Using a credit card abroad: avoid fees & pay smart

These fees apply abroad

Abroad, a credit card can cost considerably more than at home. Knowing the individual items helps you avoid them. Outside the eurozone in particular, small percentages quickly add up.

• Foreign currency fee: usually 1 to 3 % of turnover on non-euro payments
• Cash withdrawal: often a flat fee of €5 to €7.50 per transaction, sometimes plus a percentage
• ATM operator fee: charged by the machine itself, regardless of your bank
• DCC surcharge: up to 10 % if you pay in euros instead of the local currency at the terminal

Within the eurozone you pay nothing extra

Payments in euros generally incur no foreign currency fee — no matter the country. Important: the currency matters, not the country. In Sweden (krona), Switzerland (franc) or Denmark (krone) you pay a foreign currency fee despite being in Europe, because settlement is not in euros.

The DCC trap: always pay in local currency

DCC stands for Dynamic Currency Conversion. If an ATM or card terminal asks whether you want to pay in euros instead of the local currency, always decline and choose the local currency.

With DCC the merchant or ATM operator does the conversion themselves — at a far worse rate with surcharges of sometimes up to 10 %. If you let Visa or Mastercard convert instead, you get the fair interbank rate.

How to save the most abroad

With the right preparation you'll barely pay any fees while travelling:

• Choose a travel credit card with no foreign currency fee (0 % worldwide)
• Always select the local currency at terminals and ATMs (decline DCC)
• Withdraw larger amounts less often to save on flat fees
• Carry a second card as a backup in case one gets blocked
• Check your card's daily and foreign limits before the trip