Understanding how to manage your cash while traveling in Europe is crucial for a smooth and enjoyable trip. This guide will provide you with essential tips on handling cash and using ATMs, as well as advice on splitting the bill and tipping customs.
Cash and ATMs
- Currency: Euros are the currency in most European countries. Switzerland uses the Swiss Franc (CHF) as it is not part of the European Union. While some stores in Switzerland display prices in Euros for comparison, they accept only Francs.
- Arrival Tips: We recommend arriving in Europe with around 100€ (or 100 CHF for Switzerland) in cash. This ensures you don’t need to find an ATM immediately after a long journey. You can order this cash from your bank in advance. Request small bills if possible.
- Using Cards: If you can’t get Euros before you arrive, VISA and Mastercard credit cards and debit cards are widely accepted. (American Express is not.) ATMs are abundant, and many places now accept cards for small amounts. Apple Pay is also commonly used.
- Choosing ATMs: When withdrawing cash while traveling, avoid kiosk-style, stand-alone ATMs such as EuroStar and EuroNet. They tend to have high fees and confusing interfaces. Whenever possible, opt for a bank ATM located at the bank building.
- Airport ATMs: Avoid using airport ATMs and money exchange booths if possible due to higher fees.
- Carrying Cash: It’s best not to carry a lot of cash during your tour to minimize the risk of loss or theft.
- ATM Safety: Always secure your money and card before walking away from the machine. Don’t feel rushed if others are waiting.
- Foreign Transaction Fees: Chase and CapitalOne offer no foreign transaction fee credit cards. CapitalOne and Schwab Bank offer debit cards without foreign transaction fees. Check with your providers about their fee structures.
- Coins for Restrooms: Coins are useful for public restrooms in some European countries, often costing 1€ or 0.50€. If you only have large bills, you may need to make a purchase to get change. Banks in Europe typically do not provide change.
Using ATMs and Credit Cards Abroad
Euronet ATMs are widely available across Europe and convenient for withdrawing local currency—but they often come with fees and unfavorable exchange rates if you’re not careful.
ATM Fees
Almost all ATMs will charge a withdrawal fee. In most cases, expect to pay around €2-4 EUR or the equivalent in local currency. Before confirming any transaction, the ATM will display the fee clearly on-screen. Always read this prompt carefully before proceeding.
Currency Conversion Warning
When managing your cash while traveling, one of the most important things to watch for is Dynamic Currency Conversion (DCC). When withdrawing cash, the ATM may ask if you want the amount converted to your home currency (e.g., USD). If you accept, the ATM provider—not your bank—sets the exchange rate, and it’s almost always worse than what your bank would offer.
The kiosk-style ATM providers, such as Euronet, are notorious for their high markup on the mid-market rate. It can be as high as 13%, meaning you’ll receive significantly less local currency for your money. To avoid this, always choose to be charged in the local currency (e.g., EUR) and let your bank handle the conversion.
Credit Cards and DCC
The same DCC trap applies when using credit cards abroad. At shops, restaurants, or hotels, you may be asked whether you want your purchase charged in your home currency. While it sounds convenient, this allows the merchant or payment processor to set the exchange rate—often with a steep markup.
Best practice:
- Always choose to pay in the local currency
- Use a credit card with no foreign transaction fees
- Review your card’s travel benefits before departure
By staying alert to ATM fees and currency conversion offers, you’ll keep more of your travel budget in your pocket—and avoid unnecessary charges on both cash withdrawals and card purchases.
Splitting the Bill
When dining with others while traveling, it’s always handy to have some cash in low denominations available. This makes splitting the bill a lot easier, but it’s not always possible. Check whether the restaurant allows separate credit card payments before ordering. If not, apps like Venmo, PayPal, or Tab can help you settle the bill with your companions.
Tipping
Most European countries do not have the same tipping culture as the U.S. Tipping is not expected and tipping too much can be awkward. Rick Steves has a comprehensive guide to tipping in Europe which you can find here.
Conclusion
By understanding and preparing for managing your cash while traveling in Europe, you can ensure a hassle-free and enjoyable travel experience. Whether it’s managing cash, using ATMs wisely, or navigating tipping customs, these tips will help you make the most of your trip. Safe travels and happy adventures!