5 practical tips: how to pay smarter and save more on your next trip

Traveling has never been easier, but before heading abroad, it's important to make sure whether card payments will be enough or if you'll need to bring some cash as well.

1. Know the payment options at your destination

Before you travel, check whether your destination is part of the eurozone or if you'll need to exchange currency. Seven EU countries don't use the euro: Sweden, Denmark, Romania, Bulgaria, the Czech Republic, Hungary, and Poland. It's also worth finding out whether card or cash payments are more common.

Even in the eurozone, there are places where cash is still king. For example, in Germany, many restaurants and other businesses only accept cash. Montenegro is another example—it isn't part of the EU or the eurozone, but the euro is still its main currency, and cash is preferred in many places.

In contrast, the UK is a card-friendly country. In big cities like London, it can actually be difficult to find places that accept cash. In cities like London you can even pay for metro rides simply by tapping your card or phone—no ticket machines needed.

2. Use bank cards that don't charge currency exchange fees

If most payments at your destination can be made by card, check whether your bank charges extra fees for transactions in foreign currencies like crowns, dollars, or zlotys.

Banks may charge a currency exchange fee of 1-2% for card payments. While that might not sound like much, it adds up for bigger purchases. For example, if you spend €2,000 on accommodation, transportation, food, and souvenirs in a local currency during a trip, that fee could cost you €20-40.

With Coop Pank's Rändrahn package, you won't pay any currency exchange fees, so you can use that money to enjoy your trip instead.

It's also a smart idea to use a dedicated travel account. By linking it to a separate bank card and adding it to your mobile Wallet, you can make payments conveniently and securely.

3. Exchange money at better rates

If your destination uses a currency other than the euro, it might be better to carry some cash and exchange it locally. Customers of Coop Pank can withdraw cash not only from every ATM in Estonia but also from Coop store checkouts. During layovers, you can also withdraw money without fees at ATMs in airport security zones, such as in Riga or Helsinki.

In general, exchanging money at your destination is cheaper than doing so in Estonia. While airport exchange rates tend to be less favorable, city centers often offer better rates without commission fees. In popular tourist areas like Turkey, you can sometimes use euros to pay for your purchases, but the exchange rate may not always be favorable. It's good to keep in mind that outside resort areas, merchants may not accept euros at all.

4. Be aware of ATM fees

You don't always need to carry cash from home, as it's easy to withdraw money from ATMs at your destination. Coop Pank's Rahn package lets you withdraw cash without fees in EU countries, while the Rändrahn package offers fee-free withdrawals worldwide.

Keep in mind that some foreign banks charge additional fees for ATM withdrawals. These fees, displayed on-screen before you confirm the transaction, may be a flat rate or a percentage of the amount withdrawn. For example, ATM fees are around €3.5-4 in Morocco, €6 in Bosnia, and 6-8% of the transaction amount in Turkey. However, in Turkey, you can also find ATMs that don't charge withdrawal fees.

Card payment exchange rates are often close to central bank rates, so even with a small ATM fee, withdrawing cash abroad can still be cheaper than exchanging money at local exchange offices.

5. Always pay in the local currency and keep your payment methods separate

Many places offer the option to pay in euros instead of the local currency, with the conversion done at the payment terminal. However, this often comes with a hefty currency exchange fee of 4-10%, so it's best to avoid it. The same applies to ATM withdrawals—always choose the local currency.

Make sure your payment cards are always within sight, and don't let staff take them to another room, where card data could be copied. It's also wise to spread out your payment methods by keeping cards and cash in different places—such as in a wallet, pockets, or with travel companions—to minimize risks in case of theft. Adding your card to Google Pay or Apple Pay is another great way to ensure secure, hassle-free payments.

Lastly, don't forget about travel insurance. Coop Pank offers travel insurance with monthly payments, covering all trips throughout the year. It's valid across Europe and beyond and even protects your family when traveling with you.

Smart travels and happy adventures!