Using Credit & Debit Cards in Spain
In theory, it is possible to use your foreign credit or debit card in stores and (some) restaurants in Spain. However, in practice, many shops' credit card machines are out of date and aren't very good at accepting foreign cards. I wouldn't rely on this as a form of payment - always carry enough cash just in case your card isn't accepted.Note: in Spain, it is a legal requirement to show photo ID when paying by card. This is in addition to signing the receipt (and, sometimes, typing in your PIN). However, many shops would rather take your money than risk losing business, so if you don't have your passport with you, it is often possible to get them to accept your card anyway.
Paying by Cash in Spain
Paying by cash is obviously the easiest way to pay in Spain. You have three main ways of getting your cash - travelers checks, ATMs (cash machines) and exchanging your money inside a bank or at a bureau de change.Exchanging Money in Banks in Spain
It is possible to exchange most major international currencies in most banks in Spain. However, the exchange rate will be no better than the ATM and you'll have added disadvantage of having to stand in line for a long time as well. Spanish banks also close very early (by 3pm on most days. You'd be better off using ATMs.Exchanging Travelers Checks in Spain
Most travelers checks can be exchanged in Spain. However, the lines in Spanish banks can often be quite long, and with ATMs being so easy to use, bringing travelers checks is usually more hassle than it's worth.Most people bring travelers checks as a safety precaution, just in case their bank cards are stolen. But who is to say you won't have your travelers checks stolen as well? If you have two bank cards, leave one in your hotel (or carry it in a different pocket to your wallet) so that if you do have one stolen, you still have another means of accessing your money. This makes bringing travelers checks redundant.
- American Express Travelers Checks in Spain
For some reason, AmEx travelers checks are especially difficult to cash in Spain. If you really want to bring travelers checks, don't bring AmEx.
Using ATM Cash Machines in Spain
There are plenty of ATMs (cash machines) in Spain and they all take foreign cards. That includes VISA, Cirrus, Citibank and American Express (AmEx).- ATM Cash Machine Charges in Spain
The amount you are charged to withdraw money from a bank in Spain is set by your home bank, so you should check the charges with your bank before you leave. The amount is usually very small (about 1.50FBP/2€/$3), about the same as the commission you would be charged if you were taking the money out of the bank's bureau de change. Unless you are taking very large amounts of money out (say, a couple of thousand euros), the commission will usually stay the same, so it is worth taking out as much as you'll need for a few days. However, taking out large sums of money obviously leaves you susceptible to thieves. - Banks that Don't Charge to Withdraw Money Overseas.
- In the US State Farm Bank allow you to take money out of overseas ATMs without charging you for the privilege.
- In the UK Nationwide and Abbey's Zero account do not charge for withdrawing money overseas or for making credit card transactions in a foreign country.
If you know of bank accounts in other countries that don't charge for withdrawing money overseas, please email me and I'll add the details to this page.
ATMs in Spain usually offer you the option to be charged in Euros or your home currency. While it sounds tempting to be charged in your home currency, all this means is that the Spanish bank will choose the exchange rate and fees for you, whereas if you choose to be charged in Euros, your home bank will set the fees and exchange rate. The Spanish bank's offer will invariably be worse than what your home bank will offer - so always choose to be billed in Euros
