You should withdraw this debit card abroad

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Vacations abroad create great memories. Sometimes they also cause nasty financial surprises. For example, when you come home and look at your credit card bill.

Blick offers tips to protect yourself against unexpected additional costs.

Withdrawal: prefer debit card

In general, you should avoid withdrawing cash with a credit card. If cash withdrawal is unavoidable, use debit cards (Maestro, V-Pay or PostFinance cards) if possible. Withdrawals with a debit card are usually half the cost of withdrawals with a credit card. In debit cards, the amount is withdrawn in real time, while in credit cards you are asked to pay only at the end of the month and with interest.

One of the competitive debit cards on the market is Yuh’s Mastercard, a neobank founded by Postfinance and Swissquote. If you convert the franc to a foreign currency with this card while traveling, there are no transaction costs, but the spot exchange rate is used on the site. There is only a 0.95 percent exchange fee. There is a fixed fee of CHF 4.90 for withdrawals from ATMs.

Credit cards: Check fees

Since many shops, hotels, airlines, and car rental companies only accept credit cards, it’s worth checking which cards have the lowest fees.

When used abroad, Revolut and N26 Mastercards offer the best conditions. There are no fees for first withdrawals, after which a small fee of between 1.7 and 2% is charged. Unlike most banks that charge between 1 and 3 percent on foreign exchange transactions, there is no margin on the exchange rate. Card payments in Swiss francs, euros or any other foreign currency are free.

Another inexpensive card is the Mastercard Silver multi-currency card from Swissquote. However, holders must have a trading account with Swissquote.

According to Moneyland.ch’s comparison calculator, when it comes to classic credit cards, Migros Visa (Cumulus points) and UBS Mastercard are the cheapest compared to other traditional offers. For example, the Migros Cumulus Visa card offers free cash withdrawals abroad up to 500 francs each, twice a year. In addition, Migros charges a fee of 2.5 percent for withdrawals from ATMs abroad, which represents the lower end of the price range, while it is 4 percent for UBS’s Mastercard. Migros does not charge any transaction fees for purchases made in foreign currencies from abroad, but receives a premium of 2 percent above the euro/franc rate of 0.9 percent in UBS. UBS then recommends a 1.75 percent transaction fee.

Credit cards that accumulate a large number of fees abroad include Mastercards from Coop, Postfinance and Raiffeisen: a 1.5 to 1.7 percent fee for purchases in Swiss francs or foreign currency plus an additional 1.5 to 2 percent exchange rate. fee, a 3.75 to 4 ATM withdrawal fee plus a minimum 1.5 percent transaction fee. American Express from Swisscard (Credit Suisse) is no longer attractive: a 2.5 percent purchase fee, an almost 2 percent exchange rate premium, and a 3.75 percent withdrawal fee.

Cornèrcard cards offer benefits such as insurance or legal protection, but their fees are high. A high exchange rate surcharge of 3.75 percent, 2.75 percent, and 1.2 percent transaction processing fee for withdrawals.

Payment: In local currency

There are also currency conversion fees to consider, so you should choose a cheap card and always pay in local currency rather than Swiss francs. In shops, hotels and restaurants you are always faced with the choice between local currency and card currency. Always choose the local currency. This gives the best conversion rate.

UBS also recommends using local currency for credit card online purchases.

Cash: Small amounts

Not everything can be paid by card. Small snack bars often ask for cash, and tips can be paid almost exclusively in cash. Convert a small amount (eg CHF 200) to local currency before departure, or exchange the money for a cheaper rate when you arrive at your destination airport. It’s a good idea to carry a local currency reserve and an emergency reserve of dollars or euros.

Source :Blick