Navigating Payments While Traveling Through Spain: A Comprehensive Guide

by Felix Wong | 01 Jul 2024

In early July, my brother and his family were getting ready for a week-long trip to Barcelona and Costa Brava. As first-time visitors to Spain, they had several questions about how payments work. While technology now allows us to use chip cards or phones instead of cash and traveler’s checks, he was curious about how Spain’s payment practices differ from those in the U.S.

After extensive discussions, he suggested I write an article for my website, noting that much of the information I shared wasn’t readily available online. So, here it is!

Contactless Payments: Your Best Friend

In Spain, the payment infrastructure is more advanced compared to the U.S. Apple Pay and Google Pay are widely accepted, allowing you to leave your wallet behind and use your phone for most transactions. This is a significant advantage over many places in the U.S., where mobile payments might not always be an option—especially in restaurants or even large chains like Home Depot, which often still require a physical credit card.

In Spain, credit card transactions are seamless, and unlike in the U.S., you never have to hand over your credit card to someone else. Transactions are handled right in front of you with handheld card machines, whether you’re at a restaurant, store, or even getting food delivered. This eliminates the risk of someone taking your card away and secretly recording your credit card number, expiration date, and security code and using it for nefarious purposes.

Using Your Credit Card in Spain

Most establishments in Spain accept credit cards, and you’ll rarely need your PIN for purchases. However, keep a few things in mind:

• Currency Choice: Sometimes, especially with American credit cards, you’ll be given the option to pay in either EUR or USD. Always choose EUR. Paying in USD allows the merchant to apply their own exchange rate, which is almost always worse than what your bank would offer.
• Foreign Transaction Fees: Before traveling, check which of your credit cards don’t have foreign transaction fees. Visa and MasterCard are widely accepted, but Discover is not.

Very often, when you ask for the check (“la cuenta por favor“), they will come by with just the check. Then you tell them you will pay with a credit card (“con tarjeta por favor“), and they will often have to walk back and fetch their handheld credit card machine. So if you are in a hurry, when you ask for the check, mention that you will pay by credit card to eliminate that extra step where they have to fetch the handheld credit card machine.

At some fancier restaurants, each waiter will have a credit card machine in their pocket already, but more often, waiters are sharing just one credit card machine.

At some establishments, you will have to go up to a counter to pay. That waiter will either indicate this to you, or you will see other customers doing so.

There’s been only one place I’ve been to in Pontevedra that didn’t accept a credit card, and that was my barber. But in January 2024, even he implemented a credit card system and now even has an app for booking appointments.

ATM Withdrawals and Exchange Rates

When withdrawing cash from ATMs in Spain, be cautious of the exchange rates offered. Many ATMs will suggest converting the amount to USD before withdrawal, but this usually comes with unfavorable rates. Always choose to withdraw in euros and let your bank handle the conversion.

Also, try to find ATMs that don’t charge withdrawal fees. For example, I use a U.S. credit union ATM card that doesn’t charge fees for using other banks’ ATMs, and Abanca—a Spanish bank headquartered in Galicia—does not charge any fees when using their ATMs.

Tipping in Spain

Tipping in Spain is not mandatory as it is in the U.S.; in fact, it’s typically not even expected. In Spain (and much of Europe in general), restaurant staff are paid fair wages and benefits as part of their employment, making tips a bonus rather than a necessity.

If you’ve had exceptional service, feel free to round up the bill or leave a small tip, usually a few euros or up to 10%. In tourist-heavy areas like Barcelona, tipping might be more common due to the influence of foreign visitors, but it’s still not obligatory.

When you do tip, you can either tell the server to charge you a bit more on your card or simply leave some change on the table. Keep in mind that service in Spain differs from the U.S.—waiters won’t check in on you frequently. It’s common for waitstaff to leave you undisturbed for hours, so if you need something, you might have to wave them down.

Handling Pickpockets and Safety

While Spain is generally very safe, be particularly cautious in tourist hotspots like La Rambla in Barcelona, which is notorious for pickpockets. Avoid carrying valuables in easily accessible pockets, and consider relying on your phone with Apple Pay for most transactions. This minimizes the risk of losing important items like wallets and cards.

Mass Transit and Metro Cards

Using public transport in cities like Madrid and Barcelona involves metro cards similar to those in many U.S. cities. These cards can be recharged at metro stations, and in Madrid (with iPhone and Android) and Barcelona (currently Android only), you can even recharge with your phone if it has an NFC chip. However, be prepared for occasional issues when using mobile payments at transit stations—sometimes, a physical card is just more reliable.

For intercity travel, apps like RENFE and Flixbus make it easy to purchase tickets and display QR codes on your phone, streamlining the process.

Final Tips for a Smooth Experience

• Travel Notices: Notify your credit card companies about your travel plans to avoid inconvenient declines. You can usually do this through their app.
• Use Credit Over Debit: For purchases, always use a credit card instead of a debit card for added security. Credit card liability is usually capped at $50, and fraudulent charges can be reversed quickly. In contrast, debit card liability can be as high as $500, and it might take weeks to recover lost funds.
• Research: Websites like wikivoyage.org are handy for understanding local transit systems and getting from airports to city centers.
• Navigation: You can rely on Apple Maps or Google Maps for mass transit, walking, cyling, and driving directions with few hiccups. But be sure to download offline maps (both Apple Maps and Google Maps support this nowadays) before you leave even if you expect to have roaming cell service on your domestic phone plan, just in case you do get caught without an internet connection. Offline maps won’t be able to provide schedules and routing for mass transit, but works with everything else.

With these tips in hand, you’re ready to enjoy your time in Spain without worrying about payment mishaps. Safe travels!