Money when traveling to South America
I, a European, plan on visiting North and South America (Mexico, Peru) for a few weeks, and I wonder what's the best way to use my money over there. I want to lose the least of it to fees or conversion.
My money is in a bank account and I have a debit card. Do I convert in my home country and carry cash? Do I convert (through my card) in the airport on arrival? Are there better places over the country where I can get, e.g., Mexican pesos, from my European bank account? Can I use my card, if the place accepts it, without paying any fees?
Basically I would appreciate a summary of what's the most practical and beneficial way of using the money, I'm assuming I will need some cash hence the need to convert EUR from my bank account to, e.g., MEX cash, at some point.
Best Answer
@Hilmar has a nice answer, but I think it should be completed with two additional points:
Before you travel, check if you need to notify your bank you travel in South America. Some banks blocks by default many countries, as anti-thief measure. Just a notification (countries and period [keep it longer, in case of problem]).
The more cards you have the best it is. Or just use ATM and get enough cash (if you go in small villages). I had a lot of bad experiences where you cannot use some European cards on some banks. It is nothing really wrong, just change bank. (really it happened also within Europe).
US dollars are often accepted (warning for the "tourist prices"). And have an idea on which transportation you will use from airports. It may be difficult to pay with large notes local buses or public transportation. ATM at airports may be busy (but use them, avoid exchange offices inside the arrival only zone). Maybe a quick breakfast/lunch (after ATM break) may give you changes (coins and small notes).
In general (not only for South America). Keep one or two notes in a pocket. Use them in crowded space (or unsafe places), instead of using the wallet.
Pictures about "Money when traveling to South America"
What is the best currency for South America?
Currently, the Peruvian Sol is the strongest currency in South America, followed by the Brazilian real. The monetary policies of their leaders helped the currencies attain their position on the exchange rate market on that continent. The value of a country's currency is very important.Can I use US dollars in South America?
To help you out, we've compiled a currency cheat sheet for money in South America. The US Dollars is the official currency in Ecuador. US Dollars are also accepted in some places in Peru, mainly Lima and Cuzco.Can I use my debit card in South America?
Credit cards, debit cards and travel cards are widely accepted in South America. You'll have no problem using your Visa or Mastercard at any business that can accept credit cards, however, American Express is typically only accepted at high-end businesses.How do you pay in South America?
Payments with cards is the preferred way of making payments in Latin America, as this method accounts for most transactions. For example, in Brazil, the largest country in South America, credit cards account for more than 60% of payments, with 68% of the population owning a bank account and a 32% card penetration rate.Planning my next backpacking trip to South America 💃🏻Research, Budget, Packing + more
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Answer 2
I live in Mexico, so I will add a couple of local observations in addition to the excellent answers by Hilmar and Giacomo Catenazzi.
While Credit Cards are definitely safer and easier to use in the malls and chain stores, if you're in the markets or local stores you'll need cash. That said, I would recommend you only withdraw what cash you need that day, leave the rest in the bank. If you find something to buy and don't have the cash, they'll almost always be willing to hold the item while you find an ATM and withdraw the cash (they'll be selling to you for more than they'd sell to a local anyway).
While you might get away with handing over a US $10 or $20 note and have it accepted, you're almost certainly not going to have anyone accept any Euro notes. Many banks here don't even exchange foreign currency. There are exchange houses around, however these only exchange between USD and MXN. The situation may be different in tourist spots (Cancun or Cabo) or Mexico City.
Additionally, Credit Cards here are almost always signature required. Very very few places have chip & PIN available (in fact, I'm not sure I can recall EVER using chip & PIN here). If your CC does not have a signature strip they may not be willing to accept it.
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Images: Tim Samuel, Karolina Grabowska, Darren Lawrence, Karolina Grabowska