Credit cards, as a diverse means of payment, facilitate electronic payment and cash withdrawals when traveling. Abroad in particular, credit card help can be used to avoid unnecessary fees when withdrawing cash.
The advantages of current credit card offers: Not only is cash withdrawals free of charge, but also the credit card itself.
Potential fees for withdrawing cash abroad
In the case of cash withdrawals from ATMs, percentages are due for the amount. If you use an EC card, for example, if the machine accepts it, around ten percent of the amount withdrawn may be incurred as additional costs. Potential fees for credit cards are subject to the conditions of the respective institution and where you are abroad.
Outside the European Union, for example, different regulations apply. Current rates at ATMs for credit cards include between 1% and 4% of the withdrawal amount. In addition, especially outside the European Union, there is a charge for use abroad.
How to avoid unnecessary costs
Don’t just rely on one form of payment if you want to avoid unnecessary costs. Find out in advance about the regulations of your travel destination and adjust your payment method to the respective occasion. Depending on where you have to make a payment, the use of cash or other payment methods is advisable.
When dealing with cash in countries with foreign currency, note the exchange rate or where the exchange of money is cheaper. When dealing with cash, also observe the regulations that exist for the import and export of foreign currency and the respective country regulations.
ATMs abroad carry the logos of the credit card providers abroad, as is the case here. This gives you an orientation of where cash withdrawals are possible. Many credit cards allow free cash withdrawals abroad, but charge annual fees. These costs can be avoided by using a free credit card offer with no corresponding fees.
Choosing the right (travel) credit card
Payment and payment terms vary by country. It may therefore make sense to apply for an extra credit card for travel. Because other available means of payment such as EC cards do not offer the same advantages abroad as in Germany.
But which credit card is now suitable as a means of travel payment and for free cash withdrawals abroad?
Since the offers and associated provisions vary widely, it is worth choosing a credit card provider that meets your individual requirements. A free credit card, which also enables free cash withdrawals abroad, is usually connected to a checking account. If you do not want this, there are also occasional offers without a current account, for example at the Santander Consumer Bank.
Important: Ask the respective credit card provider beforehand about the limit for withdrawals abroad. If you have to withdraw large amounts or often cash abroad, difficulties may arise. Since there is no uniform regulation on these limits, only the bank’s respective price list provides information. With regard to restrictions, you should also take a closer look at free credit card offers. In some cases, for example, the annual fee does not appear in the first year of use.
The offer for credit cards, which enable free cash withdrawals abroad, is increasing.
Here is an example of such an offer: The Litebank MasterCard
- Part of the checking account
- Free cash withdrawals worldwide from all ATMs with the MasterCard logo
- no annual fee (creditworthiness required)
- Online banking (for example via the Litebank app) also provides an overview of finances abroad