www.CostaRicaTicas.com

I will be arriving in SJ for a 1 month trip starting around Jan 10. When I travel, I normally withdraw the local currency from cash machines to pay for most items, but use a card to pay for big ticket items. I like to negotiate with, and pay girls with local cash, because it seems to work out cheaper. Is that the right way to do it in CR? I ask because I read more about dollars here than colones.

Anywhere in the world -- and CR is no different -- people love to get their hands on US Dollars or Euros. Use the exchange rate to your advantage. I'm in Colombia right now, and I have this conversation all the time... "500K Pesos? How about $100 US?" Works every time.

Nope

In CR it is almost always better to use colones. You will almost always pay more if you are asked for US dollars. Small example, and doesn't always work, but for chicas that ask $100 US... if you offer them 50 k colones they often will accept. That is more like $80 US. But in the past the simple conversion of $2 per 1000 colones was normal and is quick and easy to do in your head, but it favors using colones.

And outside at restaurants, etc. you will lose a lot on the exchange rate if you use dollars. They will often just credit you 500 colones per dollar...which is a 20 plus percent haircut.

I bow to your recency of experience, and will test this theory when I next visit. I do remember the 500:1 rule and using that in your favor, whichever way it goes. It was fun being in CR when the Colon was at 600:1. I often offered $20 for 20K Colones and it was happily accepted.

I have been in touch with a friend in Quepos who is currently paying 35K Colon bills with $50 US.

Back to the original question...

Using an ATM or your Credit Card almost always gets you the best exchange rate. Everywhere I've been in the world, just whipping out the plastic has always been the most consistent.

Cash is OK, but you often have to work the math to your advantage.

I always make the offer first here in Medellin. 200k + taxi has been accepted every time by fb girls (which means I'm probably over-paying, haha). I've paid certain Lleras girls 300k+ taxi, and regretted it each time. 500k seems steep - are these high-end strippers or massage parlor girls?


Thanks - this sounds about right.


I agree about the card being the most economical. But I'm a bit paranoid about my debit card; I only have one, so I try to limit it's exposure. I'd rather do the math - keeps my brain fresh!

You should be. NEVER use your debit card for anything other than ATM withdrawals. Your debit card has DIRECT access to your bank account. Use only a credit card for transactions, other than ATM withdrawals. Don't be fooled by the VISA or MC logo on your ATM/debit card. You DO NOT have the same kind of protection that a credit card has.

Used my debit card at a pharmacy in Cancun and they cloned it and withdrew $1,000.00 from my bank account The card never left my hands and I have a $1,000 limit So they got all they could get

That sucks! Did you get it back? My card info was stolen from a Thai dating site about 15 years ago; they took about $500 but I eventually got it back.

Open a Charles Schwab account and get a debit card. It has a number of advantages including worldwide coverage, no foreign transaction fees, and Schwab reimburses me for all ATM fees. I only use it for cash while traveling so I transfer money into as required. Moreover, the phone app allows me to easily lock and unlock the card. I always keep it locked until I need to access an ATM. Unlock, withdraw cash, lock card.

Excellent advice. I may open one next time I'm in the states. How are they on fraud protection?

Scwab is good. However, don't let that lure you into a false sense of security. NEVER use your debit/ATM card for anything other than cash withdrawals at an ATM, and DO NOT carry it around with you. Use a CREDIT (not debit) card for all transactions. Pay NO ATTENTION to the logo (MC, Visa, etc.) on the card. That has nothing to do with the protection/security on that card. People see that Visa logo and think that they have protection from Visa... they DO NOT.

How much protection is offered depends on the card. My debit card offers about the same protection as a credit card, for example. I'm liable for $50 if I report the issue in less than 48 hours, and $500 if I report it after.

You misunderstand me. Your debit card is connected DIRECTLY to your bank account. If someone steals your debit card info and makes a purchase of $3000, that $3000 is deducted, immediately, from your bank account. You might only be liable for $50, but have to fight for that other $2950 to be deposited back into your account.

A credit card, on the other hand, is merely an account that you have to pay once per month. If someone charges $3000 on your credit card, all you have to do is laugh and say, "Come and get it."

BangBang, a longtime contributor to CRT, has first-hand experience of the difference between a debit card and credit card. He thought he had "Visa Protection"... not what he thought.

Schwab has been very good at fraud detection. My card has been skimmed a couple of times and every time Schwab detected the fraud and denied the charges. That said, I use the card in a very specific manner, is I only transfer money into the account to use for my trip. That way, the card isn't tied to my real bank account. Second, and this is crucial, lock the card and unlock it only when you're using it. Getting skimmed taught me to be diligent about keeping the card locked. That way, even if someone does get my card info, it's highly doubtful they'll be able to use it in the five minutes or so the card is active.