Debit and Credit Card Charges on Non Euro Purchases

Debit and Credit Card Charges on Non Euro Purchases .

When you travel it’s useful to know if it’s cheaper to spend with your Irish bank’s debit card ,  your Euro credit card  , get cash from an ATM,  or buy the foreign currency before you leave Ireland ?


When you use your Irish debit card or credit card for purchases in non Euro currencies – (including online) … you will nearly always be charged extra fees by your bank on top of any “normal” transaction charges .
Most banks also make extra charges for non Euro cash withdrawals at ATMs.
But which option works out the cheapest?

We did a  quick comparison of the charges incurred when spending with a Debit Card , a Credit Card or using cash from an ATM or bringing cash with you that you exchanged here in Ireland.

You can read more details about ATM charges abroad in our article  about ATM charges for Non Euro Cash

Using a non euro purchase worth the equivalent of €200 as an example we compared the bank charges when using a debit card , a credit card or a cash ATM withdrawal.


Paying By Debit Card

  • Ulster Bank charge 1% of transaction value (min €0.25, max €6) plus 1% currency conversion fee (min €0.25, max €6)
  • An Post charge 3%
  • BOI  charge 2% (maximum €11.43)
  • AIB charge 1.75% (minimum €0.45, maximum €11.00)
  • PTSB and KBC  charge 1.75% (Minimum €0.46, maximum €11.43
  • N26no charge

So – a purchase made with a debit card in a Non Euro currency of the equivalent of €200 would incur charges as follows:

  • Zero with online bank N26
  • €3.50 with PTSB, KBC or AIB
  • €4.00 with Bank of Ireland
  • €4.00 with Ulster Bank
  • €6 with an Post

If you like the sound of this N26 bank – you can find out more on the N26 website. It is an “online only” bank based in Germany. It is covered by the EU bank guarantee and is regulated by the Central Bank of Ireland. You will need a smartphone to operate the account , you can’t pay in cash or cheques – so it might not suit everyone – but it might be a useful “second” account to take advantage of the low fees when making purchases in other currencies.

Revolut is another “online only” option . It is not a full bank account – but it comes with a debit card that has no fees when spending in non Euro currencies .


Paying By Credit Card  : Non Euro Purchases

  • AIB Visa 1.75%
  • PTSB Visa 1.75%
  • Ulster Mastercard  2%
  • KBC Mastercard 2%
  • BOI Mastercard 2.25%
  • Avant Card  2.65%

So  – the credit card fees on a €200 equivalent spend would be …

€3.50.with PTSB / AIB Credit Card
€4 with Ulster and KBC Credut Card
€4.50 at BOI Credit Card
€5.30 with Avant Card


Using an ATM
Withdrawing cash will cost you more than using a card to purchase outside the Eurozone.
An ATM withdrawal of the local currency equivalent of €200 would incur charges of €7 with most banks and €3.40 with N26
(NB  Ulster customers using a RBS or NatWest ATM in the UK are not charged.)
See more details of ATM charges  Here

Verdict – using cards for non euro purchases works out cheaper than using cash from a ATM – especially for customers of N26 (no charge) .
Using a debit card will  usually work out cheaper than a credit card.

Summary of   Bank Charges for spending in a non Euro currency (equivalent to €200) on a credit or debit card compared with getting cash from an ATM

Bank Debit
Card
Credit
Card
Equiv
€200 Cash
ATM
 
N26 €0 n/a €3.40
Ulster €4 €4 €7 *
BOI €4 €4.50 €7
AIB €3.50 €3.50 €7
KBC
€3.50 €4 €7
PTSB €3.50 €3.50 €7
Avant n/a €5.30 n/a

Remember – there are 9 countries in the EU that don’t use the Euro as currency – they are Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden and the UK.

Exchanging Money before You Travel

Some people like to pay for stuff with cash when abroad . If you plan ahead – you can order travel currency before you leave Ireland.
In a recent   currency exchange rate comparison we found the best Euro to Sterling exchange rate for cash in Ireland was from No1 Currency

Ordering £750 cash in Sterling here in Ireland would cost  €872.70  with them. (Figure from June 2018). (Order and pay for it online and get it delivered to your door for free.).


Larger Purchases:  There is no cap on credit card charges for puchases made outside the Eurozone – but debit card charges are capped at all Irish banks. (Ulster bank cap is €12 , BOI and PTSB are €11.43 , AIB is €11.)

Example :  – for  a non euro purchase costing the equivalent of €1000  this is what you would be charged by the banks :-

  • N26 would not charge you anything for spending on their debit card in a foreign currency . They don’t do a credit card.
  • Bank of Ireland would charge €11.43  when using a debit card but the charge would be €22.50 with a credit card.
  • Ulster Bank would charge you €12 on a debit card but  €20 on their credit card

The figures above also apply to online purchases made in currencies other than Euro.

So – if you have the money in your current account it will work out cheaper to use a debit card instead of a credit card  for larger purchases outside the Eurozone. This applies to online purchases too.

If you open an N26 account – you will not have to pay any fees on foreign currency purchases with their debit card. They use the same exchange rates as all other Mastercards – so you won’t be worse off that way.


Protection
Many people assume that they are better protected when purchasing with a credit card if goods are faulty or don’t turn up. But under Irish law this is not the case (unlike the UK) .
In Ireland Credit cards and Debit cards have the same level of protection . More about that here.

More information here about the cheapest method of exchanging larger amounts of currency 

Tips : Often when abroad  (Non Euro Currency)  shops or hotels might give you the option of having your Irish debit or credit card payment converted to euros at the point of sale . Be aware that in most  (if not all) situations the final cost to you will be higher than if you paid in the foreign currency and let your card provider convert it to euro. So, when asked if you want to pay in Euros – say NO Thanks .

*Ulster Bank debit cards can be used in the UK at ATMs in Nat West Bank or RBS and there will be no extra fees.

Note – Exchange rates used on credit cards. The main credit cards in use by Irish providers are either Visa or Mastercard . The exchange rates  are set on a daily basis by Visa and Mastercard . This means that when comparing a Visa card from AIB with a Visa card from Ulster Bank etc you shouldn’t need to take into account exchange rate differences because they should all use the same rate on a given day.  There will usually be small differences betwen the rates used by Mastercard and Visa.  We have seen research showing that Mastercard has better rates than Visa the majority of the time. (Sometimes a difference of 3% !)

All Figures checked  October 2018