Paying for Your Holiday: Cash, Cards, Revolut, Wise and Other Travel Money Options

When travelling, the question is no longer simply “How much local money should I bring?” There are now several ways to pay for a holiday, from carrying cash and using your regular bank card to loading money onto a multi-currency account such as Revolut or Wise.

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For most tourists, the best approach is not to choose just one. A combination of some local cash, a regular bank or credit card, and a travel-friendly payment app can give you flexibility while keeping fees under control.

Using Local Currency

Having some local currency is still useful, particularly for smaller purchases, markets, cafés, public toilets, tips, lockers, tickets or places where card payments are not available. In Austria, for example, the local currency is the euro, and while cards are widely accepted, cash can still be useful in smaller establishments.

Pros

• No exchange-rate surprises once you have the cash. You know exactly how much you have to spend.
• Useful for small purchases. A few euros in your wallet can be convenient when a card terminal is unavailable.
• Works without a phone, battery or internet connection.
• Can help with budgeting. Some travellers find it easier to keep track of spending when they physically see how much cash they have.

Cons

• You can lose it or have it stolen. Unlike a card, cash generally cannot be cancelled or recovered.
• Exchanging too much can be expensive. Airport exchange counters and tourist-oriented currency exchanges may offer less favourable rates.
• You may end up with leftover currency. This is particularly inconvenient with currencies that are difficult or expensive to exchange back.
• Carrying large amounts is unnecessary. For most destinations, there is little reason to travel with your entire holiday budget in cash.

A good rule: carry enough cash for everyday contingencies rather than treating cash as your main payment method.

Using Your Regular Bank or Credit Card

For many tourists, their existing Visa or Mastercard may actually be the simplest option. Before travelling, check whether your bank charges a foreign transaction fee, currency conversion fee or ATM withdrawal fee.

The important thing is to look beyond the advertised exchange rate. A card may offer a seemingly attractive rate but add a percentage fee to foreign transactions.

When paying abroad, you may also be asked whether you want to be charged in your home currency or the local currency. Choose the local currency. Allowing the merchant or ATM to convert the transaction into your home currency can mean accepting their exchange rate instead of your card provider’s rate.

Pros

• No need to open another account.
• Convenient for hotels, restaurants, shopping and larger purchases.
• Credit cards can provide an additional layer of protection for certain purchases.
• Useful as a backup even if you mainly use another travel card.

Cons

• Your bank may charge foreign transaction or currency-conversion fees.
• ATM withdrawals can be expensive.
• Exchange rates vary between banks and card providers.
• Some cards may have daily or overseas spending limits.

Using a Credit Card

Credit cards remain one of the most convenient ways to pay while travelling, particularly for hotels, car rentals, restaurants and larger purchases. They also mean you do not have to carry large amounts of cash and can provide additional protection against fraud or problems with certain purchases.

Pros

• Convenient and widely accepted. Visa and Mastercard, in particular, are accepted in most tourist destinations.
• Useful for larger purchases. Hotels, car rentals and deposits often require a credit card.
• Added protection. Depending on your card and country, credit-card purchases may have additional fraud or purchase protections.
• You don’t need to carry much cash. This can be particularly useful when travelling with a larger budget.
• Good emergency backup. A credit card can provide access to funds if something unexpected happens during your trip.

Cons

• Foreign transaction fees. Some banks charge a percentage every time you use your card abroad.
• Currency-conversion fees. Your card provider may add a fee or use an exchange rate that is less competitive than specialist travel-money services.
• ATM fees. Cash withdrawals can attract fees from both your card issuer and the ATM operator.
• Interest charges. If you do not pay your balance in full, interest can make holiday purchases considerably more expensive.
• Not accepted everywhere. Smaller businesses, markets and some local services may still prefer or require cash.

Always Choose the Local Currency

One of the most important things to remember when using a credit card abroad is always pay in the local currency.

If a card terminal or ATM asks whether you want to pay in your home currency or the local currency, choose the local currency. For example, choose euros in Austria, yen in Japan, pounds in the UK and US dollars in the United States.

