Are you planning a vacation in Europe or the rest of the world? Are you planning to work abroad for a few weeks or months? It is therefore better to have a bank card that will allow you not to pay withdrawal or payment fees. Our comparison of online banking offers.
Going on vacation outside our borders requires you to prepare your trip well in advance. Payments and withdrawals abroad can indeed add to the budget if we are not careful. You can contact your bank to find out the prices charged for transactions abroad, or look carefully at the price brochure of your establishment.
If you find that your bank charges too high prices for this type of operation, you can obviously leave it for another ... or opt for a less radical option by subscribing in addition to another, more interesting offer for your trip. . Especially if it is one of the unconditional offers of an online bank since you will not have any commitment to domiciliation your income or to deposit savings there, and a large number of these bank accounts in online are free. In addition, beyond not paying fees abroad with these, you will sometimes be entitled to a "welcome bonus". What to give yourself a little extra pleasure on vacation.
Which offer to choose to go abroad?
A bank account to go abroad requires taking into account several data: the cost of the card, the fees applied to the operations, the type of card chosen and the insurance that may be offered.
Cost: how to get a free bank card?
Some establishments offer the card free of charge without conditions. We find here in particular the Ultim card of Boursorama or the Max account of Aumax pour Moi.
But other banks make the card free. Fortuneo's Fosfo card is free as long as you make one payment or withdrawal per month, otherwise a monthly fee of € 3 is charged. For the ING Integral offer, a transfer of € 1,200 per month must be made to the current account; otherwise a charge of € 10 will be applied. Bforbank, for its part, conditions the gratuity on the justification of € 1,600 of income per month and the fact of making three monthly payments; otherwise the bank charges € 9.
Finally, Hello bank, Orange bank, Monabanq, Crédit Agricole, N26, and Revolut charge a membership fee, ranging from € 2 to € 9.90 per month. Only American Express exceeds 10 euros per month with its Gold card. However, the American bank offers the first year of membership (ie 180 euros in savings), and justifies this high rate, in particular by its loyalty program which allows you to accumulate points for each euro spent. These points are then used to obtain gifts or even to pay for purchases.
Fees: what commissions on withdrawals and payments abroad?
If you are going on holiday in the euro zone (1), the charges applied are the same as those charged by your bank in France. But if you go abroad, outside the SEPA zone, banks generally charge commissions: either on withdrawals, or on payments, or on both types of operations. The cards presented in our comparison often offer free of charge or low billing for these operations.
Boursorama, Fortuneo and ING have a completely free offer (free card + free transactions abroad). Aumax for me, with whom the card is free, limits the number of free withdrawals to 5 and a maximum of € 500 per week.
At other online banks (Hello bank, Orange Bank, Monabanq, N26, Revolut ...), the free transactions abroad are offset by the cost of the card, even if it is often low. This configuration can also be found in a traditional bank, Crédit Agricole: its Globe Trotter offer, dedicated to young people aged 18 to 30, exempts its holders from fees on transactions around the world, but access to the bundled offer of services cost 2 euros per month.
Apart from the specific offers presented above, withdrawing from an automatic teller machine (ATM) abroad often generates costs in a traditional bank (or even in some online banks). Indeed, French banks often charge a withdrawal commission, generally made up of a variable part (as a percentage of the amount withdrawn) and a fixed part (x euros). Minimum or maximum billing may also be provided, as is the case with American Express. Traditional banks generally charge a fee of € 3 and 2.50% of the amount withdrawn, while online banks apply an average of 1.90% of the amount withdrawn. For example, for a withdrawal of 300 pounds in the UK, it will actually cost you € 10.50 at a traditional establishment compared to only € 5.70 at an online bank.
In order to minimize these costs, it is better to make a single withdrawal abroad, of a large sum, rather than making several withdrawals of small amounts. On the other hand, depending on your destination, you have to pay attention to the amount of cash you carry with you, in order to avoid any problems.
Like withdrawals, card payments abroad are also subject to invoicing. The bank often applies a commission on these operations, taking the form of a variable part, that is to say a percentage of the amount paid, and for some of a fixed part. On this point, traditional banks charge on average the payment 0.30 € and 2.30%, while online banks apply a commission of 1.95%. For example, for a payment of 500 pounds in the UK, it will cost € 11.80, compared to only € 9.75 in online banks.
Payment fees are generally lower than withdrawal fees. It is therefore often less expensive to pay directly at merchants rather than making one or more withdrawals abroad.
Note that the amount withdrawn in foreign currency must be converted to its equivalent in euros. This conversion is carried out by Mastercard or Visa, under the exchange conditions of each banking network. The bank where the withdrawal is made may also apply an “overload charge”.
