One of the most common questions before any international trip: how should I handle money? Cash feels safe and universally accepted, but cards are convenient and often offer better exchange rates. This guide gives Canadians a practical 2025 framework for managing travel money smartly.
For most destinations, the best strategy for Canadians in 2025 is to rely primarily on a no-foreign-transaction-fee credit card for purchases, use a service like Wise or a local ATM for cash needs, and carry a small amount of local currency for tips, markets, and small vendors who do not accept cards.
A credit card with no foreign transaction fee is the single best tool for travel spending. Here is why:
The critical caveat: always pay in local currency when given the option. Merchants and ATMs often offer "dynamic currency conversion" — where they convert the price to Canadian dollars at their own rate, typically 3–6% worse than your card's rate. Always select local currency.
Wise (formerly TransferWise) is one of the best travel money tools available to Canadians. A Wise account lets you:
Wise is particularly useful for withdrawing cash when you arrive — it typically gives a much better rate than airport currency exchange desks or bank exchanges.
When you need local cash, withdrawing from an ATM at your destination is generally better than buying currency in Canada before you leave. Tips:
Buying foreign currency before you leave is generally the worst option from a rate perspective — especially at airports and hotel desks. Rates at airport kiosks can be 8–15% worse than the mid-market rate. If you want to arrive with some local cash:
Prepaid travel cards let you load multiple currencies at a locked-in rate. They can be useful for budgeting and when you want to isolate travel spending. However, they come with loading fees, inactivity fees, and conversion markups that often make them less competitive than a good no-FX credit card combined with Wise.
Credit cards are universally accepted. Use your no-FX credit card for virtually everything. Carry $40–$60 USD cash for tips, parking, and small purchases. Wise is useful for loading USD at good rates.
Cards accepted almost everywhere. Carry €50–€100 for markets, small cafés, and rural areas. Avoid airport exchange desks. Use ATMs with your Wise card or no-FX debit for cash needs.
Cash is still king in many parts of Thailand, Vietnam, Indonesia, and Cambodia. Withdraw local currency from local bank ATMs — rates are typically good. Use credit card where accepted (larger hotels, restaurants, shopping malls).
Contactless card payment is extremely common in the UK. Carry £20–£30 for emergencies. Your no-FX credit card will handle most needs seamlessly.
KOHO's prepaid Mastercard is excellent for everyday Canadian spending — no monthly fees, cash back, and easy budgeting. However, KOHO does charge a 2.5% foreign transaction fee on international purchases, which makes it less ideal for travel spending. Use KOHO at home and switch to a no-FX credit card or Wise when abroad.
Before your trip, make sure your home banking has zero fees. KOHO gives Canadians a no-fee account with cash back on everyday spending — so you have more money for travel. Use code 45ET55JSYA for a sign-up bonus.
Get KOHO Free — Use Code 45ET55JSYA