Paying and withdrawing abroad

On holiday hardly anyone pays attention to a few euros in fees. Over a trip, though, 30 or 50 euros can easily add up that you didn't need to pay.

Inside the euro area

In countries that use the euro, card payments and withdrawals work just like at home. An EU rule prohibits your bank from charging more for a euro payment abroad than at home. If withdrawing cash is free at home, it has to be free in Spain too. The local cash machine operator can still charge its own fee. It has to be shown beforehand, and you can cancel.

Outside the euro area

If you pay in another currency, such as kroner, francs or dollars, many banks charge a foreign currency fee, often 1 to 2 percent of the amount. Cash withdrawals sometimes add a fixed fee on top. Cards without these costs exist. If you often travel outside the euro area, it's worth checking your bank's price list.

The most important question at the till

At cash machines or card terminals you're often asked whether you want to pay in euros or in the local currency. Euros sound familiar and safe. In fact the machine or shop then does the conversion, at a rate it sets itself. The markup is often several percent, sometimes much more.

Lena withdraws the equivalent of 200 euros in Budapest and chooses euros at the machine. The machine converts with an 8 percent markup. Had she chosen forint, her bank would have converted at the normal rate. That one button cost her about 16 euros.

So the rule is simple: always choose the local currency. If a shop only offers conversion into euros, tell them at the till that you want to pay in local currency.

What else helps when travelling

• Take two cards and keep them in different places. If one fails, the other gets you through.
• If there are fixed fees, withdraw one larger amount rather than many small ones.
• Don't change cash at the airport or at exchange booths. Their rates are almost always worse than at a cash machine.