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).
Turkey is one of the most popular holiday destinations in the world, with millions flocking to its stunning beaches or its major city of Istanbul.
When it comes to plastic, Visa and Mastercard credit cards find widespread acceptance in medium to large businesses. However, cardholders of American Express or Diners Club may struggle. Cash remains a popular way to pay across the country.
Turkey uses the lira (TRY) and although you can pay with euros in some places, you’re always going to get a better deal if you transact in the local currency. It’s better to get lira once you arrive in Turkey, rather than in advance in the UK.
Haggling is common so it’s good to have enough cash if you’re planning to go shopping in Istanbul’s bazaars. You will need to pay for most small purchases of around £5 to £20 worth of lira in cash. Keep around £50 to £100 worth of cash in lira to pay newspaper vendors, cafes, restaurants, bars and small souvenir shops.
You’ll find cash machines linked to the Plus or Cirrus systems so using your Visa or Mastercard card will be easy. ATMs are in most Turkish cities, towns and beach resorts, including at train and bus stations, petrol stations, shopping centres and popular tourist attractions. It’s better to use the cash machines attached to banks as these tend to be safer than the ones in free-standing booths.
Turkish bank ATMs do not charge a local ATM operator fee. There are instances when the transaction times out, if this is the case, try a different ATM.
Find a great deal on your travel money for Turkey
Turkey has moved from magnetic-stripe to chip cards, and all banks in Turkey now issue the latter. Chip and PIN cards are most commonly used for most transactions, while contactless is steadily growing in popularity for transactions of 90 lira and under.
If you have a magnetic-stripe card, you’ll still be able to use it in Turkey, although you can expect some confusion. With the switching of technology, some retailers falsely believe that they can no longer accept magnetic-stripe cards while some others will not let you use them, to do their bit in reducing credit card fraud. All they basically need you to do is swipe your card instead of inserting it into the machine, and then get you to sign for the purchase.
If you use a chip-and-signature card, you can use it in Turkey just about everywhere you find a manned credit card machine. However, some businesses are hesitant in accepting them because they are not sure if it’s allowed and some others don’t accept them to cut down on credit card fraud. If you’re getting tickets from a machine, you will need to enter a PIN, in which case your chip-and-signature card won’t work.
By exercising some caution when using your credit card in Turkey, you will have a relatively trouble-free experience.
Remain alert to street crime, especially where two or more people work in distracting victims before decamping with their valuables. Instances of theft at airports are not uncommon, so stay vigilant while arriving and departing. There have been numerous instances of thefts from hired cars so don’t leave your wallet or purse in a parked car. In some cases, thieves pose as police and ask to see wallets for identification purposes. In such a scenario, make sure you’re speaking with genuine police officers. It is very unlikely that a real officer will want to sift through your wallet.
Credit card fees can leave a noticeable dent in your pocket when you are travelling overseas, so know what you are up against well in advance and choose a card with no or low fees.
British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s fine print to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.
Learn more about cards designed for overseas spending
If a retailer offers to bill your credit card in sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you will actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you are presented with an option, always choose to pay in the local currency.
Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you are likely to pay a cash advance fee. Your APR for cash advances is normally higher than your purchase APR. Typically, you will get no grace period and will start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.
The table below serves as an example of how much extra you may pay to use your credit card in Turkey.
Additionally you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.
Ask yourself these simple questions before you leave so your spending in Turkey does not hit any roadblocks.
When you’re in Turkey, you don’t have to worry about where and when you can use your credit card. Just keep some cash handy to pay for small purchases.
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