Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £3 per month, your representative rate is 27.7% APR (variable).
There are plenty of great reasons to visit Estonia for a holiday – and the convenience of using your credit card is one of them. The country has a developed banking system, especially in the major cities of Tallinn, Tartu and Narva.
It should be possible to use Visa, Mastercard and American Express in these major cities. The big exception to this rule, however, is the local markets – here, you’ll mostly be expected to pay in cash using euros. You won’t need to show identification when making credit card payments (as you would need to do in some other countries).
ATMs in Estonian cities are plentiful, but as you might expect, they can be tougher to find in smaller locations. In the rural areas of the country or on one of the 1,500+ islands, it may be less likely that you can freely use your credit card.
As you’d expect, there are a few potential fees to watch out for when you’re paying with plastic in Estonia:
It’s also worth noting that when it comes to cash advances and non-sterling transactions, many card issuers will start charging interest on the day your account is debited, rather than the customary “up to 55 days interest-free” that usually applies provided you clear your balance in full each month.
In January 2018, the EU required member states to adopt the Payment Service Directive 2. The PSD2 is a ban on card payment surcharges – when a retailer adds a fee because you’re paying using a credit card. However, it’s important to note that there are limitations and exceptions to this directive, and there are other fees that may apply when you pay by credit card. If your card is from a non-EU bank, uses a network other than Visa or Mastercard or is a business/corporate card, then the merchant may still levy a surcharge.
Consider taking out a credit card offering commission-free currency conversion (see table below), even if you only use it when you’re out of the country. Once you have one of these cards, if a merchant offers to take payment in pounds, say you’re happy to pay in euros, since you know that your own bank won’t add a margin.
Generally speaking, it’s not a great idea to use credit cards to withdraw cash, but some travel credit cards won’t penalise you for this either. Finally, make sure to check whether any ATM you use is going to charge a fee. High street bank ATMs are generally a safer bet than those in convenience stores or bars.
Some two-thirds of card payments were made using contactless technology, according to official data from 2017.
Chip-and-PIN payments are available throughout the country, provided you have a card with a four-digit PIN.
The level of card scams and ATM scams is low in Estonia. However, there are some precautions you can take for increased security:
Some taxis in Estonia accept credit cards although it’ll be easier to find one in the major cities.
If you travel to Estonia, you can safely use your credit card to make payments and withdraw cash. You’ll just have to be careful to not incur fees you can otherwise avoid. With a decent travel credit card, you’ll avoid paying foreign transaction fees. By declining to pay in pounds (dynamic currency conversion) when offered, you’ll also avoid a poor exchange rate or commission.
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