Money

Paying by Cash

Paying by cash is obviously the easiest.  The currency is the euro, so those notes and coins you used in France, Germany or Italy are perfectly valid in Spain and Ibiza. 
You have three main ways of getting your euros - ATMs or cash machines (which all banks have, as do most supermarkets and small towns), cashing travelers cheques, or,  exchanging your money inside a bank or at a bureau de change. See notes below.

Credit & Debit Cards

You can use your foreign credit or debit card in most stores and  restaurants in Ibiza. However, in practice, many shops' credit card machines are out of date and aren't very good at accepting foreign cards. I wouldn't rely on this as a form of payment - always carry enough cash just in case your card isn't accepted.
Note: in Spain, it is a legal requirement to show photo ID - your driving license will do - when paying by card. This is in addition to signing the receipt which you always have to do (and also sometimes, typing in your PIN). However, many shops would rather take your money than risk losing business, so if you don't have your passport/drivers license with you, it is sometimes possible to get them to accept your card anyway.

Purchase tax

The internal sales tax in Spain is known as IVA “eevah”  (Impuesto sobre el valor anadido) and varies between 7% and 33% depending on the item bought. Food, wine and basic requirements are taxed at 7%, most goods and services are charged at 16% and luxury items such as jewellery and cigarettes attract 33% tax. Hotels have a special 7% rate.

Exchanging Money in Banks

It is possible to exchange most major international currencies in most banks in Ibiza. However, the exchange rate will be no better than the ATM and you'll have added disadvantage of having to stand in line for a long time as well. Spanish banks also close very early (by 3pm on most days). You'd be better off using ATMs.

Using ATM Cash Machines  (cajeros)

There are plenty of ATMs (cash machines) in Spain and most all take foreign cards. That includes VISA, Cirrus, Citibank and American Express (AmEx).
A nice feature now is that some recognize your card and automatically use English for the transaction, others require you to choose the language.  
Some ATMs restrict the amount to say €140.00 per day which can be a problem if you’re the only one with a card Unless you are taking very large amounts of money out (say, a couple of thousand euros), the commission will usually be a flat rate, so it is worth taking out as much as you'll need for a few days. However, taking out large sums of money obviously leaves you susceptible to thieves.

ATM Cash Machine Charges

The vast majority of cash machines/ATMs (cajeros) in Spain operate on either the ServiRed or the 4B network (also known as Telebanco). Depending on your bank's affiliation, you should be able to withdrawal cash from all cajeros under at least one of these networks.   Although this system appears straightforward, you can still end up paying fees if you aren't careful. Usually if you use the system of your bank i.e. ServiRed or 4B you will not get charged.  Recently, cajeros in Spain have started to warn you on the screen when they're charging you a fee, and have started displaying the amount involved.  From personal experience the fee can be high (8%!!!) but you do have the option of halting the transaction and going elsewhere.
Banks that Don't Charge to Withdraw Money Overseas.
In the UK Nationwide do not charge for withdrawing money overseas or for making credit card transactions in a foreign country.

Exchanging Travelers Checks

Most travelers checks can be exchanged. However, the lines in Spanish banks can often be quite long, and with ATMs being so easy to use, bringing travelers checks is usually more hassle than it's worth.
Most people bring travelers checks as a safety precaution, just in case their bank cards are stolen. But who is to say you won't have your travelers checks stolen as well? If you have two bank cards, leave one in your hotel (or carry it in a different pocket to your wallet) so that if you do have one stolen, you still have another means of accessing your money. This makes bringing travelers checks redundant.

• American Express Travelers Checks
  For some reason, AmEx travelers checks are especially difficult to cash in Spain. If you really want to bring travelers checks, don't bring AmEx.

Your rights in case of defect products

Directive 1999/44/EC on the sale of consumer goods and associated guarantees has been implemented by Spain.

As a result of this legislation, all consumers, who buy goods in Spain have the same to a minimum guarantee of 2 years on products. Within the first six months of purchase, any lack of conformity or defect shall be presumed to have existed at the time of delivery, unless proved otherwise. After the first six months, it is up to the consumer to prove that the lack of conformity existed at the time of delivery.
Within this period of 2 years the consumer is entitled to have the goods brought into conformity free of charge. In the first place, the consumer may require the seller to repair the goods or he may require the seller to replace them, unless this is impossible or disproportionate.
Any repair or replacement shall be completed within a reasonable time and without any significant inconvenience to the consumer, taking account of the nature of the goods and the purpose for which the consumer required the goods. If this should not be possible the consumer is entitled to ask for a price reduction (smaller defects) or to have the contract rescinded.

Voluntary guarantees given by a producer do not restrict the statutory rights of consumers.
In reality , compared to UK your rights are negligible.  There is no Department of Trading Standards to assist you, you will need to speak Spanish in order to complain, and be generally regarded as a trouble making foreigner.  Some shops are really quite good, a few just shrug with indifference.  In the latter case, unless the amount is significant, just give up and spread the word about their goods and attitude.
Unless goods are faulty, a consumer does not have a legal right to an exchange. It is at the trader’s discretion. Therefore it is important to verify before buying, if the trader allows an exchange, and to obtain a written confirmation – e.g. a note on the original receipt.
In bigger and important shops exchange is a common practice although the consumer has to ask for the change within 15 - 30 days after the purchase.

Pricing

The currency is the euro.
The price will have to be unambiguous, and clearly legible and visible.
For security reasons, jewellers, furriers and establishments that sell very expensive products are not obliged to exhibit prices.
The consumer can insist on getting the item for the price indicated on the price tag.
Unless otherwise specified, it is understood that the exhibited price already includes VAT.
The trader must issue a receipt to the consumer and for that reason the consumer should always ask for the receipt. The receipt is the only document that allows the consumer to prove he has acquired the article and, in the event of non-conformity, to pursue a claim.

Tax

On most goods and services a 16% value added tax -VAT (Impuesto sobre el Valor Anadido - IVA) is charged in Spain.
The VAT on foodstuffs (excluding alcoholic beverages) and services is 7%.
The VAT on certain basic foodstuffs (bread, milk, cheese, eggs, fruits, and vegetables) and other products like books, newspapers and magazines, and also medicines, is 4%.

Methods of payment

The most common methods of payment in Spain are cash, credit, and debit cards. Cheques are used to a lesser extent.
When paying by credit or debit card, consumers may have to show identity card.

Euros - Money - Banks - Finance - Post & Post services - Essential information - Travelling to ibiza by car

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