My family and I will be in CR for a week, staying at the Tabacon in Arenal and the Fiesta Premier in Guancaste, with our own rental car for excursions/tours. Do we need to worry about exchanging US$ into CR currency or are US$ and credit cards universally accepted? If we do need to exchange money, any recommendations or cautions?

Thanks.

Credit cards are pretty universal for hotels, rental cars and other large charges. You can change some dollars for colones at the airport to get you going. There are ATMs located in the larger towns attached to the banks. Good luck and have fun!

US dollars are accepted at most places -- $20s and under with no torn bills. You'll get change in colones so you don't really need to exchange. The airport counter typically has a bad exchange rate anyway.

Sandy

Don't rely on everyone taking credit cards! Check with your hotels regarding what is accepted both at the hotel and for tours and outside services. Everyone prefers cash because the merchant charges are very high in Costa Rica. You can usually save $ by using cash even where credit cards are accepted because of this.
Most places I travel in Costa Rica give a very fair exchange rate when I use US dollars at restaurants, hotels, and tours. As Sandyc said, smaller bills, no torn edges. They are worried about counterfeit money and don't really know what to look for, so making it easier on them makes it easier for you!
Enjoy your time in Costa Rica!

I have made several trips tp Costa Rica (I live here now) and have never exchanged money. Just take small bills (nothing over $20 for most things. Hotels would ,most likey take $50's if they are in good condition. Don't take any $100's as they are not accepted at most place anymore. In any case I think both your hotels will take credit cards, but keep in mind takes on cards can be expensive.

Sandy C is probably right about the airport exchange window but its just a place to get you started in case you want to buy something small from a soda along the way. I have been told that the best exchange rates are from the ATMs; anyone else want to weigh in on this subject? I know almost all places accept $USD but I just feel more comfortable in the local currency. By giving someone $USD, you are trusting them to give you the best exchange rate every time you do this. As for getting cash discounts, go ahead and take a wad $20's with you everywhere you go! I prefer to not be looking over my sholder all the time worrying about getting mugged! Surfexec is no doubt correct about the "hidden" charges for using a CC but this is perhaps the price we pay for safety and convenience.

The small mom-and-pop places aren't going to take dollars, so you'd want colones if you stop at some little place for a bottle of water. The places that do take dollars will give you a reasonable exchange rate, but it won't be as good as what you get at the bank or an ATM. The bank rate right now is about 510 to the dollar. I've seen signs in stores, restaurants and hotels saying they use a rate of 500 to the dollar. You shouldn't expect a local business to give you as good a rate as the bank offers. They then have to exchange your dollars for local currency -- they're essentially doing the work for you -- so you have to expect to pay something for the convenience they offer you.

I agree with dncee11 that ATMs give the best rate and are a fast way to get local currency.

Thanks everyone for your responses. I will probably exchange some $$ just for the mom & pop shops and use $20's or CC's for everything else.