Travel cards

How conversion works when paying abroad
When you pay by card for goods or services in a currency different from your account currency, the bank or payment system automatically converts the amount. The conversion is done at the bank's or card network's rate and may include a margin over the interbank rate.
Typically the payment is processed quickly and you see the debit in the account currency. If you have a multi-currency travel card, the payment can be made without conversion if the required currency is available on the account.
Example calculation
Below is an imaginary example to demonstrate the mechanics. Assume this is an example and these numbers do not reflect real rates.
Example: you have an account in euros and a purchase of 100 USD. If the bank converts at an implied rate of 1 USD = 0,90 EUR, the debit will be 90 EUR. If a fee is added, it will also be converted into euros and you will get the final debit amount.
What is double conversion
Double conversion occurs when a payment goes through an intermediate currency before the final conversion into your account currency. For example, a payment network converts from the local currency into US dollars and then the bank converts the dollars into euros.
Double conversion usually makes a payment more expensive due to the margin being applied twice. To avoid this, it is worth clar’ifying in advance the logic of how payments by your card and payment providers are processed in the country where you are.
Advantages of multi-currency cards
Multi-currency cards allow you to hold balances in several currencies at once and pay in the currency required by the merchant. This reduces the number of conversions and can lower the total exchange costs.
For a traveller, a multi‑currency travel card is useful because it provides flexibility in using currencies without constantly exchanging cash. However, its advantages depend on the available currencies and the terms for funding and withdrawals.
When multi-currency is important
A multi-currency card is especially useful if you often spend time in two or three areas with different currencies. In that case you can spend each currency without conversion and avoid exchange rate margins.
But if you mostly travel to a single country, the benefit of a multi-currency card may be less noticeable. It's worth comparing practical scenarios of your trips and checking the bank's current tariffs.
Cash withdrawals abroad and typical fees
Withdrawing cash at an ATM abroad is often accompanied by a fixed fee from the cardholder’s bank and possible fees from the ATM operator. Additionally, a conversion rate may apply if the ATM’s currency differs from your account currency.
Typical fees and limits differ between banks so it is important to familiarise yourself with your bank's current tariffs before you travel. Also pay attention to withdrawal limits so you do not incur additional charges for exceeding them.
Insurance and additional services for premium cards
Premium cards often include travel insurance, ancillary services and increased limits for travel convenience. Insurance may cover medical expenses, baggage delay or trip cancellation, but terms vary greatly between products.
Such services pay off if you use them regularly or travel often and value comfort and protection. Before paying for a premium package, ask about coverage details, activation conditions and the real costs to understand whether the expense is justified.
Terms vary between banks and can change, so you need to check the details in the bank's current tariffs. It is not recommended to choose a product solely based on general advertising instead of analysing the specific terms and your needs.