Why can’t I change my cash into euros?

Have a question? Ask our expert Simon Calder

The Mont Blanc massif near Chamonix attracts hikers and skiers

Q At the moment I am skiing in Chamonix, France, which I have been doing for almost 30 years. Today I was shocked to be told you can no longer change cash into euros anywhere in Chamonix. The post office in Chamonix said the nearest place was the Swiss boarder at Martigny. Why is this happening?

Darren W

A For decades, foreign exchange in Europe was a lucrative business. But tourists have moved en masse to paying with plastic – and, often, pre-purchasing online services such as hotels and train tickets. Even many bars and taxi drivers, which have traditionally run cash businesses, now accept contactless payments.

A lot of British travellers to Europe now simply have a “float” of €50 or €100 which they take from one trip to another to use on the dwindling number of transactions where only cash will do. Ready access to ATMs mean visitors simply extract cash from the nearest machine when they need a top up.

For banks, post offices and other foreign exchange providers the economics of changing money have altered dramatically, with fewer customers and smaller transactions. Since significant fixed costs are involved in a foreign exchange operation, from rate-setting to cash-handling, it is understandable businesses are abandoning the practice.

As travellers move (sometimes reluctantly) to more plastic payments, it is all the more important to use cards that do not impose “non-sterling transaction fees” of up to 3 per cent. I am one of many people who use the Halifax Clarity Mastercard for payments. But it does not offer fee-free ATM withdrawals. The Barclaycard Platinum Visa Travel does so, at least until 31 August 2022, but annoyingly appears closed to new applications at present.

Every day our travel correspondent Simon Calder tackles a reader’s question. Just email yours to s@hols.tv or tweet @simoncalder