Money in Europe — Cash, Cards and ATM Fees
11 November 2026 · GoFlyLo Blog
Money is one of the easiest things to get wrong on a trip to Europe. Pay with the wrong card and every coffee costs you a fee. Change money at the airport and you lose 10% before you even leave the building. But get it right and money is simple: a good card, a little cash, and a few rules that save you money every single day. This guide explains money in Europe in simple English — cash or card, ATM fees, exchange rates, and a plan you can follow step by step.
TL;DR — The Short Version
Best way to pay: a bank card with no foreign transaction fee — use it for almost everything.
Cash: carry €50–€100 in small notes for markets, small cafes and tips.
ATMs: use bank ATMs, never airport or tourist-area exchange machines.
Never: accept the ATM's currency conversion — always choose to pay in euros.
Never: change money at the airport or hotel.
Tip: tell your bank you are travelling, so your card is not blocked.
Cash or Card — What Works in Europe?
Cards work almost everywhere in Europe. Hotels, restaurants, shops, metros and even market stalls in big cities take Visa and Mastercard — and most take contactless payment from your phone. In the Netherlands, Germany and Austria, cash is still common in small shops and cafes, so always carry some.
American Express is accepted far less often than Visa and Mastercard, so do not rely on it alone.
The best card is one with no foreign transaction fee. Many banks charge 2–3% on every payment in a foreign currency — that is $20–$30 extra on a $1,000 trip, for nothing. Before you travel, check your card's fees, or get a travel card from a bank or app that charges 0%.
Carry two cards from different banks if you can: if one is lost, blocked or refused, you still have the other. And keep one card in your hotel safe, not in your wallet — if your wallet is stolen, you are not stuck.
ATM Fees and How to Avoid Them
ATMs are the cheapest way to get euros — if you use the right ones. Use ATMs that belong to a real bank (look for the bank's name on the machine). Avoid the standalone exchange ATMs in airports, tourist squares and convenience stores — they charge terrible rates and fees of $5–$10 per withdrawal.
Take out larger amounts, less often: one withdrawal of €200 costs one fee, but four withdrawals of €50 cost four fees.
The most important rule: when an ATM or a card machine asks whether you want to pay in your home currency or in euros,
always choose euros. The machine calls it “dynamic currency conversion” — it sounds helpful, but it uses a bad exchange rate and adds a fee of 3–5%. Your own bank gives you a far better rate. The same rule applies in shops and restaurants: if the card machine offers to charge you in your home currency, say no and choose euros.
Check your bank's ATM fee too: some banks charge a flat fee per withdrawal abroad, so taking out cash twice a week is cheaper than every day.
A Simple Money Plan for Your Trip
Step 1: Before you fly, check your cards: no foreign transaction fee, and tell your bank you are travelling so the card is not blocked. Get €50–€100 in small notes from your own bank at home — not from the airport.
Step 2: On arrival, use a bank ATM at the airport only if you must — one withdrawal, in euros, declining the conversion.
Step 3: Pay by card for almost everything — hotels, restaurants, transport and shopping.
Step 4: Keep the cash for the small things — street food, market stalls, tips, and toilets that need coins.
Step 5: Track your spending. Check your banking app every evening: if a charge looks wrong, you can report it while you still remember where you spent it.
Step 6: Never carry all your money in one place. Split it — some in your wallet, some in your bag, one card in the hotel safe. Read our Europe budget guide to see what a 7-day trip really costs, and our best travel apps guide for the apps that track spending and convert currency. And get travel insurance before you fly — read our travel insurance guide to pick the right cover.
Frequently Asked Questions
Should I carry cash or use a card in Europe?
Both. Use a card with no foreign transaction fee for almost everything, and carry €50–€100 in cash for markets, small cafes and tips. Cards work almost everywhere, but small shops in Germany, Austria and the Netherlands still prefer cash.
What is the cheapest way to get euros?
A bank ATM in Europe, withdrawing in euros and declining the machine's currency conversion. Avoid airport exchange desks and standalone tourist ATMs — their rates and fees are the worst.
Should I accept the ATM's currency conversion?
No — never. Always choose to be charged in euros. The ATM's conversion uses a bad rate and adds 3–5% in fees. Your own bank gives you a much better rate.
Do I need to tell my bank I am travelling?
Yes. Many banks block cards used suddenly in another country as fraud protection. Tell your bank your travel dates before you fly, and carry a second card from a different bank as backup.
Related Guides
Europe on a Budget — 7-Day Trip Cost · Best Travel Apps in 2026 · Berlin Travel Guide · Cheap Flights from Pakistan to Europe
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