American money required?
#1
Original Poster
Join Date: Jan 2003
Posts: 208
Likes: 0
Received 0 Likes
on
0 Posts
American money required?
I am going LA-Lima-cusco in august. I read a post somewhere where a 50 dollar bill was not accepted. Is this common?, are 20's and 10"s accepted for customs or airport fees etc. How about Paying in Local currency?
#2
Join Date: May 2003
Posts: 4,024
Likes: 0
Received 0 Likes
on
0 Posts
The airport taxes can be paid in soles or the equivalent amount in dollars. If you pay in dollars, it will be some odd amount with dollars and cents.
I know $100 bills are nearly impossible to use but can't say for sure about $50s. If it were me, I wouldn't take anything larger than $20s. Whatever U.S. bills you use, make sure they are in good condition: no markings, no tears.
I know $100 bills are nearly impossible to use but can't say for sure about $50s. If it were me, I wouldn't take anything larger than $20s. Whatever U.S. bills you use, make sure they are in good condition: no markings, no tears.
#3
Join Date: May 2003
Posts: 417
Likes: 0
Received 0 Likes
on
0 Posts
It's worth making a point that it is crucial you only take dollars that are in very good condition. If you tip someone with a bill in poor condition, they cannot cash it. No one will accept payment for goods with bills that are old or torn. I was also told by a street vendor that they get a better rate for a $10 bill than 10 $1 bills, which is strange.
Hotels and banks will change your dollars, or use an ATM machine. It's always best to use $20s than $100s.
Don't let a vendor give you change for a large bill, thus avoiding counterfeits, this applies to many countries.
Hotels and banks will change your dollars, or use an ATM machine. It's always best to use $20s than $100s.
Don't let a vendor give you change for a large bill, thus avoiding counterfeits, this applies to many countries.
#4
Join Date: Mar 2006
Posts: 51
Likes: 0
Received 0 Likes
on
0 Posts
Yes, it's true about the $1 bills. When the locals go to exchange them they get a lower exchange rate. Same is true of bills that aren't in good condition.
$5 and up are fine - but you're gonna want the singles for tips. Stick with larger bills for exchanging money, but its really best to just pull local soles from the ATM and have both on hand.
You may also encounter people who reject soles you give them too. They check the coins and somehow decide that one is no good. I could not tell the difference.
Funny story - I went to a local market in Cusco with a Peruvian friend. The food vendor gave him a bill in his change that had a red mark/stain on it. At first I thought he was joking when he made a stink about the bill to her and they went back and forth about it, but he really, really didn't want it. For whatever reason, she wasn't able to give him a different bill. So the next day when we went back to eat there again, he made sure to pay with that bill! Yeah, they are very particular about their money!
$5 and up are fine - but you're gonna want the singles for tips. Stick with larger bills for exchanging money, but its really best to just pull local soles from the ATM and have both on hand.
You may also encounter people who reject soles you give them too. They check the coins and somehow decide that one is no good. I could not tell the difference.
Funny story - I went to a local market in Cusco with a Peruvian friend. The food vendor gave him a bill in his change that had a red mark/stain on it. At first I thought he was joking when he made a stink about the bill to her and they went back and forth about it, but he really, really didn't want it. For whatever reason, she wasn't able to give him a different bill. So the next day when we went back to eat there again, he made sure to pay with that bill! Yeah, they are very particular about their money!
#5
Join Date: Jan 2007
Posts: 963
Likes: 0
Received 0 Likes
on
0 Posts
We only USD to pay for hotels, the airport fee and our Inca Trail tour. The hotels we paid in USD because that's what we were quoted on reservation and it just seemed easier. Same with the tour operator. However, we had a member of our party who paid the tour operator in soles and there was no issue.
Otherwise we used soles (taxis, restaurants, shopping) and used the ATMs to get what we needed, when we needed it. I was surprised at how many stores/restaurants took credit cards as I heard that they weren't widely accepted outside of Lima. I guess that's out-of-date advice. You still need cash (soles preferred) in the markets, although some took credit, most do not..
