Cash, Debit, or Credit: Navigating Payments in a Changing Travel Landscape
Germans still prefer to travel with cash, according to a January 2026 survey by YouGov commissioned by Postbank. Over 56% favor using coins and banknotes, while 39.9% opt for credit cards and 33.8% for debit cards. Many travelers combine multiple payment methods, a sensible approach according to financial expert Sonja Guettat.
The Declining Role of Cash
While cash remains popular, its universal acceptance is diminishing. Guettat notes that relying solely on cash is no longer a safe assumption. Scandinavian countries, for example, are increasingly cashless societies. The website of the German Federal Foreign Office provides information on accepted payment methods and cash import regulations for specific countries.
Ordering foreign currency from banks before travel is an option, but can sometimes be more expensive than exchanging money locally. When exchanging currency, comparing fees and exchange rates at different locations is crucial.
Pro Tip: When using ATMs abroad, always decline the option to convert the amount to Euros (Dynamic Currency Conversion). Choosing to be charged in the local currency typically results in a more favorable exchange rate.
Debit and Girocards: Limitations Abroad
Debit cards draw funds directly from a checking account. Girocards, a German system, have limited international acceptance. While some debit cards utilize the global networks of credit card providers, offering wider usability, it’s essential to check with your bank regarding international functionality.
Guettat highlights a key limitation: debit cards are often not accepted for security deposits when renting cars or booking hotels. If accepted, additional insurance or fees may be required, and the deposit amount will be blocked on your account.
Credit Cards: A Traveler’s Ally
Credit cards offer a credit line, with payments settled later. They are widely accepted globally for both purchases and security deposits. However, using the available credit limit for deposits can temporarily reduce your spending power.
Did you understand? There are two main types of credit cards: Charge cards, which require full repayment at the finish of each month, and revolving credit cards, which allow for installment payments but often arrive with high interest rates.
Choosing the Right Credit Card
Financial expert Sonja Guettat advises travelers to carefully select a credit card that aligns with their needs. Cards advertising fee-free international transactions are often revolving credit cards. While convenient, these can become costly if the balance isn’t paid in full each month due to high interest charges.
The ZDF reported on this topic in a segment titled “Paying on Vacation” on March 4, 2026, at 09:45.
Frequently Asked Questions
Q: Is it safe to use my debit card abroad?
A: It depends on the card and the country. Check with your bank about international fees and acceptance before you travel.
Q: What is Dynamic Currency Conversion?
A: It’s an option offered by some ATMs to charge you in your home currency. Declining this option and choosing to be charged in the local currency usually saves you money.
Q: What should I do if my credit card is lost or stolen while traveling?
A: Contact your bank immediately to report the loss and request a replacement card.
Q: Are credit cards always the best option for car rentals?
A: Yes, credit cards are generally preferred for car rentals as they allow for easier security deposit holds.
Want to learn more about managing your finances while traveling? Explore our other articles on smart spending and budgeting for your next adventure!
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