Most travellers pick cash or card out of habit rather than working out which is genuinely cheaper for their specific bank, card and trip, even though the two options can differ meaningfully depending on your bank's specific fee structure. ATM withdrawals typically combine a fixed fee per withdrawal with a percentage-based foreign transaction charge, while paying directly by card usually involves only a percentage-based foreign transaction fee with no fixed cost. Whichever wins depends heavily on how much you're spending and how many separate withdrawals cash would require.
A fixed fee charged per withdrawal is the single biggest lever in this comparison, because it doesn't scale with amount withdrawn the way a percentage fee does. Making several smaller withdrawals throughout a trip multiplies that fixed fee each time, while making one or two larger withdrawals spreads the same fixed fee over more cash and lowers its effective percentage impact. If your bank charges a meaningful flat fee per international ATM use, withdrawing larger amounts less often is almost always cheaper than several small withdrawals, provided you're comfortable carrying and securing more cash at once.
Foreign transaction fees on cards range from zero, on cards specifically marketed for travel, up to around 3% on standard cards not designed with international spending in mind. This is one of the most overlooked pre-trip savings opportunities: checking whether your existing card charges a foreign transaction fee, and if so, whether a no-foreign-fee card is worth applying for before a significant trip, can outweigh almost any other single cost-saving measure covered by this site's other tools.
Cost isn't the only factor worth weighing. Carrying more cash than usual introduces a loss or theft risk that paying by card avoids entirely, and some destinations or vendors simply don't accept card payments reliably, especially for smaller purchases, informal markets or rural areas, making a cash reserve practically necessary regardless of the fee comparison. Use this tool's result as one input into the decision, alongside your own comfort with carrying cash and how card-friendly your specific destination actually is.
The generic percentages in this tool are reasonable defaults, but your own bank's and card's actual fee schedule, found in your account terms or a quick call to customer service, will always be more accurate than a general assumption. It's also worth checking whether your bank offers fee-free withdrawals at partner ATM networks abroad, which can eliminate the fixed fee side of this comparison entirely for withdrawals made at the right machines.
One last practical step: check this comparison again a few weeks before a big trip if you have time to apply for a new no-foreign-fee card, since that single change often outweighs any saving available from optimising your withdrawal pattern or payment mix with your existing cards.
Yes, significantly — always choose to be charged in the local currency rather than your home currency when offered the choice at a foreign ATM or card terminal, since accepting the home-currency option (dynamic currency conversion) typically applies a poor exchange rate on top of any fees already factored into this comparison.
For the fee comparison specifically, yes, it removes the card-side percentage cost. It's still worth carrying some local cash for situations where card payment isn't accepted or practical, regardless of your card's fee structure.
Many do, though some banks belong to fee-free partner ATM networks abroad, and some countries have widespread no-fee ATMs from certain providers. Check your specific bank's partner network for your destination before assuming every withdrawal will carry the full fixed fee.
It reduces the fixed-fee impact, but weigh that against the practical and safety downsides of carrying a large amount of cash at once, particularly in destinations where petty theft is a known risk.