When traveling from Eurozone countries to Switzerland, one of the first things on your mind might be currency exchange. You might be wondering about the best way to handle your Euros (EUR) and Swiss Francs (CHF), sometimes informally referred to as “Euro Franken”. While the term “Euro Franken” isn’t a standard financial term, it essentially boils down to the question of how to effectively manage the exchange between these two currencies during your travels. Let’s delve into why relying solely on cash exchange might not be the most advantageous approach and explore smarter alternatives.
For short trips where you primarily use cash, you’ll often find yourself facing a common dilemma: leftover Swiss Francs. It’s nearly impossible to budget perfectly to the centime, and you’re likely to end up with some CHF coins and notes that become essentially unusable once you leave Switzerland. These leftover francs often become nothing more than souvenirs, representing a small, unavoidable loss in your travel budget.
A more efficient and cost-effective strategy is to consider using a multi-currency card, such as Wise (formerly TransferWise). These cards allow you to hold balances in multiple currencies, including EUR and USD, and when you make a purchase in CHF, the conversion happens instantly at the mid-market rate. This offers a significant advantage: you avoid converting too much currency upfront and, crucially, bypass the less favorable exchange rates typically offered by shops and traditional banks.
While standard credit cards also facilitate international payments, the currency conversion process differs significantly. With conventional bank credit cards, the exchange rate is determined by the bank itself, often including a margin that benefits the institution, along with potentially hefty foreign transaction fees. In contrast, multi-currency cards like Wise execute conversions at the mid-market rate, minimizing fees and ensuring a fairer exchange.
For even greater savings, particularly if you have a good estimate of your spending, you can pre-convert a specific amount to CHF within your multi-currency card account. This effectively turns your card into a dual-currency tool, allowing you to utilize the most favorable currency balance for each transaction. More information on this approach can be found at https://wise.com/gb/borderless/.
Therefore, by opting for a multi-currency card, you can circumvent the inefficiencies associated with cash exchange altogether. And choosing a multi-currency option over a standard bank card can lead to considerable savings on currency conversion, making your travel budget go further in Switzerland.
It’s worth noting that while credit cards are widely accepted, some establishments, like post offices in Switzerland, may only accept Maestro debit cards. Therefore, having a multi-currency debit card can be particularly useful for comprehensive coverage.