The alternative is called Dynamic Currency Conversion (DCC), where the merchant or ATM converts the purchase into your home currency. While this may appear convenient because you immediately see the amount in euros or dollars, the exchange rate is usually set by the merchant, payment processor or ATM operator and can be less favourable than the rate provided by your card issuer.

For example, if a restaurant  asks whether you want to pay €100 or the equivalent in your home currency, choose €100. Let your own bank or card provider handle the conversion.

Revolut vs Wise vs N26: Which Is Better for Tourists?

Revolut and Wise are not the only options for travellers. N26 is another popular choice, particularly among people living in Europe who want a bank account and card that can be used abroad without the foreign transaction fees charged by many traditional banks.

The three services overlap, but they are designed with slightly different priorities in mind.

Revolut: Best for the All-Round Traveller

Revolut is essentially a multi-purpose financial app with travel spending as one of its strengths. You can hold and exchange currencies, pay by card and withdraw cash abroad.

For Austrian customers, the free Standard plan currently allows weekday currency exchange up to €1,000 per month without an additional fair-use fee. Above that amount, a 1% fee applies. Standard customers also pay a 1% fee on weekend exchanges, while higher plans have different allowances and fees.

Pros

• Convenient for tourists travelling between several countries.
• Hold and exchange multiple currencies in the app.
• Easy to monitor spending.
• Free Standard account available.
• Particularly useful for frequent travellers.
• Higher plans offer additional travel-related benefits.

Cons

• The pricing can be complicated.
• The free plan has currency-exchange limits.
• Weekend and fair-use fees can catch occasional travellers by surprise.
• Paid plans may not be worthwhile for someone taking only one or two holidays a year.
• ATM withdrawals have limits depending on the plan.

Best for: travellers who want an all-in-one travel money app and people who travel internationally several times a year.

Wise: Best for Transparent Currency Conversion

Wise is particularly attractive if your priority is transparent currency conversion rather than travel perks.

Wise uses the mid-market exchange rate and charges a separate conversion fee. This makes it relatively easy to see what you are actually paying for a currency exchange.

The Wise card can be used in many countries and is particularly useful if you already have money in several currencies or regularly send money internationally. Wise’s card is available to customers in the EEA, including Austria.

Pros

• Transparent exchange-rate structure.
• Uses the mid-market exchange rate.
• No monthly subscription for the basic account.
• Useful for people who regularly deal with different currencies.
• Good option for international transfers as well as holiday spending.
• No traditional foreign-transaction fee simply for using the card abroad.

Cons

• Currency conversion still carries a fee.
• ATM withdrawals have a monthly free allowance, after which fees apply.
• Fewer travel perks than some paid Revolut or N26 plans.
• If you are only taking a short holiday, opening a Wise account may not offer much advantage over a good existing bank card.

Wise currently allows a monthly ATM withdrawal allowance before its variable fee applies; the exact allowance depends on where the card was issued. For EEA-issued cards, Wise lists a €250 monthly allowance, followed by a 2.69% fee on the amount above the allowance.

Best for: tourists who want straightforward currency conversion and travellers who regularly move money between countries.

N26: Best for Tourists Who Want a Bank Account

N26 is slightly different from Wise and Revolut because it is primarily a digital bank, rather than a currency-transfer service.

That distinction matters.

N26 can be particularly convenient for those who want a proper everyday bank account that also works well when travelling. N26 says its cards have no additional foreign transaction fees for card payments, with Mastercard’s exchange rate applying to foreign-currency purchases.

The free N26 Standard account is available without a monthly maintenance fee, although there is a €10 charge for the physical Mastercard. The Standard account includes two free monthly ATM withdrawals.

There is an important difference when withdrawing foreign currency. N26 Standard and Smart customers are charged a 1.7% markup on foreign-currency ATM withdrawals, while N26 Go and Metal customers can withdraw foreign currency without that N26 markup.

N26 Go currently costs €9.90 per month and includes free foreign-currency ATM withdrawals, making it more interesting for frequent international travellers than for someone taking one short holiday.

