what method of payment do you use?

Depends on where you're going. In general, we used cash for meals/sightseeing and credit cards for hotels. But we had a big fancy splurge dinner one night and paid using a credit card (but we did have cash just in case) and we stayed at a B&B that didn't accept credit cards, so we paid cash. Also, ATM's are everywhere and while the fee ($5 in Canada, no idea of the US) was a bit of a pain, the fx rate was good and we decided we'd rather pay the $5 every few days then risk losing cash (yes we wore money belts, carrying a lot of cash still made us nervous)

I try to pay cash for everything I can. Because I stay away from touristy areas and stay in small family run accommodations, often they don't even take plastic. Non-tourist Germany, where I go, is pretty much a cash society, anyway. Cash pays off because my two ATM card bank take 0% and 1½% for currency exchange while my credit card gets 3%.

If you use cash but don't want to constantly run to the ATM, maybe it will discourage you from spending too much.

I only use my debit card at ATM machines for cash. When you use debit cards for purchases funds are immediately withdrawn from your checking account, so if the cashier make some sort of error and overcharges you, it's hard to challenge it, and if it's a big mistake it could cause cash flow problems. Also you should never use a debit card at a hotel or for rental cars, when you check-in/collect you car, a hold of a couple hundred dollars will be placed on your checking account funds until you check-out/return your car. That hold is supposed to be released immediately but sometimes it can take a few days, and again unless you have a lot of money in your checking account you could run into cash flow problems. When you use a regular credit card the hold is placed on your credit limit. So for hotels and large-ticket purchases I always use credit cards. For everything else it's cash from an ATM machine. Also don't forget that since many debit cards can be used like credit cards for purchases without having to enter a pin, if your card is stolen your checking account will empty very quickly. So it's best not to carry it around in your wallet/purse. Just carry around a days spending money, and put everything else in your money belt or hotel room safe.

As you will go to main tourist attractions, plastic payment will not be an issue. Basically I always pay large tickets (hotels, shopping, cars, trains) with credit cards. Yes there is fee that varies on top of exchange rate (Amex is 2% for instance) but at least it is not cash out of your checking account, you can also easily dispute a charge if needed (if you have online access you can quickly verify that on your statement). All smaller expenses (attractions, food etc...) are paid in cash. I try to go twice a week to the ATM to avoid accumulated fees and to not carry too much with me. Of course nothing must be left in cars if you will drive!

I used credit and cash depending on the country. In The Netherlands I had no problem paying with cash or credit cards.For the Louvre, etc we had a museum pass (bought on credit card).Most food we paid cash and the same for souveniers. We did have a problem in the small towns in Italy and France, as they would only take cash, and ATM's were few and far between.

Jodi, I can only speak to my trips to The UK. I always have enough in my checking account to pay cash as I go, BUT in reality I use plastic for just about every thing over a certain amount. I wouldn't probably charge something costing less than 10 quid. One exception is a B&B who will accept plastic but charge a fee to do so.

I use cash for nearly everything. If the hotel does not give a discount for cash (most will), then I use the credit card. I simply find it easier to use cash.

Cash for most stuff (food, lodging and sites). Credit cards for bigger purchases and bigger vendors.

We use credit cards when we can and only debit cards for the ATMs when we must have cash. Only small businesses and some B&Bs insist on cash. Never use a debit card for something that may go wrong - airlines, ferry bookings, etc. Banks consider it a cash deal and none of their business. Credit card companies will come to your rescue if you have a problem like we did when we were stranded in Europe last fall when Zoom went under. Visa refunded the full amount and we were fortunate to make other arrangements which cost less than Visa gave us back.

Hello Jodi. If you use a credit card, I recommend that you pay all that you owe for your credit card account, before your account is assessed a finance charge (interest). In Europe, different hotels have different methods of receiving payments. I will be at a good small hotel in Paris that receives cash only. And, that hotel does not have an internet website, or E-mail. I telephoned the hotel (from my home in the U.S.A.), and I was told I must mail a check (cheque)-- my personal check from a bank in the U.S.A., for 200 U.S. Dollars, as a deposit, for them to hold a room for me. I think that is reasonable, and I did that. When I will be at the hotel in Paris, and I pay for the room, spending Euro cash, the hotel manager will give my check ( $200.) back to me. And I have been communicating with that hotel manager in Paris, via FAX. She replied to me, by FAX, immediately. At some small hotels and B & Bs in Europe, the guest gives a credit card number, via Telephone, as a security depost, before going there. And when the guest pays for a room there (in cash), the manager deletes the credit card number. That credit card account is not charged.
I will bring some Euros ($ 300. worth) with me from the U.S.A. to France. And in France, I will acquire Euros from a cash machine, using my ATM card : withdrawing money from my checking account. At some ATM machines in Europe, money can be withdrawn from a checking account only. (I read that, somewhere). I do not know about ATM machines in England.

Just about every hotel we have stayed in accepted credit cards but also just about every one offered a discount if paid in cash. Generally I think Europeans do not rely on credit cards as we do here at home and many smaller merchants are either unable to accept credit cards or unwilling because of the additional cost to them.

I try to use credit: 1) need to carry less cash, and 2) accumulating frequent flier miles. We carry enough cash to cover those places that don't take credit cards, and we also take a debit card to get cash from the ATM when necessary. It's wise to cover all your bases.

I've stayed in 31 hotels, gästehäuser, privatzimmer, etc in Germany in the last eight years. I know that two take credit cards, and, possibly another, although their website doesn't say they do. At least 90% probably don't. Staying where they take credit card is usually staying where you pay too much.

IMO, saying you don't want to carry too much cash is false security. Any sensible traveler carries only a day's worth in his wallet; the rest is in a money belt. Your credit/debit cards are probably in there too. You can't afford to loose that, not because of the amount of cash, but because, without the cards, you can't get any more cash, and that's worse.