2026 Currency Exchange Summary

• The digital shift: With the large majority of UK adults now using mobile or remote banking, the need for physical "travel money" is increasingly limited to remote areas or specific cash-heavy cultures.

• Challenger limits: Digital accounts like Revolut have monthly fee-free exchange limits (£1,000 on Revolut Standard); exceed these and a 1% fair usage fee applies.

• Weekend markups: Revolut applies a 1% markup on Standard-plan currency exchanges made at weekends, when global FX markets are closed.

If you’re heading on an overseas trip you may be looking to exchange your pounds for euro, dollars, dirham, dong, lira, or some other foreign currency. But what is the best, and cheapest way to go about it?

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Do you really need cash when heading abroad?

Cash usage in the UK continues its steady decline as digital and contactless payments become the standard. According to the latest UK Finance Payment Markets Report 2026, cash accounted for 3.9 billion payments in 2025 — around 8% of the 49.7 billion payments made in the UK that year, and down from 4.3 billion the previous year. The report forecasts cash will fall to about 4% of all payments by 2035, while noting it isn't expected to disappear: around 1.4 million UK adults still mainly use cash day to day.

For the rest of the world, it's a slightly different story. While many countries are closing in on a cashless society, there are other regions where cash is still widely used.

In hyper-digital economies like Norway, Sweden or Hong Kong, it's often possible to travel entirely cashless using travel-friendly challenger banks. Revolut's Standard account, for instance, offers fee-free currency exchange up to £1,000 per month on weekdays, in contrast to traditional banks that still charge non-sterling transaction fees.

In countries where cash is still heavily relied upon — Romania, Bulgaria, Egypt, Peru or Vietnam among them — relying solely on cards is likely to be difficult.

So whether you need cash abroad depends largely on your destination. Even in countries where card payment is the norm, carrying a small amount of local currency can be useful for situations where cards aren't accepted.

Carrying a mix of payment options tends to cover most situations: some local currency (typically cheaper if arranged ahead of time), a prepaid travel card, and a travel credit or debit card.

What is the best way to exchange pounds for foreign currency?

For physical cash, one of the cheapest routes is a travel money comparison tool, such as those offered by MoneySuperMarket, MoneySavingExpert, and Money.co.uk.

These tools show rates from multiple FX providers, so you can see how many dollars, euros or dong you'd receive for your pounds. The better comparison tools factor in additional fees, so the comparison reflects the total cost rather than the headline rate alone.

Not all fees charged by FX providers are unreasonable. Delivery to a home address usually carries a charge, though some providers waive this above a certain order value.

Ordering overseas cash in advance is sometimes cheaper than click & collect, and some providers offer better exchange rates above a set order threshold.

Can I just exchange pounds at the Post Office?

The Post Office is a convenient option, and often advertises 0% commission. It's worth understanding what that does and doesn't mean.

0% commission means no separate fee for the exchange — but providers may build a wider margin into their exchange rate instead. This is why a provider charging a modest commission can work out cheaper overall than a 0% commission provider offering a less competitive rate.

The gap between the interbank rate and what a high-street provider actually offers typically costs a few percent of the amount exchanged — on a £1,000 exchange, that can mean tens of euros less than the headline market rate would suggest. The exact difference varies by provider, currency and day, so comparing the total amount you'd receive is the most reliable way to judge value.

Where the Post Office is used, ordering in advance online generally secures a better rate than walk-in rates at the counter.

Can I exchange pounds at the airport?

You can, but it's typically the most expensive option.

Exchange rates offered at the airport are usually well below those available elsewhere, as providers know travellers there have limited alternatives.

The same applies to ATMs issuing foreign currency, often found in airport departure lounges. Rates from these machines tend to be similarly poor.

FX providers: Is my money safe?

FX firms don't have to be FCA authorised. This means if you send cash to an FX provider and it fails before you receive your money, there's no protection.

For this reason, FX firms are better suited to exchanging moderate amounts for a holiday. Larger sums warrant a different approach.

Going cashless: travel credit and debit cards

You may wish to compare whether a credit card, debit card or cash is appropriate for your travel plans.

A travel credit or debit card that doesn't charge for overseas spending avoids the non-sterling transaction fee most cards apply — typically around 2.75% to 3%. These cards use the Visa or Mastercard exchange rate, which sits close to the interbank rate.

If withdrawing cash abroad is a possibility, it's worth checking whether the card also waives fees on overseas ATM withdrawals. Withdrawing cash overseas on a fee-free card can work out cheaper than carrying physical currency, even compared with the most competitive FX provider.

One caveat: in some countries fee-free ATMs are hard to find, so the ATM's owner may charge a fee even where your UK bank doesn't.

A small number of UK credit cards are designed for overseas use. Two things vary between them and are worth checking individually: whether cash withdrawals attract interest immediately (most cards charge from the withdrawal date, though a few treat foreign cash differently), and whether any cashback or rewards are offered on spending.

For current options, see our best travel credit cards guide. These cards require a hard credit check.

As with any borrowing, repayments should be affordable before applying.

Travel debit cards offer a similar benefit without a credit application. Several UK current accounts include debit cards with no foreign transaction fees on overseas spending or cash withdrawals — including Chase, First Direct and Starling.

Two things to check on any of these: the daily and monthly ATM withdrawal limits, which vary by provider and are typically a few hundred pounds a day, and whether the account pays cashback on debit card spending (some do, usually capped and sometimes only for an introductory period).

Some providers also run switching incentives from time to time, though these change frequently — worth checking current offers directly.

Note that app-only accounts like Chase and Starling typically use a 'soft' credit check, whereas First Direct requires a 'hard' credit check. To learn more, see our article explaining the difference between hard and soft credit checks.

In summary

• Planning ahead, comparing providers and ordering cash in advance generally secures the best rate on foreign currency.

• Many FX firms aren't FCA authorised, and money isn't covered if a provider fails before the cash is received — which is why modest amounts are better suited to this route.

• Going cashless with a travel card is possible in many destinations, though avoiding foreign ATM operator fees can be difficult.

Details correct as of 10 September 2026.