Money and paying abroad: how much money should you take with you, and how will you pay when traveling or backpacking?

When you travel, you'll be choosing between credit cards, debit cards, cash, and, in the past, traveler's checks. You'll probably wonder what to do if your debit card gets blocked or lost, etc.
If you want to play it safe and travel longer, it's best to ensure you have the widest possible range of payment options available.

Taking a debit or bank card abroad?

You can withdraw cash almost anywhere in the world (especially in major cities). However, the number of options is increasing so rapidly that the information available is often quite outdated.
Before traveling outside Europe, check whether your debit card has worldwide coverage (and, for example, the Cirrus logo).
Check whether your debit card is still valid for a sufficient period!
However, it's very important to assume that you won't be able to withdraw cash everywhere.
- Especially abroad, it's common for ATMs to be unavailable, empty, out of service, broken, or simply not accessible.
- In many countries and in many locations, paying with a debit card or phone is still not nearly as common as it is in the Netherlands or other digitally oriented countries.
- Moreover, your debit card can, of course, be broken, swallowed, rendered useless, stolen, or lost, and it's not easy to get a new debit card from abroad.

In countries comparable to the Netherlands, you often have the same facilities when it comes to payments, including paying with your phone.
In some countries, they are a step ahead, while in others, there's still room for improvement. Payment apps might differ per country or region.
The same applies to crime: in some countries, cybercriminals are much more advanced than in the Europe, while in others, they are thankfully lagging behind. So be careful where and how you use and configure your phone.

The best credit card to use, or even the most suitable one, varies by country. Some countries accept only one or a limited number of cards. Carrying two cards (in order: Visa, Mastercard, Amex) is often useful.
Withdrawing money with your credit card can sometimes be the only way to get cash, not all card companies offer this service, or have limited international coverage.
Check the validity of your credit card and use it at least once at home.
Make sure you apply for credit cards while you still have a job: showing your payslip is often required when applying.

Prepaid money cards are relatively new to the market. You can load these cards up to a certain amount at, for example, Visa ATMs in country X (if you have a Visa money card) and then withdraw money in the local currency from ATMs in country Y. Once you've used up your entire balance, you can throw the prepaid money card away.
A relatively secure system because you withdraw your money with a PIN number.
If you lose your prepaid money card, it's more difficult (sometimes even impossible) to get your money back than it used to be with traveler's checks. In principle, you'll receive a replacement card and an emergency supply of cash.
No personal information is stored on the prepaid money card.
You can only spend the amount you've loaded onto the card, and withdrawals cost a fee comparable to withdrawing money abroad, which varies by brand.
Prepaid money cards are widely used, but not universally accepted in all countries.

Traveler's checks, also known as traveller's cheques, were previously the most widely accepted payment method worldwide. Nowadays, they have almost disappeared worldwide.
Traveler's checks were valid indefinitely, were also covered against loss or theft, and were usually replaced within 24 hours. If you were robbed of anything, you would generally get your money back, even if you lost your check numbers and receipt.

Always bring enough cash to get through the first few days, and for those times when debit or online payments aren't possible.
Exchanging money at the borders is always an adventure in itself once you've left the more Westernized world. Generally, you'll get the best rates in the country you're traveling to, not the one you're leaving from.
In some countries, you must declare how much cash and payment methods you have on you upon entry, or you must exchange a minimum amount.
Sometimes you're not allowed to export the local currency, or you have to keep track of where you're going, and how much you've exchanged each time.
In a limited number of countries, the highest-value banknote is so low that you'll need a stack of banknotes at least 10 cm thick before you reach 50 euros. So don't be surprised if someone walks into a bank with an empty sports bag and walks out with a full one. This usually isn't a bank robber, but someone who needs a new TV or is collecting their monthly salary.
For solving problems at the border, see: solving problems while traveling

Some people who go away for extended periods open a separate bank account in their country of residence with an international bank that only allows a limited overdraft limit, and then have money deposited into it monthly from a different account. This limits the risk of your entire savings being drained through misuse.
An additional account can be useful in case of blockages or if your debit card doesn't work on your regular account. If you're staying in a particular country for a long period of time, it can be useful to open a local bank account. This is common practice in Australia, for example. A local bank account is also sometimes required to receive a salary.