How to Use Credit Cards While Traveling in Europe
Later in this post I share a few affiliate links. I may earn a commission if you click on them and make a purchase, at no cost to you. I really appreciate your support!
After the topic of cash and currency exchange, the second most common question I get about money in Europe relates to credit cards.
Friends back home either think Europe is still an all-cash society, or that it’s an old-fashioned place that hasn’t yet received technology like chip and pin cards.
THE TRUTH IS, USING CREDIT CARDS WHILE TRAVELING IN EUROPE IS PRETTY STRAIGHTFORWARD.
There are some hidden fees lurking in each transaction, though, so be sure to understand how to avoid them.
Read on for a quick explainer to learn more about which credit cards work in Europe, how to avoid foreign transaction fees, and the best credit card to use in Europe.
How to Use Credit Cards While Traveling in Europe
Where Can I Use My Credit Card in Europe?
Credit cards are accepted in every country in Europe.
THE REAL QUESTION FOR TRAVELERS, THOUGH, IS HOW COMMON IT IS FOR RESTAURANTS, ATTRACTIONS, AND SMALL SHOPS TO ACCEPT CREDIT CARDS IN ANY GIVEN COUNTRY?
Here, the traditional advice is that credit cards are less likely to be accepted by small businesses throughout Europe.
But honestly, the payments industry has become much more user-friendly, even for smaller merchants, over the last few years.
In popular destinations like Lisbon, Rome, and Paris, you’ll find plenty of small businesses accepting credit cards.
THE FARTHER YOU TRAVEL FROM THESE MAJOR DESTINATIONS, THOUGH, THE OLD RULES BEGIN TO APPLY AGAIN.
On the flip side, there are some European countries that are moving away from cash entirely.
In some parts of Europe, cash is becoming less common.
In London, access to public transportation can be paid for with contactless credit card payments.
If you’re traveling to a Nordic country (Denmark, Finland, Iceland, Norway and Sweden), I would really caution against withdrawing cash in the local currency; you won’t be able to give the money away.
It will become an expensive, useless souvenir.
Likewise, in cities like London, credit card payments are so common that even street performers have credit card readers set up next to their open suitcases to accept digital tips.
IF YOU HAVE DINNER RESERVATIONS, IT’S A GOOD IDEA TO ASK THE RESTAURANT DIRECTLY IF THEY ACCEPT CREDIT CARDS.
And so long as you’re not in a Nordic country, it’s always a good idea to carry at least a little bit of local currency for small snacks, souvenirs, or refreshments from small merchants.
How to Use Credit Cards in Europe
Despite concerns that Europe might be technologically behind the United States or other parts of the world, we are actually quite current with payments technology, thank you very much.
IN ADDITION TO THE TRADITIONAL PAYMENT PROCESS OF SWIPING YOUR CARD AT A RETAIL LOCATION, CONTACTLESS PAYMENTS ARE ALSO VERY POPULAR IN EUROPE.
Contactless payments can be made by tapping the credit card chip against the payment terminal to complete a transaction.
Contactless payments, even those made with smartphones, are common.
Credit card payments by inserting a chip card is common for higher-ticket transactions.
Contactless payments can also be made by loading a credit card into a smartphone’s digital wallet, and then by tapping the phone against the payment terminal to complete a transaction.
It’s important to remember that with contactless payments via a smartphone or watch, the transaction only works when the device is in payment mode, with near-field communication enabled.
THE LAST PAYMENT PROCESS FOUND IN EUROPE IS INSERTING THE CHIP CARD INTO A PAYMENT TERMINAL, A PROCESS TYPICALLY RESERVED FOR HIGHER-TICKET TRANSACTIONS.
How to Avoid Foreign Transaction Fees
There are two kinds of hidden fees, currency fees and foreign transaction fees, that you might end up paying if you use your credit card in Europe.
CURRENCY FEES ARE HIDDEN UNDER THE GUISE OF CONVENIENCE.
A merchant will ask if you want the payment amount to be converted into your local currency, or if you’d rather pay in the destination currency.
It may seem logical to have it converted into your local currency, but this so-called dynamic currency conversion will be done at bad conversion rates that end up costing you more.
Plus, it’s entirely unnecessary; your bank will automatically convert any transactions in the destination currency to your local currency anyway, and at a much better conversion rate.
FOREIGN TRANSACTION FEES ARE CHARGED BY YOUR CREDIT CARD, AND TO BE HONEST I’M SURPRISED THESE ARE STILL A THING BECAUSE IT’S JUST NONSENSICAL AT THIS POINT.
Why?
Because if you simply get a credit card that offers no foreign transaction fees you won’t be charged the typically 3% per transaction fee.
It’s a silly fee that entirely profits your credit card company.
PERSONALLY, I KIND OF TUNE OUT WHENEVER FOLKS START TALKING ABOUT TRAVEL CREDIT CARDS AND POINTS HACKING AND FLYING ALL OVER THE WORLD FOR FREE BECAUSE OF CREDIT CARD OFFERS — IT’S JUST NOT REALISTIC FOR THE AVERAGE TRAVELER.
But the one type of travel credit card you should have in your wallet, especially if you are traveling abroad, is a no foreign transaction fee credit card.
And unlike most travel points credit cards, there are plenty of no foreign transaction fee credit cards that don’t charge an annual fee.
Conclusion
USING CREDIT CARDS WHEN TRAVELING THROUGH EUROPE IS USUALLY A STRAIGHTFORWARD PROCESS.
But there are a few things I’ll mention in closing:
American Express is not as widely accepted as cards issued by Visa and Mastercard, so it’s best to travel with a back-up card.
It’s important to remember that debit cards are not the same thing as credit cards; using a debit card for travel purchases like hotels or rental cars can lead to large holds on your balance that might disrupt your trip’s cash flow.
Don’t leave that debit card at home, though — if you need cash in the local currency, the easiest way to get it is from an ATM. Just don’t use your credit card at an ATM, or you’ll pay high fees on the cash withdrawal.
If you’re curious about the best way to use cash in Europe, and how to manage currency conversions, you can read more about that topic here.
Until next time,
Angela
PLANNING A VACATION?
When you book through my links, you help support the site — at no extra cost to you.
Thanks for being a part of the Notes From Here journey! ❤️
💃 Book Tours and Experiences with Viator
🛎️ Find Hotels with Booking.com
🚗 Find a Rental Car with Discover Cars
🚅 Book a Train with RailEurope
🛡️ Get Travel Insurance with SafetyWing
🎩 Arrange Private Transfers with DayTrip
🚌 Book a Bus or Ferry with Omio