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Free & Paid Swiss Credit Cards: Which One Is Best for You?

Philippe

September 17, 2024

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In Switzerland, choosing a credit card can have a significant impact on your finances, especially when shopping abroad. A poorly suited card can lead to hidden fees, while a well-chosen card can save money thanks to advantageous exchange rates and cashback programs. This guide will help you make the best decision for your needs, whether you are an occasional user or a regular traveler.

Free credit cards with cashback are widely appreciated for their financial benefits, including the absence of annual fees. However, it is crucial to understand the fees applied when paying abroad, where commissions and exchange rates vary between banks. For families, adding cards can also make it easier to manage expenses.

How to Choose the Best Card for Your Needs

The choice of your credit card will depend on your spending habits. If you travel often, a card offering extensive insurance and bonuses on purchases abroad will be a good choice. On the other hand, if you mainly use your card for internet purchases, choose a card with enhanced security measures and easy management via a secure site.

Here are some points to consider:

• Annual fee: Opt for a credit card with no fees to avoid unnecessary costs.
• Cashback: Make sure the credit card offers good cashback on the types of expenses you make regularly, such as shopping.
• Spending limit: Make sure the credit card allows you to manage your finances efficiently.
• Insurance included: Some credit cards offer travel or shopping insurance that can be a valuable benefit.
• Discounts and bonuses: Some credit cards offer discounts on specific products or services, which are particularly attractive to TCS members or other clubs.
• Card acceptance: American Express credit cards, for example, are not accepted everywhere, unlike Visa or Mastercard. Similarly, debit cards are more widely accepted in Switzerland than credit cards.
• Payment method: Make sure your credit card is compatible with mobile payment services like Google Pay or that it works with a smartwatch.

The 3 Best Free Credit Cards with Cashback

A credit card with cashback allows you to get back a percentage of your spending without an annual fee. In Switzerland, some cards offer up to 1% cashback, which is advantageous for everyday purchases online, in stores, or abroad.

Several no annual fee credit cards offer the benefit of cashback without the recurring fees. They help reduce fixed costs while still enjoying the same benefits as a paid card.

According to Moneyland.ch, here are the best free credit cards in 2024:

1. Cembra Certo One Mastercard

This free credit card offers 1% cashback at three stores of your choice, such as Migros, Coop, and Lidl, and 0.33% elsewhere. With no annual fee, it’s ideal for regular users who want to avoid recurring fees while enjoying additional benefits like travel and shopping insurance. This card also allows easy control of expenses via an intuitive mobile application, ideal for simplified daily management.

2. Migros Cumulus VISA

The Migros Cumulus VISA, issued by Migros Bank, is perfect for regular Migros customers. It offers 2% cashback in the first year at Migros, then 1% thereafter, as well as 0.33% on other purchases. Cashback is credited in the form of Cumulus points, accepted as a means of payment in many Swiss businesses. Since 2022, this Visa card no longer charges fees for payments in foreign currencies, although a surcharge on exchange rates remains in effect.

3. Swisscard American Express Cashback

The Swisscard American Express Cashback credit card offers 1% cashback on all purchases, with a 5% bonus for the first three months. Although this card is not accepted everywhere, it remains an excellent option in businesses that accept American Express. It also includes the possibility of adding additional cards, which is advantageous for family use.

Free Credit Cards from Cembra Money Bank

In addition to the Cembra Certo One, Cembra Money Bank offers several other free credit cards, such as the Ikea-Family card, the Confo’Card, and the TCS Member Mastercard (free for TCS members). These cards allow you to benefit from various cashback systems and other advantages in their respective networks.

Other Free Credit Cards

In addition to the cards mentioned, there are several other free options:

• Migros Bank Visa Free: no annual fee, but subject to fees for payments abroad.
• UBS Basic Card Visa/Mastercard: free subject to 24 transactions per year, otherwise CHF 40 from the second year.
• Loeb Visa Card (BonusCard): offers 0.5% cashback outside Loeb stores.

Free Credit Card Fees 😧

Even free credit cards charge a processing fee of 1.5% to 2.5% for foreign currency transactions.

Fees may also apply for (approx. CHF 1.95 per invoice) and phone calls (up to CHF 1.90 per call for some companies).

The 3 Best Cards for Payments Abroad

Neobanks, such as Alpian, neon, Radicant, Revolut, Wise and Yuh, stand out for their competitive interbank exchange rates and low or no transaction fees for international payments. On the other hand, traditional credit cards, despite their advantages such as cashback, are often penalized by higher fees for transactions in foreign currencies.

