no fees, many local banks impose a fee of £1.40 to £2.25 per transaction. Low daily withdrawal limits in Vietnam can also lead to increased charges due to the need for more frequent withdrawals.