Portugal- Using Your Credit Cards and ATM Machines in Portugal

mcoelho813
Oct 25
4 min read

Updated: Nov 5

Quick summary

Credit Cards, including Visa & Mastercard, are widely accepted across Europe; American Express and Discover are accepted less often.
Europe uses chip‑and‑PIN (EMV); many places prefer PIN over signature.
Contactless (tap) payments are common and often have a per‑transaction limit that varies by country/merchant.
Watch out for dynamic currency conversion (DCC) — always choose to be charged in the local currency.
Use a credit/ debit card with no foreign transaction fees and reasonable cash withdrawal fees; carry a small amount of Euros for vendors/outdoor markets.

Before you go

Check fees: foreign transaction fee (FX) % and ATM withdrawal fees. Prefer cards with 0% FX fees.
Bring two different credit cards and keep them separate (one in a safe, one in your wallet).
Save emergency credit card numbers for your credit cards you have with you, and the global collect number. It is difficult to dial 800 numbers in some European countries.
Using your American credit card and ATM machines in Portugal
Make sure you know your PIN (4–6 digits). Some US cards are chip‑and‑signature only. European merchants prefer tap
Enable real‑time transaction alerts (SMS/app notifications) so you spot fraud.

Shopping- Point of Sale

Always choose the local currency (decline DCC).
Have cash ready for small purchases.
If a terminal looks suspicious (torn, loose, faulty), don’t use it — find another terminal or pay inside.

Checking out at the food store — Food store self check out area

PORTUGAL’S ATM WITHDRAWAL LIMIT

The standard ATM limit in Portugal is generally €400 per day. But be prepared – your ATM might limit you to €200 per withdrawal. If so, try making a second withdrawal, even at the same machine, to get to the €400 limit.

Using your credit card and ATM in Portugal

Hidden fees can add up.

Is there a limit on ATM withdrawals in Portugal? Yes

BANCO SANTANDER ATM PORTUGAL SANTANDER BANK OF PORTUGAL

Clients of Santander Bank have access to bank branches and ATMs all over Portugal. If you have a Santander account, you’ll get a break on both ATM and exchange fees. Learn more by checking the Santander branch locator.

https://branchlocator.santander.com/?defaultLanguage=pt

CAN I USE MY BARCLAY'S CREDIT CARD IN PORTUGAL?

BARCLAYS ATM PORTUGAL

If you’re a Barclays customer, you’ll have access to a Barclays ATM in Lisbon, Portugal.

Located in: Colombo Shopping Centre (this is the largest shopping mall I have ever been in)

Address: f 9º 180, Av. do Colégio Militar 37, Lisboa

near the Benfica Soccer Stadium Phone: 967 853 126

WHICH ATMS DO NOT CHARGE FEES?

GLOBAL ATM ALLIANCE PORTUGAL

Several popular banks are part of the Global ATM Alliance, including Bank of America, Barclays Bank, and others. This network of ATMs allows customers from any of the participating banks to withdraw cash with no ATM fee. We used the A T M at the airport, and we paid. $3.95 fee

What is a foreign transaction fee?

A foreign transaction fee is what your credit card issuer, like Chase or Bank of America credit card companies charges when a transaction you make with your card is processed in a foreign currency ( Euros in Portugal) or passes through a foreign bank. To process these foreign transactions, your credit card company charges you a percentage of the amount of this transaction, typically 3%. You’ll probably see this fee listed on your card statement as a separate charge.

This means that if you spend $500 at a restaurant in another country, you might pay an extra $15 as a foreign transaction fee. This can add up on a long trip or if you purchase a lot of items on your trip.

How To Avoid Extra Fees While Shopping in Portugal

I prefer to use Euros when I am in Portugal so I can bargain with the merchants. Some small stores and local outdoor shops do not always take credit cards.

WHY DOES THE SHOP OWNER ASK ME IF I WANT TO USE DOLLARS OR EUROS?

CHOOSE EUROS

When you are ready to purchase a souvenir, and decide to charge it to your credit card. The merchant will ask whether you want to pay in U.S. dollars or Euros. It may sound convenient to choose the currency you’re familiar with (dollars) if you’re American, you’ll probably have an idea of how much the item would cost at home, in U.S. dollars.

It is a good idea to choose Euros.

Here’s why.:

If you choose to pay in U.S. dollars, the merchant gets to choose the exchange rate to convert the cost of the item. It’s called dynamic currency conversion (DCC). The merchant can choose the exchange rate they want to charge. The store owner does not have to tell you the amount of the exchange.

If you choose to pay in euros, your credit card company will handle the conversion. Your card often gives you the best rate.

One European study found exchange rate markups from 2.6% to 12%. by the shop owners. As DCC is optional, you have the right to decline it when offered.

(https://www.investopedia.com/dynamic-currency-conversion...)