How to pay in Europe - Cash or Credit Card?
Discussion
I'm off to France for a few days shortly and forgive my ignorance but wondered what the best way of paying for everything is. In the past I've converted hundreds of pounds of sterling to Euro's.
Is this the best option or would just paying for everything on a a credit card be wiser? Are the charges really high?
Is this the best option or would just paying for everything on a a credit card be wiser? Are the charges really high?
Credit cards will usually give you the best exchange rate, but they will also charge you a couple of percent commission, which then makes it more costly. Therefore - although it may be too late for your next trip - you should get the Halifax Clarity credit card, which doesn't charge you commission anywhere in the world; see, http://www.halifax.co.uk/creditcards/low-rate-no-f... . In fact, on websites like for hotel bookings, where the default currency may come up as Sterling based on you IP location, I have found that it's often better to change the currency to the natural currency of the company you are paying for (so if it was a hotel in Florida you would change it to Dollars) - as the Mastercard will certainly be offering you a more favourable exchange rate than the hotel
Edited by DaineseMan on Thursday 23 February 02:00
Get a cash passport. It's a card that you can pre-load with as much as you want in the native currency.
You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
These are murky waters so I see why the the OP asks the question. There is a pay-off between exchange rate and fees so you have to work out the balance between the two.
ETA: To be more helpful - I always use a credit card. I suspect the exchange rate is poor but I don't have to worry about trying to keep cash safe. It isn't risk-free though as we've had fraud problems (which the card company paid for) at one destination.
ETA: To be more helpful - I always use a credit card. I suspect the exchange rate is poor but I don't have to worry about trying to keep cash safe. It isn't risk-free though as we've had fraud problems (which the card company paid for) at one destination.
Edited by UnderTheRadar on Friday 24th February 11:06
Go and look at Martin Lewis's Money Saving Expert site - he gives you a list of cards that don't charge fees or add loadings for use abroad. I have a Santander zero card which gives pretty good rates, but as one of the previous posters said, I also usually take 100 Euros or so in cash for when buying small stuff.
I use a Nationwide Gold for the serious payments,it gives a good rate of exchange with no surcharges.I compared this once with my wife's Barclaycard and was astonished at the different exchange rate plus the 2.5% handling charge,another bank rip off that will soon stop?? I also take lots of euros (from Post Office or Marks & Spencer) for every day use,cash is always king.
Old Merc said:
I use a Nationwide Gold for the serious payments,it gives a good rate of exchange with no surcharges.I compared this once with my wife's Barclaycard and was astonished at the different exchange rate plus the 2.5% handling charge,another bank rip off that will soon stop?? I also take lots of euros (from Post Office or Marks & Spencer) for every day use,cash is always king.
From Nationwide's website regarding the Gold Card: "For every £5 you spend on purchases in sterling you earn the right to spend £1 on purchases in a non sterling currency without being charged commission. For non sterling currency purchases above this allowance a 2% commission fee will be charged. "DaineseMan said:
From Nationwide's website regarding the Gold Card: "For every £5 you spend on purchases in sterling you earn the right to spend £1 on purchases in a non sterling currency without being charged commission. For non sterling currency purchases above this allowance a 2% commission fee will be charged. "
I`ve had mine for years,use it very little in the UK and never had commission charges abroad.Just got back from a trip to Abu Dhabi and my Nationwide statement was on the matt.Exchange rate of 5.732 UAE with no extra charges anywhere. maxrider said:
Get a cash passport. It's a card that you can pre-load with as much as you want in the native currency.
You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
Where do you get this?You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
I can happily recommend the Caxton FX Card (www.caxtonfxcard.com)
Free to use in shops and for ATM withdrawals throughout Europe (by contrast using my Spanish bank card in other banks within Spain costs a few euro a pop!)
Rates are OK, great UK based customer service and card loads from a UK debit card are pretty much instant.
Free to use in shops and for ATM withdrawals throughout Europe (by contrast using my Spanish bank card in other banks within Spain costs a few euro a pop!)
Rates are OK, great UK based customer service and card loads from a UK debit card are pretty much instant.
rpguk said:
I can happily recommend the Caxton FX Card (www.caxtonfxcard.com)
Free to use in shops and for ATM withdrawals throughout Europe (by contrast using my Spanish bank card in other banks within Spain costs a few euro a pop!)
Rates are OK, great UK based customer service and card loads from a UK debit card are pretty much instant.
What are the oosts of these cards? I can't see the info on the site. Looks perfect for my hols this year, along with a few hundred Euro's too Free to use in shops and for ATM withdrawals throughout Europe (by contrast using my Spanish bank card in other banks within Spain costs a few euro a pop!)
Rates are OK, great UK based customer service and card loads from a UK debit card are pretty much instant.
jimslops said:
What are the oosts of these cards? I can't see the info on the site. Looks perfect for my hols this year, along with a few hundred Euro's too
£10 to 'buy' but this is added to your balance on the card. Zero costs to use in Euro zone areas (ATM and shop purchases, other than those loaded by the machines you are using, just like cash points in pubs). Just don't use for hire cars etc, as they would freeze an amount of your funds.Wolff said:
£10 to 'buy' but this is added to your balance on the card. Zero costs to use in Euro zone areas (ATM and shop purchases, other than those loaded by the machines you are using, just like cash points in pubs). Just don't use for hire cars etc, as they would freeze an amount of your funds.
So how do they make moneyjimslops said:
maxrider said:
Get a cash passport. It's a card that you can pre-load with as much as you want in the native currency.
You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
Where do you get this?You use it exactly like a debit card or to withdraw from ATM's much more secure than cash or credit cards and you can top it up over the phone if needed.
Used one in Spain at Xmas and wouldn't consider using any other method again.
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