Survey: International Travelers Split on Cash vs. Card Abroad

A survey of 1,500 recent international travelers, including 1,000 Americans, finds that most rely on a combination of cash and credit or debit cards when spending abroad, though the choice comes with significant financial friction, according to findings released by travel rewards platform Upgraded Points.

Exchange rates, foreign transaction fees, and declined card transactions emerged as recurring pain points for travelers navigating overseas purchases. The survey highlights how the gap between listed exchange rates and those actually applied at the point of sale can catch travelers off guard, eroding the value of their spending power before they account for any additional bank-imposed fees.

Read more Why Local Realtors Matter When Buying in South Lake Tahoe →

Declined transactions abroad represent a separate but related challenge. Cards blocked by domestic fraud-detection systems can leave travelers scrambling for alternatives, underscoring the importance of notifying issuers before departure and carrying backup payment methods — a practice that appears inconsistent among the American respondents surveyed.

The findings reflect broader tensions in the travel finance landscape, where an expanding array of no-foreign-transaction-fee cards competes with the continued utility of local currency for small vendors, markets, and destinations where card infrastructure remains limited. Travelers who plan ahead by researching destination-specific payment norms and selecting cards optimized for international use are better positioned to avoid unnecessary costs, the data suggests.

Continue reading at All Financial Services & Investing.