Payment Methods in Spain, a complete guide

Payment methods you can use in Spain

The legal framework for payment services in Spain is heavily influenced by European regulations, including PSD2 and the General Data Protection Regulation (GDPR).

These regulations aim to promote secure and efficient digital payments while safeguarding consumer data.

Cash

Although cards and mobile devices are gaining ground, cash remains the main means of payment in physical shops in Spain. Despite this, the use of cash when shopping in physical stores has also declined, falling from 51% in 2022 to 45% in 2024, although it remains higher than the value of card payments, which stands at approximately 37%.

The use of cash is also common in payments between individuals, but in general its use as the main means of payment has declined compared to previous years, falling from 65% in 2023 to 57% in 2024.

The Spanish government has also implemented measures to limit cash transactions, further encouraging the use of digital payments.

In 2017, a new regulation came into force limiting cash payments to €1,000, down from the previous limit of €2,500​​.

Debit and credit cards

Most Spanish banks offer credit cards with their accounts. You can apply when opening an account or anytime afterward. In Spain, Visa is the most widely used credit card brand, holding the largest market share for both credit and debit cards. Mastercard is also widely accepted and a close second. 

The cost of credit cards in Spain varies between banks and depends on several factors, such as issuance and maintenance fees, the annual percentage rate APR (TAE in Spanish) and fees for use at ATMs or abroad. 

Some banks offer cards with no fees, while others charge for issuance, maintenance, cash withdrawals and use abroad. Some cards have an annual fee for their use, which can vary between banks and card types.

A brief summary of some of the best credit cards fees is provided in the table below:

According to the Bank of Spain, the average interest rate on credit cards is 17.99%. However, to explain this point, let's look at the difference between the nominal interest rate (TIN) and the annual percentage rate (APR) on credit cards:

Nominal interest rate (TIN): this is the percentage applied to the capital lent to you by the bank, excluding fees or additional expenses.

Annual Percentage Rate (APR): this percentage includes the NIR and takes into account fees, payment frequency and other card costs, providing a more accurate calculation of the cost of the debt.

Credit card vs. debit card at the ATM

There are also differences if you want to withdraw cash from an ATM. If you use your debit card in an ATM of the financial institution that issued it, normally, you will not have to pay any commission. However, if you withdraw cash with your credit card, the financial institution may charge you interest for advancing that money. Cash withdrawals by credit card are against the credit limit given to you by the bank and not against your current account.

Contactless payments

Most cards offer contactless technology (NFC), allowing quick and easy payments without having to insert the card into the terminal.

Mobile payments are indeed becoming increasingly popular in Spain. While cash and cards still dominate, mobile payment usage is steadily rising, with a significant portion of the population adopting this method for various transactions. 

The rise of mobile payments is fueled by factors like increased smartphone penetration, the convenience of instant payments, and the shift towards digital transactions. 

Digital wallet

Also known as an e-wallet or mobile wallet, is an electronic device, online service, or software program that allows one party to make electronic transactions with another party bartering digital currency units for goods and services.

Top Digital Wallets in 2025

• Apple Pay – Best for iOS Users. Apple Pay is a highly secure and efficient digital wallet designed for iOS users. ...
• Google Pay – Best for Android Users. ...
• Samsung Pay – Best for Contactless Payments. ...
• PayPal – Best for Online Transactions. ...

Bizum

Bizum is a very common payment method in Spain, used both to send money between individuals and to pay for online purchases. It is a Spanish banking service that allows you to make fast and secure payments via your mobile phone.

Participating Banks: Many Spanish banks participate in Bizum, including CaixaBank, BBVA, Santander, and Sabadell. 

How it works: Users register with Bizum through their bank's mobile app and can then send money to other users by entering their mobile phone number. 

How to use it:

• Register: Register with Bizum through your bank's app. 
• Receive money: If the recipient has Bizum, the money arrives instantly. 
• If the recipient doesn't have Bizum: They will receive a message and have 48 hours to register. 

Benefits: Bizum is free to use, fast, and secure. 

• Instant transfers: Money is transferred instantly from one account to another. 
• No need for IBAN: You only need the recipient's phone number. 
• Online payments: Bizum can be used for online purchases. 
• Donations: You can donate to NGOs and charities via Bizum. 
• International Payments: While primarily designed for Spain and Andorra, there are options for international payments.

OMF (Funds Transfer Order)

Transfers via OMF (Funds Transfer Order) are a type of urgent bank transfer that allows money to be sent quickly and securely, usually within the same day, using the TARGET2-Banco de España system. They are commonly used for urgent payments between different banks at the national level, such as mortgage loan repayments or real estate transactions.

What are OMF transfers?

• They are urgent bank transfers that are processed through the Bank of Spain.
• The money is sent through the Bank of Spain's TARGET2 system, ensuring same-day receipt if the transfer is made during business hours.
• They are mainly used for transfers between different banks, especially when funds need to be moved quickly.

