Survey: Half of Czechs prefer to use cash while traveling abroad

According to a recent survey, the majority of Czechs prefer to exchange Czech crowns for foreign currency before going on vacation. Staff

Written by Staff Published on 16.07.2023 12:23:00 (updated on 17.07.2023) Reading time: 2 minutes

Half of Czech travelers either exclusively use cash or prefer it as their primary method of payment when abroad, according to a recent survey conducted by STEM/MARK for Home Credit at the end of May.

In contrast, just 34 percent of respondents expressed a preference for card payments. Surprisingly, almost 80 percent of those surveyed rarely or never withdraw cash from ATMs while abroad. Instead, they either exchange currency at local exchange offices in the Czech Republic before their trip or utilize alternative payment methods.

Of the 500 respondents, 24 percent indicated that they rely solely on cash for their expenses while on vacation abroad. The same percentage of respondents expressed a preference for cash but also mentioned occasional card payments.

About 26 percent of Czech travelers primarily use credit or debit cards for purchasing services and goods while on vacation, while only 8 percent exclusively rely on card purchases for all transactions.

The survey also revealed that Czech travelers who prefer to pay in cash during their foreign holidays typically bring up to CZK 10,000 in foreign currency with them from the Czech Republic. These travelers often withdraw foreign currency from exchange offices in the Czech Republic prior to their departure.

"It is surprising to note that 79 percent of Czechs rarely or never withdraw money from ATMs abroad," Home Credit analyst Jaroslav Ondrušek noted.

"This could be attributed to a lack of trust in foreign ATM networks or the fact that people are well-informed about their destinations and prefer to bring the necessary amount of cash with them."

The survey also highlighted that most people travel with one (43 percent) or at most two (35 percent) payment cards. The majority of respondents (84 percent) do not bother setting higher limits on their cards.

According to the survey, only 7 percent of Czech travelers apply for a credit card specifically for their trips abroad. The main motivations behind this choice are to have a financial backup, ensure secure payments, and, for some, the ability to rent a vehicle.

"People may not be fully aware that in certain countries, renting a vehicle is cheaper when using a credit card because providers often charge a non-refundable deposit as insurance when clients use a debit card," Home Credit ombudsman Miroslav Zborovský states.

For those who use cards for payments or withdrawals abroad, Home Credit advises against using the Dynamic Currency Conversion (DCC) service, which offers conversion of the transaction in the card's currency rather than the local currency. The exchange rate applied by merchants in DCC transactions is often significantly disadvantageous for the client.

Would you like us to write about your business? Find out more