teach in spain - UW Study Abroad

asics
38 basics
Credit Cards and Travelers Checks
Most day-to-day purchases in Spain are made with cash and, as such, you will find that many small
businesses do not accept credit cards. However, for larger purchases such as airline tickets, hotels,
clothing, and gifts, using a credit card can be a convenient alternative.
If you plan to use your U.S. credit card while in Spain, please make sure to notify your credit card
company. Credit card companies are becoming increasingly concerned about credit card fraud
and may deny international charges if you have not informed them in advance that you temporarily
reside overseas.
Credit card companies generally offer excellent exchange rates on international purchases. Still, be
aware that most international credit card transactions involve a fee of around 2-3% of the cost of
your purchase. The exact amount of this fee depends on the bank through which your credit card
was issued. Check with your credit card company for more specific information on exchange rates
and transaction fees for international purchases.
When making purchases by credit card, be sure to look closely at the credit card receipt before
signing. It is becoming increasingly common in Europe for certain types of businesses to charge
American credit cards in dollars, rather than in euros. Companies say it’s for customer convenience
but in reality the euro-to-dollar exchange rate given is usually not favorable to the consumer. Check
the slip before signing. If you see a dollar amount and you don’t like the rate, tell the sales agent
that you want the amount charged to your card in euros. That way, your credit card company, not
the business you are buying from, will determine the exchange rate.
The use of traveler’s checks is not at all common in Spain, and most businesses refuse to accept
them as a form of payment. If you purchased traveler’s checks in euros prior to leaving the U.S.,
you’ll most likely need to convert them into cash. This can be done through a bank or through the
company that issued the checks (ie. American Express, Thomas Cook, etc).
What about ATM Cards?
ATM cards can be a very convenient way of obtaining cash while in Spain, as they provide quick
and easy access to your U.S. bank account. If you plan to use your ATM card in Spain, there are
several things to keep in mind.
First, most U.S. banks charge transaction fees for international ATM withdrawals. Before using your
card, check with your home bank for details on these fees. Normally, transaction fees are around
2-3% of the amount withdrawn. There may also be fees ($2-3) for using ATMs not affiliated with
your U.S. bank. Transaction fees are charged by your home bank, not the Spanish one, so check
with your home bank for details. If transaction fees charged by your bank are high, you may want to
limit the use of your card or consider other options for accessing funds.
Second, take note of any withdrawal limits associated with your card. Most U.S. banks set limits
on the amount of cash you are able to withdraw in any given day (i.e. 300 EUR per day limit). If you
have trouble accessing the funds in your account, it may be that you exceeded your limit.
Third, the ATM card you use in Spain must be associated with a checking or money market account.
Unfortunately, cards linked to U.S. savings accounts don’t seem to function in Europe.
Fourth, verify that your password is a four digit number. There are no letters on ATM keypads in
Spain, so your password must be expressed in numbers, not letters. Former students have reported
trouble using cards when the password contained more than four digits.
Fifth, as in the U.S., you’ll only be able to use machines that function on the same network as
your card (ie. Cirrus, Plus, Interlink, Yankee 24). Make sure that the machine you are trying to use
displays one of the network symbols found on the back of your ATM card. Should you have trouble
finding a machine, check with your home financial institution, as they should be able to give you the
location of a machine that functions on your network.
Lastly, you may be able to use a credit card (rather than an ATM card) to obtain cash advances
from automated teller machines. Interest rates on cash advances, however, normally begin to accrue
from the date on which the money is withdrawn. As such, credit card cash advances can be
prohibitively expensive and should only be used as a last resort.