8 Travel Money Mistakes That Cost You More Than You Think

Exchange rates and hidden fees can quietly eat a big part of your travel budget. The good news: with a few simple habits you keep almost all of that money. This guide covers the travel money mistakes we see most often – at ATMs, in shops, in restaurants and when booking online – and how to avoid them.

Mistake 1: Saying “yes” to your home currency

At many card terminals and ATMs abroad, you are asked whether you want to pay in your home currency (for example euros) instead of the local currency. This is called Dynamic Currency Conversion (DCC). It sounds convenient, but the exchange rate used is set by the terminal operator and is usually worse than the rate your own card would give you.

Rule: always choose the local currency – rupiah in Bali, baht in Thailand, dollars in the USA. If a waiter hands you a terminal already set to euros, ask them to switch it.

Mistake 2: Ignoring ATM fees

There are often two fees when you withdraw cash abroad: one from the ATM operator and one from your own bank. Some ATMs also suggest a high default withdrawal amount.

• Withdraw fewer, larger amounts instead of many small ones, so fixed fees hit you less often.
• Use ATMs inside banks or shopping centres – safer and less likely to have skimming devices.
• Decline the conversion offer on the screen (see mistake 1).
• Check how many free withdrawals your card includes per month.

Mistake 3: Exchanging travel money at the airport

Airport exchange counters often have the weakest rates. If you need a little cash on arrival for a taxi or SIM card, change only that small amount, then withdraw the rest in town.

Mistake 4: Paying everything with a card that charges foreign fees

Card fees are a hidden travel money drain: many classic bank cards add a percentage fee to every payment in a foreign currency. On a two-week trip this adds up quickly. Check your card’s price list for “foreign currency fee” or “Auslandseinsatzentgelt”.

We use a Wise account and card for travel. You can hold money in several currencies, exchange at the mid-market rate with a fee that is shown before you confirm, and pay or withdraw locally. Fees and limits depend on your country and plan, so check the current conditions in the app.

Mistake 5: Only one card

Cards get blocked, lost or swallowed by ATMs. Always travel with at least two cards from different providers and keep them in different places. Save your bank’s emergency number in your phone and offline.

Mistake 6: Booking in the wrong currency

When you book hotels, tours or car rentals online, some sites let you choose the display or payment currency. Paying in the local currency through a fair card is often cheaper than letting the site convert. Compare the final amount before you click “pay”.

Mistake 7: Carrying too much – or too little – cash

In Bali, Southeast Asia and many markets worldwide, small shops, street food stalls and drivers prefer cash. On the other hand, a big bundle of notes is a risk. Our travel money habit: cash for one to three days, split into two wallets, and a card for larger amounts.

Mistake 8: Forgetting tips and small notes

Keep small notes for tips, parking, toilets and temple donations – the part of your travel money that people forget most. Breaking a large note at a small stall can be difficult.

Our travel money setup

1. Main card: a multi-currency card with fair exchange rates (we use Wise).
2. Backup card: a credit card from another provider, stored separately.
3. Cash: a small amount in local currency, withdrawn in town.
4. Phone: banking apps installed, card limits and notifications switched on.
5. Insurance: travel insurance with medical cover – we use SafetyWing for longer trips.

Travel money checklist before you fly

• Check the foreign fees of all your cards.
• Activate your cards for payments abroad if your bank requires it.
• Note the emergency numbers for blocking cards.
• Load or exchange a small amount of local currency in your account in advance.
• Remember: always pay in local currency.

Planning Bali? Read our guides on where to stay in Bali and visiting the monkey forests safely.

This page contains referral links. If you sign up or book through them, we may receive a small commission – the price stays the same for you. Fees and conditions change; please check the current details with the provider.

FAQ: travel money

As of 01.11.2026. Prices, rules and opening hours change – please check the official sources before you travel. Sources: Regulation (EU) 2019/518, wise.com/pricing, bank fee notices at Thai ATMs.