The Austrian Economy: Money And Wealth

Austria's currency is the Euro, which has been in use since 2002. One Euro is made up of 100 cents, and it is divided into banknotes and coins. Banknotes come in denominations of €5, €10, €20, €50, €100, €200, and €500, while coins come in €1 and €2 denominations, as well as 1, 2, 5, 10, 20, and 50 cents. Prior to adopting the Euro, the Austrian currency was the Schilling, which was replaced by the Euro at a rate of €1 to 13.7603 Schillings.

The Euro is the currency in Austria

Austria is a member of the Economic and Currency Union, and the Eurozone, which is made up of 19-20 European countries that use the Euro as their official currency. This includes Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, The Netherlands, Portugal, Slovenia, Slovakia, Croatia, Finland, Estonia, Latvia, and Lithuania.

The Euro is the second most traded currency on the world’s foreign exchange markets, and is issued by the European Central Bank.

The Austrian Schilling was replaced by the Euro

The Schilling was the currency of Austria for most of the 20th century. It was first introduced in 1925, replacing the Krone, which had been used during the monarchy. The Schilling was abolished in 1938 following Germany's annexation of Austria, when it was replaced by the German Reichsmark. After World War II, the Schilling was reintroduced, and it remained Austria's currency until the adoption of the Euro.

The Euro is the official currency of 19 European countries, known as the Eurozone. Euro banknotes come in denominations of €5, €10, €20, €50, €100, €200, and €500, while coins come in denominations of 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, €1, and €2.

Although the Euro is now the official currency of Austria, the Oesterreichische Nationalbank (OeNB) will still exchange unlimited amounts of Schilling banknotes and coins of the last series into Euros indefinitely. The exchange rate is €1 to 13.7603 Schillings.

Euro banknotes and coins

Austria's currency is the Euro, which is divided into 100 cents. The currency code is EUR, and the symbol is €. Austria has been using the Euro since 2002, when it replaced the Austrian Schilling.

Euro banknotes come in denominations of €5, €10, €20, €50, €100, €200, and €500. The designs are standardised across the Eurozone, with different sizes and colours denoting the different bill values. It's recommended to avoid using the €100 and €200 notes, as some merchants are reluctant to accept these higher denominations. The €500 note is particularly rare.

Euro coins are available in eight denominations: one cent, two cents, five cents, ten cents, 20 cents, 50 cents, €1, and €2. The 'common' side of the coin, used across the Eurozone, features the numerical value of the coin and a map of the European Union. The reverse, or 'national' side, features a unique design for each country. These coins are accepted across the Eurozone, so you may find coins from other countries in your change.

Using your bank card in Austria

The official currency of Austria is the Euro, which has been the case since 1999, and the first Euro banknotes and coins were introduced into circulation in 2002.

Major credit card providers such as Visa, Mastercard, American Express, and Diners Club are all widely accepted at major retailers, hotels, and restaurants. However, it is common for smaller stores to only accept cash, so it is advisable to carry a good amount of Euros on you, especially outside of major cities like Vienna, Salzburg, or Graz, or popular ski resorts.

Withdrawing Euros from an ATM should be simple enough if you have a chip-and-pin card. ATMs are spread around Austria's major cities, but you may have to search to find one in smaller towns and rural areas. Therefore, it is worth withdrawing cash before heading off to visit the beautiful architecture in the lesser-known parts of Austria.

You are unlikely to be asked to show ID when making credit card payments, although some smaller retailers may enforce a minimum purchase amount.

There are a few potential fees to watch out for when paying with a card in Austria:

• Foreign transaction fees: A non-sterling fee of around 3% per transaction can apply, depending on your card.
• Merchant currency conversion fees: A merchant may offer to take payment in pounds instead of euros, known as a dynamic currency conversion (DCC), which can mean higher fees than if you paid in the local currency.
• Cash advance fees: Your card issuer may charge a fee for cash advances (withdrawing cash using your card).
• Cash machine fees: The provider of a cash machine may charge a fee if you withdraw cash, although this is becoming rarer.

