Hello!
We will be traveling to Spain in October. We aren't sure exactly how charging on credit cards in a different country works. Do we need to make any specific arrangements with our bank before we begin charging?
Also, while we are in Spain, we will be utilizing cash to make purchases, eat, drink etc. We would like some advice on how to do this safely and most efficiently. Our trip will be for 15 days visiting 5 different cities by train/bus.
Thank you for your help!
Razan
You need to let your credit card issuer know where and when you will be traveling (not each individual city, just that you will be in Spain from x date to x date in October). If you have a layover in any other country, tell them that, too, on the off-chance that you might need to use a card there, say for an unexpected delay due to a canceled flight or something. Your regular credit card will work just fine for most things. You won't be visiting any unmanned gas stations or anything, so you should be fine.
As for cash, you can use your regular debit/ATM card at any ATM. It's best to use one at a bank during business hours, just in case there are any problems. Don't worry if an occasional ATM won't work for you. Just move on down the block to the next one - they are everywhere. Getting cash from an ATM will be the cheapest, fastest way to get cash. Again, your bank needs to know that you are traveling.
I go to Spain fairly frequently and have never had a credit card or debit card issue anywhere, though there has been the occasional time when an ATM wouldn't work. One other thing, check the Renfe site for discounted train tickets for any dates/times that you are certain of. The discounts can be substantial. My ticket from Barcelona to Madrid, usually 125 euro, was 39 euro when I bought it a little over a month ahead.
You absolutely need to notify your bank and CC companies before you go overseas- or you might find yourself without any funds whatsoever! They'll probably ask for your itinerary and dates.
An ATM is usually your best bet for cash at the lowest interest rate. There should be plenty of them at the airport. I like to have a certain amount on me when I arrive, but that's a personal decision. Know that you usually can't access a savings account from Europe so if you have special funds "set aside" in a savings account, you'll want to transfer them to checking before you travel. I learned that lesson the hard way! Be sure to use a money belt or some kind of secure storage piece- like a neck wallet. I swear by my pacsafe purse and backpack. Keep snack money handy in a front pocket if you like, but keep any big bills, passports and anything else you don't want to lose in your money belt. If you decide to take a purse or backpack, make sure it's aways on you ad always in sight.
You'll see lots of info on this Forum, and in Rick Steves' guidebooks about this, but make sure all charges on your credit card are done in the local monetary unit (euros). Some merchants will give you the option (or might assume, and ring you up without confirming) of ringing up your transaction in US dollars, as a "convenience," to supposedly save you having to calculate the exchange rate in your head and to know just how much you're spending. This "dynamic currency conversion" winds up charging you a higher fee for the "service." If you charge the transactions in Spain in euros, your credit card company will do the converting (not the merchant's bank), and you'll get a better exchange rate.
We have a Chase Bank credit card that doesn't charge any foreign transaction fees, and there are other credit card companies that offer a similar deal, but others charge a 3% or higher fee. Check with your company and see what the policy is for your card, and if it's not to your liking, see if they can offer you a better deal, or consider finding a credit card that will.
As for ATM's (called bancomats in Spain), also let your bank know that you'll be traveling in Spain, so they won't think a thief is trying to withdraw your money. Also be aware that proper bank-owned ATM's, which you'll find everywhere out on the street and at banks, will give you a better exchange rate than quasi-ATM's operated by Travelex and other money exchange services. You may see Travelex machines at the airport, but look for ATM's from an actual bank, like Santander and others. Make fewer, bigger withdrawals rather than lots of smaller withdrawals to minimize ATM fees (or have an ATM card that doesn't charge ATM fees for using machines outside of those that belong to your home bank). Having a second, back-up ATM card is helpful, just in case the first one gets eaten by a machine.
Thank you everyone for all your great info! It is a little daunting to think about all of this. We will be paying for our hotels when we check in, which I think is how it is done usually. We do have the option to pay ahead of time, but we may just wait until we are there. What worries me the most is the idea of carrying too much cash, or even worse, having our cash in our bank account compromised while out of country. I appreciate all your help, and I will be making all the necessary calls before we leave!
