Can You Buy Euros With a Credit Card? Yes, But It's Not Cheap!

When planning your summer travels to the Eurozone, choosing the best method for buying euros will save you tons in hidden fees. To be sure, you'll want to avoid the unfavourable rates associated with credit card transactions.

In this guide, we walk through the process of buying euros with a credit card and then provide the most effective approach: utilising digital multi-currency accounts like Starling Bank, Revolut, and Wise. They offer competitive rates (sometimes even better than the mid-market rate), transparent service fees, and convenient management, making them the best choice for buying euros in the UK for seamless travel within the Eurozone.

Here's Why You Shouldn't Buy Euros With a Credit Card

If you choose to buy euros at a travel money exchange bureau in the UK, it'll be better to use a debit card, given that nearly all credit cards impose a 'cash advance fee.' This fee isn't exclusive to foreign currency transactions; it also applies to ATM withdrawals, online gambling, and other transactions for liquid cash.

Credit cards issuers do this because they are extending debt to you, which involves risk on their end. Thus, they tend to discourage you from using their credit lines in exchange for liquid cash.

The typical 'cash advance fee' sits at around 3% to 5%. This means that purchasing £500 worth of foreign currency would cost £15 to £25. On top of this, interest begins accruing from the moment the payment is executed. Also given the prevailing high interest rates in 2023, Annual Percentage Rates (APRs) could climb up to 30%.

If you do decide to buy euros at a foreign exchange bureau in the UK, compare services by total cost and don't be swayed by those who offer the "best exchange rates" or "no commission exchanges". Look at how many euros you will receive for the amount of Pounds you give once the commission fees and the exchange rate margins have been factored in.

Compare Fees to Buy Euros With Credit Cards in the UK

When you buy euros in the UK at a foreign currency exchange with a credit card, you should expect the following three costs:

1. Fixed commission fee for the service;
2. A weaker exchange rate than the real mid-market rate (the bureau will pocket the difference);
3. The credit card issuer's cash advance fee.

Below we've compiled a comparison of cash advance fees charged by 12 major credit card issuers in the UK, which you should expect when you use a credit card to buy euros in the UK:

The Best Way To Buy Euros in the UK

Using a debit card or a bank transfer is the best way to buy euros in the UK before your holiday.

In place of traditional euro cash changers like the UK Post Office euro exchange, Tesco, M&S, and Sainsbury's — who advertise zero commissions but charge high hidden exchange rate margins — we recommend digital multi-currency alternatives instead.

They are not only among the cheapest options to buy foreign currency, but also among the most convenient ones. Let's have a closer look:

1. Buy Euros With Starling Bank

With Starling Bank, you can open a euro bank account in the UK for free and access your euro balances from the Starling Bank debit card. Starling Bank never charges monthly fees for currency exchange. You will always get the real mid-market exchange rate applied to your transfers and will pay an excellent 0.4% commission fee (as of May 2023). Even better, you can receive euros for free with this account too.

Starling Bank also waives all foreign ATM fees. You may still be charged by the local ATM provider, but at least Starling Bank will never hit you with out-of-network fees for using ATMs to get cash euros abroad.

Learn more: read our in-depth Starling Bank review.

2. Buy Euros With a Revolut Multi-Currency Account

As a UK customer, Revolut will give you unique UK and EU account details. You'll even be able to hold and exchange up to 28 different currencies and access them with your physical or virtual debit card on your travels. When you do, point-of-sale machines and ATMs will treat your card like a local's card.

Revolut applies an industry-low exchange rate on currency conversions, and sometimes offers an even stronger rate that the European Central Bank.

The image below was captured on July 28th, 2023 and does not guarantee that exchange rate. However, it does illustrate that Revolut's exchange rate, when converting Pounds to Euros, can sometimes be profitably set in your favour.

Revolut gives commission-free conversions of up to £1,000 per month for Standard and Plus plan customers. A 0.5% fee will be applied for amounts exceeding the limit, although the allowance increases if you upgrade memberships.

Revolut allows you to withdraw up to €200 per month from ATMs without withdrawal fees. After that, there will be a 2% fee per withdrawal.

Learn more: read our in-depth Revolut review.

3. Buy Euros With a Wise Multi-Currency Account

The Wise multi-currency account offers 50+ currencies, allowing you to access GBP, EUR, and even lesser used currencies like Indian rupees. Wise always uses the mid-market exchange rate, never charging hidden exchange rate margin fees. Instead, it charges a transparent service fee that ranges from 0.3% to around 2% depending on the currency.

The Wise account even comes with current account details for 10 countries, including a UK sort code, US account number, EU IBAN, and more. This means you can receive money locally from those countries by direct debit, SEPA payment, and other methods.

For holiday cash, you can use the Wise debit card for 2 free ATM withdrawals for a total of £200 per month. After that, Wise charges 1.75% withdrawal fee.

Learn more: read our in-depth Wise review.