Currency in Costa Rica: Paying, ATM; Exchanging money, etc…

The Official Currency: The Colón (CRC)

Understanding the Colón

The official currency of Costa Rica is the colón (plural: colones). While US dollars are widely accepted in tourist areas, using colones is often more practical and can result in better value, especially for everyday purchases.

• Symbol: The symbol for the colón is ₡, a C with two diagonal strokes.
• Common Banknotes: You will encounter banknotes in denominations of ₡1,000, ₡2,000, ₡5,000, ₡10,000, and ₡20,000. These notes are a vibrant celebration of Costa Rica’s natural heritage; each one is beautifully designed to feature important national ecosystems and their iconic wildlife, such as sloths, hummingbirds, and sea turtles.
• Common Coins: Coins are available in values of ₡5, ₡10, ₡25, ₡50, ₡100, and ₡500.
• Quick Conversion: The exchange rate is dynamic and fluctuates daily. For a simple mental estimate, you can think of ₡1,000 as being roughly equivalent to $1.75 to $2.00 USD. For the most accurate, real-time rates during your travels, we advise downloading a currency converter application for your smartphone before you depart.

Using US Dollars (USD): The Unofficial Second Currency

Where USD is Accepted

US dollars are frequently used in transactions related to tourism, making it convenient for many travelers. However, their acceptance is not universal across the country.

• Widely Accepted: You can comfortably use US dollars at major hotels, formal restaurants within tourist hubs, with most tour operators, at car rental agencies, and for private shuttle services.
• Less Common/Not Accepted: For a more local experience, you will need colones. USD is generally not accepted at small local restaurants (known as sodas), local markets, for public bus fares, or in official taxis, which are required to use a meter priced in colones. Acceptance is also rare in rural towns that are off the main tourist track.

Best Practices for Paying with USD

• Use Small Bills: It is essential to carry small denominations. Bills of $1, $5, $10, and $20 are ideal. Attempting to pay for a small item with a $50 or $100 bill will often be met with refusal, as smaller businesses may not have sufficient change or may be wary of counterfeit notes.
• Bill Condition is Key: Costa Rican businesses are very particular about the condition of US currency. Ensure your bills are in excellent shape—crisp and free of any rips, tears, tape, or writing. Damaged or heavily worn bills will almost certainly be rejected.
• Expect Change in Colones: This is a crucial point to remember. When you pay for an item in USD, your change will nearly always be given in colones. The exchange rate used for this transaction is set by the vendor and is typically not in your favor.

Methods of Payment: Cash vs. Card

When to Use Cash (Colones are best)

Cash is indispensable for daily life and for experiencing Costa Rica like a local. Having colones on hand is always the best approach for smaller transactions.

• For small purchases at local shops (pulperías), bakeries, or roadside fruit stands.
• At charming local eateries known as sodas.
• Paying for public transportation and some taxis.
• When shopping at the wonderful weekend farmers’ markets (ferias).
• For tipping your guides, drivers, and hotel staff, where cash is greatly preferred.

When to Use Credit/Debit Cards

Cards are convenient and secure for larger expenses at more established businesses.

• At larger establishments such as hotels, resorts, car rental agencies, and upscale restaurants.
• For booking tours and activities with established, professional companies.
• At major supermarket chains like Auto Mercado, Mas x Menos, and Pali.
• Card Acceptance: Visa and Mastercard are accepted almost everywhere that takes cards. American Express and Discover have a much more limited acceptance and should not be relied upon as a primary card.

Critical Card Usage Tips

• Inform Your Bank: It is imperative that you notify your credit card company and your bank of your travel dates and destinations before you leave home. This simple step prevents your account from being frozen due to transactions being flagged as potentially fraudulent.
• Foreign Transaction Fees: Review your card’s terms to see if it charges a foreign transaction fee, which is often a percentage (typically 1-3%) added to every purchase made abroad. If possible, travel with a card that has no such fees.
• Always Pay in the Local Currency: If a credit card terminal presents you with the option to be charged in your home currency (e.g., USD) or the local currency (CRC), always choose CRC (colones). Selecting USD activates a service called Dynamic Currency Conversion, where the vendor’s bank determines the exchange rate, which is invariably less favorable than the rate your own bank will provide.

