How to Pay for Things in Europe Using a Card

We tend to use debit cards to pay for all our day-to-day expenses. In Europe, while debit cards are still common, cash is still more popular for smaller items.

Australian debit cards can be used throughout Europe. Just beware, your home bank may impose high rates and fees if you use your card overseas. These fees might cover ATM withdrawals, overseas transactions, and currency conversions.

Debit cards are most handy when you use them for withdrawing cash on the go. Thankfully, there are plenty of ATMs across Europe.

One of the best travel money cards for Europe is the Wise Travel Card, which doesn’t have purchase, load, or reload fees and offers the same exchange rates as those you see on Google or XE.com.

Credit cards are great for security, as it’s far easier to dispute foreign charges since the money doesn’t leave your account automatically.

Not only that, credit cards make the perfect emergency option to pay for last-minute or unexpected big-ticket items.

And finally, with the right card you can get complimentary travel insurance and even earn points on every purchase to put towards future travel.

Mastercard and Visa are more commonly accepted across the European continent than American Express or Diners Club.

Just be sure to have a credit card equipped with a chip and four-digit PIN. And notify your bank of any travel plans before you head to Europe so they don’t automatically assume your card’s been stolen.

But there are some fairly big pitfalls to using credit cards – and it’s important to be aware of them if you’d rather avoid the shock when you review your bill on your return home.

Let’s start with the fact that you could face high foreign transaction or currency conversion fees of about 2-3%. Not only that, you’re looking at pretty big charges if you withdraw cash from an international ATM – big enough, at least, that we’ve devoted an entire section to it below.

Major local businesses, including hotels, restaurants, airline offices, and department stores, accept credit cards. But you might have to pay a surcharge.

Mastercard and Visa are widely accepted. You may also be able to use your American Express card, though local ATMs won’t accept them.

Just be aware of additional charges you may incur for foreign transactions. These could include:

• International transaction fees
• High exchange rate margins
• ATM fees
• Potential ‘cash advance fees’ if you use an ATM

Using a prepaid travel money card in Europe gives you the ability to load up several currencies onto the one piece of plastic.

This enables you to lock in favourable exchange rates and avoid currency conversion fees on foreign transactions wherever you go. Some cards, such as the Qantas Travel Money and the Velocity Global Wallet, even help you accrue points for every reload or purchase to redeem on travel at a future date.

But what you save in foreign transaction fees you make up for with other charges. In many cases, you have to pay for the card itself, then pay a little extra for the initial load. Many cards charge a reload fee and extra fees for inactivity.

Just remember that while they are convenient, you could end up paying a long list of hidden fees. Many travel cards still impose:

• Currency conversion fees
• Uncompetitive exchange rates
• International ATM withdrawal fees
• Initial load fees
• Reload fees
• Inactivity fees