Portugal attracts millions of visitors every year, as well as a growing population of expatriates from Europe, Africa, and the Americas. For newcomers, understanding how payment methods work in the country is essential for managing a budget, making everyday purchases, and avoiding unpleasant surprises. Whether you are a tourist passing through, a resident working or studying, or an entrepreneur planning to settle in Portugal, we’ve broken down how bank cards, the MB Way system, and cash usage function in Portugal.

Bank Cards in Portugal

Debit and Credit Cards

In Portugal, bank cards remain the preferred method of payment in major cities and modern shops. Portuguese banks generally offer two main types of cards.

Debit Card (Cartão de Débito)
A debit card is directly linked to your bank account, and each payment is immediately deducted from your balance. It allows you to withdraw cash from ATMs, pay in-store, and make online purchases. A debit card is practical and usually sufficient for everyday spending.

Credit Card (Cartão de Crédito)
A credit card provides a revolving line of credit, meaning payments are debited at a later date (usually at the end of the month). However, interest may apply if the balance is not fully paid by the due date. Credit cards are particularly useful for larger purchases or booking services such as hotels or flights.

Opening a Bank Account and Card Costs

To obtain a bank card in Portugal, opening a bank account is required. There are several options.

Traditional banks : Banco Santander Totta, Millennium BCP, Caixa Geral de Depósitos, Novobanco, etc.

Online banks : ActivoBank, N26, Revolut (for European residents), Wise…
Be aware that some online banks may not offer a Portuguese IBAN, which can make local transfers more complicated.

Opening an account as a resident is relatively straightforward. Generally, you will need a Passport or ID card ; NIF (Portuguese tax identification number, essential for many official procedures) ; proof of address (utility bill, rental contract) ; proof of income or employment

Monthly fees between 5-10€ for a classic account with debit or credit card.

Example : with an ActivoBank account, you can get a free debit card with unlimited withdrawals in Portugal and full account management via a mobile app – ideal for young expatriates or students.

Cash Withdrawals and ATMs

Caixas Multibanco (ATMs) are widespread in Portugal, even in small towns and villages. These machines allow you to withdraw cash ; pay bills directly ; top up your mobile phone ; make transfers between accounts within the network.

Limits and fees : Daily withdrawal limits are typically around €400 (often capped at €200 per transaction). If you are an expatriate or visitor, check international fees in advance and consider requesting a withdrawal limit suitable for your stay.

What is the Multibanco Network?

You may have encountered a shop that accepts a “Multibanco” card but not your international bank card (Visa or Mastercard). Multibanco is Portugal’s national payment and ATM network, linking all Portuguese banks. It allows cardholders to make payments, withdraw cash, or transfer money nationwide.

Unlike Visa or Mastercard, which are international networks, some stores or services only accept Multibanco cards. Having a Multibanco card ensures full compatibility with the Portuguese payment system, whereas a foreign card may sometimes be declined. Typically, small retailers have only a Multibanco terminal, which limits payments to the same network.

A Convenient and Secure Mobile Solution

MB Way is a mobile app developed by the Portuguese national payment system. “MB” stands for Multibanco, the same network, so this payment solution can only be used with Portuguese cards. The app is becoming increasingly popular for its simplicity and speed, similar to PayPal, linking to a bank card for instant transactions.

Main Features

Contactless payments in stores : via QR code or NFC

Online payments : select MB Way at checkout like you would with PayPal or Apple Pay

Instant transfers between MB Way users : useful for splitting bills or paying friends

Cardless cash withdrawals:  some ATMs allow withdrawals without a card

Advantages

Free for users (recently, fees may apply above a certain number of daily transactions, always check before paying)

Secure, with PIN or fingerprint authentication

Convenient and flexible, available 24/7

Widely accepted in stores, restaurants, cafés, and major Portuguese chains

Over 3.5 million Portuguese people use MB Way, making it one of the most integrated everyday apps.

Safety Tip : recently, scams have circulated via MB Way, especially for online second-hand sales. Some buyers claim to pay via MB Way but attempt to obtain your personal information. To stay safe, only share the phone number linked to your MB Way account – no other details or app access are needed to receive funds.

Cash and the Culture of Cash in Portugal

Despite the rise of electronic payments, cash still plays a significant role in everyday life in Portugal for several reasons.
Use in traditional stores : small cafés, local markets (feiras), artisanal shops
Tips : often given in cash, especially in restaurants or hair salons
Quick and flexible transactions : cash remains simple for low-value purchases

Bank Opening Hours and Account Management

Bank opening hours in Portugal are relatively uniform, but may vary. Banks are generally open Monday to Friday (8:30 a.m. to 3:00 p.m.) and Saturdays (9:00 a.m. to 12:30 p.m.) and closed on Sundays and public holidays.

Practical tip : plan withdrawals and administrative tasks during the week. For urgent transfers or payments, MB Way and mobile banking apps allow you to manage operations anytime.

Tips for Expatriates and Visitors

Combine payment methods : use cards, MB Way, and cash to adapt to any situation
Safety first : always cover your PIN when withdrawing cash, be alert in tourist areas, and avoid carrying large amounts of cash
International cards : some banks charge fees for payments in or outside euros; always check conditions beforehand

Online banks : options like N26 or Revolut offer fee-free accounts and free withdrawals in Europe

MB Way app : for longer stays, register and link your Portuguese bank account to MB Way to fully benefit from its features

In Portugal, payment methods balance modernity with tradition. While bank cards and mobile apps like MB Way simplify transactions, cash remains an essential part of Portuguese life, especially in rural areas. Whether you are a tourist or an expatriate, understanding these systems will help you manage money effectively and avoid surprises. By combining multiple solutions, you can enjoy your experience in Portugal safely and with maximum flexibility.