What are the advantages and disadvantages of payment methods like credit cards, debit cards, cash, and mobile payments? Find key points about payment methods for spending in Switzerland and abroad in this guide.
The list of ways that you can pay for goods and services keeps getting bigger as new online and mobile services become available. For Swiss consumers, keeping a clear overview of payments is becoming increasingly difficult. In this guide, moneyland.ch explains the properties of the most relevant payment methods available in Switzerland, and the advantages and disadvantages of each.
For each payment method, there are small differences in acceptance. Even if a payment method is widely accepted, you may still be unable to use it to pay for some purchases. Some shops and restaurants do not accept credit cards. Rental car companies, on the other hand, may only accept credit cards, and not debit cards or prepaid cards. While you can generally pay for online hotel bookings using a debit card or prepaid card, some hotels require a credit card when you check in. There are also merchants who accept payments with debit cards, but not with credit cards. At many farm stands, market stalls, and alpine lodges, Twint is the only accepted cashless payment method.
Tip: Using a variety of different payment methods can help you avoid complications. Carry both a debit card and a credit card. Ideally one card should use Visa, and the other Mastercard. That way, if one payment method does not work, you can use a different one.
The pros and cons of cash
Cash is king: Banknotes and coins are the most popular payment method in Switzerland. The moneyland.ch Swiss payments survey shows that 67 percent of residents consider cash to be completely indispensable, while 96 percent use cash for payments.
The biggest advantages:
The biggest disadvantages:
The detailed guide to the pros and cons of cash provides more information.
How can I find out which kind of payment card I have?
For many people, it can be difficult to recognize a card’s type just by looking at it. A card imprinted with a Mastercard or Visa logo may be a credit card, a prepaid card, or a debit card. The deciding factor is a word printed on the card in fine print. If the word debit is printed on the card, then it is a debit card. The word prepaid shows that it is a prepaid card. If the card either has the word credit on it, or none of these words at all, then it is a credit card.
The pros and cons of debit cards
Purchases with a debit card are charged directly to your bank account. Debit cards are very popular in Switzerland. A high 71 percent of participants in a moneyland.ch survey consider debit cards to be completely indispensable – making them even less dispensable than cash. 91 percent of participants use debit cards to make payments at brick-and-mortar merchants, and 50 percent use them to pay for online purchases.
The biggest advantages:
The biggest disadvantages:
The pros and cons of credit cards
Purchases made using a credit card are paid for by a card issuer, which then bills you for the total of all payments (normally at the end of each month). A representative survey conducted by moneyland.ch shows that 71 percent of Swiss consider credit cards to be somewhat or completely indispensable. 84 percent of consumers use credit cards to pay at brick-and-mortar merchants, and 80 percent use them to pay online.
The biggest advantages:
The biggest disadvantages:
The pros and cons of prepaid cards
Swiss prepaid cards are identical to credit cards in many respects, and are often issued by the same companies. But unlike credit cards, you have to deposit money into a prepaid account linked to your prepaid card before you can make payments. You can only spend as much money as is available in the account. A representative survey by moneyland.ch shows that 24 percent of Swiss consumers consider prepaid cards to be somewhat to fully indispensable. 27 percent use them to pay at brick-and-mortar stores, and 31 percent use prepaid cards for online payments.
The biggest advantages:
The biggest disadvantages:
The pros and cons of Twint
Swiss mobile payment service Twint stands out from other payment methods because it can be used to transfer money between individuals, and to pay at parking meters, farm stands, and other locations which are not equipped with POS terminals. In a representative moneyland.ch survey, 56 percent of participants stated that Twint was somewhat or completely indispensable. 64 percent of consumers use Twint to pay at brick-and-mortar establishments, and 56 percent use it to pay online.
The biggest advantages:
The biggest disadvantage:
The pros and cons of mobile payments
Mobile payment services (Apple Pay, Fitbit Pay, Garmin Pay, Google Pay, Samsung Pay and Swatch Pay) have been trending for some time now, but have not really established themselves in Switzerland. You can only use these in combination with a compatible payment card, and the terms and conditions of the linked card apply. Most credit cards, some debit cards, and some prepaid cards can be used.
The biggest advantages:
The biggest disadvantages:
The costs of payment methods
Various fees and charges apply to cashless payment methods. For mobile payments, the fees and charges of the linked payment card apply.
You can use the moneyland.ch comparisons (credit card comparison, prepaid card comparison, private account and debit card comparison, bank package comparison, neobank comparison) to find the most favorable payment solutions based on your specific needs.
Acceptance of payment methods compared
The table below shows how useful different payment methods are for brick-and-mortar and online spending.
| Payment method | Brick-and-mortar shops | Online shops |
|---|---|---|
| Cash | Very high acceptance | Not accepted |
| Debit cards (Debit Mastercard, Visa Debit,Postfinance Card) |
High acceptance | High acceptance |
| Debit cards (Maestro, V-Pay) | High acceptance | Not accepted |
| Credit cards | High acceptance | High acceptance |
| Prepaid cards | High acceptance | High acceptance |
| Twint | Fair acceptance in Switzerland, only cashless option for some transactions |
High acceptance in Switzerland, not accepted abroad |
| Mobile payments | Acceptance depends on the card used |
Acceptance depends on the card used |
More on this topic:
Credit card comparison
Payment options at Swiss online stores compared
Swiss payments survey
The pros and cons of cash explained
Apple Pay in Switzerland FAQ
Garmin Pay in Switzerland FAQ
Google Pay in Switzerland FAQ
Samsung Pay in Switzerland FAQ
Swatch Pay in Switzerland FAQ
Twint FAQ
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