Cash, Cards, and Currency: How to Handle Money in Europe

Before almost every European journey, a client asks me the same question: “Should I bring cash, and how much?” I love this question, because a little planning here saves real money and a good deal of worry.

My short answer: bring less cash than you think. Much of Europe now runs firmly on cards. With the right cards in your wallet, a small reserve of local currency, and a few smart habits, you will spend your time savoring the journey rather than counting bills.

Europe runs on cards

Your credit card will be your primary way to pay almost everywhere. Hotels, restaurants, museums, shops, and trains all accept cards as a matter of course. As travel writer Rick Steves points out, US-issued Visa and Mastercard credit cards work well throughout Europe, and so do phone wallets like Apple Pay and Google Pay. American Express is accepted less consistently, so bring a Visa or Mastercard as well.

Tap to pay is the easiest option of all. If your card shows the contactless symbol, a quick tap at the reader completes most purchases with no PIN or signature. In a few places, tap is the only option and cash is not accepted at all.

A few steps before you leave make all the difference:

• Choose a card with no foreign transaction fee. Many cards add about 3% to every purchase abroad, while many travel cards charge nothing.
• Tell your bank you are traveling, or confirm your card does not require it, so purchases are not flagged and declined.
• Know your PIN. Self-service machines such as train ticket kiosks, tollbooths, and fuel pumps are where US cards most often struggle, and a PIN helps.
• Carry two cards, stored separately, so a lost or blocked card never leaves you stranded.

Always pay in local currency

If you remember only one tip from this entry, make it this one. When you pay by card, the terminal or server may ask whether you would like to be charged in US dollars. It sounds like a courtesy, but it is not. The practice is called dynamic currency conversion, and it lets the merchant's bank set the exchange rate, usually a poor one. Your card issuer may still add its own foreign transaction fee on top, so you can end up paying twice.

Always choose euros, pounds, or whatever the local currency is. If a card machine defaults to dollars, use the arrow keys to switch to the local currency. If you receive a receipt showing two totals, circle the local amount before signing. As Rick Steves reports, Visa and Mastercard confirm you have the right to decline this conversion, so if a charge is rung up in dollars only, simply ask that it be run again in local currency.

Pre-pay your gratuities

On cruises and escorted tours, gratuities were once one of the largest cash expenses travelers carried. Today you can usually settle them in advance. Some cruise lines and tour companies include gratuities in the fare, while others add a daily amount that can be prepaid when you book.

Pre-paying means no envelopes of cash and no last-day calculations. When I prepare your booking, I will tell you exactly what is included and what can be prepaid, so you know before you pack how much cash, if any, you will need for tipping.

How much cash to bring

Bring enough local currency to cover small tips and the occasional place that does not take cards, and not much more. For most of my clients, the equivalent of $100 to $200 per person is a comfortable starting reserve. You can always add to it from an ATM once you arrive.

There are good reasons not to overdo it. Exchanging dollars for euros in the US usually comes with a less favorable rate than you will get abroad. Leftover currency loses value again when you convert it back, and coins generally cannot be exchanged at all. A thick stack of cash is also one more thing to worry about losing.

If you would like euros in hand when you land, order a modest amount through your own bank or credit union before you leave. NerdWallet notes that your bank or credit union will almost always be the least expensive place to exchange currency, and some will even buy back leftover currency when you return. Skip the airport exchange counters, which typically offer poor rates and high fees.

Use bank ATMs, not freestanding machines

When you need more cash, your debit card and a bank ATM are the best way to get it. You receive local currency at a competitive rate, often far better than exchanging dollars at home. NerdWallet puts typical costs at 1% to 3% when you use your bank's ATM network.

The key is choosing the right machine. Rick Steves recommends using an ATM attached to an actual bank, ideally during business hours so you can step inside if the machine keeps your card. Bank ATMs are generally safer, too, since they sit under surveillance cameras and often inside a secure lobby.

He also warns against freestanding “independent” ATMs, such as Euronet, Travelex, Your Cash, Cardpoint, and Cashzone. They charge high fees, can be less secure, and often push that unfavorable dollar conversion. You will frequently find them right beside bank ATMs, sometimes with signs promising free withdrawals. Walk on by.

A few more ATM tips:

• Decline the conversion. If the screen offers to “lock in” your rate or charge you in dollars, follow Rick Steves’ advice and choose “continue without conversion.”
• Mind your daily limit. Your limit is set in dollars, so as Rick Steves notes, a $300 limit may allow only about €275, depending on the exchange rate. A declined request is often just a limit issue, not a problem with your card.
• Use your debit card, not your credit card. Credit card withdrawals are treated as cash advances, with fees and interest from day one.
• Ask your bank about partner banks in Europe, which can reduce or eliminate ATM fees.

Where a little cash still helps

Cards cover the big things, but small purchases are where cash still earns its place. The European Central Bank found that more than half of in-person payments in the euro area were still made in cash in 2024, and that cash remains the most common way to pay for small purchases. Habits also vary widely by country, from 22% of in-person payments made in cash in the Netherlands to 67% in Malta.

In practice, keep a few coins and small bills for:

• Public restrooms, which often charge a small fee.
• Coin-only machines at parking garages, luggage lockers, and some tollbooths.
• Small tips for a local guide or a helpful porter, or rounding up at a café.
• Markets, small family shops, and village stops. Rick Steves notes that cash is still king in Greece, and that small towns may have few ATMs or none at all, so arrive with some cash in hand.

The reverse also happens. In London, according to Rick Steves, some market stalls and food stands accept only tap-to-pay cards and sometimes no cash at all. Carrying both is the simplest way to be ready for anything.

Your money checklist before you go

Once you arrive, remember three habits: tap your card wherever you can, always pay in local currency, and use bank ATMs only.

Money should be the last thing on your mind when you are standing on a vineyard terrace or drifting past a riverside village at sunset. If a European journey is on your horizon, I would be delighted to help you plan every detail, money matters included.