The Countries You Need to Pack Cash For – And How Much You'll REALLY Get Charged for Using an ATM Abroad
As the world goes digital, travelers are discovering that cash is still king in some of the world's most popular destinations
The moment felt routine. Standing outside a beachfront restaurant in Thailand, British tourist Sarah Mitchell reached for her card to pay for dinner after a day of island hopping. The waiter smiled apologetically and pointed to a handwritten sign near the entrance: "Cash Only."
A few minutes later, Mitchell found herself searching for an ATM. The machine dispensed local currency without issue. What she didn't realize until checking her bank statement days later was that a seemingly harmless withdrawal had cost her nearly £12 ($16) in fees, exchange-rate markups, and local ATM charges.
"It wasn't the amount I withdrew that shocked me," she later recalled. "It was how much disappeared in fees."
Her experience is becoming increasingly common. Despite the rapid rise of digital wallets, contactless payments, and mobile banking, cash remains essential in many destinations around the world. Meanwhile, travelers withdrawing money abroad are often paying far more than they realize.
Financial experts warn that foreign ATM charges, currency conversion markups, and bank fees can quietly inflate the cost of a trip, turning what appears to be a convenient transaction into an expensive mistake.
As international travel reaches record levels in 2026, understanding where cash is still necessary—and how much accessing it truly costs—has become an important part of travel planning.
The myth of the cashless world
The image of a fully cashless global economy has gained momentum over the past decade.
Countries such as Sweden, Norway, Singapore, and South Korea have embraced digital payments at extraordinary rates. In some cities, tourists can spend entire vacations without handling a single banknote.
Yet travel experts say reality is far more complicated.
According to data from the Bank for International Settlements (BIS) and national central banks, cash continues to play a significant role in consumer spending across many regions, particularly among small businesses, local markets, transportation providers, and rural communities.
"Travelers often assume cards are universally accepted because that's the experience they have at home," says travel finance specialist Mark Palmer of the Global Payments Institute.
"But acceptance can vary dramatically even within the same country. A luxury hotel may take every digital payment method imaginable while a family-owned restaurant around the corner accepts only cash."
Germany: Europe's surprising cash stronghold
Germany consistently surprises international visitors.
As Europe's largest economy, many travelers expect universal card acceptance. Instead, they often discover a culture that still strongly favors cash.
Independent cafés, bakeries, pubs, market stalls, and small retailers frequently prefer cash payments, particularly outside major tourist areas.
The Deutsche Bundesbank has repeatedly reported that cash remains one of the most widely used payment methods among German consumers.
Privacy concerns and a longstanding preference for physical currency continue to shape spending habits.
Tourists relying exclusively on cards can quickly find themselves inconvenienced.
Japan: Modern technology, traditional payments
Japan's futuristic reputation often creates unrealistic expectations among visitors.
Although digital payments have expanded significantly in recent years, cash remains deeply embedded in everyday transactions.
Small restaurants, temples, family-run inns, local markets, and rural businesses frequently prefer cash.
Travel guides published by Japan's tourism authorities continue to recommend carrying cash, particularly when traveling beyond major urban centers such as Tokyo and Osaka.
Many foreign visitors are surprised to encounter cash-only establishments in one of the world's most technologically advanced nations.
Thailand: ATM fees can add up quickly
Thailand remains one of Southeast Asia's most popular destinations, but it is also one of the countries where ATM charges can catch tourists off guard.
Most Thai banks impose fees on foreign ATM withdrawals regardless of the amount withdrawn.
Travel finance experts estimate that foreign visitors often pay the equivalent of $6 to $8 per withdrawal before their own bank's charges are added.
For budget travelers making frequent withdrawals, those costs can accumulate rapidly over a multi-week trip.
Cash remains widely used across street markets, local transportation services, small restaurants, and island destinations.
Vietnam: A cash-first economy
Vietnam's digital payment sector is growing rapidly, but cash still dominates large portions of everyday commerce.
Street-food vendors, local markets, independent guesthouses, and smaller businesses frequently operate on a cash-only basis.
Tourists withdrawing money from ATMs may encounter both local operator fees and international banking charges.
Because many visitors withdraw relatively small amounts at a time, the percentage cost of each transaction can become surprisingly high.
Argentina: Currency challenges make cash essential
Argentina presents a unique challenge for international travelers.
Economic volatility and currency fluctuations have encouraged many businesses and consumers to prefer cash transactions.
Tourists often find that carrying cash can offer greater flexibility and, in some cases, better value than relying solely on cards.
