Question 1

Credit card or cash - which is better for vacation?

Accepted Answer

The ideal strategy is a combination of both payment methods. A credit card (Visa or Mastercard) is most widely accepted worldwide and offers additional protection through chargeback procedures in case of fraud. However, cash is essential for markets, small restaurants, tipping, and regions with weak card infrastructure — in Southeast Asia, parts of Africa, and South America, you often won't get far without cash. As a rule of thumb: Bring enough cash in local currency for the first two days and withdraw more as needed from ATMs afterward. Keep cash and cards separate to avoid being completely cashless in case of loss.

Question 2

How can I withdraw money abroad as cheaply as possible?

Accepted Answer

Preferably use bank ATMs (not standalone machines in tourist areas), as these are less likely to be tampered with and charge lower fees. Many German banks charge between 3.50 and 10 euros per withdrawal abroad — with a travel credit card that has no foreign transaction fees (e.g., DKB, ING, Hanseatic GenialCard), you can completely avoid these costs. Withdraw larger amounts less frequently to minimize transaction fees, but don't carry too much cash. Ensure that the ATM does not impose its own fee — this is common in Thailand, the USA, and Mexico and will be displayed before you confirm.

Question 3

What is DCC and why should I avoid it abroad?

Accepted Answer

DCC stands for Dynamic Currency Conversion and means that a foreign ATM or card terminal offers to convert the amount directly into euros instead of charging in the local currency. This may sound convenient, but it is almost always significantly more expensive: The exchange rate used includes a markup of 3 to 7 percent over the normal Visa/Mastercard rate. Therefore, always choose the option 'charge in local currency' at the ATM or terminal (e.g., 'charge in local currency' or 'without conversion'). If the ATM does not offer a choice and automatically converts to euros, cancel the transaction and use another machine. DCC is aggressively offered, especially in tourist areas in Thailand, Spain, Croatia, and Turkey.

Question 4

Which travel credit cards have no foreign transaction fees?

Accepted Answer

The DKB Visa debit card (free for active customers), the Hanseatic Bank GenialCard (permanently fee-free), and the Barclays Visa are popular options with no foreign transaction fees for payments and withdrawals worldwide. The ING Visa debit card also offers free withdrawals from 50 euros in the Eurozone. When choosing, pay attention not only to the annual fee but also check whether withdrawals, payments in foreign currency, and the exchange rate (ideally the Visa/Mastercard reference rate without markup) are truly completely free. Apply for the card at least four to six weeks before your trip, as delivery and activation take time — and test it in everyday life beforehand to ensure that the PIN and online banking work.

Question 5

How much tip should I give in different countries?

Accepted Answer

In the USA, 18 to 20 percent in restaurants is customary and almost mandatory, as service staff rely on tips — in New York, it can even be up to 25 percent. In Germany, Austria, and Switzerland, 5 to 10 percent is common, where you simply round up or add an amount. In Japan and South Korea, tipping is uncommon and can even be considered rude — the quality of service is culturally expected to be high. In Egypt, Morocco, and Turkey, 'Bakshish' is expected from many service providers, including porters, cleaners, and restroom attendants — always keep small change ready for this. In hotels worldwide, 1 to 2 euros per night for housekeeping is a nice gesture, which is best left daily on the pillow.

Question 6

Where and how should I exchange money for my trip?

Accepted Answer

Exchange offices at airports and hotels almost always offer the worst rates — they profit from the convenience for travelers and impose high margins. Significantly cheaper are exchange offices in the city center of the travel country, especially in countries like Thailand, Turkey, or Mexico, where the difference from airport rates can be several percent. In many cases, withdrawing from local ATMs is the cheapest option, provided your bank does not charge high fees. Exchange only a small amount in Germany beforehand for the first hours after arrival — about 50 to 100 euros in local currency. Always compare rates with the current mid-market rate (e.g., on Google or xe.com) to know how much margin the exchange office is charging.

Question 7

How can I protect myself from fraud when paying abroad?

Accepted Answer

Never take your eyes off your credit card when paying in a restaurant or store — skimming devices can copy card data in seconds. Always cover the keypad with your hand when entering your PIN at the ATM or terminal to protect against hidden cameras. Activate push notifications in your banking app so you can see every transaction immediately and respond directly to unauthorized withdrawals. Whenever possible, use contactless payment via smartphone (Apple Pay, Google Pay), as a one-time token number is transmitted instead of your actual card data. Note down your bank's emergency hotline (in Germany, the central number is 116 116) and keep it separate from your cards.

Question 8

Does contactless payment (NFC) work everywhere abroad?

Accepted Answer

In Europe, Australia, Canada, and most major Asian cities, contactless payment via NFC is widespread and is generally accepted at every modern card terminal. In the USA, acceptance has significantly increased in recent years, but it is still not widespread in rural areas and smaller stores. Apple Pay and Google Pay also work internationally with German cards, as long as the merchant supports contactless payment — you automatically pay at the Visa/Mastercard exchange rate. In some countries (e.g., China), local payment systems like WeChat Pay and Alipay dominate, where foreign cards may not always work. Always carry a physical card and some cash as a backup, as NFC may fail with weak internet connections or outdated terminals.

Question 9

What to do if my credit card gets blocked while on vacation?

Accepted Answer

Immediately call your bank's blocking hotline — the central German blocking number 116 116 is also reachable from abroad (with country code +49). Some banks automatically block cards for unusual transactions abroad, especially if you forgot to notify them of your trip in the app or customer service. Ideally, inform your bank about your travel destination and dates before departure to avoid automatic blocks. Always carry a second card (from a different provider, e.g., Visa and Mastercard) that you keep separately — this way, you are not completely stranded in case of loss or blocking. Many banks can send an emergency replacement card to your hotel within 24 to 48 hours, so actively ask for it.

Question 10

How does tax-free shopping work abroad?

Accepted Answer

As a non-EU citizen (or as an EU citizen for purchases outside the EU), you can get a refund of the VAT on purchases above a certain minimum amount — in many countries, the threshold is between 50 and 175 euros per purchase. When paying, look for the 'Tax Free' sign in the store and ask at the checkout for the tax-free form, which you will receive along with the receipt. At the airport, go to customs before check-in, show the unused goods, and get your stamp — without the customs stamp, there is no refund. Then submit the stamped form to the tax-free agency at the airport (e.g., Global Blue or Planet Tax Free) and receive the refund in cash, to your credit card, or via bank transfer. Plan at least 30 to 45 extra minutes on your departure day, as lines at the customs counter can be long during peak season.

Money & Payments Abroad