Before the COVID-19 Pandemic, Europeans tended to use cash for their day-to-day spending much more than Americans did. Back in the early 2000’s Europeans carried lots of cash in their pockets on a daily basis. Even as recent as 2019, I would deal mostly in cash when making purchases less than €50. But, that has all changed with “social distancing” and the Covid-19 Pandemic panic.
In 2022, CONTACTLESS payments are the way to go.
Either TAP your contactless credit/debit card to the MACHINE or your WRISTWATCH to the machine. However, you must set this contactless system up with your bank and credit card provider before leaving home. ApplePay and GooglePay have similar systems for phones and portable devices.
And, by the way, the MACHINE is portable. It comes to the table at a restaurant, and your credit card never leaves your hand.
If you need CASH, use a BANK ATM Machine
Using your debit card from your local back home is still the best way to get cash while traveling in Europe. There are ATMs (often called Bankomats) everywhere, and you treat them like those in the United States. Insert your card, type in your PIN code, and choose the cash amount. The machine makes noise and then spits out cash in the local currency.
AVOID EURONET ATM MACHINES! – These machines have popped up all over Europe in the last year. The machines are typically in storefronts and advertise “free cash withdrawals.” Those traveling with me have reported high fees and exorbitant exchange rates combined into 20% or more markups.
The remainder of my stash of cash (and passport and credit cards) goes in my money belt tucked neatly and safely inside my pants. Now, of course, I know this is not living like a local, but it does give a peace of mind knowing that in unfamiliar circumstances, I don’t have to worry about my important stuff being taken from me.
COINS
I like to lay all the coins out and do a mental and physical quiz each time I arrive in a new country.
Here is how I begin this quiz in the European Union.
Plastic Credit Cards
Europeans don’t make a distinction between credit cards and debit cards. I don’t believe I’ve ever had anyone ask “debit or credit.” I use my plastic (credit card) for larger purchases such as hotel bills, airline tickets, car rentals, and other big-ticket items. It makes perfect sense to use a credit card for online and telephone purchases. Credit cards also come in handy for purchases at unattended self-service machines in train and bus stations and at those unmanned European gas stations. Unfortunately, you’ll most likely need a chip-and-pin card for these. See my chip-and-pin card article for more information.
Dynamic Currency Conversion (DCC) is a service offered to credit cardholders that offers to convert a foreign transaction at the point of sale into the home currency of the cardholder. This is never a good idea for the consumer because it comes with inflated exchange rates that benefit the merchant. An unsuspecting cardholder can lose up to 7% by opting into this feature. Since DCC works against the purchaser, never say you would like your purchases to be converted to dollars.