All good advice. One other wrinkle that I only found in Spain. I found machines that asked if I wanted the money charged in dollars or euros --- if you haven't seen this before you might think 'well dollars of course because my account is in dollars' -- MISTAKE. What that does is essentially generate an extra set of transactions fees as they translate (with loss) to dollars and then to Euros and then when it goes back to your bank, back into dollars. It is a way to carve a hunk out of your cash -- a scam.
Since ATMs getting money abroad has been easy.
As noted -- the key is that your bank needs to know where you are. And you need to know the procedure for contacting them if they mess this up which has happened to us twice in spite of careful notifications beforehand. Once we were without money in China. We were able to straighten it out because we had a banker to notify who could so.
The posts above are all spot on. For more money information, here's Rick's page of great money tips; read all the links, and you'll be an expert: http://www.ricksteves.com/travel-tips/money
"We will be paying for our hotels when we check in, which I think is how it is done usually."
No, most hotels get payment at checkout, although of course there are lots of variations. I prefer to pay at checkout, since I like to pay in cash (I have lower fees on my ATM card than on my credit card), and this gives me time to get the money. But I have had hotels that wanted payment on check in, and just planned for this.
Everyone has given you good information. There's just one point I would re-emphasize. Have more than one cc, and have more than one atm card linked to different accounts. Once, while traveling in Spain, our atm card just simply wouldn't work. After 3 calls to Wells Fargo, whose agents couldn't figure out what was wrong, we relied on our travel companions to get cash. They, btw, were also using WF cards, but with no problems. Go figure. You don't want to be a a situation like that. One other small thing. Sometimes, if your card doesn't work, you can just try a different bank; and it will. Why? Who knows?
Good point. We use one card for ATM withdrawals internationally because that bank charges no fees -- but we have a second card from Hated Giant Octopus Bank in case the first fails to work. We have moved most of our money out of that bank but keep a small account as backup. Same with credit cards -- have two in case the one you normally used is lost,stolen or eaten by a machine.
DCC is rife in Spain including ATMs so always have your guard up. Using a bank's machine rather than an independent does not guarantee to insulate yourself from this as both may offer transactions in 'your currency'. Say no and withdraw / pay in euro.
The first time I used my credit card for a purchase in Spain, the "dynamic currency conversion" was used. A long investigation ensued with the shop clerk and her boss (by telephone). It turned out that the conversion was automatic, the clerk did not have a choice to offer me. It was a small amount so I let it go (in fact, the shop owner was willing to compensate me). But I learned a lesson. After that, except for hotels and on-line train tickets, all my purchases were in cash.
Thank you, again, everyone for your awesome advice! We are planning on opening a separate checking account to put our cash in for the trip, that way we don't jeapordize all of our savings, etc., if something were to happen such as fraud. Also, we are planning on opening a 0% interest/no foreign transaction fee credit card (we read that Capital One is a good one to try) so that our major purchases such as hotels will be taken care of without the need to make multiple withdrawals while we are there.
My next question, and I hope you humor me a little more, is concerning cash-on-hand. We will be traveling to Madrid, Granada, Nerja, Seville and Barcelona, and are aware of the fact that each city or town has different costs of living. However, a general idea of spending money per person per day would be helpful. Rick Steve's 2015 book mentions $110/person/day including hotel, but I was hoping for more information about the specific areas we are visiting. Would $40-50/day per person be sufficient for a budget-minded trip? (no fancy dinners, and pre-purchased exhibit tickets, metro cards, and train tickets).
I appreciate all of your help, and thank you again!
First, start thinking in euros not dollars ;-)
€35-40 per person, per day could work, if that's just for meals and nothing fancy. Is breakfast included in your room rate? If so, great, if not, breakfast will add to your food expenses, especially if you want something more extensive than a coffee and a churro. Be aware that wine could be cheaper than soda pop at places, and get tap water (agua del grifo) instead of expensive bottled water. House wine is vino tinto for red, vino blanco for white. Do try to experience the wide variety of wonderful food throughout Spain, and maybe even allow for one splurge diner.
