Save money while traveling: these are the best bank cards for holidays in Europe

A comparison with the most expensive banks in the test shows how little this is. The same transaction – an online purchase of 10 euros – was billed on Swisscard (Cashback, Poinz), Cornèrcard and Viseca (Manor credit card) with a decent surcharge of 4.0 percent. Anyone who spends 1,000 francs with these cards during the holidays pays 35 to 40 francs more than neobanks.

A comparison with previous test results shows that the tariff structure of many banks has changed little. First of all, Credit Suisse’s subsidiary Swisscard and Cembra (with Certo in the test of 3.9 percent) are regularly among the most expensive banks when it comes to exchange rates.

Many customers still seem to be unaware of how expensive overseas purchases can be. Or they have a second card for that. Shopping abroad is good business for banks. About 40 million of card company Viseca’s annual sales of 500 million francs in 2020 came from foreign exchange commissions (the company has not published an annual report since).

The reported price tells only half the truth

The test also shows one thing: Actual costs often have little to do with foreign exchange surcharges reported by banks. According to the bank statement, the refund from Swisscard charges a surcharge of 2.5 percent, while the Cornèrcard card charges a mere 1.2 percent. In the end, both result in a 4 percent effective cost. Cornèrcard basically uses a lower exchange rate for billing.

Also, beware of hasty conclusions: some banks initially display a temporary exchange rate or Swiss franc amount in their apps. This could still change after a day or two with the final compromise. And then it usually gets a little more expensive. Also ugly: the Viseca One card app with Zak von Cler shows a different exchange rate than the statement.

However, there seems to be a movement. For example, the exchange rates of the Migros Cumulus credit card have improved since the card was no longer issued by Cembra but by Migros Bank. The card is now in the middle with an effective cost of 2.5 percent.

CSX’s debit card is also one of the cheapest offers among traditional banks, at 2.5 percent. Bank Cler’s Zak digital account goes a little below that. The new digital bank Radicant netted 1.8 percent.

What the test also shows: The same bank often charges different fees depending on the type of card: credit or debit card. For example, at Postfinance, shopping costs 3.4 percent with a credit card and only 2.2 percent with a debit card. The Postfinance Card is included in the test for the first time as it now also carries the Mastercard label.

Not for small amounts: debit cards with fixed reservation fees

Test purchases with Migros Bank (17.1% surcharge) and Raiffeisen (17.9%) debit cards were very expensive. However, this is not due to exchange rates, but to the bad habit of charging per transaction abroad, which is also practiced by other banks.

Both banks charge CHF 1.50 per purchase, regardless of volume. These cards are therefore not suitable for small sums abroad. Examples of Credit Suisse, Postfinance and almost all neo-banks show that there is another way: their cards also work as debit cards. However, these are without fees.

Tips and tricks for the holidays

Which cards are suitable for withdrawing money?
As a rule, debit cards are more suitable for withdrawing money from ATMs, as many banks charge a lower basic fee per withdrawal. This makes a big difference, especially in countries where only small amounts can be withdrawn. However, this does not apply to all banks: Revolut or Neon (abroad), for example, only charge a percentage fee. These types of cards are best suited for cash withdrawals.

Do you use the franc or local currency abroad?
Always pay in local currency. Testing has repeatedly shown that card issuers’ exchange rates are better than those of on-site billing companies (keyword: Dynamic Currency Conversion DCC). This is especially true if you have a card from a prominent bank with very good rates. First of all, there is a reason to bill in local currency: Some banks charge a foreign fee for Swiss franc amounts abroad. This is then added to the actual price premiums.

Are all ATMs the same?
NO. Some ATM operators charge additional fees for cash withdrawals. These are always shown at the ATM and are added to the costs charged by your bank. Be wary of non-bank ATMs. If you find that such additional ATM fees are common in a country, it’s worth doing a quick test at a few ATMs. However, paying directly by card is usually the cheapest.

When is it really expensive?
Be careful with exotic currencies – in fact, almost all currencies except the euro, US dollar and British pound. Here, exchange rate surcharges can sometimes reach double digits, as regular reviews by the “Handelszeitung” show. Neo-banks then usually charge a slightly more expensive exchange rate, but by no means to the same extent.

Are “expensive” cards worth it because of the refund?
Some banks pay turnover bonuses to their customers. In the form of points or franc credits. This can hold a large amount of money throughout the year and is especially important if the card is used domestically. However, these loans are typically in the range of 0.5 to 1 percent of sales, and thus far below the foreign exchange surcharges of these banks.

Is it best to change money at home?
Only do this if the currency exchange operator is your friend and you want to do her a favor or she wants to do you a favour. As far as the euro is concerned, the differences shouldn’t be too big. However, you should definitely withdraw more exotic foreign currencies from local ATMs. Note exchange rates applied by Swiss banks are significantly more expensive. Warning: In some countries like Denmark, cash has become so popular that you may not even get rid of your notes. The rule here is: card is king.

And what’s the best tip ever?
Get a second card. Want to pay for your flight to Switzerland with your UBS card because you get a bonus and (often unused) travel insurance? Good morning my baby. So what prevents you from opening an account with Revolut, Neon, Yapeal or Yuh to spend abroad? Nothing. However, you can save several hundred francs if you pay abroad regularly, which is calculated throughout the year. Accounts of these banks are generally exempt from account maintenance fees.