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).
Formerly part of the soviet bloc, Latvia has plenty to offer tourists – from its elegant art nouveau architecture and ancient castles to the sprawling forests of its National Parks.
Most retailers, hotels and restaurants in its capital city of Riga will accept credit card payments using Visa or Mastercard. Smaller credit card networks aren’t as commonly accepted, but you may still be able to use them here and there. The main exception is the famous local markets (which are a destination in themselves) – you’ll most likely spend euros in cash when buying your souvenirs or meat-based snacks.
In smaller Latvian towns, credit card payment isn’t as widely accepted, especially in rural parts of the country. As you might expect, Riga is better set up with ATMs than other parts of the country, but most machines across the country will charge a fee – so it’s well worth withdrawing some euros before you head out to the Baltic nation.
As you’d expect, there are a few potential fees to watch out for when you’re paying with plastic in Latvia.
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.
It’s likely that ATMs – or “bankomats” as they’re often called – will charge a fee for cash withdrawals. Many have a withdrawal limit of 250 euros.
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. These cards will convert currency at the standard Mastercard or Visa rates
Once you have one of these cards, if a merchant offers to take payment in pounds, say you’re happy to pay in zloty, 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.
American Express isn’t as widely accepted as Mastercard or Visa, so you’re best off withdrawing some euros or taking another card as a safety net. Additionally, merchants may levy a surcharge for Amex payments.
Some 51% of Latvians have a contactless bank card, and this is growing year-on-year, according to a Mastercard survey. As such, you can expect to pay this way when visiting the country.
Chip-and-PIN is used throughout Latvia too. If your card has a four-digit PIN, you’ll be able to pay and withdraw cash this way with no problems.
There have been warnings in the past about dishonest Latvian bartenders over-charging you for drinks. To avoid this scam, always check the amount and your receipt, and you may wish to avoid seedy-looking bars!
Below are some additional general safety tips when using a credit card in Latvia.
If you travel to Latvia, 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 Visa or Mastercard travel credit card, you’ll avoid paying foreign transaction fees and card surcharges, and by simply declining the DCC at merchants and cash machines, you’ll also avoid a poor exchange rate or commission.
Get these simple things right, and you can focus on enjoying the stunning scenery, culture and cuisine (we recommend the rupjmaize – a delicious rye bread) that Latvia has to offer.
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