Initially, you will probably be issued with a debit card, which permits you to use your bank’s ATMs (distributeurs automatiques) for deposits, withdrawals, transfers of funds and, in most cases, bill payments and other standard forms of transfer between accounts. The banking system of Luxembourg switched to the ‘V Pay network’, which allows you to make withdrawals and payments anywhere in Europe. Most debit cards also give you access to any ATM that’s part of the related debit card network, although some banks charge for the use of another bank’s machines.
You can also use debit cards to make purchases at many shops and petrol stations. Debit cards are often preferred to credit cards, as the money is credited almost immediately to the vendor’s bank account. Debit cards need a four-digit PIN code to validate a transaction or to withdraw cash from an ATM machine.
Credit cards can also be requested and may be included in your account package. Visa and Mastercard credit cards are very common and they largely perform the same functions of debit cards, but may also include extra services, such as insurance. Most credit and debit cards now come with the ‘contactless’ feature, which allows you to pay for amounts less than €25 without inserting your card into the terminal and without a PIN number.
This article is an extract from Living and Working in Holland, Belgium & Luxembourg.