Cash, Cards or Both? Managing Your Money on a Trip Abroad

Deciding how to carry money abroad is a balance between convenience, cost and safety. Relying entirely on one method is the most common mistake travellers make. Cash can be lost; a card can be declined or blocked. A sensible mix gives you a backup when something goes wrong.

The case for cash

• Accepted almost everywhere, including taxis, markets, small shops and tips, where a card may not be.

• Works without a network. No terminal, signal or bank system needs to be working for you to pay.

• Easy to budget. When it is gone, it is gone, which keeps spending visible.

The downsides are just as clear. Cash can be lost or stolen and is rarely recoverable, and carrying large amounts is a risk in itself. Many countries, Nigeria included, also require travellers to declare cash above set amounts when they enter or leave. Check the current rules for every country on your route before you travel.

The case for cards

• Convenient for larger payments such as hotels, car hire and shopping.

• Safer to carry. A lost card can be blocked and replaced.

• A record of spending, which helps with budgeting and expense claims.

Cards have limits too. Some banks restrict how much you can spend abroad on a naira card, and those limits have changed often in recent years. Others may block a card that is suddenly used in another country unless you have told them you are travelling. Before you leave, call your bank and confirm whether your card works abroad, what the limits are and what fees apply.

A common card pitfall: paying in your home currency

When you pay by card or withdraw cash abroad, a terminal may offer to charge you in your home currency instead of the local one. It sounds helpful, but the conversion is then done at a rate set by the merchant's provider, which is often less favourable. In most cases, choosing to pay in the local currency is the better option.

A simple way to split your travel money

1. Estimate your daily cash needs. Transport, meals at small places and tips are the usual cash costs. Multiply by the number of days and add a margin.

2. Carry enough cash for the first 48 hours. Arriving with local currency means you are not hunting for an exchange or a cash machine after a long journey.

3. Use a card for larger costs, once you have confirmed it will work abroad.

4. Keep an emergency reserve. A small amount of cash and a second card, stored separately from your main wallet.

5. Ask for smaller denominations. Large notes can be hard to use for everyday purchases.

Before you go: a short checklist

• Confirm the currency used at each destination.

• Check cash declaration rules for each country on your route.

• Tell your bank you are travelling and confirm your card limits.

• Arrange foreign currency early, rather than at the airport on the day.

• Keep receipts for any currency you buy or sell.

If you need foreign currency for a trip, post an order with the currency and amount, and our team will follow up to confirm the current rate and how the exchange works.