How payments work in Lisbon

You might be used to a specific way of payment, or maybe think that everywhere works the same when it comes to payment methods, but the reality is far from that. It might depend on where you come from, or where you’re currently living, but we know that there are some countries and cities that operate with a card-only payment method in all the stores and shops, but other countries and cities still operate only with cash. This is a very important thing to consider when you’re going abroad, especially if you are traveling for a mid or long stay and if you use a different currency than your country of destination.

In this post, we will focus on how payments work specifically in Lisbon, so in case you are thinking of coming here for your workation or to work remotely from here, we got you covered. You might assume since Lisbon is a metropolitan capital with a wide international environment and a lot of tourists, ex-pats, and nomads around it, you might think that you will be able to use your card wherever you go, but wait a second, you might also need a little bit of cash sometimes.

Do I need cash?

Most places in Lisbon will accept card payment, but not all of them because there are still many places that only accept cash like small typical restaurants, corner shops, little bars, and bakeries, or sometimes you’ll need it to pay for public transport since not all the machines accept card payment and other times the ones that do accept it are not working.

Can I pay by card?

In all international chain shops, big retail stores, most of the supermarkets and at some restaurants you will be able to pay by card and I’ll say all of the places where you can pay by card also accept contactless payment but at some smaller shops you can only pay by card from a minimum amount of money, and when buying online from Portuguese shops it is not an issue to pay with a card. However, make sure your card is either Visa or Mastercard because these are widely accepted in the country, the other issuers that could be popular in other countries or continents don’t have much coverage in Portugal. Also, you’ll have to make sure you contact your bank beforehand to let them know that you’ll be traveling to Portugal and for how long, so they activate your card to be used in the country and you don’t have any problems while using it.  

What is MB Way?

There is a payment method specifically from Portugal which is MB way, that is widely accepted in any kind of shop and restaurant, sometimes they just accept cash and MB way payment but not international cards.MB stands for Multibanco and MB way is an interbank network app that connects 27 Portuguese banks and if you have an account in any of them you could pay through this method nearly everywhere.

ATMs

The currency used in Portugal is the Euro, and you won’t need more than a few hundred of them for being able to pay in the cash-only shops.

But don’t worry if you run out of cash, as there are many ATMs around Lisbon. It is common if you’re using an international card that the ATM asks you for a fee, but make sure first that the ATM you’re using allows your kind of card and to avoid any inconvenience. Also, if your bank doesn’t have ATMs in Lisbon, search for an ATM with an MB sign. Usually those have the most favourable rates and fees in Portugal, but they have a withdrawal limit of 400€ per day. Try also to avoid Euronet, as their rates are ridiculous. Get informed by your bank about the transaction fees and exchange rates.

Why should I put my NIF in my receipt?

If you already did some transaction in Portugal when buying something, or in a restaurante for example, you've been probably asked bout putting your NIF in the receipt or not. NIF is the abbreviation of "Numero de Identificação Fiscal"  (taxpayer number), and linking it to your receipt is not mandatory, but it allows you to deduct from your IRS a small percentage of your expenses. By the end of the year, it is possible to recover up to 250€ in several categories of expenses.

In conclusion, navigating the payment landscape in Lisbon requires some understanding and preparation. While major international chain stores, supermarkets, and larger establishments accept card payments, you may encounter some limitations in other places. While Lisbon embraces card payments in many establishments, being prepared with some cash and understanding the prevalence of the MB payment system can greatly enhance your payment experience, especially when interacting with smaller, local businesses. By familiarising yourself with these payment methods in advance, you can ensure a smooth and hassle-free financial experience during your time in this vibrant city.