The Best Way to get Euros for Your Holiday in Lanzarote

Planning a holiday to Lanzarote? Before you travel, it is worth thinking about how you will pay for things once you arrive. Whether you are staying in Puerto del Carmen, Costa Teguise, Playa Blanca or somewhere quieter on the island, choosing the right way to access your holiday money could save you unnecessary fees and help your budget go further.

But what is the best way to get euros? Should you exchange pounds before leaving home, change money when you arrive in Lanzarote, use a credit card, or withdraw cash from an ATM? And when a card machine asks whether you want to pay in pounds or euros, which should you choose?

The answer depends on the fees charged by your bank or card provider. However, there are some simple rules that can help most visitors avoid the worst exchange rates and hidden costs.

THE GOLDEN RULE: ALWAYS CHECK THE TOTAL COST

An exchange rate advertised as “commission-free” does not automatically mean you are getting a good deal. The provider may make money by offering a less favourable exchange rate instead of charging a separate fee.

When comparing options, look at how many euros you will actually receive or how much a purchase will cost after all exchange-rate mark-ups and charges have been included.

For example, if you are exchanging £500, even a small difference in the rate can affect how many euros you receive. Compare the final amount offered by different providers rather than relying on the headline rate or the words “no commission”.

IS IT BETTER TO PAY BY CREDIT CARD OR CASH?

For many visitors, using a debit or credit card that offers low-cost overseas spending is one of the easiest ways to pay for a holiday in Lanzarote. Card payments can be convenient, and a card with no foreign transaction fee may offer a competitive exchange rate.

However, not all cards are equal. Some banks charge a foreign transaction fee every time you pay in euros. Others may apply their own exchange-rate margin. Check your card's terms before travelling, including any fees for purchases, cash withdrawals and using the card abroad.

A credit card can be useful for purchases and may offer additional protections, depending on your country and the card's terms. But withdrawing cash on a credit card is usually best avoided: it may attract a cash-advance fee and interest from the date of withdrawal, even if you pay off your balance in full later.

A debit card designed for travel, or a reputable multi-currency card with transparent fees, may be more suitable for accessing cash abroad. Always check withdrawal limits and any charges from both your card provider and the ATM operator.

SHOULD YOU EXCHANGE MONEY BEFORE YOU LEAVE HOME?

Exchanging some money before your holiday can be reassuring. You arrive with euros ready for a taxi, a drink, a small purchase or any situation where cash is useful.

The downside is that rates offered by banks, high-street bureaux de change and travel-money counters can vary considerably. Airport exchange desks are particularly convenient, but convenience can come at a cost. If you want cash before you leave, compare rates online in advance and check whether ordering ahead for collection gives you a better deal.

There is no universal rule that exchanging at home is always cheaper—or that changing money after landing is always better. It depends on the provider, the exchange rate, the fees and the amount you exchange.

A sensible approach is to buy a modest amount of euros before travelling if you want peace of mind, then use a low-fee card for most purchases. Avoid exchanging a large sum until you have compared the actual offers.

SHOULD YOU CHANGE YOUR MONEY WHEN YOU ARRIVE IN LANZAROTE?

You can exchange foreign currency in some bureaux de change and other exchange services, but do not assume that every local counter will offer a better rate than the one at home.

Compare the rate and any fees before handing over your money. Ask how many euros you will receive for the exact amount you want to exchange, after all charges. If the rate is not displayed clearly, ask for the final amount in writing or on a calculator before agreeing.

Be cautious about exchanging money at the airport or in places where you have little time to compare alternatives. A convenient location is not necessarily the cheapest option.

For many visitors, there is no need to exchange their entire holiday budget into cash. A small cash reserve combined with a suitable card is often a practical compromise.

THE MOST IMPORTANT CARD TIP: CHOOSE EUROS, NOT POUNDS

This is one of the easiest mistakes to make when paying abroad.

Imagine you are paying for a meal in Lanzarote and the card machine asks whether you want to pay in euros or pounds. It may feel more comfortable to select pounds because you can see exactly what you are spending in your home currency.

However, choosing pounds often means accepting a service called Dynamic Currency Conversion (DCC). The shop, restaurant, payment terminal provider or ATM arranges the conversion and sets the exchange rate. That rate may include a mark-up or additional charges.

If you choose euros instead, your own bank or card provider generally handles the conversion under the terms of your card. That can be better value, particularly if your card has low or no foreign transaction fees.

So, when a card machine asks:
• “Pay in EUR or GBP?”
• “Pay in local currency or home currency?”
• “Accept conversion or decline conversion?”