How do they work?

1. The customer gives the OMF transfer order to their bank.
2. The bank sends the funds to the Bank of Spain.
3. The Bank of Spain, in turn, transfers the funds to the beneficiary's bank.
4. Generally, the transfer is completed on the same business day if it is made before the established cut-off time.

What are they used for?

Mortgage loan cancellation: used to ensure that the balance of a mortgage is zero at the time of cancellation.

Real estate transactions: they facilitate payment in transactions involving the sale of homes or other real estate.

Urgent payments: these are useful for any situation that requires a quick transfer of funds between banks.

Advantages: speed and security. They allow transfers to be made on the same day, unlike ordinary transfers. The Bank of Spain acts as an intermediary, which guarantees the security of the transaction.

Disadvantages: they usually have higher fees than ordinary transfers, although these vary depending on the institution. It is important to place the order before the cut-off time to ensure same-day receipt.

Checks

Payment by bank check is still an option in Spain, although its use has declined. Checks can be used in certain cases and the payment process remains relatively straightforward. They are accepted for payments to individuals, transactions between companies, payroll payments, payments to suppliers.

The cheque payment process remains relatively straightforward:

1. The payer must fill out a check with the details of the payee and the amount.
2. The payee can cash the check at their bank or any other bank that accepts it.
3. The bank will pay the check to the payee if there are sufficient funds in the drawer's account.

Direct Debits and Standing Orders

Setting up direct debits or standing orders in Spain is straightforward and usually free. Both, direct debits (domiciliación de recibos) and standing orders (domiciliación de pago) are commonly used for bill payments like utilities and municipal taxes.

Direct debits authorize another party to withdraw regular (often varying) payments from your accountit, suitable for bills like utilities or subscriptions where the cost may fluctuate. 

Standing orders instruct your bank to pay a fixed amount to another account, like rent and fixed payments. Once a payment is made via standing order, there's no further protection for the payer, unlike with Direct Debits. If a payment is taken in error or for the wrong amount, it can be more difficult to recover the funds.

Bank tansfers

With the aim of promoting the use of instant payments in euros, the European Union has approved new regulations. From January 2025, banks in Spaim offer their consumer customers instant transfers at no cost, both via the website and the app.

Some Spanish banks, especially smaller local institutions, may charge other customers for using their ATMs. Select the English language option if you're uncertain about the transaction.

International Money Transfers

You can transfer money to overseas accounts from Spanish banks if you have the recipient's IBAN (International Bank Account Number) and BIC (Bank Identifier Code), though this may incur fees from both banks.

Countries within the EU/EFTA can make SEPA (Single Euro Payment Area) transfers, which are easier, faster, and cheaper. A SEPA transfer is usually free of charge with an execution time of one working day.

A non-SEPA international transfer takes longer, 4 to 5 working days on average.

For international money transfers, alternatives that might be more economical and convenient include:

• Atlantic Money
• CurrencyFair
• Wise

Lost or Stolen Bank Cards

If a credit card is stolen in Spain, the immediate steps are to cancel the card and report the theft. Contact your bank or card provider to block the card and request a new one. You should also report the theft to the police. 

Most banks allow you to block or cancel your card online, through their app, or by calling their customer service. You can find the specific number for your card on the back or on your bank's website. Check your recent transactions to identify any fraudulent charges and report them to your bank if you find any.

Payment Security and Fraud Prevention

Banking fraud is an increasing concern in the digital era. Consequently, Spanish banks continuously enhance their security features, with many mobile accounts now offering identification recognition and card-blocking capabilities.

To protect your money from fraud:

• Never click on email links to bank websites; always type the complete website address in your browser
• Never share sensitive information via email or telephone
• Only make online payments through secure platforms
• Never enter your PIN on any website

Being aware of the most common cyber threats on the internet is essential to staying alert and trying to avoid them. Below, we analyse the most common online scams and offer some recommendations to reduce the chances of falling victim to one.

What are the most common online scams?

Although there is a wide variety of online scams, these are the most frequent:

• Phishing: this is a type of computer crime that features the attempt to fraudulently acquire confidential information, such as the password to your bank accounts or detailed information on your credit cards. The cybercriminal impersonates a bank or a company and, abusing the user’s trust, asks them for their account password or card PIN number.
• Smishing: this is a variant on phishing where the fraudsters try to impersonate a bank, company or institution using SMS. Generally, the message asks the victim to call a special billing number or access a link to a fake website using a false pretext. If the recipients opens the link, the cybercriminal may infect their device or access sensitive information.
• Vishing: the aim here is to steal the victim’s bank data or make financial transactions. This is a phone scam in which the criminal calls and pretends to be from a company, organisation or trustworthy person in order to obtain personal and sensitive information from the victim. In these calls, the victim is sometimes informed of a transaction and they are requested to download an application to authorise it or they are informed of attempted fraudulent operations and requested to make a transfer to keep their money safe.