Financial analysts advise visitors to research current exchange-rate practices carefully before arrival, as the country's economic environment can change rapidly.
In Argentina, understanding how to access and exchange cash can significantly affect overall travel costs.
Morocco: Cash still dominates daily transactions
In Morocco's bustling souks, traditional markets, and smaller towns, cash remains the primary method of payment.
While hotels, upscale restaurants, and tourist-focused businesses generally accept cards, many everyday purchases require physical currency.
Visitors exploring cities such as Marrakech, Fez, and Essaouira often discover that cash provides greater convenience when negotiating transportation, shopping in markets, or dining at local establishments.
Mexico: Tourist zones versus local realities
Mexico offers a mixed payment landscape.
International resort destinations often accommodate card payments with ease. However, outside major tourist hubs, cash remains essential for taxis, street food, local markets, and independent businesses.
Travelers frequently underestimate how much cash they will need during excursions beyond resort areas.
Financial institutions also warn visitors to review ATM fees carefully before accepting transactions.
Indonesia: Islands where cash remains king
Indonesia's sprawling geography creates significant differences in payment infrastructure.
In Jakarta and Bali's upscale districts, digital payments are commonplace. Yet on smaller islands and in rural communities, cash often remains the preferred method of exchange.
Travel experts recommend carrying sufficient local currency before venturing away from major tourist centers.
ATM access can also be limited in remote locations.
Egypt: Small notes matter
Egypt's tourism economy remains heavily cash-dependent.
Visitors frequently use cash for transportation, tips, market purchases, and small services.
Even when cards are accepted, travelers often find cash offers greater convenience.
Many experienced tourists recommend carrying smaller denominations to facilitate everyday transactions and gratuities.
The hidden cost of withdrawing cash abroad
The biggest mistake many travelers make is assuming that ATM withdrawals provide the cheapest access to foreign currency.
In reality, multiple charges can apply simultaneously.
The first fee often comes from the local ATM operator. Many banks impose fixed charges on foreign cardholders.
The second charge may come from the traveler's own bank, which can levy international withdrawal fees.
A third cost frequently appears in the form of foreign transaction charges.
Finally, exchange-rate markups can quietly increase costs further.
According to consumer finance researchers at the Consumer Financial Protection Bureau (CFPB) and European banking regulators, these combined charges can significantly exceed travelers' expectations.
A single withdrawal of $200 can sometimes incur total costs exceeding $10 to $15 depending on the destination and banking provider.
The dynamic currency conversion trap
One of the most expensive mistakes travelers make occurs when ATMs ask whether they would like to be charged in their home currency.
The option appears convenient but often carries hidden costs.
Known as Dynamic Currency Conversion (DCC), the system allows ATM operators or merchants to determine the exchange rate.
Financial experts generally advise declining the offer and choosing the local currency instead.
The European Consumer Organisation (BEUC) and numerous banking watchdogs have repeatedly warned consumers that DCC exchange rates are often less favorable than those offered by card issuers.
"It may feel safer to see a familiar currency," says banking analyst Rachel Conway. "But that convenience frequently comes at a premium."
How travelers can reduce ATM costs
Experts recommend several practical strategies.
Withdrawing larger amounts less frequently can reduce the impact of fixed ATM fees.
Using travel-focused bank accounts that reimburse international ATM charges can generate significant savings.
Researching local ATM networks before arrival may help identify banks with lower fees.
Most importantly, travelers should always review the transaction screen carefully before accepting any withdrawal.
Hidden charges are often disclosed but only briefly.
Cash is not disappearing anytime soon
Predictions of a fully cashless future continue to dominate discussions about global finance.
Yet for millions of travelers navigating markets in Marrakech, food stalls in Bangkok, cafés in Berlin, or rural villages in Vietnam, cash remains an essential tool.
The lesson for modern tourists is increasingly clear: while smartphones and contactless cards may simplify travel, carrying cash and understanding the true cost of accessing it can still make the difference between a smooth journey and an unexpectedly expensive one.
In an era of digital convenience, old-fashioned banknotes continue to hold surprising power.
References
- Bank for International Settlements (BIS)
- Deutsche Bundesbank
- Consumer Financial Protection Bureau (CFPB)
- European Consumer Organisation (BEUC)
- National tourism authorities of Japan, Thailand, Vietnam, Argentina, Morocco, Mexico, Indonesia, and Egypt
- Global Payments Institute travel finance research
- International banking and consumer finance studies on foreign transaction fees and ATM usage
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