Major Cost Differences Between Swiss Credit Cards

For most residents of Switzerland, credit cards are a standard feature both and home, and when traveling abroad. Mobile payments are on the rise, but in most cases, these are still charged to a linked credit card. moneyland.ch studied which fees apply to transactions both in Switzerland and in foreign countries.

More than 550 francs of potential savings

moneyland.ch analyzed the costs and features of 130 Swiss credit cards. The analysis accounts for all relevant fees for the first two years of using a card, as well as the euro to Swiss franc exchange rate based on samplings across 12 different days in June, 2023.

The result: “The costs and benefits of Swiss credit cards vary hugely,” concludes moneyland.ch CEO Benjamin Manz. “Many consumers still use expensive credit cards, and could save hundreds of francs per year in fees and charges by migrating to cheaper cards.”

Occasional users can save nearly 550 francs over the first two years by using the most affordable credit card. That is true even without accounting for expensive platinum credit cards. Consumers who use their credit cards a lot could save more than 860 francs.

The cheapest credit cards for occasional use

The occasional user profile from moneyland.ch assumes 200 francs of local purchases using a credit card per month, and 1000 euros of spending outside of Switzerland every year. Calculations are for the first two years of holding a card.

The cheapest Swiss credit cards for occasional credit card users are the American Express versions of the Cashback credit card from Swisscard and the Poinz Swiss Loyalty Card (see table 1). The cash back earned with these two cards supersedes the total costs of using them by 18.65 francs (Cashback credit card) and 1.65 francs (Poinz credit card). So consumers matching the occasional user profile actually save money by using those credit cards instead of other payment methods. The next most affordable credit cards for this profile are the Migros Cumulus Visa credit card, with total costs of 16.70 francs, and the Spar Mastercard World, with total costs of 37.40 francs.

All of the cheapest credit cards for occasional users are “free” credit cards that do not have basic annual card fees.

The cheapest credit cards for travel

The abroad-only profile from moneyland.ch assumes purchases of 5000 euros per year paid with the card, and 1000 euros of cash withdrawals in foreign countries every year. Although making cash withdrawals using credit cards is best avoided because of the high cash advance fees, Swiss travelers still use credit cards to get cash when traveling abroad. According to statistics from the Swiss National Bank, more than 2 million francs are withdrawn from ATMs in foreign countries every year using Swiss credit cards.

The cheapest credit card for consumers matching the travel profile, by a wide margin, is the Migros Cumulus Visa credit card, with a total cost of 261.75 francs over two years. Next in line is the Coop Supercard credit card (Visa or Mastercard) with 440.45 francs of costs. The eight other cards in the top 10 cheapest credit cards for travel are listed in table 2.

The cheapest credit cards for frequent use

The frequent user profile from moneyland.ch assumes 1000 francs of local purchases in Switzerland paid with the card every month, and 5000 euros per year spent in foreign countries. It also assumes cash withdrawals with the credit card (five withdrawals of 200 francs each at Swiss ATMs and five withdrawals of 200 euros each at foreign ATMs every year). There are still card users who use credit cards to withdraw money, even though the high costs make this an expensive habit.

The cheapest credit card for frequent users is the Migros Cumulus Visa credit card, with total costs of 232.55 francs over the first two years (see table 3). Next in line are the American Express versions of the Cashback credit card from Swisscard and the Poinz Swiss Loyalty credit card, both with 277.05 francs of costs.

Important credit card tips for holidaymakers

In addition to choosing the cheapest available credit card, there are other things tips worth knowing. “When making purchases from foreign merchants, travelers should pay in the local currency, and not in Swiss francs,” recommends Benjamin Manz. That means you should not make use of dynamic currency conversion services, as these often have high fees. For getting cash, debit cards or neobank cards should be used instead of credit cards, whenever possible. Most credit cards have very high fees for withdrawing cash.

Pay attention to credit card insurance benefits

Many people do not know that some credit cards include complimentary travel insurance coverages and other insurance benefits for cardholders. The requirement, in most cases, is that at least part of the trip is paid for using the credit card. Before you buy travel insurance, it is worth taking a look at your credit card’s benefits. The credit card comparison on moneyland.ch lets you sort card based on the insurance coverages they provide. You can find more information in the guide to credit card insurance benefits.

Credit card or neobank card?

For traveling outside of Switzerland, the cards from some neobanks like Neon, Revolut, and Wise, are even cheaper than the cheapest Swiss credit card because of their favorable currency exchange rates. However, neobank cards generally are not credit cards, so their acceptance is somewhat more limited. moneyland.ch analyzed these in a separate neobank study. In every case, carrying a conventional credit card as well when you travel is recommended because of the wider acceptance. For use within Switzerland, the exact opposite is true: Many Swiss credit cards are much more favorable than neobank cards for local transactions, as long as they are only used for card-based payments and not for cash withdrawals. The reason for that is that the cheapest neobank cards do not come with cash back or other reward programs.

More on this topic:
Interactive Swiss credit card comparison