We've been to many parts of Spain (and other countries) and the only credit card issue we had was in Santander (not the bank, the city). Our cards could not be read by the hand held scanners. The merchants always asked about the chip in the card; our card don't have chips. The only way to manually override this was to have the merchant enter in the card number manually. Most were not willing to do that. So, we resorted to cash when we were there. I wonder, will the US credit card companies start adding chips to our credit cards? Oh, we never had a problem (even in Santander) using our debit cards to withdraw cash.
We only have breakfast in a couple of the hotels, so we are planning on going out for breakfast in those cities. We aren't trying to be super cheap in regards to enjoying ourselves, but rather want a general idea of what we should budget for. We are staying in Barcelona for 5 nights, and Ive read and heard that it is the most expensive city to stay in, so a large chunk of our spending money will be dedicated to Barca.
Thank you again, everyone! We are starting to think in Euros! Because of everyone's great advice, I am not as apprehensive about the money portion of this trip. I appreciate all your comments!
Great advice given above. Keep re-reading it. Use only major bank ATMs. Just pull cash as you need it 1-2 days worth at a time from an ATM. This is described in Ricks ETBD and other guides. Always choose to pay via Euros, not in $USD. Some ATMs will not have English, or not work for you every now and then. Not to worry. Find another one.
Some bank credit cards want you to call them prior to travel, some no longer require that. I called prior to leaving and one customer service rep told me I no longer had to call them. The other card wanted me to then when I returned home that sent me an update on policy change where I didm not have to call them either. Check with your cards.
I have a RENFE tutorial on the Transportation section also. Worth purchasing train tics ahead of time.
Allen,
Where can I find your tutorials? Thanks again!
Just click on my name and then on the link "Topics that Allan has participated in" and that will bring you to a list of my posts.
One other rare wrinkle, but if the cards you are using are both issued by a smaller bank or credit union, have a conversation with them and assure your cards will work in Spain. There have been some reports of smaller card issuers blocking transactions in Spain and some countries as fraud protection.
Related, as has already been mentioned, have a couple different Credit Cards, several times an odd issue with one, but the other one did work. Also, though I have only had to resort to it once, having a credit card with a PIN that you can withdraw a cash advance from an ATM adds another level of backup.
For extra info:
http://www.creditcardinsider.com/insider/transaction-declined-using-your-u-s-credit-card-in-europe/
http://www.huffingtonpost.com/EuroCheapo/using-american-credit-car_b_4005630.html
http://www.nbcnews.com/id/43582483/
http://seattletimes.com/html/travel/2021037061_creditcardtravelwisexml.html
thank you Enric!
For credit cards, yes make sure you let your bank know you are going - in fact call at least twice to double check. They may still get it wrong and put a "fraud alert" hold on your card until you call them personally - so bring their non-800 phone numbers (I think it's okay to call collect). We didn't bring a chip and pin credit card. We only missed it in automated places, Barcelona Metro and gas stations, because we couldn't use our regular mag stripe cards there. I always take a primary card and a back-up card that only gets used in an emergency.
For ATM's. I use a debit card for cash but nothing else. Same rule for calling your bank ahead and having their number available. Same for bringing a backup (preferably an account you can transfer money into from the first choice account). I use an indoor ATM unless absolutely necessary. There is plenty of fraud in Europe associated with ATMs and there is less chance an ATM has been tampered with if it's inside a bank, grocery store or department store than out on the street. Normally there will be a warning to cover your hand when you type in your pin, this is to counter both someone observing your pin as well as tiny overhead cameras put on the machines by thieves. Keypads are in numbers only, no letters, so use a four digit numeral pin or at least know the numbers associated with your pin. If anyone is standing uncomfortably close or offers to help with your transaction, cancel, take your card and find another machine elsewhere.
Don't choose to have a transaction in US dollars anywhere (hotel, restaurant, car rental, department store). If you do, you will be charged two foreign transaction fees. One by the merchant/ATM and again by your home bank.
I think 100 euro a day is pretty comfortable for walking around money for two people. I keep it in my front pocket, or we carry 50 each, and everything else stays in a moneybelt. If you need more, use the restroom to access your moneybelt/equivalent, don't take money/credit card out of your moneybelt in public. Every time you get into your moneybelt, take a good look around to make sure you didn't drop anything before you leave; remember this is the stuff you don't want to lose.
