I thought I’d take a risk and post something sort of boring, yet insanely useful to readers.
Since 99.99% of our Costa Rica vacation customers ask about currency exchange, I figured a post on that topic might fill the bill for usefulness.
So, here are my 10 tips on currency exchange in Costa Rica.
1. Currency Math – Since I am no math genius, I have simplified the issue by assuming a currency exchange of 500 (colones – by the way that is what Costa Rica currency is called) to $1.00 (good old U.S. greenback). Since most tourism related transactions do not involve large quantities of dinero (money for a Spanish-speaking person), it really doesn’t matter a whole heap if the rate is 500 to 1, or 545 to 1. Using 500, a nice round number, keeps it simple enough for even me to do the math in my head.
Costa Rica bills come in the following denominations…
– 1,000 divided by 500 = $2.00
– 2,000 divided by 500 = $4.00
– 5,000 divided by 500 = $10.00
– 10,000 divided by 500 = $20.00
– 20,000 divided by 500 = $40.00
Simple enough?
We actually have a 50,000 bill now (I’ll let you guess what that translates to in dollars), but it is as rare as the resplendent quetzal…I have yet to actually see one in circulation.
2. How Much to Exchange – Costa Rican merchants readily accept dollars and credit cards, so it’s really not necessary to be in a frantic rush to exchange a bunch of money. I always recommend exchanging a small amount, say $100, and once that get’s low, then do it again.
3. Where to Exchange – Don’t do it in the airport as the currency exchange kiosks in there operate at the least competitive rates imaginable. The best and most convenient place is right at your hotel front desk. But they probably won’t exchange more than the aforementioned $100 at a time.
Other places are banks and “Servimas” booths, usually located in certain grocery store chains like “Mas por Menos.” But get ready to wait in line at those places to save a couple of pennies. Like I said, just do it at the hotel front desk and you won’t waste the time that should be used enjoying your vacation.
4. Paying with U.S. Currency (and credit cards) – As was mentioned above, you can pay for most things with U.S. currency or credit cards. Change will invariably be given in local currency, which is why it helps to get jiggy with the currency math (see primer above).
So, why do I need local currency? Mainly to pay for things like the following:
– taxi cabs
– street vendors
– small grocery stores (called “pulperias”)
– small restaurants (called “sodas”)
The reason those places might not accept dollars is because they cater mainly to local people who pay in colones. So they are just not accustomed to receiving dollars the way places are that cater to tourists.
5. Large U.S. Bills – If you are in a rural place and all you have is a wad of $50 and $100 bills, consider yourself as broke as an artichoke. No one will take them, except a bank and even then after careful and excruciating examination of the bill’s molecular structure. So, make sure that your foreign currency is kept in small denominations, nothing larger than a $20 is highly recommended.
6. Bills in Bad Shape – Also make sure your U.S. dollars are at least in semi-mint condition. If they have a bit of wear and tear about them, they might be rejected…even at a bank.
7. Getting Cash from Machines – Yes we do have ATMs in Costa Rica. Usually, these days, they will dispense either local currency, or U.S. dollars. So, if you have a debit card, or a credit card with cash advance permission, then ATM machines are a very convenient way to get local currency. There will generally be a pretty hefty ATM fee or around $3,00 per transaction though. Whether or not your bank will charge some type of “foreign transaction” fee is something you will have to check with your bank…I know mine doesn’t.
8. Using Traveler’s Checks in Costa Rica – My strong advice is forget about it. The only way you’ll be able to use them is by first enduring a painful process of going to the bank to exchange them for money. And even then, there is no guarantee for success. They are just an outmoded way of dealing with money during travel and it doesn’t work well…at least not in Costa Rica.
9. That Damn 23% Charge – When you buy a meal at a restaurant or a bar in Costa Rica and use your credit card, you will notice two charges that might alarm you. One has the initials I.S. and the other I.V. The one with the I.S. is for “impuestos de servicios” and is a 10% tip that is almost always included in your bill. While that might get you hot under the collar, settle down a bit because no one expects you to leave anything over and above that required tip. The one with the I.V. is for “impuestos de ventas” and is the Costa Rican sales tax of 13%.
And yes those fees are also added if you pay with cash…colones or dollars.
10. Currency Exchange Rate Etiquette – Usually most merchants will use the 500 mentioned at the outset, since that makes the math easy for them as well. But if you want to be sure you can always ask by saying “cual es el tipo de cambio?” If you want to whip out a calculator (like the one on your Iphone) and do the math that way, that’s fine (even though a little awkward). But don’t get too anxious because most vendors are not out to “get the gringo” by making currency exchange errors in their favor.
But watch out for taxi cab drivers…which is why I recommend having some colones to pay those guys. And, of course, get fluent with your exchange rate math before you really need it.
I hope this little primer on currency exchange in Costa Rica has been helpful.
By the way, we have a document that we always send out to customers who book Costa Rica vacations with us entitled Useful Tips and Information. It is loaded with information like what was provided in this post, but a lot of other stuff too. In the spirit of connection-age benevolence I have inserted a link where you can download it.
And while you’re at it do me a flattering favor and fill out the form below to sign up on our email list and receive my 100 Cool Things to do in Costa Rica eBook.
Post by CRG
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