Paying for things around Spain

Verify with your bank what the fees are and if your card will work in Spain (some banks have blocked debit transactions in Spain)

Generally an ATM card is your best bet if your bank charges no fees, but if your bank is one of those that charge a $5 fee for using an out of network ATM plus a 3% foreign transaction fee, then using an atm will be costly ( 5.5% on $200) In that case, using a credit card would be better, some charge a 3% Foreign Transaction Fee, better cards no fee. You will need cash, Getting euros in the US will cost you at least 5%, up to 10% (more if you do it at the airport); so in that case, for the security of not carrying large amounts of cash, even an ATM card with fees is about the same.

We got home two weeks ago from a month in Spain and Portugal and I agree with what Paul wrote. To get euros we used a debit card from a B of A checking account. They charged the 3% international transaction fee plus $5 unless it was a partner bank (Deutsche Bank is one that is in Spain; Barclay's also.) We also used a Citi Bank credit card with no international transaction fee. I wish I'd used it more frequently! As suggested, check with your bank and also investigate credit unions regarding fees. Get a new credit card if yours has international transaction fees and you have time to do this before you leave. Good luck.

Two things to keep in mind when withdrawing at ATMs. Firstly, take out a reasonable amount, as you are paying $5 each time for the privilege. For me, travelling solo, that's typically 300 euro. Secondly, always tell the ATM to "let your bank make the conversion". If you don't get this message, go to another ATM.

Start by reading the fine print for your bank's ATM/debit card to understand fees on foreign exchange transactions. Your bank, not the machines in Spain, impose these costs (unless you are using a non-bank machine; don't.) The teller at your home branch may not know the rules either. The advice to take out a large amount at one time is cost-efficient, plus paying with cash is fast and easy. Debit cards may not be accepted for over-the-counter purchases. For security, open another chequing account at another bank so you will have two sets of cards, in case the bank machine takes a dislike to one of them.

'a smart way to pay for things in Spain' - depends on what 'things' but cash is still king in many eateries and small businesses, so you use atms.

Do you have a credit card, preferably one with no fees (capital one is good for this, there are others)? If so, that is the best way to pay for larger expenses. Also most places accept credit cards for smaller charges (thinking things like a decent restaurant meal, admission to popular sights or souveniers). Smaller things like inexpensive restaurants, coffee stops, or small museums often only take cash.

To get cash - look at your current ATM card's policy and then use ATMs there. They are very easy to find and use There will be fees, but if you get out a few days worth at a time rather than getting 20Euro here and there you can minimize that. This is usually cheaper than exchanging dollars (at home or there).

... well Bill, it's also "ironic" to say the least that you can have your McMenu with wine or beer here, isn't it? LOL!

I see this topic a lot on travel boards and shake my head. We do the same as we do at home - if the place accepts cc - that is our go to payment method - love earning points - if not we pay cash. When we run low on cash we go get some from an ATM. Am I going to rack my brain and spend precious time looking for the right card or ATM to save what 30 or 40 bucks over a few weeks time on a vacation I've dropped thousands on.

For some I think saving the most money is almost a "sport" - for me I would rather concentrate on other areas of vacation planning.

It's always good before using an ATM to know your banks daily limit amount and divide that more or less with the exchange rate
at the time Euros to USD. I like BBVA banks as you can choose small notes so you get a mix of 20's and 50's.

Thanks guys this helps.

Am I going to rack my brain and spend precious time looking for the right card or ATM to save what 30 or 40 bucks over a few weeks time on a vacation I've dropped thousands on.
For some I think saving the most money is almost a "sport" - for me I would rather concentrate on other areas of vacation planning.

Christi - I often feel that I am the sole poster here that doesn't see the benefit of getting new banks and credit cards for a 2 week vacation. Glad I am not alone.

To answer George's question - Know the fees for your various cards and use them wisely. Notify your banks of your travel plans (though some have stopped requiring notifications). And never use a currency exchange unless it's an emergency (their cost - whether fees or a bad conversion rate - exceed 10%). Some people do bring a little local currency with them and your local bank, a Wells Fargo or AAA may be able to convert that for you at a nominal fee.

