Going to Tenerife - advice needed on best way to pay for things please!

Emanef

Hi all, we're going to Tenerife for a week this weekend and I'm struggling to get my head around comparing the different options for paying for things and how best to do it. 

We have a Halifax Clarity credit card, which seems to be one of the better ones for making certain types of purchases, and I also have a Revolut UK card, which also seems good for some but not all things (and at some but not all times of the week!) (I'm not sure how Revolut works with Euros, whether I just convert £ to Euros in my Revolut account and can then use Euros or if I have to open a seperate Revolut Euro account?)

I'm also thinking we should take bit of cash, perhaps a couple of hundred quid, but I'm wondering if it's just as cheap to take cash out from one of those two when we are there? Searching on buying cash before looks like poor deals at the moment. Alternatively, we have a First Direct, a HSBC Premier or a Santander 123 lite current account which we could use? 

Additionally, my wife has an iPhone with Apple Pay and I have an Android with Google Pay with the above cards registered on them - I don't even know if UK contactless cards work the same way in Europe - should they work ok? 

What would you all do with the options we currently have?! 

Very confused and overwhelmed!

Thanks!

eDicky

Pay by card with your Clarity and/or Revolut (converts your pounds to euros when used, or exchange in the app). For cash you should be able to use your Santander debit card in a Santander ATM in Tenerife without it charging a fee, whereas most Spanish banks now charge a few euros for an ATM withdrawal using a foreign card.

Always select to pay in euros when a payment terminal offers a choice of GBP or EUR, letting your card do the conversion. Decline any 'conversion' offer by an ATM if it offers you a rate for pounds.

You probably won't need much cash. Contactless is commonly used, same as UK.

DerektheDonkey

Had to use my Santander debit card in Spain recently as my Starling card was swallowed. I think it was 3% Santander charged me for the privilege.
 
ATMs commonly charge about 5 euros for a cash withdrawal too.

NoodleDoodleMan

DerektheDonkey said:

Had to use my Santander debit card in Spain recently as my Starling card was swallowed. I think it was 3% Santander charged me for the privilege.
 
ATMs commonly charge about 5 euros for a cash withdrawal too.

You presumably used your Santander debit card at a non Santander ATM ? Their branded machines in Spain and the Canaries don't take a fee from Santander UK debit cards.

The OP would best be advised to use his Halifax Clarity card to settle up for goods and services - also a decent option if cash is needed - with the standard health warning that the vast majority of ATMs will most likely charge for currency withdrawals - Halifax (and other banks) have no control over that. Interest will be charged for a cash withdrawal - but can be pennies if credited back to the Halifax online quickly.

I believe Banca Marche may still be fee free - also heard that about Deutsche Bank, but these need to be checked out.

The Santander 123 Lite is best option for cash - see above ref. their ATMs.

There is a fair chance of a Santander branch in the locality, and their holes in the wall should be numerous in the Canaries, especially the major tourist locations.

We once stayed in a hotel in Playa Blanca, Lanzarote, which had a Santander ATM in the reception area !!!

Bottom line - no need to take too much cash.

zagfles

eDicky said:

Pay by card with your Clarity and/or Revolut (converts your pounds to euros when used, or exchange in the app). For cash you should be able to use your Santander debit card in a Santander ATM in Tenerife without it charging a fee, whereas most Spanish banks now charge a few euros for an ATM withdrawal using a foreign card.

Always select to pay in euros when a payment terminal offers a choice of GBP or EUR, letting your card do the conversion. Decline any 'conversion' offer by an ATM if it offers you a rate for pounds.

You probably won't need much cash. Contactless is commonly used, same as UK.

Yes, just to add that the POS terminal often asks whether you want to convert the currency after tapping or entering your PIN, so keep an eye on the terminal after you're tapped/entered PIN in case it asks. Or tell the waiter/retailer you want to pay in EUR. Don't just hand the terminal back as often the waiter/retailer will select for you and you'll end up getting charged in GBP at a rubbish rate. This shouldn't happen, but it does.

Emanef

That's great, thank you for all the replies. 

I think we'll be in Alcala, looks like the ATM in the town isn't Santander and the nearest probably isn't walking distance, but I'm sure there'll be a Santander ATM at the airport so I'll perhaps get €50 in cash from there and that should hopefully do if we pay for most things on card. 

So using the Clarity Card, Revolut or Santander via Google Pay/Apple Pay is that effectively the same as using the physical card, or are they charged differently? 

And so to summarise it (for my wife, who will not bother reading it if I don't keep it short and sweet!;

 -For cash at an ATM - Santander card from Santander ATM

- For card purchases use Halifax Clarity or Revolut (and always select to pay in Euros)

- If taking cash out of Halifax Clarity repay from current AC ASAP to minimise charges (ie don't wait for the normal monthly repayment to take it)

- Pay on card as much as possible and remember to always select to pay in Euros

eDicky

Pretty much correct - you're no longer confused and overwhelmed...

If there's an amount already statemented and not yet paid on your Clarity card, Halifax will use any payment made to clear that first, before covering a cash withdrawal. But more recent card purchases not yet appearing on a statement are paid off after cash withdrawals.

Revolut adds a small margin for conversion on weekends when the FX market is closed, so best to use that card only on weekdays, unless you already have enough previously converted in your euro account for a particular purchase. Revolut is not a bank and has no FSCS protection, so best not to load too much.

I've never used Google Pay etc, but it should function as in UK when accepted.

I hope I haven't reconfused you... Enjoy your trip..!

Emanef

No, that's great, thank you!

Doshwaster

Cash in still useful in Tenerife as a some of the cheaper bars and restaurants (the "€1 beer" type places) are cash only otherwise contactless is widespread - just double check that the transaction has gone through in Euro rather than Sterling. The DCC fiddle seems less common with contactless than chip and PIN but does still happen

RobM99

I'm obviously in the minority - I always take cash!

zagfles

RobM99 said:

I'm obviously in the minority - I always take cash!

No you're probably in the majority, most people seem to think an essential pre-holiday ritual is buying currency before they go. But a minority on MSE where we understand finance.

People are conned by stuff like "zero commission" for changing cash when there a massive commission hidden in the rate. I'm surprised with all the nanny state regulation in banking that this hasn't been banned. Just look at the buy/sell spread at any BDC, it's often 10%+, and they have the cheek to pretend to be "commission free"