Accessing Your Money: ATMs (Cajeros Automáticos)

Finding and Using ATMs

ATMs are the most efficient and recommended way to get local currency upon arrival and throughout your trip.

• Best Sources: For security and reliability, always use ATMs that are physically attached to official, reputable banks. Look for Banco Nacional (BN), Banco de Costa Rica (BCR), Scotiabank, or BAC Credomatic.
• Availability: ATMs are abundant in cities and major tourist towns. However, they become scarce in remote villages and rural areas. It is wise to plan ahead and withdraw sufficient cash before venturing into more isolated regions.
• Dispensing Options: Most bank ATMs conveniently offer the choice to withdraw either Costa Rican Colones or US Dollars. For the best value on everyday purchases and to avoid unfavorable vendor exchange rates, we advise that withdrawing colones is almost always the superior choice.

ATM Fees and Limits

• Local ATM Fee: Be aware that most Costa Rican banks will charge a small, flat fee for each withdrawal made with a foreign card.
• Your Home Bank Fee: In addition to the local fee, your own bank will likely charge its own fees for the transaction, such as an out-of-network fee and/or a foreign transaction fee.
• Withdrawal Limits: You will be subject to daily withdrawal limits. These are imposed by both the local Costa Rican ATM (usually around the equivalent of $400-$500 USD) and, separately, by your own bank back home.

Exchanging Currency: The Best & Worst Ways

The Best Method: Bank ATMs

To reiterate this important point, withdrawing colones directly from a reputable bank’s ATM is the most secure method and consistently provides the best available exchange rate. It is the preferred method for savvy travelers.

A Good Method: Official Banks

You can exchange US dollars for colones inside a bank branch during business hours. While this is a safe option, it comes with specific requirements.

• CRITICAL: You are required to present your original physical passport for any currency exchange transaction. Photocopies or digital images will not be accepted.
• This process can be quite time-consuming, often involving long queues.

Methods to AVOID

For your financial security, we strongly advise against using the following methods for exchanging currency.

• Airport Exchange Kiosks: These kiosks are notorious for offering very poor exchange rates and levying high fees. They prey on convenience. Only use them to exchange a very small amount if you are in an absolute emergency upon arrival.
• Street Exchangers: Never exchange money with individuals on the street. This practice is unofficial and poses a significant risk of scams, receiving counterfeit bills, or being short-changed.
• Hotel Front Desks: While convenient, exchanging money at your hotel’s front desk will come at a cost. The exchange rate offered will be significantly less favorable than the rate you would receive at a bank or an ATM.

Tipping in Costa Rica

Restaurants

Tipping culture in Costa Rican restaurants is straightforward, as a service charge is typically included in the final price.

• By law, a 10% service charge (servicio) and a 13% tax (impuesto) are automatically added to your bill. You will see these listed as separate line items.
• Tipping beyond this legally mandated 10% is not obligatory. However, if you have received truly exceptional service, leaving an additional 5-10% in cash directly for your server is a thoughtful gesture and is always appreciated.

Tour Guides, Drivers, and Activity Staff

For those in the tourism industry, tips are customary and constitute an important part of their income. Your generosity is a direct recognition of their hard work and expertise.

• Full-Day Private Guide: A suitable tip is $15-$20 USD per person.
• Group Tour Guide: For a shared tour, $5-$10 USD per person is appropriate.
• Private Driver (full day): For a dedicated driver, a tip of $10-$20 USD for the group is a kind gesture.
• Shuttle/Boat Drivers: For shorter transfers, $2-$5 USD per person is standard.

Hotel Staff

Acknowledging the service of hotel staff ensures a pleasant stay for everyone.

• Bellhops: $1-$2 USD per bag is customary.
• Housekeeping: A tip of $2-$5 USD per day is greatly appreciated. It is best to leave the tip on the pillow or nightstand each day, as your housekeeper may change during your stay.