Credit Score in the Netherlands

The big difference in the Netherlands is that Credit Cards don’t influence a Credit Score, because we don’t have the same process as for example: Japan, China, the U.K., Canada, Australia, Germany, and the United States. In the Netherlands, we have a better alternative for this: BKR. The BKR in the Netherlands is a credit registration agency that keeps track of individuals’ credit histories and outstanding debts.

Fraud protection

Fraud protection from a credit card refers to the measures and services provided by credit card issuers to safeguard cardholders against unauthorised or fraudulent transactions. Credit card companies implement various security features and policies to detect and prevent fraudulent activities, ensuring that cardholders are not held liable for fraudulent charges.

Dutch credit card companies, like those around the world, have a few key ways of making money:

• Interest Charges: This is a primary source of revenue. When cardholders don’t pay their balance in full within the grace period, they’re charged interest on the outstanding amount. This interest can vary but is generally a significant percentage.

• Fees: Credit card companies often charge various fees, including annual fees, late payment fees, cash advance fees, and foreign transaction fees. These fees contribute to their profitability.

• Merchant Fees: Every time you use your credit card at a store or online, the merchant pays a small percentage of the transaction to the credit card company. This is often a few percent of the purchase price.

• Partnerships and Rewards Programs: Credit card companies collaborate with businesses to offer rewards programs and benefits to cardholders. They earn revenue through these partnerships, often by getting a cut of the spending generated through the rewards programs.

Instances to avoid using a credit card:

1. Extra Fees: Merchants may pass processing costs to you through upfront surcharges or “convenience fees.” Unless your credit card rewards outweigh the surcharge, consider using an alternative payment method.
2. Supporting Small Merchants: To support smaller merchants, paying with cash, check, or debit card can be preferable, as it saves them from credit card processing fees.
3. Overspending: If you struggle to control spending with credit cards, opt for cash or debit to stay within budget and avoid accumulating high credit card balances.

While credit cards offer great benefits, it’s essential to research and choose the best card for your needs while exercising responsible spending, regardless of your chosen payment method.

A landmark initiative by the Dutch Payments Association has dramatically expanded payment options for consumers in the Netherlands. The Debit Card Acceptance project has successfully paved the way for Dutch cardholders and international visitors to use Visa Debit and Debit Mastercard for their purchases. This development is particularly significant considering that previously, nearly half of Dutch shops didn’t accept these cards.

The collaborative effort, involving retailers, terminal suppliers, transaction processors, banks, and card networks, resulted in a massive upgrade of payment terminals nationwide. This ensures that the vast majority of Dutch shops are now equipped to accept these internationally recognized debit cards. The impact of this project will be felt by both Dutch citizens who will increasingly receive these cards in the near future, and tourists who can now enjoy more convenient payment options during their visits.

This progress marks a significant stride towards a truly cashless society in the Netherlands. With over 425,000 payment terminals updated, the country is now better equipped to handle the growing preference for digital payments. This initiative also aligns the Netherlands with global trends, as Visa Debit cards, with 2.8 billion issued worldwide, gain broader acceptance.

We have developed a variety of resources to assist you in making the optimal decision for your needs. Please review the following pages for more information on which credit card is most appropriate for you:

Dutch Credit Cards – Which one is the best?

Compare Credit Cards in Netherlands

Top 5 Dutch Bank Accounts in the Netherlands

Frequently asked questions about Credit Cards in Netherlands (FAQ)