Paying abroad: debit card or credit card?

Nowadays, when traveling, a debit card and a credit card should be enough in most cases. Changing money in advance is expensive and usually not necessary. But what’s cheaper: paying with your debit card or with your credit card? And is it better to withdraw money from an ATM, or to pay directly with your card in shops and restaurants?

Paying with your debit card

Paying with your debit card is almost always cheaper than withdrawing money from it. Within the euro countries, paying with a debit card or credit card is free. Withdrawing money with your debit card in another European Union country does not cost more than it does in your home country. Banks based in EU countries outside the euro area must also apply this rule. You should be aware that if you are paying in EU currencies other than euros, you may still be charged a currency conversion fee by your card provider when you use your card in another country.

Paying with your credit card

Credit cards are widely accepted around the world and can also serve as a deposit, e.g., when renting a car. Credit card transaction fees are typically higher than debit cards. Most banks charge an average conversion fee of 2% for a credit card payment, that’s 1% more than for a debit card payment. Outside the euro countries, shops may also charge  a payment fee. In that case, they’re obliged to notify the customer in advance.

“Paying with a credit card is usually more expensive
than with a debit card.“

Withdrawing money

Withdrawing money from a foreign ATM is sometimes unavoidable. Outside the euro zone, that’s almost always more expensive than a payment. On top of the conversion fee, you may incur a withdrawal fee – usually around €2,25. The maximum amount you can withdraw per day outside the euro zone is €500 for all banks. However, a foreign bank may lower that limit. To withdraw large cash amounts from ATMs, you’ll have to do multiple withdrawals  at ATMs of different banks, or spread the withdrawals over several days. Foreign banks may also charge additional fees for using an ATM. This must be specified beforehand on the display or the machine itself.

Source: consumentenbond.nl and europa.eu

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Average payment costs		Average withdrawal costs
With debit card	With credit card	With debit card	With credit card
€0,15 or 1%	2%	€2,25 + 1%	€4,50 + 1,5%

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10 tips for traveling with debit and credit cards If you can pay in euro and in local currency when abroad, choose the latter. The exchange rates for converting to euro are usually very unfavorable. Set the settings for your debit card to ‘on’ for payments outside Europe. Pay attention in countries like Andorra and Gibraltar, and islands or colonies of a European country. Some banks consider them as Europe, some banks don’t. Always bring multipe payment methods on a trip. Forgot the code of your credit card? Ask for a new one in time. Banks within Europe are allowed to charge foreigners extra costs for withdrawals, but only if these also apply to residents. This must be specified on the ATM or display. In case of theft or loss: directly block your cards (write down the phone numbers, sometimes it’s possible via Internet or mobile banking) and report to the police. Most banks offer emergency money for free or for a fee. Some foreign ATMs ask for a 6-digit code. Just enter your 4-digit code and confirm with the enter button (usually green). Try to minimize the number of withdrawals by withdrawing bigger amounts. Before your trip, Google search for “ATM locator” to check for local ATMs at your destination. Try to spend all foreign currency abroad.