Money & Credit Cards

 The Basics

Portugal uses the Euro (currency symbol is €).  Most of western Europe uses the Euro, so if you plan to travel on to Spain, France, Germany, etc. your Euros will be usable there.

Don’t expect to use your US Dollars anywhere in Portugal, just like you would not go to a store in the US and pay with Euros!

Like most of Europe, Portugal switches the “.” and “,” in numbers, so you will see prices represented as €15,99 instead of $15.99.

And good news: you can use your credit and ATM cards just like you would in the US.

Most credit card companies and banks have sophisticated fraud systems now so you don’t need to notify them in advance of overseas travel. However, we recommend you double-check this on your card’s website - if you can’t find information there, call the number on the back of your card.

 

Cash & Coins

Bills are all different colors and sizes. You definitely want to carry cash with you, but keep in mind that not every vendor will be able to break €100 and €200 bills. ATMs normally dispense €50 bills, which is about as big as you want to go.

 

Coin Denominations

  • 1 cent

  • 2 cents

  • 5 cents

  • 10 cents

  • 20 cents

  • 50 cents

  • 1 Euro

  • 2 Euro

Like in the US, 100 cents = 1 Euro.

If you are surprised to get coins back as change instead of bills, remember that there are no €1 or €2 bills.

 

How To Pay For Things

You should always carry cash - both as a backup in case there is a problem with your credit card, and because some merchants do not accept credit cards (although almost all do in the cities).

You should find out in advance what the international transaction fee is for your credit card[s].  For example, most Amex cards are 2.9%.  My 2 Chase VISAs are 0% (no fee). I have another VISA with a 3% fee.  If you can’t find this easily on your card’s website, call the number on the back of the card and ask. When we travel, we only use our 0% fee cards unless there’s an emergency.

If you are paying by card and the system asks if you’d like to pay in USD or Euro, always choose Euro. If you choose USD, the merchant’s point-of-sale system will assess a fee for currency conversion, which is usually at least 3%. Even if your card is bad for travel like my 3% foreign transaction fee VISA, at worst it’s equal or better than whatever the PoS will charge.

 

Restaurant Payment Etiquette

Your server will come to your table at the end of the meal with a hand-held payment device, punch in the amount right in front of you, and then you insert your card. This is still kind of futuristic in the US but has been the norm in Europe for over a decade, even at hole-in-the-wall spots. Restaurant workers are salaried and don’t expect tips, but it’s nice to leave a little something if you can. The rule of thumb we follow is about 5%. If you don’t have €1 or €2 coins or €5 bills, you can tell the server how much to add to your bill as they are ringing you up - there is no option to write the tip amount on the receipt like we do in the US.

While we’re on the subject of restaurants…the vibe is very different in Portugal/Europe as opposed to what we’re used to at home. In the US, you might feel rushed because it’s in the server’s financial interest to turn your table ASAP and get the next party seated. In Europe, you can just sit and hang out, have a glass of wine, do things at your own pace. If you need the server, make eye contact or signal them - that’s not rude, that’s how they operate (in contrast to frequent check-ins).

 

US Dollar Conversion Rate

The conversion rate changes constantly due to a number of factors.  As of February 2022, $1 is 0.88 Euro (or in reverse, 1 Euro is about $1.13). When we visited Portugal in July 2021, $1 was 0.85 Euro - the US Dollar is gaining in strength, which is good news for us in summer 2022.

A mnemonic to quickly calculate in your head is to add 20% of the price in Euro to get a rough conservative estimate of the US Dollar amount. So, if you’re buying a souvenir that’s €10, it’s about $12.

There are online currency converters available, or you can type questions like “how much is 5 euro in dollars” into Google and get quick exact results.

 

How To Get Euros

Your US ATM card will work just fine at ATMs in Portugal.  We like to take out a few hundred Euro from the airport ATM after landing so we can hit the ground running. If you prefer to get Euros before leaving the US, it’s likely your bank will be able to help with this for a fee. For example, suppose the exchange rate is 1 Euro to $1.13. Your bank might sell you Euros at $1.18 each.

You might see Travelex kiosks at the mall that offer currency exchanges - avoid them, their fees are generally much higher than banks’.

 

How To Get US Dollars for Your Euros

There are exchange areas in the airport, but we recommend you avoid these as they charge a high fee. A better approach is to visit your bank when you get back to the US, and they will do the exchange for you.