Almost everyone pays occasionally abroad today, whether by card payment or with cash from the ATM. Unfortunately, this is often associated with high fees. Swiss banks often charge several percent fees for the privilege of being able to pay abroad. When it comes to cash withdrawals, the situation is even worse. There, fees often start at CHF 10 per transaction.

You don’t have to go abroad to make a foreign transaction. Popular online shops like Amazon.de charge the amount in euros. And even if the amount is in Swiss francs, it may happen that the company is based abroad and therefore foreign transaction fees apply.

To save money, you need to find out which products to use to minimize fees. Here I present four different credit cards with which you can travel cheaply abroad. Strictly speaking, three of them are not real credit cards. They are debit Visa or Mastercard cards. However, they are accepted worldwide just as easily.

Neon - the Swiss bank account without foreign transaction fees

Neon is one of the most popular neo-banks in the Swiss market. It is a full-fledged Swiss bank account that you operate purely through an app. There are no branches. Everything happens digitally. In this article, we are interested in the debit card from Neon. In addition to free account management, Neon offers the following with the debit card:

• No fees for payments abroad
• Flat fee of 1.5% for cash withdrawals abroad

For payments abroad, the direct Mastercard reference rate is always used. So, you don’t pay any surcharges. It couldn’t be better. For cash withdrawals at the ATM, you always pay only 1.5% - quite the opposite of traditional banks, where fees often start at CHF 10.

And that’s all there is to Neon. The fees are transparent and easy to understand. There are no hidden limits, such as “free of charge” only up to CHF 1000 in turnover per month.

Revolut - the international solution

Revolut has gained a lot of popularity throughout Europe in recent years. Basically, it is comparable to Neon: a bank account via app with a debit card. What’s special is that you can open accounts in various currencies.

In terms of fees, Revolut cannot quite compete with Neon. Here you get:

• 1000 euros of free currency exchange per month, then 0.6% fees
• 200 euros of cash withdrawals per month included, then 2% with a minimum of 1 euro

If you can manage with 200 euros of cash withdrawals per month while traveling, Revolut is slightly cheaper. If you spend more, you’ll be better off with Neon. However, Revolut has the advantage that you can hold money in over 70 currencies in your account. In certain currencies, such as euros, you get your own IBAN, with which you can send and receive money. Just like with any other bank account. This is not the case for Swiss francs. Other advantages include:

• International Twint counterpart, easy sending of foreign currencies to friends
• Modern app with features like virtual Visa cards that you can easily generate yourself

Compared to Neon, Revolut is cheaper if you spend only a small amount of money while traveling. So, you stay below the limit of 1000 euros of free currency exchange and 200 euros of cash withdrawals. If you spend more, it’s better to go with Neon.

Wise - sending and receiving international money

Wise, formerly Transferwise, specializes in international money transfers. Like Revolut, you can send, receive, and hold money in various currencies. We are interested in the debit card that you can order for your account. It comes with the following features:

• Cost-effective currency exchange for around 0.5% fees
• CHF 200 of free cash withdrawals per month, then 1.75%

Here’s how the fees for cash withdrawals look in detail:

Overall, the costs are very similar to Revolut. I prefer Revolut because the first 1000 per month can be exchanged for free. Moreover, Revolut is better for traveling with friends, due to features such as instant money transfer to contacts and the function for sharing costs. Wise, on the other hand, is the more mature platform for sending and receiving large amounts of money internationally.

Migros Cumulus - when a real credit card is needed

I think it’s important to have a real credit card when traveling. Often, you have to deposit a security deposit for rental cars and hotel stays. If you do this with your debit card, the money is deducted directly from your bank account. Suppose you have to deposit CHF 1000 for a rental car; this money will be debited directly from your bank account. And sometimes it can take weeks until it is made available again. However, if you use a credit card for the deposit, your limit is used, and you never have to spend your own money on it. Especially in the USA, it can also happen that debit cards are not accepted when booking a rental car. So, you are forced to use a credit card.

The best Swiss credit card for abroad is the Migros Cumulus Visa. It offers the following advantages:

• No annual fee, including additional card
• No foreign currency fee
• Two free cash withdrawals per year abroad

However, the statement “no foreign currency fee” is not entirely true. While no additional fee is charged, the exchange rate set by Viseca usually exceeds the reference rate by 1% to 3%. Therefore, debit cards like Neon, Revolut, or Wise remain the best choice for intensive international use. Whenever a credit card is necessary, however, the Cumulus Visa is the best option.

Conclusion

In summary, selecting the right credit card for international travel in Switzerland is crucial to avoid high fees. Neon offers transparency with no fees for payments abroad and a flat 1.5% fee for cash withdrawals. Revolut provides versatility with accounts in various currencies, while Wise specializes in efficient international money transfers. For traditional credit card needs, Migros Cumulus Visa stands out with no annual fee and limited free cash withdrawals abroad, though its exchange rates may slightly exceed reference rates. Each option caters to different preferences and travel habits, ensuring affordable and convenient transactions abroad in 2024.