Merits

Demerits

Cash (Foreign Currency Notes)

• Needed for taxis, tips, small expenses (like street vendors).
• The US dollar works in many countries (depending on local rules), but you may need local currency if you are travelling rural regions. which may have poor banking infrastructure.
• Cash works even if digital payment systems or POS systems fail.
• Cash is immediately liquid, especially in an emergency. You have no waiting time and it requires no verification.
• Coins and notes work as souvenirs of your trip!

• There is nothing you can do if your cash is is misplaced or stolen.
• Airport and hotel counters often have high conversion rates.
• Carrying bulk cash can be cumbersome, but higher denominations can be hard to change.
• Small leftover amounts are difficult to reconvert once your trip is done.

Prepaid Forex Cards

• You can secure the rate at the time of loading, avoiding currency volatility.
• Usually denominated in US dollars, they work for travellers visiting multiple countries.
• Cards today are PIN-protected and chip-enabled. They can easily be blocked and replaced if lost or stolen.
• Since you can load only a fixed amount, a prepaid card helps prevent overspending.
• Such cards have lower transaction and ATM withdrawal charges than credit cards.
• Best for
  • Planned trips like package tours.
  • Students abroad, who have a parent/sponsor in the home country to help with top-ups.

• You continue paying at a higher exchange rate even if  the destination country currency drops.
• Topping up funds overseas can take time.
• Any leftover money must be reconverted, often with a fee.
• Small vendors or offline businesses may not accept cards.

International Credit and Debit Cards

• Hotels, airlines, e-commerce and most urban merchants accept cards.
• You get charged the exchange rate of the day, which an be beneficial if the destination country currency drops.
• You get benefits like air miles, travel insurance, lounge access.
• You can block the card instantly if lost, hacked or stolen.
• All transactions are logged digitally, so it helps with budgeting.

• Cards often incur exchange rates 2–3% above interbank rates.
• Using debit/credit cards abroad incur higher charges, especially for ATM withdrawals.
• Merchants may charge in your home currency at poor rates.
• If you travel for long times, remeber to pay your bills on tme to avoid raking up high interest.

Digital Wallets & Multi-Currency Apps

• Real-time forex conversion can offer better exchange rates than banks.
• You can store multiple currencies in one account.
• Apps offer instant reloads via linked bank accounts.
• You can freeze and unfreeze cards instantly.
• These work best for tech-savvy travellers or frequent flyers.

• Dependent on the internet or card acceptance network.
• Not all wallets work in all countries.
• Hidden charges may be deducted, depending on the app.