Hoping for really recent experience from others. We are traveling to Spain in September. I get conflicting info on-line about how accepted US credit cards (MasterCard, Visa) are in stores, bars, small restuarants; whether huge surcharges are added, or if we should attempt to pay for everything in cash. If cash is the way to go, do Spainish ATMs still offer the best exchange rate? vs. banks or kiosks. Advice is greatly appreciated. Thanks.

I found it much easier for me to go to an ATM and get a bunch of cash out. It was nice to just get the transaction fee/exchange rate fee once or twice instead of everytime I used my card.

I don't think you want to be carrying around a lot of cash in Spain, although you'll want to use ATMs to have enough cash on you for smaller transactions. I carry a variety of credit cards and they've all been accepted at restaurants, hotels, etc.

Where are you going?

Credit cards are accepted at almost al hotels (but perhaps not B&Bs), restaurants and stores of any size. A few, smaller local places may want cash - but since you're unlikely to be buying much there your walking around money (pulled from an ATM) should cover it.

Thanks for the advice so far; even though it is conflicting. Genabee6: Did you find that the ATM rate was pretty fair?
Zeppole: We'll be hitting Madrid, Toledo, Cuenca, Granada, Barcelona and who knows? Do the non-tourist bars and restaurants generally take credit cards?

Credit cards are a pretty common form of buying things in Western Europe. I never had a problem using one in Spain in restaurants or bars, and I don't always go to ones with a lot of tourists, nor do I go to large ones, but I don't usually go to a restaurant with only a couple tables (not sure what you mean by small ones). I wouldn't ever try to use a CC for a small charge, however, or just a cup of coffee or anything, nor do I use it for small purchases in any kind of store. I suppose I only use it when I'm spending at least 15-20 euro.

ATMs don't have their own rates, the international VISA/MC system is the one that sets the rates. Your bank may or may not add a surcharge on top of that, but the ATM itself doesn't have anything to do with it, whether in Spain or elsewhere, as long as you are using a regular bank ATM. Even private ATMs that have ATM fees (never saw one in Spain, so don't know if they are there) can't affect the exchange rate as far as I know.

Use an ATM affiliated with your bank. The ATM fee for use may be lower. Inquire at your stateside bank for more information. Credit cards charge the business a fee. Be sure you pay the CC bill on time. Set up a pay by internet system. There are no problems using MC or V in most European countries. Some merchants may require identification beyond your possession of a card. Learn the Euro system. Know how to translate Euro prices into dollars. Practice.

I usually charge on my Visa because it earns frequent flyer miles. I also get $500 at a whack at an ATM because my bank charges $5.00 for each foreign withdrawal. I always use a money belt so I am not uncomfortable carrying a lot of cash.

Some places, especially smaller B&B's or hotels, want cash. My Visa also charges a 3% fee for all foreign charges, so I would be better off paying everything with cash; however, I want the frequent flyer miles and the Visa statement also provides a handy record of what he did, what we paid, etc.

I suggest you get a credit card through Capital One charges no fees for foreign transactions and exchanges at the market rate; it's the only credit card I know of with no fees (saying this from the US).

Hi C,

Get a CapitalOne CC - no added transaction fees.

Charge everything you can.

Get cash at ATMs, when you need some.

Enjoy your visit.

Living here in Spain I can say that CC are not so widely accepted. So you should take cash from the ATM and use that where you can.

Card acceptability in Spain:
Hotels - almost all, except at the very bottom of range like a fonda.
Restaurants - almost all where tourists go. In smaller places which cater largely to locals, they may but most customers pay cash, esp at modest end.
Bars - they may take cards, but few people pay just for drinks in anything other than cash. If you have a meal as well, card payment where taken will be fine.
Shops, stores - almost all, except small grocery stores, bakeries, kiosks etc. Souvenir shops, fashion and durables all take cards.
Fuel, gas, diesel - cards taken. Automatic pumps may not work with non-Spanish cards.
Autopista tolls - Taken in lanes where card payment is shown (manual or automatic), not telepago which is only for local cars fitted with a chip.
Rail tickets - cards usually acceped at manned counters and at machines.

<i>[Capital One is] the only credit card I know of with no fees.</i>

Schwab Investor Checking:
Foreign exchange markup - 0%
International Service Assessment - 0%
ATM transaction fee - $0 (extras rebated)
Annual fee - $0

There. Now you know two.

Schwab does offer free ATM ( reimburses) but charges 2% transaction fee with their credit card. Just went onto to apply for one. So Capitol One, still remains the only one not charging transaction fees and ATM fees.

Problem using credit cards? I supposed it depends on the individual's view on what it means to be of no problem. I got hit with a dynamic currency conversion at El Corte Ingles. Also, when I bought Renfe tickets at a travel agency, I was asked to produce a REAL passport to use my credit card. So much for the &quot;just carry a copy of your passport&quot; recommendation.

ATMs by far are the best way to get cash
Banks will take about 4%, and Spanish kiosks are a joke taking 10%+

Only use credit cards with a vendor you trust in Spain. We only use them things like car rentals, trains, hotels and fine dining.

In my experience, vendors will usually ask for identification when you use a credit card. This happens at stores, but rarely at restaurants. I carry an expired identification with me and it has never been declined.

At El Corte Ingles, they will offer you the option of charging your card in euros or in dollars. You'll get the better rate if you charge in euros and let your bank do the currency conversion.

Also worth noting: try to avoid using the ATMs in the public areas of the airports. Thieves are always watching to see who takes out large amounts of money and where they are stashing it.

But to answer your original question, I think some combination of credit cards and some small cash is a good idea. The best rate for cash will be from ATMs. Credit unions seem to be offering pretty low rates for foreign currency exchanges too.

And for your later question, yes -- non-touristy bars and restaurants tend to take credit cards. Very small establishments may not, but in the very small places, you're unlikely to run up a bill that you couldn't pay with a few euro bills.

Hope this helps. Enjoy your trip!