Currency in Peru: Paying, ATM; Exchanging money, etc…

Currency in Peru: Paying, ATM; Exchanging money, etc…

The Official Currency: Peruvian Sol (PEN)

Understanding the Sol (S/)

• Official Name & Code: The official currency is the Peruvian Sol (plural: Soles), with the international code PEN.
• Symbol: You will see prices listed with the symbol S/.
• Denominations: Familiarizing yourself with the currency will make transactions smoother.
  • Bills (Billetes): S/10, S/20, S/50, S/100, S/200.
  • Coins (Monedas): 10, 20, 50 céntimos, and S/1, S/2, S/5.

  For your reference, here are the current bills and coins in circulation:

  
  
  
  
  
  
  
  
  
  
  
  
• A Note on “Nuevo Sol”: The currency was formerly named the “Nuevo Sol”. You may still encounter older bills with this name. They remain legal tender and have the exact same value as the current “Sol” bills, so they can be used without any issue.

Getting Cash: ATMs and Exchanging Money

Using ATMs (Cajeros Automáticos)

• Availability: ATMs are widespread in cities and larger towns. However, they become scarce in remote villages and rural areas, so plan to carry sufficient cash when venturing off the beaten path.
• Recommended Banks: For reliability and security, we recommend using ATMs affiliated with major banks such as BCP, Scotiabank, BBVA, or Interbank.
• Withdrawal Limits: Be aware that most ATMs impose a limit per transaction, often around S/700 (approximately $200 USD). Your home bank will also have its own daily withdrawal limit.
• Fees: You will likely encounter two types of fees. The local Peruvian bank will charge a fee for the withdrawal itself (typically S/15-S/25). In addition, your own bank will probably charge its own foreign transaction and/or international ATM withdrawal fees. We strongly advise you to contact your bank before your trip to understand their international fee structure. To minimize the impact of fixed fees, it is more economical to withdraw larger amounts less frequently.
• Safety:
  • Prioritize ATMs located inside a bank branch or in well-lit, high-traffic areas like supermarkets.
  • Always shield the keypad with your hand when entering your PIN.
  • Remain aware of your surroundings and put your cash and card away securely before leaving the machine.

Exchanging Money

• Best Places to Exchange:
  • Casas de Cambio (Exchange Houses): This is our top recommendation. These official exchange offices are secure, offer competitive rates, and provide proper receipts. They are easily found in the central districts of cities and major tourist hubs.
  • Banks: While perfectly safe, banks often have long queues and their exchange rates can be slightly less favorable than those at a casa de cambio.
  • Airport: Exchanging money at the airport is convenient upon arrival, but the rates are not competitive. We suggest exchanging only a small amount to cover initial expenses like a taxi.
  • Street Changers (Cambistas): AVOID. You will see individuals in cities, sometimes wearing official-looking vests, offering to exchange money on the street. The risk of receiving counterfeit bills, being short-changed, or becoming a target for theft is extremely high.
• Currency to Bring:
  • U.S. Dollars (USD) are by far the easiest foreign currency to exchange throughout Peru.
  • Euros are also accepted for exchange in most cities.
  • Other major currencies, such as Canadian Dollars (CAD), Australian Dollars (AUD), or British Pounds (GBP), are very difficult to exchange outside of a few select locations in Lima.
• CRITICAL: Bill Condition:

  This is a point of utmost importance. Exchange houses and banks in Peru are extremely strict about the condition of foreign currency. Your U.S. dollar bills must be in near-perfect, crisp condition. Any bill with a small tear, tape, heavy creases, stains, or any form of writing on it will almost certainly be rejected. We urge you to inspect every bill you plan to bring before you leave home to avoid any issues.

Methods of Payment: Cash vs. Card

Cash is King

While card usage is growing, cash remains the primary method of payment for most daily transactions in Peru.

