Credit Card Use in the Netherlands

Expats new to the Netherlands may be surprised to learn that bank credit cards, or charge cards, are not the most common form of payment as they are in other countries, such as the United States…

CREDIT CARD USE IN NETHERLANDS

Dutch society, in general, does not condone lavish lifestyles and over-spending. The typical Dutch person buys what he or she can afford and then pay for it with a PIN (ATM) direct debit card, where the amount of the transaction is immediately deducted from his or her personal current account.

This is not to say that Dutch people don’t have charge cards. Many of them do. But generally, it is not for use in making purchases from stores in the Netherlands, but rather for use when traveling abroad. Their direct debit PIN cards are often not accepted by hotels and other establishments in other countries, especially those outside the European Union. This is why they will often carry a Visa or Mastercard which are both universally accepted.

Still, it is uncommon for the average Dutch person to carry a large balance on a charge card that would incur a substantial monthly interest charge. In many cases, this is not even an option as their Visa or Mastercard is not set up as a true credit card (that offers a revolving credit line), but rather as a charge card operating as a direct debit card. For the latter, a transaction is only approved if the funds are available in the person’s bank account (and then deducted immediately).

It IS still possible for an expat in the Netherlands to get a charge card with revolving credit line, but will require the applicant to pass a credit check and typically to show longevity in their place of employment. This may be difficult for an applicant who recently moved to Holland and has not had time to establish a credit rating. There is a better chance of approval if the charge card is prepaid or set up for direct debit.

DUTCH CREDIT CARDS

ICS (International Card Services) is a popular credit card company in Netherlands. It partners with several of the larger Dutch banks, such as ABN AMRO, and organizations, such as ANWB, issuing charge cards (Mastercard/Visa) to their account holders.

ICS credit cards for individuals include:

ICS also issues business credit cards to entrepreneurs in Netherlands, although to start, the card is unlikely to include revolving credit until a credit history is established.

American Express is available in Netherlands as well. Its Platinum card provides many benefits including unlimited free access to airport lounges worldwide.

In addition, AmEx offers the following charge cards for individuals and businesses…