For example, Alpian offers a multi-currency account (CHF, EUR, GBP, USD) to avoid exchange fees when paying in these currencies, while N26 allows payments in euros without additional fees. neon, Radicant, and Yapeal are also very attractive for payments abroad thanks to the absence of conversion fees. Revolut offers 0% exchange fees up to CHF 1,000 per month, and Wise charges a small fee of 0.4% to 1.3%, but remains very competitive.

For cash withdrawals, Revolut and Wise stand out with free withdrawals up to CHF 200 and CHF 250 per month respectively, while N26 offers three free withdrawals in euros. Conversely, withdrawals with Alpian, neon, Radicant, Yapeal, and Yuh include higher fees, ranging from 1.5% to CHF 5, making these cards less advantageous for frequent withdrawals.

Alpian – Visa Debit Card

Alpian offers a multi-currency debit card in CHF, EUR, GBP and USD, allowing you to avoid exchange fees whenyou make payments in currencies that you already hold.

• Annual fee: Free
• Exchange fee: 0.2% to 0.5% for payments in foreign currencies.

neon Free – Mastercard Debit Card

Ideal for payments abroad, the Mastercard card from Neon Bank does not charge any fees on foreign currency transactions. With its intuitive mobile application, it is perfect for frequent travelers.

• Annual fee: Free.
• Exchange fees: None.

Radicant – Visa Debit Card

The Radicant debit card is a sustainable option for those who want to limit their environmental impact while benefiting from reduced fees abroad. Radicant no longer applies any fees on foreign currency transactions.

• Annual fee: Free.
• Exchange fees: None.

Revolut – Mastercard Debit Card

Revolut Switzerland is known for its interbank exchange rates, allowing international payments without fees up to a certain threshold, making it an excellent choice for those who travel often.

• Annual fee: Free.
• Exchange fees: None up to CHF 1,000 per month, then 0.5%. Additional fees apply on weekends (between 0.5% and 2%).

Wise – Mastercard Debit Card

Wise Switzerland is known for its excellent exchange rates, allowing for low-cost international payments, which also makes it a great choice for those who travel.

• Annual fee: Free.
• Exchange fees: Low fees of 0.4% to 1.3%.

Yapeal – Visa Debit Card

The Visa card from Yapeal is particularly suitable for payments abroad, with zero conversion fees and a simple digital interface for quick management of international transactions.

• Annual fee: CHF 4.90 to CHF 8.90 per month.
• Exchange fees: None.

Yuh – Mastercard Debit Card

Yuh Bank is developed by Swissquote and PostFinance and offers a multi-currency card in CHF, EUR, GBP and USD that stands out for its very competitive conversion fees, ideal for those looking to simplify their payments abroad while limiting costs.

• Annual fee: Free.
• Exchange fee: 0.95% for payments in foreign currencies.

Here is a comparison of fees for payments and withdrawals abroad with Swiss neobanks:

Swiss Miles & More MasterCard: The Ideal Credit Card for Frequent Travelers

The Swiss Miles & More MasterCard is particularly advantageous for frequent travelers, especially those who use SWISS, Lufthansa, and other airlines in the Miles & More alliance.

It combines miles accumulation, travel insurance, and exclusive benefits for loyal customers:

• Miles accumulation and bonuses
  With this card, you earn 1 mile for every 2 CHF spent, which allows you to quickly accumulate miles for plane tickets, upgrades, or even hotel stays. In addition, a welcome bonus in miles is offered when activating the card, accelerating your earnings from the start.
• Insurance and services
  The card includes comprehensive travel insurance, covering cancellations, delays, and baggage problems. So you can travel with peace of mind, protected in the event of unforeseen circumstances.
• Access to airport lounges
  Some versions of the card also allow access to airport lounges, via the Miles & More program, making the wait more comfortable for frequent travelers.

The Swiss Miles & More MasterCard is therefore ideal for frequent travelers, but there are fees to be expected, including an annual fee of 120 CHF and a 1.5% conversion fee on foreign currency payments, which can make it less competitive compared to cards like Alpian, neon or Revolut, which offer lower fees for international payments. Despite this, it remains a great choice for those looking to earn miles and benefit from additional protections when traveling.

While the Swiss Miles & More MasterCard doesn’t suit your needs, two interesting options for frequent travelers are the American Express Gold and the Revolut Metal. Both alternatives stand out for their advantages in terms of foreign fees and loyalty.

American Express Gold

The Amex Gold allows you to accumulate Membership Rewards points, convertible into miles for companies such as SWISS and Lufthansa. In addition to the points, it offers comprehensive travel insurance and hotel discounts. However, it is subject to a high annual fee of CHF 300 and a conversion fee of 2%, which makes it less advantageous for frequent spending abroad.