Type of card: Visa or Mastercard, classic or premium card ... what are the differences?
The table below shows the type of bank card offered by the banks. In addition to the “distributor”, namely Visa or Mastercard, a card can be systematic authorization, immediate debit or deferred debit, classic or premium (Gold Mastercard, Visa Premier, Orange Premium, etc.).
With an immediate debit card, the customer's account is debited as payments are sent to the bank. Whereas with a deferred debit card, the account is debited only once a month, for all purchases that have been made during a period defined by the bank.
A systematic authorization card is similar to an immediate debit card but it interrogates the bank account for each transaction to verify that the balance is in credit. This card has the merit of avoiding overdrafts. However, it can present some drawbacks such as a sometimes longer payment period, or even cases - infrequent - of refusal of payment at certain merchants or certain machines (motorway tolls, petrol stations, etc.).
Insurance and assistance abroad: what do these bank cards cover?
Various insurances are associated with bank cards. From one bank to another (or from one network to another), the guarantees provided on these insurance policies may vary. Always refer to the insurance notice provided by the bank before booking or going on vacation. This notice can be provided to you by your bank or you can find it on the bank's website.
“Basic” cards generally include at least death / disability insurance and assistance benefits (hospitalization, repatriation or legal assistance abroad).
For cards of the Gold Mastercard or Visa Premier type, other insurances are added such as civil liability abroad, travel insurance (cancellation or interruption of the trip, loss or theft of luggage), guarantees for online purchases or even extended guarantees (on electronic equipment such as a cell phone).
However, Milestone Gold Mastercard is one of the cards that can be use anywhere online. MilestoneApply.com is designed and builds on your own credit history.
These different insurances are widely promoted by online banks or neobanks. It is in particular a strong point of the communication of N26 or Revolut.
For a trip that requires a plane ticket, it will be logical, for example, to check that the card provides for the delay or cancellation of the flight, or even the loss of luggage. Likewise for a trip to winter sports, it is better to check that repatriation is covered in the event of injury. Note that it is often necessary to have paid for the trip or the service with the card in question for the insurance to work.
Card abroad: have you thought about these possible problems?
If you decide to go abroad, it is advisable to inform your bank before your departure in order to avoid any blocking of the bank card once there. Significant expenses made from abroad could indeed suggest a hack or theft of your bank card. And your banker, to protect you, could block the bank card.
It is also recommended to ask your advisor to raise the payment and withdrawal limits for abroad. This makes it possible to avoid being blocked during a payment or a withdrawal during the trip, especially if you are traveling in an area with little or poor coverage by internet and telephone networks.
Another possible mishap: having your card swallowed by an ATM. Indeed, if you enter the wrong code three times in a row, the card is swallowed by the machine and therefore becomes inaccessible. Moreover, it is rather advisable to make withdrawals in an ATM integrated in the “wall” of a real bank (and not on an isolated machine of the type ATM that one finds in certain small businesses abroad) and rather on days and times when the establishment is open. You will thus have a contact person to open the ATM and return your card to you, or at least to find out about the problem and have your contact details to return to the credit card later.
When booking your trip or purchasing plane tickets, it is best to pay with the credit card that you will take with you on your trip. Indeed, some airlines, hotels or car rental companies ask to see the same card on site as when booking to confirm your identity and activate the service. Not having the right card with you, with the same numbers, could then be a problem.
Another tip: it may be wise to go on a trip with two bank cards from different networks, namely a Visa and a Mastercard. Indeed, in some countries, the network of one supplier may be favored or more developed, while the other will be less accessible.
One of the biggest worries that can happen to you abroad is the loss or theft of your bank card . What then are your remedies in the event of loss of the card? First of all, you must notify your bank, and for this it is better to have taken the customer service number with you, look on the back of the credit card or possibly write the number in your phone. Then, you must make a charge on the card to avoid any fraudulent debit on your account. During your discussions with your bank, the latter will be able to inform you of the solutions made available to “help you out” on site.
It is also in this case that the 2nd bank card can be appreciated (whether it is another CB in your name, or the card of the person with whom you are traveling), in order to be able to continue to pay expenses on the spot. It is even advisable to keep this 2nd card at the hotel or in a safe place. In addition, to avoid finding yourself penniless in the event of loss of your card, consider making a withdrawal during the first hours of your vacation. This will provide you with cash to make cash payments.
(1) List of countries in the SEPA Zone: Germany, Austria, Andorra, Belgium, Bulgaria, Vatican City, Cyprus, Croatia, Denmark, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Norway, Netherlands, Poland, Portugal, Czech Republic, Romania, United Kingdom, San Marino, Slovakia, Slovenia, Sweden and Switzerland.