Key Tips For Using Credit Cards

Follow these tips to get the most out of using Swiss credit cards.

Tip 1: Compare credit cards and save

Comparing Swiss credit cards on moneyland.ch can easily save you hundreds of francs per year.

Tip 2: Avoid making cash withdrawals

Do not use your credit card to withdraw cash from ATMs, whether in Switzerland or in foreign countries. Use a debit card instead (Debit Mastercard or Visa Debit). Withdrawing cash from ATMs using credit cards generates high credit card fees.

Tip 3: Minimize foreign transaction costs

When you use your credit card to pay at foreign merchants, you typically pay both a foreign transaction fee (between around 1.2 and 2.5 percent, depending on the credit card) and a markup on the currency exchange rate. Currency exchange rates are set by your credit card issuer and can change on a daily basis.  

Examples of card issuers include Cembra Money Bank, Cornèrcard, Postfinance, Raiffeisen, UBS, and Viseca. If you frequently make purchases in a foreign currency, then it can be worth getting a foreign-currency credit card (in euros or dollars, for example). That will help you avoid foreign transaction fees.

Another alternative is to use a neobank card. These are typically debit cards, and many use very favorable currency exchange rates.

You can find more information in the guide to making payments and withdrawing money when traveling outside of Switzerland.

Tip 4: Pay in the local currency

When using your credit card to pay in foreign countries, always choose to pay in the local currency, and never in Swiss francs. That way, you will avoid paying additional fees for dynamic currency conversion.

Tip 5: Use more than one card

It can be beneficial to use different cards for different kinds of transactions. For example, you could use one card that has a low foreign transaction fee and favorable exchange rates when you travel abroad, and a different card that has high rewards or cash back for your local spending in Switzerland. There are some credit cards that are among the most favorable options for both local and foreign use.

Neobank cards are often much cheaper for foreign transactions than conventional credit cards. However, it is still a good idea to carry a credit card with you when you travel abroad, as some merchants require a credit card for certain transactions.

Tip 6: Adjust the spending limit

You can see the maximum monthly spending limit for each credit card on the results page in the moneyland.ch credit card comparison. Be aware that card issuers can give you a limit that is lower than the maximum possible line of credit. The limit you get depends on your creditworthiness.

Tip 7: Check the interest rates

Credit card loans are generally not worth using because of the high interest charges. If you have to carry a negative balance past the due date, get informed about the fees beforehand. Note that credit card loans have even higher interest rates than personal loans.

Tip 8: Avoid penalty fees

Always pay your credit card bill in full and on time. Ideally, you should automate the payment using a direct debit. This will help you avoid expensive interest charges and penalty fees.

Tip 9: Compare cardholder benefits

If you are interested in credit card reward programs, complimentary insurance coverage, and other cardholder benefits, you can filter the results in the Swiss credit card comparison on moneyland.ch based on which benefits you want. The comparison also shows customer satisfaction ratings for each card.

Tip 10: Visa, Mastercard, or American Express?

Many Swiss credit cards are issued in both Visa and Mastercard versions. The fees are identical for both Visa and Mastercard versions. In many countries, acceptance of Visa and Mastercard by merchants and ATMs is very similar. American Express is much less widely accepted, so it can be beneficial to carry a Visa or Mastercard credit card with you for use when your American Express card is not accepted.

Tip 11. Gold and platinum credit cards

Standard, gold, or platinum? Gold and Platinum credit cards often have much higher annual card fees. Upgrading only pays off if you actually need and use the special cardholder benefits included on Gold and Platinum credit cards.

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