From March 1, 2022, PostFinance credit card users will pay a higher fee for purchases from foreign merchants. Instead of the current 1.2 percent fee, PostFinance will charge a higher 1.7 percent fee. Card users pay this for both transactions in foreign currencies, and purchases from foreign merchants which are charged in Swiss francs. The change affects both personal and business credit cards, and also applies to prepaid cards from PostFinance.
Swiss credit card foreign transaction fees compared
Most Swiss credit cards have fees for transactions outside of Switzerland, and for transactions in currencies other than the one which denominates the credit card. Low fees, or none at all, are primarily found on cards from neobanks.
| Service provider/Card |
Card issuer |
Foreign transaction fee as a % |
| Neon |
Hypothekarbank Lenzburg |
0.0% |
| Swissquote |
SIX |
0.0% * |
| Cornèrcard |
Cornèrcard |
1.2% |
| PostFinance (old) |
PostFinance |
1.2% |
| Coop Supercard |
Topcard |
1.5% |
| Migros Cumulus |
Cembra Money Bank |
1.5% |
| PostFinance (new) |
PostFinance |
1.7% |
| Bank Cler |
Viseca |
1.75% |
| Cantonal banks |
Viseca |
1.75% |
| Migros Bank |
Viseca |
1.75% |
| Raiffeisen |
Viseca |
1.75% |
| UBS |
UBS |
1.75% |
| Valiant |
Viseca |
1.75% |
| Cashback |
Swisscard |
2.5% |
| Credit Suisse |
Swisscard |
2.5% |
| Swiss Miles & More |
Swisscard |
2.5% |
* For transactions in 12 major currencies.
For service providers which offer multiple credit cards, the comparison shows the fee for the standard credit cards. Fees are identical for Mastercard and Visa versions of credit cards from the same issuer.
Up until now, PostFinance has had the lowest foreign transaction fees available for conventional Swiss credit cards. Only neobanks like Neon were cheaper. Now, the foreign transaction fee of PostFinance credit cards will be more expensive than those of the popular no-annual-fee credit cards from Coop and Migros, but still lower than the fees charged by other major banks.
It is important to understand that foreign transaction fees are not the only cost of using credit cards to pay merchants located outside of Switzerland. Currency exchange rates present another cost. These vary between card issuers. PostFinance uses UBS exchange rates, which have sat in the mid-range in past exchange rate analyses by moneyland.ch. The credit card comparison and prepaid card comparison on moneyland.ch account for both currency exchange rates (based on regular sampling) and all relevant fees and charges.
No credit cards from Swiss neobanks
Swiss neobanks often do not charge foreign transaction fees. These service providers normally offer debit cards, but not credit cards. Swiss neobanks Yapeal, Yuh, and Zak fall into this category.
New fees for online gambling
PostFinance is adding a new 3.5-percent credit card fee for betting, casinos, and lotteries. This fee applies to online casinos, for example. Popular Swiss lotteries Swisslos and Loterie Romande are excluded from this fee. PostFinance rewards credit card holders do not earn cash back on gambling transactions.
Verdict
“It is too bad that card issuers are increasingly raising the cost of using their credit cards internationally,” observes moneyland.ch expert Ralf Beyeler. What is even more surprising is that this shift is happening at a time when new Swiss neobanks like Neon are offering cards with no foreign transaction fees at all.
Still: “Even with the fee hike, PostFinance still has the lowest foreign transaction fees among credit cards from major banks,” concludes Beyeler.
This report was first published on February 10, 2022.
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