Travel costs money, but often - depending on your holiday destination - making payments during your holiday is not free either. Especially outside the eurozone, you will pay fees to withdraw money or pay electronically. Here you can read some handy tips on how to do this as cheaply as possible.
The most convenient and safest way to pay abroad is by bank card, although it never hurts to have some cash in your pocket for small expenses and unforeseen circumstances.
Belgian banking federation Febelfin recommends taking only a small amount of cash with you when travelling. Be wary though: depending on your holiday destination and the type of card you use, you may have to pay a fee for every payment you make. Even when withdrawing foreign cash from an ATM or ordering cash at your local branch in advance costs money.
Paying using a bank card
People who like to pay electronically may choose to use a debit card. This is a traditional bank card like the one you use at home. It is linked to your bank account and the money is taken straight from your account.
You can also use a credit card if you are eligible for one. The purchases you make are charged to your account and you will get a bill once a month. Credit cards from well-known companies like Visa and Mastercard are accepted in many more places around the world than a debit card from your own local bank.
In the euro zone
If you pay with a debit or credit card within the euro zone, your own bank’s rates apply. In practice, this means that paying using this card is usually free of charge.
Outside the euro zone
Outside the euro zone, you will have to pay a fee when paying using your debit or credit card. If you opt for a debit card, you pay transaction fees and exchange charges as the local currency of your travel destination has to be converted into euros.
Paying by credit card is cheaper, as only an exchange fee to convert the euro amount to the other currency is charged. Exactly how much you will have to pay depends on the bank. So it is best to check with your own bank first.
What is the eurozone?
The eurozone consists of the following countries: Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Croatia, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Spain. They all use the common European currency, the euro.
Where can I pay by card?
Since 1 July 2023, most banks have replaced the Maestro function on their debit cards by Visa or Mastercard. These issuers are best known for their credit cards, but now also offer debit cards. Maestro was supposed to allow you to pay anywhere in the world, but in practice in many places the card was not accepted A retailer decides for his or herself which payment services or cards he or she accepts.
Using Mastercard or Visa debit cards should mean your card is accepted more widely: “These cards can be used to pay in even more places worldwide. This is because these cards are accepted by retailers who also accept the credit cards belonging to these brands," explains Reinout Moens of payment operator Worldline.
Unblocking cards and increasing limits
Not every debit or credit card works automatically abroad. Before you leave, check with your bank. If you want to use your debit card outside Europe, you often have to get it unblocked first. Sometimes you can do this yourself by using your bank’s app.
If you want to use a credit card, this is usually not necessary, except when travelling to the United States. Be aware that some cruise companies operate under the US flag. So in order to pay on board, you will also often have to unblock your credit card first, even if you are not travelling in America itself.
If you want to rent a car, it's best to increase the limits on your credit card. Rentals usually block a deposit on your card and that won't work if your limit is set too low.
Pay in local currency
Sometimes, when paying by card, you will be asked whether you prefer to do so in euros or prefer the local currency. It is always better to choose the local currency. Otherwise, there could be extra charges to convert the amount into euros.
Cash withdrawals
Anyone travelling to, say, the United Kingdom, the United States or Japan can order pounds sterling, US dollars and Japanese yen from their bank in advance. Usually, only the major banks still offer this service and usually only for the most common currencies. So you won’t find the Botswana pula that is a closed currency only available in the country and might not find the Peruvian sol at your local bank either. Banks will charge exchange fees on foreign currencies.
When you want to withdraw cash from an ATM at a holiday destination outside the euro zone you will also always have to pay a fee.