As you do the final holiday checklist many will still be in a quandary about money - what is the best option? Cash or just take a debit / credit card – it´s always a difficult question now made even harder after a number of Spanish banks have announced that they will be charging a €2 fee for ATM withdrawals. BBVA, La Caixa and now Santander is the latest to join in the club of charging non-bank customers a flat fee for using their facilities – this is obviously on top of your own bank charging a commission and also giving a probably unfavorable rate. This will also include pre-paid debit cards, meaning a €2 withdrawal fee will be debited each time you use any of the mentioned ATM´s.
Since the financial crisis hit Spain, many banks have closed or merged, giving customers less choice and options of where to bank. One thing that they all do here is charge an annual maintenance fee to all customers for keeping their own money in a bank – the poor customer service is an added bonus!
However, most will still probably use a combination of cash and card, paying for drinks and small purchases with euros and larger transactions with their card. Remember if hiring a car that the excess deposit will be blocked from your card – and this may also apply to hotel deposits so check your credit limit before going away.
For cash there is then the added dilemma of where to exchange your euros – at home in the UK before traveling or here in Benidorm. The worse exchange rates are found at the airport... do not leave it till the last minute! Currency firms operating out of smaller local airports or "budget airline" hubs offer lower rates. And even worse than that is the exchange rate you are offered when purchasing goods on board - if you are paying with a credit or debit card you will also have fees added on top of that.
The Indoor Market in the Rincon has a number of reputable exchange shops such as Tony´s and Sheila´s where you will get exactly what is on the board – no hidden commissions or minimum required to obtain the rate.
Credit cards incur a % commission on every transaction and you may find some smaller establishments to not even take them. Remember, when you take your credit card abroad, the company comes too ... and has a good time at your expense! But one time when it is sensible to use your credit card is booking flights and accommodation as you have the added protection if something goes wrong. Some companies even offer travel insurance as an added bonus – but do check the small print of what is and more importantly isn´t included in the policy.
