6 simple rules for using your ATM and Credit Cards in Europe

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The convenience of ATM cards and Credit cards extends over the ocean in Europe as well thanks to a few global cash networks. These networks allow cards to be used in different countries just as you would used them at home in the US. You should have no problems using your American cards anywhere in Europe provided you check a few things before you leave. This article will outline these few things you need to know before you use your ATM and Credit Cards in Europe.

What’s the best credit card to use for foreign transactions?

The best American Credit Card for use in Europe is the Capital One No Hassle Rewards Master Card. This card is unbelievable! Not only that Capital One doesn’t charge ANY foreign transaction fees but it also swallows all the fees Master Card charges for any foreign transactions. To put it simply, you don’t pay anything extra for using the card outside of the United States. In addition you also get 1% cash back on all purchases. This is unbelievable!

Second in line the American Express cards are the second best choice for making purchases abroad. The reason is simple: there is no VISA organization on top of them to charge something else on top of what they for foreign currency exchange. In the example above, the difference between American Express and a US Bank VISA credit card is 1% but US Bank will also charge another 1% because it’s a VISA credit card. So the difference is 2% between the two cards. So, on a $1000 purchase made abroad you would be saving $20 by using American Express instead of US Bank Visa card.

Simple checklist for using your debit and credit cards in Europe

  • RULE 1: Make sure your pin number for your ATM card has 4 digits. In Europe pin numbers have a max of 4 digits allowed. In the US most banks allow for 5 digits. So, before you travel abroad, make sure you go to the local branch and change your pin to 4 digits…and also make sure you test it before you go.
  • RULE 2: NEVER withdraw cash using a credit card! This is valid in the US as well, but even more so abroad. You will pay dearly!
  • RULE 3: Withdraw cash only by using your ATM card from an ATM machine bearing one of the symbols on the back of your card. The symbols on the front (VISA or MasterCard) are important only for purchases. Many ATM machines show the sign VISA or MasterCard only and none of the cash networks signs. If you don’t see one of the signs on the back of your card, then look for another ATM machine.
  • RULE 4: If you’re taking a credit card with you, call your bank and ask them how much they charge you on international purchases. Regardless if it’s a VISA or MasterCard, each bank that issues a credit card has its own fee.
  • RULE 5: Know what your daily maximum for cash withdrawal is. Depending on the fees charged by your bank, many times it makes a lot of sense to withdraw the maximum allowed in one transaction. Many banks charge a flat fee for each transaction regardless of the amount.
  • RULE 6: While abroad, withdraw cash only from a local bank ATM machine and not from shopping malls or train stations. These ATM machines most likely will charge you extra.

Conclusion

Remember that the symbols on the front of your ATM card are for purchases while the symbols on the back are for cash withdrawals.

I use my ATM card for all cash withdrawals and I use a credit card sparingly for purchases only when I don’t have enough cash on hand.

Other Resources

  • The best resources to compare different banks and cards can be found at: FlyerGuide.com – you’ve got to check this out.
  • BankRate.com maintains a list with some examples of fees. Check it out, but make sure you check with your own bank first.
  • Read Jonathan’s article (from MyMoneyBlog.com) on traveling internationally. He has great insights. He also recommends the Capital One No Hassle Cash Rewards Card for travel expenses outside the US.

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5 Responses to “6 simple rules for using your ATM and Credit Cards in Europe”

  1. corey said:

    January 3rd, 2008 at 6:55 pm

    I came here by accident, but just might stay :)

  2. Adam said:

    August 31st, 2008 at 4:48 am

    I know this is post is a bit old, but I just stumbled across it and thought I’d add my two cents. Whenever overseas, I use my Capital One Visa Cards…not only do they not charge a foreign transaction fee, they absorb the fee passed down by VISA. :)

  3. vlad said:

    September 2nd, 2008 at 3:28 pm

    Thanx for the comment Adam…yeah this post is old but very useful apparently. Thanx for the good info on Capital One Visa Card. That seems like a great choice if they don’t charge any foreign transaction fees…amazing!

  4. Tom said:

    January 22nd, 2009 at 12:32 am

    I travel to Ireland and the U.K. carrying groups to play golf once or twice a year. The best way to save money on exchange rates is to open an Irish or UK current account (in my case the Bank of Ireland (they have Euro banks in the Republic and Pound Sterling banks in Northern Ireland which is a part of the U.K.) Each carries an ATM card which they refer to as a “Laser” card in the Republic and “Switch” card in Northern Ireland. I watch the currency exchange during the year and when it is advantageous I purchase the currency and have it wired to my Irish accounts. I get the currency at slightly higher rates than inter bank rates and there is no charge for withdrawal when I use my cards in “Euro land” or Great Britain.

  5. vlad said:

    January 22nd, 2009 at 7:02 am

    Thank you Tom…that’s really good insight for those who travel often to UK/Ireland.

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