Paying in Europe: cash vs card, currencies outside the eurozone, and DCC

TUREFF• •0

Paying for things in Europe is mostly easy: contactless cards are accepted almost everywhere. But a few habits, particularly one question at the card machine, can quietly add to your costs. This guide covers cash versus card, the countries that do not use the euro, and how to avoid dynamic currency conversion.

Card or cash?

In most of Europe, contactless card and phone payments work in shops, restaurants, transport and many market stalls. Northern Europe, especially Scandinavia and the Netherlands, leans heavily towards card, and some places there do not take cash at all. Cash is still useful in some situations:

Small cafés, bakeries, market stalls and rural businesses, particularly in parts of southern and eastern Europe and in Germany, where cash has traditionally been popular.
Public toilets, small tips and some taxis.
As a backup if your card is blocked or a terminal is down.

A sensible approach is to rely on card and carry a small amount of local cash.

Choosing the right card

Check your foreign transaction fees. Many standard bank cards add a percentage to every purchase abroad, and some add a fee per cash withdrawal. Several banks and app-based providers offer cards with low or no foreign fees.
Take two cards from different providers, kept separately, in case one is lost or declined.
Tell your bank you are travelling if it asks you to, and keep its emergency number somewhere other than your wallet.
Credit cards can offer extra protection for larger purchases such as car hire and hotels. Car hire firms often require a credit card in the driver's name for the deposit.

Countries outside the eurozone

Twenty-one EU countries now use the euro, Bulgaria having joined at the start of 2026. Elsewhere, you will need a different currency. Common examples include:

Czechia: Czech koruna
Poland: Polish złoty
Hungary: Hungarian forint
Romania: Romanian leu
Denmark: Danish krone
Sweden: Swedish krona
Norway: Norwegian krone
Iceland: Icelandic króna
Switzerland and Liechtenstein: Swiss franc
United Kingdom: pound sterling
Most Western Balkan countries and Turkey also have their own currencies, though Montenegro and Kosovo use the euro.

Some shops and hotels in non-euro countries will quote or accept euros, but usually at a poor exchange rate. Paying in the local currency is almost always better.

Dynamic currency conversion: the question to watch for

When you pay by card or withdraw cash abroad, the machine or the staff may ask whether you want to pay in your home currency or in the local currency. Paying in your home currency is called dynamic currency conversion (DCC). It sounds convenient, because you see a familiar number, but the conversion is done by the merchant's or the ATM operator's provider, often at a rate that includes a hefty markup. EU rules require providers to show the conversion charge, expressed as a percentage over the European Central Bank reference rate, before you confirm, but they do not ban the practice. The rule of thumb: always choose the local currency. Your own card provider then converts the amount, which is usually cheaper. Watch out for:

Terminals that pre-select your home currency, so you need to actively choose the other option.
Staff who choose for you. You are entitled to ask to pay in the local currency.
Receipts that mention a conversion rate or a phrase like "guaranteed rate". If you see this before paying, you can cancel and start again.

Getting cash

Use ATMs belonging to banks, ideally inside or attached to a branch. Independent cash machines, often found in tourist areas, airports and shops, frequently charge higher fees and push DCC hard.
Decline the conversion at the ATM too, for the same reason.
Withdraw larger amounts less often if your card charges a fixed fee per withdrawal, but do not carry more than you need.
Avoid airport and tourist-street exchange booths for anything more than a small emergency sum; their rates are often poor.
Cover the keypad when entering your PIN.

Tipping and service

Tipping customs vary widely across Europe. Many countries include a service charge in the bill, while others expect a small tip for good service. Check local practice; when tipping by card, the machine may offer a percentage, and you can always choose your own amount. What is your best tip for paying abroad cheaply? Share it in the comments.