Main mistakes when paying by card abroad: important points to know

When planning a trip abroad, Ukrainians often focus on choosing tickets and hotels, forgetting about the financial nuances that can “eat up” up to 10% of their budget. Experts from the financial portal buh.ua provided advice on using bank cards while traveling, emphasizing the importance of setting limits and using algorithms to avoid unfavorable currency conversions.

Choosing the right bank card is an essential step in saving money. Different cards have their own rules for use abroad.

Hryvnia debit card: although it is popular, it can be unprofitable financially. Each operation requires converting hryvnia into the currency of the place of stay, which is often accompanied by unattractive exchange rates and additional fees. Experts warn that such costs can add 5-7% to the total cost.

Credit card: convenient for unexpected expenses, but in some circumstances can be more expensive. It is worth remembering that such a card is often needed to rent a car abroad.

Currency card (EUR/USD): the best option for traveling to Eurozone countries or the USA, as it helps to avoid unnecessary conversions. However, when traveling to countries with other currencies (for example, Turkey or Egypt), additional conversions may still be required.

Multicurrency accounts (Wise, Revolut): ideal for frequent travelers or those who handle international transactions. These platforms support several currencies, charge low fees, and exchange at the real rate, ensuring maximum benefit.

Cash withdrawal limits

In Ukraine, there are restrictions on foreign financial transactions. A maximum of 12.5 thousand hryvnias can be withdrawn from a hryvnia card per week, while for currency cards the limit is 100 thousand hryvnias per month.

Risks in foreign payments

A key issue is dynamic currency conversion (DCC), which gives customers a choice: pay in the local currency or in the card currency. For example, in the Czech Republic, the terminal may ask whether you want to pay in korunas or in euros/dollars. Although it seems easier to choose the card currency, this option may include hidden costs. If you select the card currency, the conversion will be carried out at the inflated bank rate, resulting in a loss of 5-10% of the amount.

How to avoid unnecessary expenses

Experts advise following a few simple recommendations:

Have several cards with you: the main currency for significant expenses, a backup from another bank for additional limits, and some cash.
Please do not use a hryvnia card, as it results in double conversion (hryvnia to euros, then euros to the local currency).
Always choose the local currency when making payments. This will allow you to convert at your bank’s rate, not at the inflated terminal rate.
Receive and save checks from the POS terminal in case the bank erroneously writes them off.
Previously, we reported on pension supplements, assistance to Ukrainians in Poland, and possible problems with electricity in Ukraine. Challenges in these areas are expected in the near future.