Key takeaways:

• Payments and withdrawals are generally free within the eurozone, but exchange fees and fixed charges may apply once you use your card in another currency.
• When paying or withdrawing abroad, always choose the local currency. Accepting conversion to euros offered by the terminal or ATM usually results in a worse exchange rate.
• Multi-currency cards significantly reduce exchange fees thanks to near-market rates. They are especially useful for frequent travellers or trips outside the eurozone.
• Simple habits can help reduce costs: make fewer but larger withdrawals, compare banking offers before travelling, and pre-exchange part of your money.
• On a travel budget of several hundred euros, banking fees can quickly add up with a traditional card. In contrast, a multi-currency card can save dozens of euros per trip.

What bank fees actually apply abroad?

Within the eurozone, card payments and withdrawals are free, just like in your home country. Outside the eurozone, three types of fees may apply: a percentage-based exchange fee (usually between 1% and 3%), fixed ATM withdrawal fees, and more rarely, additional ATM operator fees.

Over a two-week trip with around twenty card transactions, these combined fees can represent a significant amount, often invisible at the time of payment.

The hidden trap of dynamic currency conversion (DCC)

When paying or withdrawing abroad, terminals or ATMs sometimes offer to convert the amount into euros and ask whether you want to pay in “euros” or in “local currency”. This is known as Dynamic Currency Conversion (DCC).

Although it seems convenient, it actually applies an unfavourable exchange rate, with margins typically between 3% and 8%. The rule is simple: always choose to pay in local currency and never in euros, letting your bank or multi-currency card handle the conversion.

Practical ways to reduce fees

• Use a multi-currency card for everyday spending abroad: conversion happens once when topping up, at near-interbank rates.
• Always refuse euro conversion (DCC).
• Prefer fewer but larger ATM withdrawals when fixed fees apply.
• Compare your bank’s conditions before travelling.
• Pre-exchange part of your money before departure for the first days of your trip.

What is the real cost for an average traveller?

For €1,000 spent abroad outside the eurozone, a 2% exchange fee already means €20 in costs, excluding ATM fees. In contrast, a multi-currency card with a 0.5%–1.5% margin, such as the one offered by ChangeGroup, reduces this cost to just a few euros.

Example: a two-week trip breakdown

A traveller spends two weeks in Thailand with a budget of €800, spread across around 25 payments (accommodation, food, transport, activities) and three ATM withdrawals of €100 each.

With a traditional card (2.5% exchange fee and €3 per withdrawal), total costs reach around €29 in exchange fees plus €9 in withdrawal fees, around €38 in total. With a multi-currency card preloaded in Thai baht, these costs can be reduced to under €10.

Across a year with two or three trips outside the eurozone, the difference can easily amount to several hotel nights.

Special cases: ATMs and hotels

Some ATMs, especially in tourist areas, apply additional fees that are shown just before confirming the transaction. These can usually be avoided by cancelling and using another machine.

Hotels sometimes place pre-authorisations in a different currency than the final bill, which can lead to extra conversion costs. Always check the billing currency on the final invoice.

In both cases, the key habit is the same: take a few seconds to read the screen or document before confirming.

FAQ

Are card payments free across the EU?
They are free within the eurozone. Outside it, fees may apply.

Should I always refuse euro conversion abroad?
Yes, paying in local currency is almost always cheaper.

Does a multi-currency card remove all fees?
It reduces or removes exchange fees, but ATM fees may still apply.

Are fees the same in all non-euro countries?
No, they vary depending on the bank and country.

Do tourist ATMs charge more?
Often yes, especially in airports and tourist areas.

How can I avoid excessive ATM fees?
Check the screen carefully before confirming and cancel if fees are too high.