Payment warning as holidaymakers could find their card is not accepted - five mistakes to avoid

An expert has shared the five most common money travel mistakes and how to avoid them

Britons heading overseas this summer are being warned that one common payment habit could leave them out of pocket.

Travel experts say a few simple mistakes before you fly could end up costing far more than expected.

Despite the UK's move towards cashless payments, relying too heavily on your bank card abroad can prove expensive. Hidden fees, poor exchange rates and cash-only businesses can all catch holidaymakers by surprise.

In many popular holiday destinations, cash is still widely used, meaning travellers who only carry cards could find themselves unable to pay for taxis, markets, restaurants or tips.

Mike Wiltshire, a travel money expert at H&T Pawnbrokers, said many Britons continue to make the same costly mistakes when travelling abroad.

He said: "Brits are used to tapping their card for everything at home, so it can come as a real shock when their card is not accepted abroad."

Mr Wiltshire added that cash-only payments are much more common than many travellers expect, even in well-established tourist destinations.

Mr Wiltshire said: "Even in well-developed tourist destinations, cash-only payments are more common than people expect."

He emphasised the importance of conducting research beforehand to ensure the most cost-effective payment methods are used.

Mr Wiltshire said: "Making sure you have got some local currency before you travel means you're covered for any moments when payments by card isn't an option."

The first costly error involves arriving unprepared for local tipping customs, which can leave tourists scrambling for notes they simply do not have.

"In some destinations, like Egypt and Morocco, tipping in cash is expected for tours, hotel staff and drivers, therefore having some extra cash on hand is essential," he added.

He advised travellers to investigate gratuity expectations for their chosen destination before departing.

The second mistake centres on placing complete faith in card payments, which frequently proves misguided. "Even in popular tourist destinations, card machines can be unavailable or unreliable."

Smaller communities, taxi services, local markets and independently owned cafés are particularly prone to rejecting electronic payments, the expert warned.

Mr Wiltshire continued: "Carrying some cash ensures you are never stuck and unable to pay."

The third mistake is waiting until you arrive to exchange money, which can mean paying higher rates at airports or overseas ATMs.

Mr Wiltshire said: "Exchanging money in advance of going away can help you to avoid international ATMs, expensive airport exchange rates, and ensures you have cash ready for essentials as soon as you land."

The fourth mistake is paying in pounds instead of the local currency when using a card abroad.

Mr Wiltshire said: "It is important that you always choose the local currency, as opting to pay in sterling often means poor exchange rates and extra charges."

The final mistake is failing to check whether your bank card charges fees for spending or withdrawing cash abroad.

Mr Wiltshire said: "Not all credit and debit cards are designed for overseas use. Before heading abroad, check whether your provider charges foreign transaction fees or cash withdrawal fees."

He warned that even where cards are accepted, they are "not always the cheapest option", with foreign transaction fees, poor exchange rates and expensive airport or resort ATMs all adding to the cost. Taking some local currency before you travel can help avoid unnecessary charges, he added.

Mr Wiltshire identified five popular holiday destinations where physical currency remains indispensable for visitors.

Germany, despite its reputation for modernity, maintains a strong cash preference, particularly for smaller purchases at independent bakeries, shops and cafés outside major urban centres.

Greek islands and family-run establishments frequently refuse cards, with tavernas, taxis and craft stalls operating on cash only, while remote areas often have limited ATM access.

Moroccan souks and traditional markets function almost exclusively with physical currency, as do taxis and smaller restaurants.

Egyptian markets, local shops and tours predominantly require cash, with tipping forming a significant cultural expectation throughout any visit.

Romanian cities like Bucharest accept cards readily, but rural villages, guesthouses, craft stalls and public transport remain firmly cash-dependent.