Carrying Cash , Cards and E-banking in Europe when travelling.
Protracted trips require finance, and as we head towards a cashless society, things should be easier cross-border, but the question is: are we really heading for a cashless society across Europe ?.
Recently, on our trip to Germany, we noticed an increase in the demand for cash only in restaurants and other businesses, including campsites. Experienced travellers will know the need to keep some cash for small campsites and for tips and sundries, but if the direction in Germany spreads, we need to take note, perhaps. Intrigued by this change, we asked a few of our German hosts whether this was due to the banks making unreasonable charges on businesses for the use of card terminals, but the answer wasn’t expected.
It seems there is a cultural shift, one of not sharing private data and an increasing lack of trust in the data collection ability of businesses. Hacking and data scraping are increasing, and it seems to be an issue gaining ground in Germany. The question is, will it gain momentum and spread across other areas?
Ahead of the next trip, it gave us food for thought, and although we are heading south where we haven’t seen a significant change of attitude, in fact, the direction in travel in Spain and Portugal remains unchanged, nevertheless, it was food for thought.
This also coincided with quite a few questions from followers and subscribers to our channel about a number of finance-related issues, so it’s time to address them.
In writing this blog, I would remind readers of the words of Marcus Aurelius, a favoured author of mine: “Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.” These are my opinions based on the things I have read and witnessed travelling. I don’t profess expertise; I’ll leave that to others.
So here are the questions in no particular order.
How much cash do you carry? - It depends, of course, on how long we’re travelling for and which countries, bearing in mind that not all countries adopted the Euro, and sometimes we have to get the currency on the road. But usually, enough to pay any expense we get where the card option isn’t available, i.e. tank of fuel, a meal out, campsite fees, etc., as well as normal requirements for a coffee, beer, buns, and tips. Wherever possible, we pay by card and don’t carry large amounts of money.
Which cards do you use? - Dealing with types of card first. We have a travelling debit card for two reasons; rates and charges in the UK and Europe can be different with different providers so its great to get the best suited card for travel , but also it’s good to have a debit card that is independent of your UK main current account for on line security reasons . It’s easier to track holiday expenditure, and it means that if you are a victim of bank account scam, the criminals can only access the holiday account, which we top up to a limit that won't leave us penniless if scammed. We also have a travel credit card, which we pay for everything we can from physical purchase from goods to fuel. This gives the added protection of being able to recall the payment. TIP! - Pay at the pump fuel; if you pull into the nice wide pump area meant for lorries, the system will pre-authorise several hundred Euros as it thinks you're a lorry. So if you use this bay, pay in the kiosk.
Which Bank Card to use is a moving feast, and the market changes as the economy changes, banks change their rates, terms, and conditions, so it’s worth reviewing each year. We check in with Martin Lewis; there is a section on the best travel cards; this is the link - https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/. There is a facility to check that your card provider is still offering the best deal for your needs. We currently use the Starling Bank debit card, still currently rated as a top overseas spending card. We back this up with a Halifax Clarity Credit Card. TIP - Use your phone or smartwatch to pay. Personal data is better protected as when you make a purchase, Apple Pay uses a device-specific number and unique transaction code. Android equivalents work similar. So your card number is never stored on your device or on Apple servers, and when you pay, your card numbers are never shared with merchants.
Should I pay in Euros or Sterling? - Euro’s, let the UK bank sort out the exchange rate.
Do ATMs charge for withdrawal? - Yes, some do, and the charges can vary, but you do get the option to decline the transaction and try another bank. We did this in Spain this last trip where a major Spanish Bank wanted to charge a fee that we felt uncompetitive. This is the Spanish Bank's Charge and is different from the UK Bank charging, so don’t be confused just because the UK says your card is free of ATM charges.
Some other security general tips as, despite crime being rare, some things do require prudence.
- Don't do on line banking over unsecured wifi, which could be either free or paid.
- Banking on apps rather than via a browser is better and consider a VPN (Virtual Private Network).
Be wary of email scams pretending to be from your bank, asking you to call - Never ring the number in the email or text; call the number for the bank or institution that you from previous use to be correct if you feel the need to call.
There is more information in the video below
I hope you find this useful.
Happy Travels,
Helen and Martin
