So, your ticket is booked, and your sunscreen is packed, but there’s one thing left to sort out before you jet off on your summer vacation: how to pay for everything when you get there. Comparing payment methods may not be the most exciting part of travel planning (unless you’re a budget nerd like us), but knowing the answer can make your trip smoother, safer, and maybe even a little more rewarding. Here’s a quick credit card vs. debit card breakdown to help you decide which is best for your next adventure.
Credit Cards
Credit Card Pros: Built-In Travel Perks
Credit cards can be a traveler’s best friend. They offer flexibility, security, and perks that can make your trip smoother (and occasionally cheaper). Whether you’re booking a flight, reserving a hotel, or handling unexpected expenses, credit cards give you more breathing room and extra protections that debit cards often don’t. Just be sure to use them wisely to avoid debt and interest charges. Here are a few more reasons credit cards are a popular choice for travelers:
- Better protection. If your card is lost or stolen, you’re less likely to be held responsible for fraudulent charges.
- Rental car and travel insurance. Many credit cards offer extra coverage when you rent a car or book flights.
- Reward points. You might earn points, cashback, or miles for every dollar you spend, which can add up to future travel savings.
- Hold-friendly. Hotels and rental car companies often place a temporary hold on your card. Credit cards can handle these holds without freezing your funds.
Credit Card Cons
Not every credit card is accepted everywhere, so do a little research about your payment options, especially when traveling with American Express or Discover cards. Credit cards also have some downsides, so be sure to review the terms and conditions of your favorite cards before you leave. Here are some other cons to consider:
- Interest charges. If you don’t pay off your balance, interest adds up fast.
- Temptation to overspend. It’s easy to go over budget when you’re not seeing the money leave your account right away.
- Fees abroad. Some credit cards charge foreign transaction fees, so check before you travel.
Debit Cards
Debit Card Pros: Direct and Simple
Most of us use debit cards for everyday transactions because they make it easy to track spending and stay on budget. But is it a wise choice when on vacation? In many cases, yes—especially if you’re looking to avoid debt or stick to a set travel budget. Debit cards are widely accepted, simple to use, and offer real-time spending visibility. They also help you steer clear of interest charges and make it easier to avoid overspending. Here’s what else they offer:
- Widely accepted at ATMs. Easily withdraw local currency without visiting a currency exchange.
- Fewer fees than credit cards (sometimes). Especially useful for avoiding cash advance or foreign transaction fees, depending on your account.
- No risk of overspending. You’re limited to your available balance, which can help you stay on track financially.
- PIN protection adds a layer of security. Transactions often require a PIN, adding a bit more peace of mind.
Debit Card Downsides
Not all debit cards work the same when you travel. Some may have daily spending limits, ATM restrictions, or added fees. So, it’s a good idea to check with your financial institution before your trip to avoid surprises. Also, depending on your bank or credit union, debit cards come with these drawbacks to keep in mind:
- Limited fraud protection. If someone uses your card without permission, getting your money back can take time.
- Less accepted for holds. Hotels and car rentals often prefer credit cards and may put a large hold on your debit card.
- Overdraft risk. If you don’t track your spending closely, you could accidentally dip into overdraft territory.
What to Watch Out For
Regardless of the payment method you use, it’s important to be aware of potential fees and risks—especially when traveling abroad. Some credit and debit cards charge foreign transaction fees, which can add up quickly if you’re making regular purchases. Look for a card that waives these fees if you plan to travel internationally, or plan accordingly.
If you’re relying on a debit card, keep in mind that they typically offer less fraud protection than credit cards. If your card is lost or stolen, it may take longer to recover your funds. Sign up for spending alerts and keep an eye on your transactions. If any issues arise, report them immediately.
Also, make sure to check your financial institution’s ATM network before your trip. Using out-of-network ATMs in another country (or even in another state) can lead to surprise fees. The good news? Maps Credit Union members have access to 30,000 surcharge-free CO-OP ATMs worldwide, making it easier to avoid extra charges while traveling.
Pro Tips for Safe Spending
- Use a digital wallet. Adding your cards to a mobile wallet like Apple Pay or Google Pay gives you an extra layer of security, plus it’s more convenient than carrying physical cards.
- Speaking of which…don’t carry everything. Avoid keeping all your payment methods in one place. If your wallet or bag gets lost or stolen, you’ll still have a backup.
💡 What About Cash?
It’s smart to carry a little, just in case—especially for tipping or small vendors. But skip the big wad of bills. If cash is lost or stolen, it’s gone for good. Stick to cards and digital wallets for better protection.
The smartest move? Diversify.
Ultimately, the best choice depends on your budget, destination, and goals. So, use your credit card for big-ticket items, like flights, hotels, and car rentals—especially if you’re hoping to rack up rewards. Use your credit card when you need extra protection against fraud. For everyday purchases, ATM withdrawals, and budget management, use your debit card. Having both options on hand (plus a little cash) gives you a backup plan in case of lost cards, declined transactions, or unexpected hiccups along the way.
And, whatever payment methods you choose, don’t forget to let us know you’re traveling so we can keep an eye out for unusual activity and make sure your cards keep working wherever you go.
Want more travel tips?
- Check out our 12 money-saving travel tips.
- Discover some budget hacks for summer fun.
- Learn how to spot (and avoid) vacation rental scams.