A guide to using credit cards in the Netherlands
Quick insights
- While credit cards are accepted by many businesses in major Dutch cities, cash and debit cards tend to be more popular payment methods.
- Some credit cards charge fees for international purchases, which can increase your travel expenses.
- If you don’t have one already, you may want to consider applying for a credit card that doesn’t charge foreign transaction fees before your trip.
From charming canals to paintings by Dutch masters to picturesque windmills, a trip to the Netherlands can be an enriching experience. To fully enjoy all the country has to offer, you’ll need an accepted payment method.
In the Netherlands, financial habits differ from the U.S. and some other European countries. Credit card usage is generally lower among Dutch residents, as many prefer debit cards and cash for transactions. Consequently, merchants who serve mostly local customers often lack the incentive to pay the processing fees for credit card transactions. However, merchants in tourist areas may be more inclined to accept credit cards.
Read on to learn more about using credit cards in the Netherlands, including locations where debit cards may be preferred and how to avoid potential fees.
Using credit cards in the Netherlands
In the Netherlands, credit cards—primarily Visa and Mastercard—are often accepted in urban and tourist areas, as well as at many major retail chains.
Many businesses accept contactless payments via digital wallets, but some may only accept linked debit cards, not credit cards. Typically, merchants display a sign in their window indicating the payment methods they accept.
Bringing multiple forms of payment, including euros, may help you make your intended purchases in the Netherlands. Credit cards may not be accepted in small towns or by the following vendors:
- Local markets
- Grocery stores
- Street vendors
- Bars
- Cafes
- Small shops
If you plan to use a credit card during your trip to the Netherlands, note that banks, including Chase, no longer require you to provide a travel notice when traveling internationally due to advancements in fraud detection technology.
Potential credit card fees while traveling in the Netherlands
Using a credit card can lead to various fees that may quickly add up and disrupt your vacation budget. Fortunately, there may be ways to minimize these costs. Here are some potential credit card fees you might encounter on a trip to the Netherlands:
Foreign transaction fees
Some credit cards impose foreign transaction fees when you make purchases in the Netherlands or other foreign countries. These fees typically range from 2% to 5% of the transaction amount, which banks use to cover the cost of processing international transactions and limit risks associated with fluctuating exchange rates. Check your credit card’s terms to see if these fees apply.
You may be able to avoid foreign transaction fees. Some travel rewards credit cards don’t charge foreign transaction fees and come with travel-friendly rewards and benefits.
Currency conversion fees
Banks may charge a currency conversion fee when you use a credit or debit card or withdraw euros from an ATM in the Netherlands. The fee is usually around 1%. Sometimes the fee is included as part of the foreign transaction fee.
Dynamic Currency Conversion (DCC) fees
Some merchants partner with DCC services to offer customers the option to pay in their home currency when using a credit card. For this convenience, the cardmember often must pay a fee and may receive an unfavorable exchange rate.
To avoid these fees, you can choose to pay in euros rather than U.S. dollars at the credit card payment terminal. Let the merchant know that you prefer to pay in euros if the option isn’t provided.
While paying in euros helps you avoid DCC fees, you’re still subject to the fees and exchange rates associated with your credit card. However, credit card issuers tend to offer more competitive terms than those provided by DCC services.
Pros and cons of using credit cards in the Netherlands
Whether you’re shopping on P.C. Hooftstraat in Amsterdam, wandering through the tulip gardens in Lisse during spring or exploring Utrecht’s medieval old town, credit cards can be a convenient payment option. However, they come with certain drawbacks. Here are some pros and cons of using credit cards in the Netherlands:
Pros
- Credit cards are accepted by many Dutch businesses in urban and tourist areas.
- The card itself is slim and easily fits into your wallet while touring the Netherlands.
- Credit cards often offer fraud protection.
- Credit card statements and digital banking tools can help you track your expenses.
- Travel rewards credit cards often allow you to earn points on common trip expenses like flights, hotels and dining out.
- Some credit cards provide travel protection benefits, such as coverage for lost luggage or trip cancellations.
Cons
- Credit cards aren’t as widely accepted as in the U.S. or in other European countries like France or the U.K.
- Daily fluctuations in the exchange rates offered by credit cards may complicate budgeting.
- There’s a risk of overspending with credit cards if you’re not careful about budgeting and tracking your spending.
- Choosing to pay in U.S. dollars could result in DCC fees.
- Some credit cards charge foreign transaction fees for purchases made in the Netherlands.
- Monitoring your account for unauthorized charges during your vacation may be an unwelcome chore.
In summary
Cash and debit cards are generally the most widely accepted payment methods in the Netherlands. However, many businesses in major cities or areas frequented by tourists do accept credit cards. Regardless of location, businesses like small shops, street vendors and grocery stores may not accept credit cards.
When using your credit card abroad, including in the Netherlands, you may incur foreign transaction, currency conversion and DCC fees. Your credit card’s terms will specify any applicable foreign transaction fees. To limit these fees, you may want to consider applying for a credit card with no foreign transaction fees or choosing to pay in euros at the credit card payment terminal.
