Cash, Cards and ATMs: Managing Money in Prague

The Czech Republic uses its own currency, the koruna (CZK), confirmed by the Czech National Bank (cnb.cz) as the country's official issuing authority; the euro is not the local currency, even though some tourist-facing businesses display euro prices. For a budget trip, the safest approach is to carry some cash in koruna and pay by card where you can, while avoiding a few common traps.

What currency do I need, and can I use euros?

You need Czech koruna (CZK) for everyday spending. Some souvenir shops and a few tourist-heavy businesses near major sights will accept euros, but typically at a poor, informal exchange rate set by the shop itself, not a bank rate. It is cheaper and simpler to use koruna for anything beyond a small emergency purchase. Keep this in mind when planning your daily budget for Prague, since prices quoted in euros at tourist spots are rarely the best deal.

Should I exchange cash before arriving or in Prague?

Exchange only a small amount before your trip, if any, and avoid street-level exchange booths in the most touristic areas of the center, which are known for unfavorable, non-transparent rates compared to bank-operated counters or ATMs. A practical approach is to withdraw koruna directly from an ATM tied to a major bank rather than exchanging paper cash at a walk-up booth. If a booth's posted rate looks unusually good, check for a hidden commission before you commit; compare the amount you will actually receive, not just the headline rate.

Are cards widely accepted, or do I need cash?

Cards are widely accepted in hostels, restaurants, supermarkets, and on public transport ticket machines in Prague, so you do not need to carry large amounts of cash. That said, some small food stalls, market vendors, and smaller family-run eateries, the kind covered in our guide to Finding Cheap Food Near Your Hostel, may be cash-only or have a minimum card amount. Keep a modest amount of koruna on hand for these cases, and rely on your card for everything else.

What is dynamic currency conversion, and how do I avoid it?

When paying by card, a card terminal will sometimes ask whether you want to pay in koruna or in your home currency. This choice is called dynamic currency conversion, and choosing your home currency almost always applies a worse exchange rate set by the local merchant or terminal provider rather than your bank. Always choose to pay in koruna (CZK) when given the option; your own bank or card provider will then apply its own conversion, which is typically more favorable. The same rule applies at ATMs that offer a choice of currency for a withdrawal.

How much should I budget for ATM and card fees?

Your home bank or card provider sets its own foreign transaction and ATM withdrawal fees, so check these before you travel rather than assuming they are the same everywhere. Where possible, make fewer, larger withdrawals rather than many small ones, since many ATMs and some home banks charge a flat fee per withdrawal regardless of amount. If your bank offers a fee-free card for travel, use it for both purchases and withdrawals in Prague to reduce this cost over a multi-day stay.

Is tipping expected in Prague?

Tipping is a courtesy rather than an obligation in Prague, and it is common to round up the bill or add a modest amount in restaurants and for services you were happy with, similar to practices elsewhere in Central Europe. It is not expected at the same level as in some other countries, so budget travelers do not need to set aside a large separate tipping fund; a small amount for good service is sufficient.

Payment method comparison

Method	Best for	Watch out for
Card (pay in CZK)	Hostels, restaurants, transport, supermarkets	Being offered home-currency conversion; always choose CZK
ATM withdrawal (CZK)	Cash for small vendors and markets	Per-withdrawal fees; withdraw larger amounts less often
Cash exchange booths	Emergency top-ups only	Poor rates in tourist areas; check the actual amount received
Euros in cash	Avoid if possible	Informal, unfavorable rates at most Prague businesses

Quick checklist before you go

Tell your bank you are traveling if that affects your card's foreign usage. Bring one primary card and a small cash backup in koruna. Always choose to pay in CZK at terminals and ATMs. Keep a little cash for small food stalls and markets. For the rest of your spending plan, see our guide to Planning a Daily Budget for Prague.