British holidaymakers in Europe this summer are being urged to watch out for high-denomination euro banknotes amid warnings that some shops and businesses will not accept them.
New €100 and €200 notes with advanced security features entered circulation this week. But there are concerns UK consumers may have to pay additional fees to exchange the larger notes back to sterling.
Additionally, some holiday resorts, bars and restaurants do not accept the €200 note, according to the travel money comparison site CompareHolidayMoney.com.
“If consumers find a €200 note in their wallet this summer, it’s best for them to spend it while in Europe to avoid being charged a premium for exchanging it back to pounds in the UK,” said Peter Rudin-Burgess at the website. “Some smaller businesses in Europe will not accept larger notes. We contacted a small selection of holiday resorts, hotels and restaurants in Europe and found that 40% of them do not accept notes larger than €100. We recommend to always check in advance to confirm whether larger notes will be accepted.”
The new notes have updated security features such as a hologram that becomes clearer under direct light, and have been made to be more durable than previous notes. They are made from cotton fibre and are the same height as the €50 note, making them easier to handle.
There have been problems in the past with high-denomination notes. In 2016 the European Central Bank said it would no longer produce €500 notes because of their association with crime. The UK had asked banks to stop using the notes in 2010 after it emerged they were popular among terrorists, money launderers and drug dealers.
The €500 note had been nicknamed the “Bin Laden”, and was reportedly so prized by criminals that it traded above its face value.
Existing €100 and €200 notes will continue to be legal tender with the release of the new notes.
