Lory Money
ALWAYS CARD
Consumer experts have it clear. Except in very specific destinations, they clearly recommend the use of a card, whether credit or debit. This could apply both to trips through Spain and to departures within and outside the euro zone. The reason is that the exchange rates that apply to card payments are usually more favorable than those applied when exchanging cash, according to a recent study by the Organization of Consumers and Users (OCU). The European Central Bank and the Bank of Spain regularly publish the price of the euro against other currencies, although it is only for guidance since it is the banks and exchange houses who, freely and individually, mark it.
"We always recommend that you pay by card," explains María Zamarriego, a lawyer at Ausbanc. "You are protected against theft, in the event that one occurs, the payment can be canceled and the charges will be returned to you, and the commission they charge you for the currency exchange will never be higher than the one they charge you at the bank branch" she adds.
THE PROBLEM OF COMMISSIONS
Paying by card entails, in most cases, the payment of commissions derived from currency exchange. A study carried out by the TYRIUS association in 2012 warned that almost all banking entities had begun to charge them for purchases made in a currency other than the euro. At that time they ranged between 1.5 percent and 3 percent (the latter percentage being the one applied in 55 percent of banks)
The exception also exists and they are EVO Banco and Arquia, the architects' savings bank, which allow not facing these payments. With the EVO Banco Smart Account you can withdraw unlimited amounts at any ATM and pay at any merchant without commission, while the Joven account allows you to withdraw four times a month anywhere in the world.
However, they are exceptional cases since, as the TYRIUS study pointed out, most cards charge a commission for both merchant payment and withdrawal . Therefore, in order not to be surprised, it is good that before leaving on a trip you check the commissions charged by your entity, on the Adicae website (Association of users of Banks, savings banks and insurance) there is a tool that facilitates it. “It is always more advisable to pay with VISA because the exchange commissions are lower and more beneficial for the customer than other cards such as Master Card or American Express”, Zamarriego points out.
CREDIT OR DEBIT?
It is best to always carry two cards and keep them in different places. No one is exempt from a failure, loss or theft. For these cases, consumer experts recommend writing down the telephone numbers in the travel book to block cards abroad.
Given the choice, the ideal would be to keep a credit card and a debit card in the suitcase. Because if credit is better for payments in stores -payments come at the end of the month and thus we do not face currency fluctuations-, For withdrawals, debit is always more recommended. . According to the OCU report, the debit ones usually charge less commissions for extraction than the credit ones, although in both cases they are usually quite high.
Once in the store, especially in large establishments, the question is raised by the clerk: In euros or dollars? The question seems simple but it is not so. “If you pay euros, they apply the exchange rate that the establishment deems appropriate and that can sometimes be dangerous. There is no doubt that they will try to benefit. It is best to pay in the currency of the country you are visiting and let it be your bank that makes the change for you later”, says Zamarriego
ADVANTAGES AND DISADVANTAGES OF CASH
It is clear that cards are always the first payment option when traveling. However, consumer associations insist that we cannot go out without cash. As much as in countries like Denmark cards are accepted in all establishments, unforeseen things can always happen like a damaged dataphone or a tempting street market. In addition, to control our expenses well, it is best to bring the money changed in advance and only use the card for mishaps. This way we will not melt the money into gifts.
There is no doubt where to exchange currency. The most recommended place is always a financial institution. You can choose the one that offers you the best commission or make it your own and try to negotiate a more favorable exchange rate or lower commissions. “In exchange offices, the commission is always higher. Keep in mind that they live only on that”, they warn from Ausbanc. Then downtown stores are always more recommendable than airport stores . The latter offer the lowest exchange rate but the commissions are more abusive, they can range between 2 and 7 percent.
The most important thing with cash is not to bring it back to Spain. That would mean changing it back to euros and paying another commission. If the notice arrives too late and you have already brought the dollars back to Spain, it is best to deposit them in the account. It will be much cheaper for you.