Using Cards in Spain: The Complete Guide to Avoiding Fees (2026)

Spain is one of Europe's most card-friendly countries.

Contactless payments work almost everywhere, from Michelin-starred restaurants to tiny village bars. But hidden fees can quietly drain your travel budget if you're not careful.

We've lived in Spain for years and made every mistake in the book: wrong ATMs, wrong currency selections, cards declined at the worst moments.

This guide shares everything we've learned about using cards smartly in Spain, so you can keep your euros for tapas instead of bank fees.

The Hidden Costs Most Travellers Miss

Before we get to solutions, here's what can quietly eat into your travel budget:

On a two-week trip with moderate spending, these fees can easily add up to €100-200. That's a lot of jamón.

1. Get a Card With No Foreign Transaction Fees

This is the single most important step.

Most standard credit and debit cards charge 2-3% on every transaction made in a foreign currency. It's called a foreign transaction fee (or FX fee), and it applies to every coffee, museum ticket, and hotel booking you pay for abroad.

On a €2,000 trip, that's €40-60 gone before you've even touched an ATM.

The solution is simple: get a travel-friendly card that doesn't charge these fees. Several excellent options exist:

2. Always Pay in Euros (Never Your Home Currency)

This is the trap that catches almost every tourist at least once.

When you pay with a foreign card in Spain, the card machine may offer to charge you in your home currency instead of euros. It sounds helpful ("See the exact amount in dollars/pounds!"), but it's actually a scam called Dynamic Currency Conversion (DCC).

Here's how it works:

1. The merchant's payment processor converts your purchase to your home currency
2. They use a terrible exchange rate (3-8% worse than the real rate)
3. They pocket the difference as profit
4. Your bank may still charge its own FX fee on top

The fix is simple: always choose to pay in euros.

When the terminal asks "Pay in EUR or USD/GBP?", select EUR.

If a waiter or cashier makes the selection for you, check the receipt. If it shows anything other than EUR, politely ask them to reprocess it.

The phrase you need: "En euros, por favor."

3. Use the Right ATMs (And Avoid the Wrong Ones)

Not all ATMs in Spain are created equal. The difference between a good ATM and a bad one can be €5-7 per withdrawal.

ATMs to Avoid

Euronet, CashZone, and Euro Automatic Cash are independent ATM operators that target tourists.

You'll find them in airports, train stations, and busy tourist areas. Their fees are steep (€5-7+) and they aggressively push Dynamic Currency Conversion.

If you see a brightly coloured ATM with "Currency Exchange" written on it, walk away.

ATMs to Use

Stick to ATMs owned by major Spanish banks:

What Happens at the ATM

When you withdraw cash, the ATM will likely offer to convert the amount to your home currency.

Always decline this.

Choose "Continue without conversion" or "Charge in EUR" to get your bank's exchange rate instead of the ATM's inflated one.

If the ATM shows a fee you don't like, you can cancel the transaction and try another machine. You won't be charged for cancelled withdrawals.

4. Credit for Purchases, Debit for Cash

This simple rule protects both your money and your security.

Use credit cards for purchases because:

• Better fraud protection (easier to dispute charges)
• Often better exchange rates
• Purchase protection on many cards
• No interest if you pay in full
• Points or cashback rewards

Use debit cards for ATM withdrawals because:

• Credit card cash advances incur immediate interest (often 20%+)
• Credit cards often charge 3-5% cash advance fees
• Debit withdrawals come directly from your account
• No interest charges

5. Notify Your Bank Before You Travel

We've had cards blocked on arrival.

Our bank saw "unusual activity" and froze the account. Not ideal when you're trying to pay for a €60 meal.

Most banks let you set a travel notice through their app or website. It takes 60 seconds and tells the fraud detection system to expect charges from Spain.

What to do:

• Log into your banking app
• Find "Travel notifications" or "Travel plans"
• Add Spain and your travel dates
• Include any countries you might pass through

Some modern banks (Revolut, Monzo, Wise) don't require travel notifications because their fraud systems are smarter. But if you're using a traditional bank, set the notice.

6. Contactless Works (Almost) Everywhere

Spain has embraced contactless payments more than almost any country in Europe. You can tap to pay at:

• Restaurants and cafés
• Supermarkets and shops
• Public transport (metro, buses in most cities)
• Taxis
• Pharmacies
• Even market stalls and food trucks

Apple Pay, Google Pay, and Samsung Pay all work seamlessly. In fact, you could realistically travel through Spain using only your phone for payments.

But carry some cash anyway. A few situations still require it:

• Very small, traditional bars
• Some rural businesses
• Occasional "cash only" signs
• Tips (if you choose to tip)
• Street vendors and markets

7. Tipping in Spain (The Cash Question)

Unlike the US, tipping in Spain is not expected or calculated as a percentage. But if you want to tip, cash is preferred.

How tipping works here:

• Restaurants: Round up or leave small change (€1-2). Not expected.
• Cafés/bars: Leave coins from your change. Very optional.
• Taxis: Round up to the nearest euro. That's it.
• Hotels: €1-2 per bag for porters, if you wish.
• Tours: €5-10 for a good guide, if you're happy.

There's no obligation to tip, and no one will chase you down if you don't. It's appreciated but genuinely optional.

Read more: Complete guide to tipping in Spain

8. Always Carry a Backup Card

Technology fails.

Cards get blocked. Magnetic strips demagnetise. Chips stop working.

We've experienced all of these.

Our backup strategy:

• One Visa, one Mastercard (from different issuers)
• One physical card, one digital wallet
• Cards stored in different places (wallet, bag, hotel safe)

If your primary card fails, you have options. If you're travelling as a couple, each person should carry at least one card.

Practical Tips for Smooth Payments

More Money-Saving Tips

Avoid airport ATMs. The fees are highest and exchange rates worst at airports. Wait until you're in the city.

Use your card's app. Modern travel cards like Wise and Revolut let you freeze/unfreeze cards instantly, monitor exchange rates, and set spending limits.

Check exchange rates before you go. Use the XE app or Wise to see the real mid-market rate. This helps you spot bad deals.

Don't exchange cash at bureaux de change. Their rates are terrible. ATM withdrawals with a good card will always beat them.

What About American Express?

Amex acceptance in Spain is limited.

While major hotels, airlines, and some upmarket restaurants take it, many everyday businesses don't. You'll see "Visa/Mastercard" signs far more often than Amex logos.

If you have an Amex with good travel benefits, bring it as a backup for larger purchases where you know it's accepted. But don't rely on it as your primary card.

Keep Your Money Where It Belongs

Travel in Spain doesn't have to come with financial surprises. With the right card, smart ATM choices, and awareness of the Dynamic Currency Conversion trap, you can keep those sneaky fees in your pocket.

We've made every one of these mistakes over the years.

We've paid the wrong currency, used the wrong ATM, had cards blocked at the worst moments. Now we travel smarter and stress a lot less.

The key takeaways:

1. Get a no-FX-fee card before you go
2. Always pay in euros
3. Use Spanish bank ATMs
4. Credit for purchases, debit for cash
5. Carry a backup

Do these five things and you'll save money on every transaction. That's more euros for experiences, not bank fees.