Revolut Metal

The Revolut Metal is ideal for those looking to minimize fees abroad, offering fee-free payments in over 30 currencies and free withdrawals of up to CHF 800 per month. It also includes medical insurance and access to airport lounges. However, it does not offer a miles program like the Amex Gold, which could be a drawback for travelers who accumulate airline rewards.

The Cheapest Credit Cards for Occasional and Frequent Users

According to a Moneyland.ch study, occasional and frequent users can save a lot by choosing the right credit cards. It depends on your use of the card and the additional services offered such as insurance, cash withdrawals and mobile payments.

For Occasional Users:

• Swisscard Cashback: You can earn CHF 18.65 in two years.
• Poinz Swiss Loyalty Card: Earn CHF 1.65 in two years.
• Migros Cumulus Visa: Pay only CHF 16.70 in fees in two years.

For Frequent Users:

• Migros Cumulus Visa: CHF 232.55 fee over two years.
• Cashback Swisscard: CHF 277.05 fee over two years.
• Poinz Swiss Loyalty Card: CHF 277.05 fee over two years.

The Advantages of TCS Credit Cards

The Touring Club Suisse (TCS) offers a selection of credit cards specially adapted to motorists and travelers. These cards offer several advantages, particularly in terms of insurance, travel programs, and loyalty programs, and international support services. As a TCS member, you benefit from various privileges tailored to your specific needs.

Main Benefits:

• Insurance discounts: As a member, you have access to preferential rates on certain insurance policies such as vehicle insurance, travel insurance, or liability insurance.
• Loyalty program: You accumulate points or bonuses that you can exchange for various services, including discounts on travel or automotive products.
• International assistance: Cards often include assistance services in the event of a breakdown or accident abroad, making travel stress-free.

Annual Fee and Foreign Fees

Here’s an overview of the fees associated with TCS credit cards:

• Annual Fee:
  • TCS Member Mastercard: Free for TCS members.
• Foreign Fees:
  • Currency Conversion Fee: Approximately 1.5% on foreign currency transactions.
  • Cash Withdrawals: Often accompanied by fixed or variable fees depending on the amount withdrawn.

These cards are therefore particularly advantageous for TCS members, offering enhanced protections and savings on insurance, while making it easier to manage unforeseen events during international travel.

Comparison of Migros Cumulus Visa and Coop Supercard Mastercard

In Switzerland, the Migros Cumulus Visa and the Coop Supercard Mastercard are two popular credit cards, offering similar benefits but targeting different clienteles.

Loyalty Programs

The Migros Cumulus Visa allows you to earn Cumulus points (1% cashback at Migros in the first year), which can be converted into vouchers. The Coop Supercard Mastercard works on a system of Superpoints, which can be exchanged in the Coop network and its partners.

Fees and Usage

Both cards are free, but charge fees for payments abroad, making them less attractive to frequent travelers. They both offer included insurance, such as travel cover.

Which Card Should you Choose?

If you are a loyal Migros customer, the Cumulus Visa is an obvious choice. On the other hand, if you shop mainly at Coop, the Supercard Mastercard will be more advantageous for accumulating Superpoints.

Comparison Table of Migros Cumulus Visa cards vs Coop Supercard Mastercard

Important note: do not confuse the Coop Supercard Mastercard with the so-called Supercard prepaid credit card, which is therefore a prepaid card and not a credit card at all since you must top up your card regularly in order to make purchases.

Comparison of Traditional Bank Credit Cards

Traditional bank cards, such as those from PostFinance or UBS, often have annual fees and limited benefits compared to newer options.

PostFinance MasterCard

With an annual fee of CHF 50 and a cashback of 0.3%, this card is significantly less competitive than the free options.

UBS Basic MasterCard

Free of charge if you make at least 24 transactions per year, this card does not offer cashback and charges fees on payments in foreign currencies.

Viseca MasterCard Silver

This card charges an annual fee of CHF 100 and does not offer a cashback program, which makes it less attractive.

How to Maximize the Benefits of Your Credit Card

To take full advantage of the benefits of your credit card, here are some simple tips to follow:

• Always pay your balance in full each month to avoid high interest.
• Use cashback cards to maximize your earnings on your everyday purchases.
• Choose a card with no annual fee to limit fixed costs.
• For payments abroad, choose cards from neobanks with low exchange fees.

Conclusion on the Best Credit Cards in Switzerland

In 2024, the best credit cards in Switzerland stand out for their lack of annual fees, advantageous cashback programs and reduced international fees.

Neobanks like Alpian, neon, Radicant, Revolut, Wise, Yapeal and Yuh,  are ideal for payments abroad, while cards like the Cembra Certo One or the Swisscard Cashback American Express shine for domestic cashback.

Depending on your needs, you can choose a card that will allow you to maximize the benefits while minimizing the costs.

Frequently Asked Questions (FAQ) about Swiss Credit Cards