It is also worth noting that when it comes to cash advances and non-sterling transactions, many card issuers will start charging interest on the day your account is debited, rather than the usual "up to 55 days interest-free" that applies if you clear your balance each month.

To avoid fees, consider taking out a credit card offering commission-free currency conversion. If a merchant offers to take payment in pounds, you can say no and pay in euros, as your own bank won't add a margin.

Generally, it is not a good idea to use credit cards to withdraw cash, but some travel credit cards won't penalize you for this. ATMs in Austria rarely charge fees, but check before withdrawing. Those in banks or on the street are typically safer than those in convenience stores or bars.

American Express cards are accepted in Austria, although not as widely as Visa and Mastercard.

Contactless card payments were introduced in 2013 and are common across Austria. You can make chip-and-pin payments for most purchases, provided you have a four-digit PIN. If you don't have a four-digit PIN, go to your bank and get it changed before you travel.

Warnings have been issued about ATM scams in Austria, where criminals rig ATMs so your card isn't released properly. They will then offer to help you and ask for your PIN, steal your card, and use the PIN to withdraw your money. There have also been reports of card skimming devices being used on Austrian ATMs.

To increase security, use an ATM within a bank, as these are less likely to be tampered with. If your card is eaten by the ATM, you can quickly retrieve it. Consider taking an additional credit card and keeping it safe, so you are never left without money. Always keep your card in sight.

Before travelling to Austria, inform your bank of your travel plans, or your card may be blocked due to suspected fraudulent activity. Get a credit card without foreign transaction fees, and carry a back-up card, in case anything happens to your primary card.

Most public transport stops have machines that allow you to purchase a ticket with a debit or credit card, and some are cashless. Bank cards can also be used to rent bicycles, although you may not be able to use contactless payments.

You can safely use your credit card to make payments and withdraw cash in Austria, but be careful to avoid unnecessary fees. With a decent travel credit card, you can avoid paying foreign transaction fees, and by declining the DCC when offered, you can also avoid paying commission or a poor exchange rate.

Exchanging currency in Austria

Austria's currency is the Euro, which has been the case since 2002. This makes it easy to travel to Austria from other countries in the Eurozone, as there is no need to exchange money. However, if you are travelling from a country outside the Eurozone, you will need to exchange your money.

Exchanging Currency Before You Go

If you want to exchange your money before you go, you can buy Euros online and have them delivered or collect them in-store. You can also swap your local currency for Euros at a money changer or bureau de change, or buy them at the airport. However, currency exchange offices at airports are known for their poor rates and commissions, so it is recommended to avoid this option.

ATMs, known as 'bankomats' in Austria, are everywhere, particularly in larger towns and cities. Even better, ATM providers rarely charge fees for their use. However, you may still have to pay fees to your home bank for using an ATM overseas and for currency conversions.

Some ATMs will give you the option to be charged in Euros or your home currency. It is always best to choose Euros to avoid poor exchange rates.

There are currency exchange counters at airports and hotels in Austria, but these will also likely give poor exchange rates. It is better to wait until you can compare options in town.

Using Your Bank Card in Austria

Most Austrian businesses accept card payments. Debit cards can be used across Austria, but your home bank may impose high rates and fees for overseas use. Credit cards are also accepted, but you may have to pay a surcharge. Mastercard and Visa are widely accepted, and you may be able to use American Express, though local ATMs won't accept them.

Useful Tips

• Let your bank know you're travelling. If they detect a foreign transaction and aren't aware you're overseas, they may freeze your card.
• Avoid using exchange providers at airports or hotels, as they usually offer poor exchange rates.
• Always pay in Euros to avoid extra dynamic currency conversion costs.
• Use a travel debit card like the Wise card while you're in Austria for fast and cheap conversion between currencies.
• Always carry some cash in Euros for small purchases and tipping.

Frequently asked questions