Pros of N26

• Very good for everyday banking as well as travel.
• No additional foreign-transaction fee when paying by card.
• Uses the Mastercard exchange rate for foreign-currency purchases.
• Free Standard account available.
• Particularly convenient for people based in Europe.
• Paid Go and Metal plans include free foreign-currency ATM withdrawals.
• The banking interface is generally simpler than many traditional banks.

Cons of N26

• Requires European residency. N26 only operates in specific European countries and requires proof of legal residence in one of those supported locations.
• It is primarily a bank rather than a specialist international money-transfer service.
• Standard and Smart accounts charge 1.7% for foreign-currency ATM withdrawals.
• Paid plans only make financial sense if you use their additional benefits.
• The free Standard account has a limited number of free ATM withdrawals.
• If your main purpose is exchanging and transferring currencies, Wise may be more suitable.

Best for: tourists who want a European digital bank account that works well abroad, particularly those who also want to use the account at home.

 

Revolut vs Wise vs N26 at a Glance

	Revolut	Wise	N26
Main purpose	Travel-friendly financial app	International money & currencies	Digital bank
Free account	Yes	Yes	Yes
Multi-currency	Yes	Yes	More limited
Foreign card payments	Competitive, plan-dependent	Competitive	No extra foreign transaction fee
Currency exchange	Very competitive, but plan limits apply	Mid-market rate + conversion fee	Mastercard rate for card payments
ATM abroad	Plan-dependent	Monthly free allowance, then fees	Plan-dependent
Weekend exchange fees	Some plans	No equivalent weekend markup	No extra weekend card-payment fee
International transfers	Yes	One of its main strengths	Yes, but not its main selling point
Travel perks	Strongest of the three	Limited	Stronger with Go/Metal
Best for	Frequent travellers	Currency-conscious travellers	Everyday banking + travel

The important thing is that “no foreign transaction fee” does not necessarily mean “the cheapest.” Exchange rates, ATM fees, subscription costs and conversion limits all need to be considered.

For example, N26 says it does not add a foreign transaction fee to card purchases, but its Standard and Smart accounts charge 1.7% when withdrawing foreign currency from an ATM.

Revolut’s free Standard account, meanwhile, can be very attractive for moderate spending, but its €1,000 monthly exchange allowance and weekend surcharge are worth remembering.

Wise takes a different approach: rather than relying on a subscription model, it generally charges a clearly stated conversion fee when you exchange currencies.

So Which One Should a Tourist Use?

For a short holiday, there is no need to open all three accounts.

Your choice can be quite simple:

Choose Revolut if you want a convenient travel wallet, especially if you regularly travel to different countries.

Choose Wise if getting a transparent currency conversion and moving money between currencies are your priorities.

Choose N26 if you want a digital bank account that you can use both at home and abroad, rather than a travel-money account that you primarily use on holiday.

And if your existing bank card already offers fee-free foreign purchases and competitive exchange rates, you may not need any of them.

The simplest strategy

For most tourists, I would still recommend having three forms of payment rather than putting everything into one account:

• A small amount of local cash for places that do not accept cards.
• Your regular bank or credit card as your primary or backup card.
• One travel-friendly card such as Revolut, Wise or N26 if it offers better terms for your destination.

Keep the second card somewhere separate from your main wallet. If your wallet disappears, having another functioning card can be far more valuable than saving a few euros on an exchange.

And always choose to be charged in the local currency when a card terminal or ATM asks whether you want to pay in your home currency. This avoids accepting the merchant or ATM’s own currency conversion, which can be less favourable.

Ultimately, there is no single “best travel card.” The cheapest option depends on where you are going, how much you will spend, whether you need cash, which currency you are using and whether you are willing to pay for a premium account.

For an occasional tourist, simplicity may be worth more than squeezing out the last few cents from every exchange. A good existing bank card plus a little cash may be perfectly adequate. For frequent travellers, however, a service such as Revolut, Wise or N26 can make a much bigger difference over time.

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