Using American Dollars in Costa Rica - What You Need to Know

Using American dollars in Costa Rica can be a bit tricky, but don't worry, I've got the lowdown.

Costa Rica is one of the few countries in Central America that accepts US dollars, but it's not a guarantee that every business will take them. In fact, according to our article, only 20% of businesses in Costa Rica accept US dollars as payment.

You can exchange your dollars for colones at a bank or currency exchange office, but be aware that the exchange rate might not be in your favor. The exchange rate in Costa Rica is often less favorable than in the US, so you might end up with less colones than you expect.

The US dollar is widely accepted in tourist areas, such as San Jose and the coastal towns, but in rural areas, you're more likely to be asked to pay in colones.

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You can use American dollars in Costa Rica, but it's not always the best idea. Most establishments accept USD, but some businesses may not take bills larger than $20.

You'll often receive change in colones, which can be a good thing since you'll have plenty of them after a day or two. The exchange rate is usually around ¢680 per dollar, but be aware that some businesses may round it down to ¢500 per dollar, which is a bad rate.

To avoid exchange costs, pay for things priced in USD with USD, and for things priced in colones with colones. This way, you won't have to worry about getting a bad exchange rate.

Some businesses may accept other currencies, but it's not common. For example, a Costa Rican business owned by a Canadian might accept Canadian dollars.

Here's a quick summary of what to expect:

As a tourist, you'll often be able to pay in USD or colones, but it's a good idea to have some colones on hand for smaller purchases. You can get colones at local ATMs, and most restaurants and businesses accept debit and credit cards.

You can use US dollars in Costa Rica, but be aware that you might not get the best exchange rate. Rates at brick-and-mortar establishments can be high, regardless of whether you're in Costa Rica or the US.

To minimize costs, consider ordering currency from your US bank days in advance and compare their rates to the mid-market exchange rate. You can find the real mid-market exchange rate on Google, XE.com, or Monito.

Using a digital platform like Wise can give you the flexibility to exchange currency at any time, benefiting from transparent and industry-low rates. This allows you to make informed decisions based on the current exchange rate.

For small purchases, local currency is convenient and often comes with a discount. Choose a method to get the money from home converted into a few days' worth of cash at a time.

Here are some payment options to consider in Costa Rica:

Most items, including tours and activities, meals, and souvenirs, are automatically priced in USD or Costa Rican colones. Unless a storefront establishment or service provider says otherwise, you're welcome to pay for these items in USD or Costa Rican colones.

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You can use US dollars in Costa Rica, but it's not always the best idea. Most establishments in Costa Rica will not accept USD bills in denominations higher than $20, so it's best to break down larger bills into smaller ones.

Credit cards are widely accepted in Costa Rica, but be aware of the potential fees and interest rates. Some cards have costs as high as 102% for cash advances, while others may offer better exchange rates with no fees or interest.

To avoid any issues, it's always a good idea to carry some cash, especially for smaller or independent establishments that may not accept credit or debit cards. You can also consider using ATMs and local payment methods, which are widely available.

Here are some common payment methods accepted in Costa Rica:

Additionally, some restaurants may have a 10% tip added to the bill, so be sure to check your bill carefully before paying.

Using ATMs abroad is often the most cost-effective way to obtain cash while traveling, especially when using cards like Wise.

The withdrawal fees associated with ATMs are typically minimal, around $1 or $2, or even waived entirely if you choose the right ATM or bank. ATMs also treat you like a local if you use a travel card like Wise, not applying currency exchange altogether.

If you need cash right away, you can use an ATM, and they often dispense both USD and CRC. Airport kiosks, on the other hand, tend to have significantly weaker exchange rates, sometimes up to 10% weaker.

To avoid unnecessary costs, always decline dynamic currency conversions and pay in the local currency to avoid unnecessary costs. This means paying in CRC in Costa Rica and USD in the US.

Here are some estimated ATM withdrawal fees:

Keep in mind that these fees may vary depending on the ATM, bank, and card issuer. It's essential to check with your bank or card issuer before traveling to understand their fees and policies.

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If you're traveling to Costa Rica, you'll want to know where to find reliable ATMs. Local bank ATMs are a great option for lower fees and better exchange rates compared to standalone or third-party ATMs.

If you're a member of the Global ATM Alliance, you can access Scotiabank's ATMs without incurring any ATM fees. This is because Scotiabank is a member of the Alliance, and they offer this perk to their customers.

Avoiding ATMs in airports or tourist areas can also save you money. These ATMs often have higher fees and unfavorable rates, making them a less desirable option.

Here are some of the best places to find ATMs in Costa Rica:

Currency exchange is a crucial aspect to consider when traveling to Costa Rica. The most expensive currency exchange services occur at banks, currency exchange kiosks, and some hotels or airports, with margins as high as 10% at airports and with PayPal.

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Using a travel card like Wise can be a great option, as it gives you access to multi-currency accounts and allows you to exchange USD to CRC at or near the real mid-market exchange rate.

You can also order currency from your US bank days in advance and compare their rates to the mid-market exchange rate. Aim for a rate that is well below 4% to minimize costs.

United States dollars are widely accepted in Costa Rica, but it's always a good idea to have some colones on hand, especially for smaller purchases.

US dollars are generally accepted in Costa Rica, but some businesses may not take bills larger than $20.

It's a good idea to bring along local currency in cash, as some places may not accept US dollars or may charge unfavorable exchange rates.

You can exchange currency instantly with Revolut or get Costa Rican colones in cash at local ATMs.

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Expect exchange rate margins of between 4% to 7% for foreign exchange at traditional Costa Rican banks.

Brick-and-mortar money exchange will be expensive, and it's best to avoid it.

Most restaurants in Costa Rica accept debit and credit cards for payment.

Here are some additional tips to keep in mind:

ATMs in Costa Rica are generally safe to use, but it's best to consider using ATMs that are attached to a bank rather than a machine standing on its own.

In Costa Rica, you'll often see prices listed in both USD and Costa Rican colones.

Most items you'll buy as a tourist are automatically priced in USD, unless specified otherwise.

You can pay in USD or colones for items like tour costs, national park entrance fees, and restaurant meals.

Unless a storefront establishment or service provider says otherwise, you're welcome to pay in either currency.

Accommodation costs, including hotel rooms, can also be paid in USD or colones.

Transportation services, such as taxis or shuttles, will often accept USD or colones.

You can even use USD or colones to buy souvenirs from local shops.

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In Costa Rica, most establishments will not accept USD bills in denominations higher than $20, and in rare cases, they might even accept $50 bills.

Taxis and small establishments like roadside shops, restaurants, stalls, and stands typically don't carry a lot of cash, so it's best to pay for inexpensive purchases with smaller bills like $1, $5, or $10.