Should You Use Cash or Debit Cards when Traveling?

Most travelers need more access to funds when traveling than when going about their normal routine. Choosing whether to carry cash or a debit card involves many considerations including portability, universality, the potential for theft, and costs. The issue is further complicated when traveling internationally when foreign exchange rates are taken into consideration. For example, when I travel domestically, I often use cash for its convenience but when I travel abroad, I frequently use a debit card in countries where they are widely taken. Many countries do not accept American debit cards, however, and in those situations, cash is still king. Here are the main benefits and drawbacks to consider when deciding whether or not to carry cash on your next trip:

The Benefits of Using Cash over Debit Cards When Traveling
Cash is accepted everywhere. Even when traveling outside of the United States, US cash is often accepted at a fixed exchange rate. However, US banks or exchange houses almost always offer a better exchange rate than foreign banks or retail outlets. So be sure to change your money before you leave.

Bank fees are usually low when withdrawing money from your own bank's ATM. Most regional and national banks' ATM's are part of an international network that allows you to withdraw funds internationally, although the fees are often higher.

Cash prices are often lower than debit or credit card purchases in smaller retail stores. Some stores offer a discount for payment with cash as it is less expensive for them than taking plastic.

Using cash does not expose your banking information if stolen. Although cash can be easily stolen, it does not provide a thief with any personal information such as name, signature and account codes.

The Drawbacks of Using Cash over Debit Cards When Traveling

If cash is stolen, it can rarely be recovered. When using a debit card, if it is lost or stolen, a call to the card company or bank can freeze it immediately to minimize the loss.

Displaying large amounts of cash- especially when traveling abroad, can make you a target for robbery or violence. If you do take cash with you, keep small amounts in your wallet and the larger stash in a travel holster which fits around your neck and under your arm underneath your clothing. Only top up your wallet with the cash you will need for that day.
When carrying foreign currency, it will have to be exchanged back into U.S. dollars at the end of the trip, incurring further fees.