The suitcase is almost packed. The PCR test is – for how long? – only a bad memory for most destinations. It remains to anticipate the “bank charges” budget for these holidays abroad. No problem for travelers staying in the euro zone: the card transaction fees applied by their bank, whether for payments in euros or ATM withdrawals, are the same whether the cardholder uses it in Biarritz, Rome, Lisbon or Berlin.
Vacationers flying to a destination outside the euro zone should however be extra careful, as most banks charge fees on card transactions in foreign currencies. Payments are thus invoiced at around 2.50% of the amount spent, to which is often added a fixed commission of one euro. The bill therefore rises very quickly if you multiply the small payments (unit metro ticket, ice cream, etc.).
As for foreign currency withdrawals, they generally cost 3 euros in fixed fees, plus 1.50% to 2.90%. That is about 5 euros for a withdrawal of 100 dollars (about 95 euros).
“The bill is between 40 euros and 60 euros for a customer of a banking network making nine payments and six withdrawals in foreign currencies of 50 euros each”, calculates Adeline Jubert, director of Meilleurbanque.com. This is roughly the equivalent of the annual fee for a conventional bank card (44 euros). “To reduce costs, network customers have an interest in limiting the number of cash withdrawals in foreign currencies, which are subject to penalizing fixed costs”, add Mme Jubert.
Credit cards free of charge
However, it is quite possible to circumvent these costs to lighten your holiday budget. For several years, bank cards with no fees abroad have been on the increase. A pioneer since 2018, fintech Aumax pour moi, a subsidiary of Crédit Mutuel Arkéa, does not provide fees on foreign currency payments and withdrawals. The customer can either pay money into his Aumax account for me or link it to his usual bank by aggregating his bank card in his Aumax account for me.
“In other words, we allow customers of banks charging fees abroad not to pay any”, summarizes Hugues Mercier, the general manager, who notes a 10% increase in subscriptions to his card as the holidays approach. Please note that the free version of the Aumax card for me limits the amount of weekly payments to 2,000 euros. Same principle for the Pumpkin card, also free, which provides two unbilled withdrawals per month. Similarly, the neobanks N26 and Revolut have made currency transactions their trademark, including for their free standard cards.
You have 50.39% of this article left to read. The following is for subscribers only.