To clarify something mentioned - in Spain you will often encounter what is known as DCC (Dynamic Currency Conversion). It is an offer to convert the transaction into your own currency. NEVER accept that as it allows the merchant or ATM to set the conversion rate (to their favor of course). It just gives them profit so you don't do the math in your head. And it doesn't prevent your bank from still charging the foreign transaction fees. It happens at ATMs and with CC transactions. You are always offered the choice to decline by law or are asked "euro or dollars?". If you are not asked and you see the transaction is shown in dollars, decline the charge and have them re-run the transaction.

I don't care if a bank requires it or not, I still notify everyone when I will be traveling. I was in Spain for two weeks about a month ago. I had 39 euros left over from my last trip, and I took the Airport Express bus to near my hotel (5 euros). As soon as I put my bag in my room I stopped at an ATM and got money with my credit union debit card (no fees - including no foreign transaction fee - from either my credit union or the bank whose ATM I used). I then used cash at restaurants and for buying incidentals. I had already purchased my train tickets before leaving the US, but if I hadn't, I would have used a credit card. In general, I get money from an ATM when I arrive and use mostly cash, except for hotels, where I use a credit card. And in all of the places I have used my credit cards and debit cardsin Spain on four trips now, I have NEVER encountered DCC, so it's not really as common as people lead you to believe. You just have to read what you are clicking.

If you had a bank that charged you 3% on the exchange and a $5 withdrawal fee at ATMS the first thing you should do before traveling again is get a better bank. We dropped that bank and now have an ATM card with no fees and 1% transaction /exchange fee and a credit card with 1% exchange fee that also gives good points; we are paying for this fall's airline ticket with points from our Capitol One credit card.

No reason to support banks that abuse their customers with these kinds of fees charged 'because they can' not because it is their cost of doing business.

On mymcurrent trip an ATM in Burgos, Spain, tried to charge me 5 euros to withdraw money. Naturally, I canceled the transaction and found a different ATM. The problem bank had Burgos in its name--at least I think it was a bank, something like "Caixa de Burgos". No problem with any other ATMs so far.

One thing that doesn't always get mentioned in these how-to-get-money threads is that ATMs nearly always give you a choice of languages, including English, at the beginning of the transaction. That makes the process a lot more comfortable. But you must take the time to read the screens to be sure you're not subjecting yourself to a fee or to the dreaded dynamic currency conversion. I'm seeing more offers of DCC this year in Spain than I encountered last year in Italy. My Burgos hotel charged me in dollars without showing me the selection screen or saying anything about it. Had to get them to void that transactioh and re-run it in euros. Hate sneaky practices like that. At least on an ATM you'll always see the option displayed.

I agree with janetravels that there is no reason to support banks that charge junk fees; however, that's our principle with all our banking, not just when traveling. Years ago, 2008 to be precise, when so many of the big guys were behaving so badly, we switched to a local bank that doesn't charge for foreign transactions and actually refunds to us fees that other banks levy for using their atms.
Nonetheless, I also agree with Christi and Douglas that a lot of people seem to get obsessed with what are fairly minor travel costs, like getting an IDP or finding an atm, in a foreign country, with the lowest fees. It's easy to get caught up in that mindset. Years ago, when we had a bankamericard and B of A was charging no foreign transaction fee if you used a partner bank atm, we were in a small village in France. I didn't see a BNP (one of their partners). I asked if there were one and was told no. but there was in the next town. For a moment I considered it and then thought that's nuts. Drive for 5 or 10 minutes to a town I had no interest in, hunt for the bank, find parking, then return, to save a couple of $$? Since then, I've tried to keep focused on the big issues - -not that it's easy when you were raised in a frugal family by parents who grew up really poor.

It's a good idea to get acquainted with the financial panorama of the destination country when you're travelling abroad. Some things you might find outrageous or weird might be the norm there.