Credit cards are my travel go-to, but now I always pack a debit card
It's a lesson I learned the hard way.
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Hey, it's Jo! I know this sounds completely backward because we're always telling you to use a credit card whenever possible. And that's still my advice. But after being unable to eat or shop in a tiny village where credit cards simply weren't accepted, I realized every traveler needs a backup plan.
It happened to me in the Austrian Alps, and just a few days ago, it happened again in a small village in Northern Ireland. Without a debit card, I would've been out of luck (and out of lunch!).
Here's the simple system I use that lets me carry cash only when I actually need it.
Travel tip of the week
Instead of exchanging money before I leave or paying inflated exchange rates at the airport, I keep a separate checking account for travel only.
Before each trip, I transfer a few hundred dollars into it and bring the debit card, just in case I need local cash. Here's how I think holistically about which payment method I use, and when.
Use credit cards first:Travel credit cards usually offer the best exchange rates, fraud protection and travel rewards.
Bring a debit card as your backup:If you run into a cash-only restaurant, shop or attraction, withdraw local currency from an ATM instead of scrambling to find an exchange counter.
Keep a separate travel account:I only transfer the money I expect to need, which helps protect my primary checking account if my debit card is ever lost or compromised.
Skip airport currency exchanges:Airport exchange counters often have poor exchange rates and high fees. Withdrawing cash only when you need it is usually a much better deal.
The bottom line:I still pay for nearly everything with a travel credit card. But carrying a debit card connected to a dedicated travel checking account has rescued me more than once in places where cash is still king. It's a simple backup plan that can save you money and keep your trip from coming to a screeching halt.
Listen to the podcast
I n this episode : We share how we made the most of a whirlwind trip to Vienna, where we learned the hard way that not every business accepts credit cards.