If your home currency is pounds and you are paying in Lanzarote, choose EUR (euros) and decline the terminal's conversion to GBP. If your home currency is different, choose the local currency—euros in Lanzarote—rather than your home currency.

There can be exceptions if your card's own fees are unusually high, so compare the terms where possible. But the local-currency option is generally the best starting point.

THE SAME RULE APPLIES AT CASH MACHINES

ATMs may also ask whether you want the withdrawal converted into your home currency. The screen might show a guaranteed exchange rate or ask whether you want to accept or decline conversion.

If you want your card provider to handle the conversion, choose to be charged in euros and decline the ATM's conversion offer. Read the screen carefully: the wording can be confusing, and buttons such as “continue” or “accept” may not mean what you expect.

Remember that declining the conversion does not necessarily make the withdrawal free. You may still face:
• A fee from your own bank or card provider.
• A separate fee charged by the ATM operator.
• A cash withdrawal limit or a fee once you exceed your card's allowance.

Check the fee information on screen before confirming. If the charge seems high, cancel and try another option. Never assume an ATM is free just because it displays a familiar bank-card logo.

ARE TRAVEL MONEY CARDS WORTH CONSIDERING?

Multi-currency and specialist travel cards can be worth comparing before a trip. Depending on the provider, they may offer competitive exchange rates, low overseas spending fees and the option to exchange money in advance.

Some let you hold euros on the card, making it easier to budget because you know how much you have converted. Others convert automatically when you spend.

However, check the small print. Providers can have weekend mark-ups, monthly limits, ATM withdrawal allowances, fees after a free allowance, or other conditions. A card that is excellent for purchases may not be the cheapest for cash withdrawals.

You should also carry a backup payment method and keep your cards separate where possible. A travel card should complement sensible preparation, not leave you stranded if it is lost, blocked or not accepted.

HOW MUCH CASH SHOULD YOU BRING TO LANZAROTE?

There is no single amount that suits every traveller. Your needs will depend on the length of your stay, whether you are travelling with children, your plans and how often you expect to use cash.

Cards and contactless payments are widely used across Lanzarote, but cash can still be handy for small purchases, tips, markets and unexpected situations. Some businesses may have minimum card-payment amounts or may prefer cash for small transactions.

Rather than carrying your entire holiday budget in notes, consider taking a modest amount of euros and using a suitable card for the rest. Keep cash secure, avoid carrying all of it in one place, and use an ATM in a sensible location.

WHAT ABOUT PAYING IN EUROS WITH A CARD THAT CHARGES FEES?

Choosing euros at the terminal helps you avoid the merchant's conversion offer, but it does not remove fees that your own bank may charge. If your card adds a foreign transaction fee, the payment could still cost more than you expect.

Before travelling, check:
• The foreign-currency purchase fee.
• The exchange rate used by your card network or provider.
• Any additional bank fee.
• Cash withdrawal fees and interest rules.
• Whether your card provider applies different rules on weekends or for certain currencies.

If you travel regularly, it may be worth comparing a card designed for overseas spending. Do not apply for one based on the exchange rate alone: check eligibility, limits, fees and the provider's full terms.

A FEW COMMON HOLIDAY MONEY MISTAKES TO AVOID

1. Exchanging all your money at the airport without comparing rates.
2. Assuming “zero commission” means the best exchange rate.
3. Choosing pounds on a card machine because the amount looks more familiar.
4. Accepting an ATM's currency conversion without checking the rate and charges.
5. Using a credit card to withdraw cash without checking cash-advance fees and interest.
6. Forgetting that your own bank may charge for overseas purchases or withdrawals.
7. Carrying your entire holiday budget in cash.
8. Relying on only one card in case it is lost, blocked or declined.

THE VERDICT: WHAT IS THE BEST WAY TO GET EUROS FOR LANZAROTE?

For many holidaymakers, a good strategy is to use a debit or credit card with low overseas spending fees, carry a modest amount of euros for convenience, and withdraw cash only when necessary using a card with reasonable withdrawal terms.

If you prefer to exchange cash before travelling, compare online rates and the final amount you will receive. If you decide to exchange money after arriving in Lanzarote, compare the local provider's rate and charges rather than assuming it will be better.

Above all, remember the most important rule when paying by card or withdrawing cash: choose euros, not pounds, when offered a choice in Lanzarote. This normally allows your own card provider to handle the conversion instead of accepting a potentially expensive exchange rate from the terminal or ATM.

A little preparation before you travel can help you avoid unnecessary charges and keep more of your holiday money available for enjoying Lanzarote.