First of all, to be clear: in euro holiday countries hardly any costs are charged for debit cards and credit cards. But in non-euro countries it can be expensive. Exchanging currency at the bank is expensive, especially for smaller amounts.
In countries that use the Euro as their currency, it is usually best for travelers to use their debit card. However, one should also be careful here as withdrawing cash with credit cards and charges at certain ATMs can be expensive.
In non-euro countries there are always costs associated with the use of plastic money. When exchanging foreign currency at banks for the holidays, the costs are relatively high in comparison. Sometimes you get a less favorable exchange rate than in the holiday country. This is evident from a recent test by AK at eight banks and four credit and debit cards.
In euro-holiday countries such as Spain, Italy and others, the use of plastic money is usually “no-hassle”. Withdrawing money or paying by debit or credit card is usually free, with two exceptions.
“Keep in mind that withdrawing money with credit cards is always expensive, both in the euro area and abroad,” explains Christian Prantner, responsible for consumer protection at AK. “There are also certain ATMs that charge extra for cash withdrawals. So pay close attention to the cost details on the ATM screens.”
In non-euro holiday countries there are always costs for plastic money, both when paying and when withdrawing cash. “This is because there is a significant additional processing or conversion fee when billing in foreign currency – between 0.75 and five percent, depending on the card and provider,” explains Prantner.
For those who prefer to pay cash in non-euro holiday countries, it should be considered: “If you want to exchange foreign currency at local banks before your holiday, you will not only pay relatively high costs, but you may also get a less favorable exchange rate than directly in the holiday country.”
Also pay attention to exchange rates
Regardless of whether you pay for the trip with plastic money or buy foreign currency, there is a general advice for travelers: “Don’t just pay attention to the surcharges, but also pay attention to the exchange rates. The higher the foreign currency amount, the better it is to find out more about exchange rates.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
