The corona situation is gradually improving. That likely comes as a relief to credit card issuers. Unlike universal banks, which performed very well during the crisis, credit card issuers saw their profits suffer from the reduction in travel.
With fewer foreign currency transactions being made, issuers saw revenues from foreign transaction fees dwindle. And foreign transaction fees are also the reason why consumers in Switzerland – who will now begin traveling abroad again – should choose the cheapest and most suitable credit cards for their needs.
Big savings potential for credit card costs
Independent online comparison service moneyland.ch conducted an analysis of Swiss credit and prepaid cards in June, 2021. The study accounted for all relevant fees over the first two years of card use, as well as franc to euro exchange rates based on exchange rates recorded over 15 non-consecutive days in 2021.
Verdict: “Choosing the right credit card can easily save the card user several hundred francs per year,” states moneyland.ch CEO Benjamin Manz.
Average occasional users can save nearly 550 francs over the first two years by switching from the most expensive to the cheapest credit card (not accounting for exclusive platinum cards). Heavy credit card users can save more than 1200 francs in the first two years by migrating from the costliest to the most affordable credit card.
“Which credit card works out cheapest depends on spending habits,” says Manz, which is why moneyland.ch recommends that you compare credit cards based on your specific needs.
The cheapest Swiss credit cards for occasional users in 2021
The occasional user profile is based on 200 francs of local purchases in Switzerland every month, plus an annual spending of 1000 euros of purchases outside of Switzerland. Calculations are based on the first two years of card ownership.
The cheapest credit card for occasional users is the Cashback American Express from Swisscard (10 francs of profit after deducting all costs from cash back earned). Next in line are the Coop Supercard Mastercard/Visa (47.40 francs of costs), the Migros Cumulus Mastercard, and the IKEA Family credit card (both with 58.85 francs of costs), and the Cashback Visa/Mastercard from Swisscard (81.50 francs). All of these are “free” credit cards – meaning they do not have basic annual card fees.
The cheapest Swiss credit cards for frequent users in 2021
The frequent user profile is based on 1000 francs of local purchases in Switzerland per month, plus 5000 euros of foreign spending each year. The profile also assumes that the user will make five 200-franc cash withdrawals in Switzerland and five 200-euro withdrawals outside of Switzerland.
The cheapest credit card for frequent users is the Cashback American Express from Swisscard, with a total cost of 340.60 francs over the first two years. Next in line is the Swissquote Silver multi-currency credit card (372.45 francs of costs), followed by the Swissquote Gold multi-currency credit cards (472.45 francs of costs) and the Coop Supercard (482.70 francs of costs).
The cheapest Swiss credit cards for travel
The abroad-only user profile is based on 5000 euros worth of purchases outside of Switzerland per year, and 1000 euros worth of cash withdrawals outside of Switzerland per year.
The cheapest credit card for travel is the Swissquote Silver multi-currency credit card, with 302.45 francs of total costs over two years. It is followed by the Swissquote Gold multi-currency credit card (402.45 francs), the Coop Supercard Mastercard/Visa (486.90 francs), and the Cashback American Express from Swisscard (505.55 francs).
The cheapest Swiss prepaid cards for occasional users in 2021
The neon free prepaid Mastercard is – by far – the cheapest Swiss prepaid card.
Over the first two years of use, the total costs of neon free for the occasional user profile is just 14.20 francs. The next runner up is the Coop Supercard Visa Prepaid, with total costs of 117.80 francs over two years. It is followed by the Swissquote Silver prepaid card (124.30 francs), and the Cornèrcard Energy prepaid card (125.65 francs).
In addition to Swiss prepaid cards, foreign cards like those from Revolut and Wise are also available in Switzerland, and their costs are similar to those of neon free. There are also other Swiss neobanks which offer very affordable cards, but these are generally debit cards and therefore were not included in the prepaid card comparison.
The cheapest Swiss prepaid cards for travel
The neon free prepaid card also leads for the abroad-only user profile, with total costs of 105.45 francs over the first two years. In second place – albeit by a wide margin – is the PostFinance Mastercard Value (533.25 francs of costs). The Swissquote Silver prepaid card comes in third with 537 francs of costs.
Cards from neobanks are particularly attractive for travelers because they typically use much more favorable currency exchange rates than conventional Swiss credit and prepaid cards. Using a neobank for travel can save you money.
However, neobank cards are less widely accepted than credit cards – particularly for hotel and car rental bookings – because they are generally either prepaid cards or debit cards. “Carrying a Swiss credit card in addition to other cards is still recommended,” says Manz. That applies both outside of Switzerland because of the wider acceptance, and in Switzerland because of the cash back or other rewards.
Mobile payments are trending
Card users are increasingly using NFC and mobile payments. Almost all Swiss credit cards are now compatible with Apple Pay, Samsung Pay, and other popular mobile wallets.
The fees for cardholders are identical whether they use a credit card or prepaid card to pay directly or use it indirectly via a mobile payment service. That applies to foreign transaction fees, for example. In Switzerland, payments made with either cards or via mobile wallets are usually free. If your credit card rewards you for spending by giving you points or cash back, you also earn these when you spend with your card via a mobile wallet.
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