Czech bank is country's first to end all foreign-currency card fees

Partners Bank is the first financial institution in Czechia to voluntarily eliminate additional fees on foreign-currency card transactions. A new service allows clients to pay by card in foreign currencies without any surcharge or margin. 

The bank, which officially began operations last year, will convert payments made in euros, US dollars, British pounds, Polish zlotys, and 26 other currencies directly at the European Central Bank (ECB) exchange rate. A full list of currencies is available on the bank's website.

The bank’s decision to forgo surcharges is seen as a significant benefit for customers. Other domestic banks typically add between 2.6 percent and 3.7 percent to the ECB rate for card payments in euros. 

Previously, the best-rate domestic debit card, mKarta Svět from mBank, converted euros to Czech crowns at a rate of 25.304, which is about 0.55 percent above the ECB rate. Popular bank Revolut’s rates are also typically higher on weekends.

The bank’s favorable exchange rates are available automatically to all customers, regardless of whether they have a free account or a paid monthly account. There are no daily ceilings or weekend surcharges, and clients do not need to activate any special currency exchange service.

The bank also confirmed that the same favorable exchange rate will apply when withdrawing cash from ATMs abroad, though foreign ATM operators may charge their own fees. However, the surcharge-free rates do not apply to account-to-account transfers, such as SEPA payments.

Looking ahead, Partners Bank plans to launch a multi-currency account later this year. A spokesperson for the bank assured that the favorable card rates will continue as long as customers are interested in the service.

Partners Bank does not impose any fees for withdrawals; however, a foreign ATM operator may charge a fee separately. Additionally, the exchange rate without the surcharge does not apply to account-to-account transfers, such as SEPA payments.

If you’re going abroad this winter, you should also be wary of not being overcharged when withdrawing cash or paying at payment terminals in-store. Dynamic currency conversion (DCC) is an often-overlooked tool employed by banks that give unfavorable exchange rates. Partners says that consumers can block DCC via their mobile banking application or online.