Best way to take money

We're spending 4 months in South America - Argentina, Chile, Bolivia, Peru, Ecuador, Colombia, Venezuela. We're planning on taking some cash (US dollars), some travellers cheques (Amex in US dollars) and the rest on credit card (both Visa and Mastercard). Is this the best thing to do? And what proportions of each should we take e.g. 1/3 cheques etc Thanks Reply to this

Marie and Emma,

I can only speak to Ecuador, though I was there just a few weeks ago. PA makes good points and I would generally follow them all. In fact, while I've had no troubles, I wish I would have gotten a second debit card just in case. Too late now, of course.

In Ecuador, ATM's are plentiful. I found the ones with Banco Pinchincha (spelling may be a little off) didn't charge me a fee to use the ATM...my bank did, but that's another matter.

Be sure to ask your bank and credit card companies about service fees and foreign transaction fees. It could add as much as 1-5%!t(MISSING)o every purchase you make.

I wouldn't use traveler's cheques...they will be difficult to impossible to cash.

Speaking of cash, Ecuador uses the US dollar as the official currency with their own coins - but all correspond to U.S. coins (i.e. a one cent piece, 5 cent, 10 cents, 25 cent, and also a 50 cent piece. They also use the golden Sacagawea dollar coins that Americans won't use, even if they are legal US dollars). That said, it was my experience it is hard to make change in Ecuador. I would get/bring a fair amount of small bills such as 1's and 5's. You will need them. Don't use 50's or 100's, nobody will accept them. In fact, they get suspect of $20 dollar bills. You'll see them holding them up to the light for the strip though the bills and using the counterfeit pens on $20's and sometimes even $10's. Be sure to note, even banks don't like to give change for $10's and $20's...all the more reason to bring small change. That said, if you're at a restaurant and all you give them is a $20 after you ate the food, they won't have much choice but find change. You may just have to wait until they go down the street to another business to find change...or you may end up giving a big tip.

I would also plan on using cash for most purchases in Ecuador. Relatively few places take credit cards because the banks charge very high commissions to use credit cards (such as 6-8%!o(MISSING)f the purchase). You may find if you want to use a card (and a business will accept them), they will add 6-10%!t(MISSING)o the bill. About the only places that took cards without much hassle were the biggest businesses, such as the big hotels, some restaurants in Gringoland (La Mariscal) if you had a minimum amount of purchase, and the airlines.

Hope that helps on at least Ecuador. I found it a spectacular country to visit and want to go back sometime soon.

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M&E, I'm not sure I can offer a whole lot of first hand experience on that...I had a debit card so I either used that or charged to a credit card. That said, all the ATM's asked if my card was a credit or debit card so my guess is that it is pretty easy, other than normal stuff like PIN's and service fees.

One last thing...contact your bank to make sure your particular card is set up to allow transactions from foreign locations. I say this as my particular bank is a small bank and pretty conservative on its practices (and, therefore, also a pretty stable little bank). I'm glad I asked ahead of time as they told me they have to "activate" the card for various regions ahead of time. It took my bank about a week. That said, I gave them a basic itinerary and they "activated" my card for the areas I said I was going. This is all to prevent against fraud in foreign countries. You may also want to inquire on your available withdrawal limits if you haven't already. Mine are set to specific daily limits so if someone got my card there's only so much they could spend. Actually, my card also doesn't allow access to my savings account, only my checking account. This is actually nice as there's another protection to how much could be taken out if I lost my card. I just go online and transfer money online from savings to checking when I need to do so. It's worked out pretty slick.

One last thing, since you mention your UK card. There are some currency exchange places in Quito, the capital. That said, I really didn't see anywhere that spoke of Euros or Pounds, but it seems you're planning on using dollars, so probably not an issue. Just a heads up. If you need more info on Ecuador, let me know and I'll tell you what I can. Have a great trip!

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Just go ahead and add a post when ready for any info...I'll keep myself subscribed to this blog so I get a reminder email to answer your question. August is a ways off, but it will come more quickly than you think!
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Good point, PA...my credit cards charge a service fee off the bat to get a cash advance, usually around 3-5% of the amount (with a minimum charge), and then immediately start charging interest at usually a much higher rate than normal purchases - no grace period like normal purchases. Credit cards in general are such a tool of the devil, I sadly can attest to!

If you can find a way to not use credit cards for cash advances you would be well advised to not use them. I think, however, there are ways to get a cash advance but make it look like a "purchase" so you save the extra fees from your credit card, though you pay that merchant a fee so you'll have to investigate what is the better deal if you need cash off the credit card. That all said, I've never done this so I don't know how to do it - just heard the rumor...

Take care, again email with more questions... Reply to this