Splashing out on your hols - the best ways to spend abroad
- Bill Tyson
- Jun 13
- 6 min read
Updated: Jun 16
Tables correct as at 25/5/25
We're all looking forward to our holidays abroad for the next realistic hope of prolonged sunshine as the spell of glorious summer weather comes to an end.
But once we get there – what’s the best way to spend our dosh?
There’s been a revolution lately in how we use money – firstly by debit and credit cards and more recently by tapping with our phones and watches.
Is it the same abroad?
Or should we bring cash? And if so, how much?
Which is best - credit cards or debit cards? Do digital banks like Revolut come into their own?
Here are eight handy tips to answer your questions on the best ways to spend money on holidays.
Bring cash – but not too much
It’s always useful to have some cash with you, for tipping and unforeseen off-grid activities where cards may not be accepted.
That unexpected camel ride on a trip to Egypt may be cash-only for example!
And some countries, such as Germany, are surprisingly averse to credit cards too and may insist on it for routine purchases many of us do by tapping our phones or cards.
But there’s no need to carry great wads of money for security reasons.
Also check the limit to claim for lost or stolen money under your travel insurance policy. The cheapest plans only cover up to €250 in cash losses, for example.
Watch out for ATM charges
Some Irish tourists to Eurozone countries have complained about exorbitant charges at ATMs when withdrawing euros.
Surely this shouldn’t happen in the Eurozone? Isn’t it meant to be like spending money at home?
Well, yes, it is. But ATMs, especially in tourist zones, can have special extra charges for withdrawals.
Some may apply a charge on all withdrawals; others may belong to banks that charge non-customers for taking out money.
So check the charges first before using any ATM.
Also try to seek out a bank that’s affiliated to one you are with – or withdraw cash from an Irish ATM before you leave.
Debit cards are best
Withdrawing money from ATMs may cost you dearly within the eurozone. But outside, it definitely will!
That’s because banks charge extra fees for currency exchange and cash withdrawals.
So it makes sense to spend money the way we do back home – by paying directly with your debit card.
You can also use a credit card, of course.
And there’s a belief that credit cards offer better consumer protected. But this is true only for UK customers, who benefit from a provision of the UK Consumer Credit Act that gives added protection to credit card purchases.
Under our rules, there’s the same protection for both types of spending.
And debit cards can actually work out cheaper as some big banks have a cap on debit card charges that doesn’t extend to credit cards.
You’re also less likely to ‘go overboard’ with a debit card - and won’t have to pay such exorbitant interest if you do go into the red.
Also, as you can see from our tables ATM withdrawals outside the Eurozone can be twice as expensive – or more – compared to using your card to buy stuff
DEBIT CARDS
Digital banks are best
Revolut and N26 are tops for spending money abroad with a debit card, especially outside the eurozone.
That’s because they have zero currency exchange fees within certain limits.
So, you could buy something for €100 with N26 or Revolut debit cards without paying a cent.
If you made the same transaction with AIB, you’d pay €1.75 (1.75%), €2 with BoI and €3 with An Post.
ATM withdrawals are not free with either digital bank. It’d cost you €1.70 to withdraw €100 with N26 and €2 through Revolut.
But that’s nearly half as much as you’d pay for the same transaction (€3.50) with a traditional bank – and €3.90 with An Post.
“Using N26 or Revolut is the simplest way to avoid foreign exchange fees,” explains Daragh Cassidy of Bonkers.ie, which carried out the survey used here.
“Revolut will charge you nothing on all major currencies up to a limit of €1,000 a month - after that there’s a small 0.5% fee.”
There’s also an advantage with either bank when it comes to how the exchange rate is calculated.
N26 uses the Mastercard exchange rate, which is one of the cheapest bank exchange rates.
But Revolut goes a step further and applies the Interbank exchange rate on weekdays which is definitely the cheapest deal on this score.
That’s basically the exchange rate used by banks without any ‘mark up’, although at weekends Revolut will add 0.5% on major currencies and 1% on less common currencies.
If you’re withdrawing cash abroad, N26 will charge you a 1.7% flat fee while Revolut allows you to withdraw the equivalent of €200 a month at no charge, after which a €1 or 2% fee is added. “Both these fees are way more competitive than the 3-4% fee on average you’d be charged with the traditional Irish banks,” says Mr Cassidy.
CREDIT CARDS
Select local currency
When using your card outside the eurozone, you might be given the chance to pay or make a cash withdrawal in euro rather than the local currency.
However this “will mean a local bank does the conversion – not necessarily at the best rate, and often for a fee”, warns Which? magazine.
“If you aren’t given the choice, ask the retailer why.”
Load your credit card
If you do need to withdraw cash, it’s best to use your debit card to avoid painful cash advance fees and interest.
But you can avoid both by topping up your credit card so the withdrawal comes entirely from a positive credit balance.
“Some banks will let you avoid their usual credit card cash advance fee if your account is in credit,” says Daragh Cassidy
“For AIB Click and ‘be’ cardholders this doesn't apply. But for all other AIB credit card types, this fee will not apply if your account is in credit for the full amount of the transaction when it is debited to your account.”
For other cardholders, check with your bank before heading abroad.
Avoid changing cash at the airport
If you leave everything to the last minute, you may get ripped off.
Just as fuel stations near airports charge more because drivers of rental cars may be desperate for a top-up, so too do foreign exchange bureaux target passengers seeking last-minute bank notes inside airports.
To reduce travel stress, it’s also a good idea NOT to have to queue for cash en route to your departure gate!
Arrange to get your cash in advance.
Getting your hands on some foreign currency may not be that straightforward. Many bureaux de change have closed down and some banks don’t even do it anymore (PTSB).
Other banks may have limited stocks – or no notes at all – for certain currencies and you may have to order in advance.
However, An Post, Credit Unions and No1Currency exchange do sell notes and can even deliver to your home, usually for a fee unless it’s a large sum.
However, the best option is to order the currency and collect it.
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