Paying, borrowing and investing in the EU : know your rights.
Date: 2019-02-28
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs
Subjects: European Union, European citizenship, European integration, borrowing, consumer information, credit, enjoyment of rights, financial transaction, money, payment, savings, savings bank

PAYING,  
BORROWING  
AND INVESTING  
IN THE EU 
KNOW YOUR RIGHTS 

IF YOU PLAN TO PAY, BORROW OR INVEST MONEY IN ANOTHER EU COUNTRY,  
YOU ARE ENTITLED TO CERTAIN RIGHTS.

    CAN YOU USE YOUR  
CREDIT/DEBIT CARD  
IN ANOTHER COUNTRY?

 > When you pay for something in the EU using a credit or 
debit card, you cannot be charged extra (a surcharge) for 
using a particular card. This applies to all card purchases 
made within your home country or another EU country. 
 > If you pay in EU currencies other than euros, you may 
still be charged a currency conversion fee by your card 
provider when using your card in another country. 
 > EU rules limit the amount you can be asked to pay if you 
are the victim of card or payment fraud. In all cases, you 
can only be asked to pay a maximum of € 50 towards  
the cost of fraudulent payments. 
 > In cases where you are unaware of this – for example 
your account was hacked, or your card was cloned  
and charged without your knowledge – you don’t have 
to pay anything. The bank should cover the costs. 
 > Sometimes if you make a reservation for a car or a hotel, 
you may need to give your card details to guarantee your 
booking. A trader may ask to block an amount of money  
on your card upon reservation. 
 > The trader should inform you if they intend to block  
an amount on your card, and you must give approval 
for this and the exact amount being blocked. 

 > Once you make the official payment, the blocked amount 
must immediately be released from your credit card. 

  IS MONEY IN MY SAVINGS AND 
CURRENT ACCOUNT PROTECTED? 

EU rules ensure that your money in your savings and 
current accounts is protected if your bank fails. 

 > Your money is protected:

 > for up to a limit of € 100,000 or the equivalent in local 

currency, and this limit applies per person and per bank. 
There are some exceptions to this rule, for example:  
if you are a couple the € 100,000 limit applies to each  
of you.

 > Your money will be protected if it is above € 100,000 in 

certain cases for a limited time, such as money you receive:
 > from selling a private residential property, and from  
the payment of insurance benefits or compensation  
for criminal injuries or a wrongful conviction;
 > money linked to a particular event in your life  

(i.e. marriage, divorce, retirement, etc.).

  CAN YOU OPEN A BANK 
ACCOUNT ABROAD?

 > You can switch your account to another bank in the same 
EU country. Your new bank should help you with this. 
 > You should tell your new bank that you want to switch 

and transfer any recurring payments to the new account. 

 > The new bank will ensure your old bank transfers data 

and cancels standing orders. 

 > Find out more: https://europa.eu/youreurope/card_en 

 > Find out more: https://europa.eu/youreurope/bank_en 

  
  
  
THIS COULD BE YOU
Open a bank account in 
a different EU country 

Leonard decided to open a bank account in Belgium, although 
he is from Ireland. As a legal resident of an EU country, he is 
entitled to open a ‘basic payment account’. Banks cannot refuse 
this just because he doesn’t live in the country where the bank 
is established (however this doesn’t apply to accounts such  
as savings accounts). With this basic account, he can make 
standard transactions, such as making deposits, withdrawing 
cash, and receiving and carrying out payments. Leonard’s 
account should include a payment card so he can make 
purchases and withdraw cash. The new bank also enabled him 
to access online banking, although it did charge him an annual 
fee for the account (as is the case in some countries).

  WHAT ARE THE RULES FOR 
MORTGAGES AND CREDIT LOANS?
 > A mortgage loan allows you to purchase a home –  

these are offered by banks, building societies or other 
lenders and are often secured against your property. 
 > A mortgage usually has a lower interest rate and a longer 

redemption period compared to consumer credit, but if you fail 
to fulfil repayment obligations for a mortgage against your 
property, lenders can seize and resell your home to pay it off. 
 > The lender should assess your creditworthiness. This will be 

done based on:
 > your financial situation (debts, assets, etc.);
 > the value of the property the loan is secured against.

 > Lenders have to give you the European Standardised 
Information Sheet, which gives you a clear and 
understandable overview of the terms and conditions  
of the mortgage.

 > Before you sign a consumer credit contract, the credit 

provider has to give you a standard document called the 
Standard European Consumer Credit Information Form, 

which will give you an overview of the terms and conditions 
of the contract.

 > If you wish to take out credit or a loan in another EU 

country, you may find that banks are reluctant to lend  
to residents of countries other than the one where the 
bank is based, or even lend to residents of the same 
country working in another EU country. 

 > Banks can set these limits, however they are not allowed to 
discriminate between EU citizens on the basis of nationality. 
 > If you think the bank has discriminated against you, you 
should contact the bank and obtain a written reply 
explaining why you were refused. You can then ask for 
advice and help from FIN-NET (the Financial Dispute 
Resolution Network).

 > Find out more: https://europa.eu/youreurope/mortgage_en 

https://europa.eu/youreurope/loans_en 

  WHAT INSURANCE OPTIONS 
ARE AVAILABLE? 

 > You can shop around the European market for the best 

deals on insurance products (such as life insurance or car 
insurance).

 > If you use an insurer in another EU country, the authorities 
responsible for regulating insurance in that country and in 
your own country will share information on:
 > the level of risk involved in the insurance you plan to buy;
 > the insurer’s solvency;
 > the types of risk for which the insurer is authorised in  

a country where it is based. 

 > Most insurance products are sold through intermediaries 
and they must give you certain information about 
themselves and the product you are buying before you sign 
a contract. 

 > Find out more: https://europa.eu/youreurope/insurance_en 

FIND OUT MORE:
Your Europe

https://europa.eu/youreurope/en 

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doi:10.2873/121608
doi:10.2873/696585
doi:10.2873/029407

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