• When to Use Cash:
  • Purchases at local markets, street food vendors, and small, family-run restaurants.
  • Payments for taxis, mototaxis, and public transport like colectivos.
  • Small purchases in corner stores, known as bodegas.
  • Tipping for services.
  • Essentially all transactions in rural areas and small towns.
• Importance of Small Change:

  Always make an effort to carry a good mix of small bills (S/10, S/20) and coins. Many small businesses, market vendors, and taxi drivers will not have enough change for a large S/100 bill, and you may be unable to complete your purchase. A useful habit is to break larger bills at supermarkets, pharmacies, or established restaurants whenever you have the opportunity.

Using Credit & Debit Cards

• Where Cards are Accepted:
  • Mid-range to high-end hotels, restaurants, and tour agencies, particularly in major cities like Lima, Cusco, and Arequipa.
  • Large supermarket chains such as Wong, Vivanda, and Plaza Vea.
• Cards to Use: Visa and MasterCard are widely accepted. American Express is accepted far less frequently.
• Pre-Travel Checklist: It is essential to notify your bank and credit card companies of your travel dates and destinations. This will prevent their fraud-detection systems from flagging your legitimate purchases in Peru as suspicious activity and blocking your card.
• Paying in the Local Currency:

  When paying by card, the terminal may present you with a choice to pay in your home currency or in Peruvian Soles (PEN). ALWAYS choose to pay in Peruvian Soles (PEN). Selecting your home currency activates a service called Dynamic Currency Conversion (DCC), which may seem convenient but comes with a very unfavorable exchange rate set by the payment processor, not your bank. Paying in the local currency ensures you get a much better rate from your own banking network.

The Role of the U.S. Dollar (USD)

When You Can Pay Directly in USD

In some specific, tourist-focused situations, U.S. dollars are accepted for direct payment. This is typically for larger expenses where prices are often quoted in USD, such as payments for tour packages, some hotel bills, or tabs at very high-end restaurants.

Why Paying in Soles is Usually Better

Even when USD is accepted, it is almost always better to pay in the local currency.

• Unfavorable Exchange Rate: A vendor accepting your dollars will give you an exchange rate of their own choosing, which will invariably be less favorable than the rate you would receive at a bank or casa de cambio.
• Change is Given in Soles: If you pay for an item with a U.S. dollar bill, your change will be given back to you in Peruvian Soles, often calculated at that same poor exchange rate.
• General Rule: For simplicity and value, the best practice is to exchange your dollars for Soles at a reputable place and use the local currency for the vast majority of your transactions.

Safety and Practical Tips

Counterfeit Money (Billetes Falsos)

• Prevalence: Counterfeit bills, both Soles and U.S. dollars, can be a problem. It is wise to be cautious and check your money, especially larger denomination bills received as change.
• How to Check Soles: Genuine Peruvian bills have several security features.
  • Feel the Texture: Real bills are made of a cotton-paper blend that feels distinct and slightly rough to the touch, unlike the smoother feel of regular paper.
  • Check the Watermark: Hold the bill up to a light source. A clear watermark image of the person featured on the bill should be visible.
  • Look at the Security Thread: A shimmering, color-changing security thread is woven into the paper. On newer bills, it appears to “move” as you tilt the note.

  We suggest you take a moment to carefully examine the bills you receive from a reputable ATM or bank. This will help you quickly recognize the look and feel of authentic currency.

Tipping (La Propina)

• Restaurants: Tipping is not obligatory as it is in some countries, but for good service in mid-range and upscale restaurants, a tip of 10% is customary and greatly appreciated. It is best to leave the tip in cash directly for your server.
• Tour Guides & Drivers: Tipping for guides and drivers who have provided excellent service is a standard practice. A good guideline is S/20-S/40 per person for a full-day tour, adjusted based on your satisfaction and the size of your group.
• Hotel Staff: A small tip of a few Soles for porters who assist with your luggage or for housekeeping staff is a thoughtful gesture.

Carrying Your Money

• Divide Your Funds: Never keep all of your cash and cards in one place. Consider using a money belt for the bulk of your cash and a backup card, and store other valuables in your hotel safe.
• Daily Cash: In