Otherwise we used soles (taxis, restaurants, shopping) and used the ATMs to get what we needed, when we needed it. I was surprised at how many stores/restaurants took credit cards as I heard that they weren't widely accepted outside of Lima. I guess that's out-of-date advice. You still need cash (soles preferred) in the markets, although some took credit, most do not..
#8
The small independent stores, restaurants and hostals will generally prefer cash, and may either not take credit cards at all, or may charge a higher rate.
If you eat in the tourist restauants around Plaza de Armas and stay in fancier places you may not have the same problem. Eg the $33 buffet restaurant just outside Machu Picchu took a credit card and charged the rate in USD thus I avoided the foreign exchange fee from my own bank.
If you eat in the tourist restauants around Plaza de Armas and stay in fancier places you may not have the same problem. Eg the $33 buffet restaurant just outside Machu Picchu took a credit card and charged the rate in USD thus I avoided the foreign exchange fee from my own bank.
#9
Original Poster
Join Date: Jan 2003
Posts: 208
Likes: 0
Received 0 Likes
on
0 Posts
MLGB- It is NOT GOOD when you are offered a transaction in US dollars in a foreign country- due to something called Dynamic currency exchange. You were almost for sure paying 5% fee for the alleged convienience of dealing in dollars.
google- dynamic currency exchange
google- dynamic currency exchange
#11
Original Poster
Join Date: Jan 2003
Posts: 208
Likes: 0
Received 0 Likes
on
0 Posts
If you looked at your credit card almost for sure there was a fee associated for this alleged convienience. If not listed seperately it was added to the cost.
It is best to refuse any transaction in dollars and insist that they use local currency. The conversion fee is less than the dynamic currency exchange fee.
It is best to refuse any transaction in dollars and insist that they use local currency. The conversion fee is less than the dynamic currency exchange fee.
#12
Join Date: Feb 2004
Posts: 265
Likes: 0
Received 0 Likes
on
0 Posts
We brought large bills for services we booked prior to our trip so we could carry as few bills as possible. Remember after you take all the time to get clean bills at the bank not to stuff them in your pocket. My husband did and got a small tear on a $100 bill that was rejected. I expect in circumstances where you need change there could be problems trying to use large notes but when we needed to pay large amounts the large bills were accepted without question.
I've heard the dynamic currency conversion argument before but I don't think it works the same in Peru where you are quoted the prices in USD rather than local currency.
I found that I was charged more in the end on the charges in Soles in Peru. I just got my statements this week. The Sanctuary Lodge charged in US dollars. I used my AMEX. AMEX does not charge a fee for transactions in USD and the price was exactly what I expected in USD.
My Mastercard charged the conversion fee at the same rate whether I was charged in USD or in Soles. Hotels that billed in Soles resulted in a slightly higher charge in USD on my bill than the USD price I agreed upon with the hotel each time. I assume this is because the hotels use a conversion rate that is favorable to them. Since all charges had the currency conversion charge it seemed better to be charged in USD and use a card that does not charge a conversion fee.
I've heard the dynamic currency conversion argument before but I don't think it works the same in Peru where you are quoted the prices in USD rather than local currency.
I found that I was charged more in the end on the charges in Soles in Peru. I just got my statements this week. The Sanctuary Lodge charged in US dollars. I used my AMEX. AMEX does not charge a fee for transactions in USD and the price was exactly what I expected in USD.
My Mastercard charged the conversion fee at the same rate whether I was charged in USD or in Soles. Hotels that billed in Soles resulted in a slightly higher charge in USD on my bill than the USD price I agreed upon with the hotel each time. I assume this is because the hotels use a conversion rate that is favorable to them. Since all charges had the currency conversion charge it seemed better to be charged in USD and use a card that does not charge a conversion fee.
#13
Robert R, you haven't yet been to Peru? There were NO extra charges on my USD Visa billing from the Sanctuary Lodge. The price was the same as if I had paid in cash at the time. I was a bit surprised when I saw the bill myself.
Perhaps Sanctuary is an exception, or perhaps as detraveler says, it doesn't work the same way in Peru as you are used to elsewhere.
I always asked my hotels which would be the least expensive way to pay. It varied from place to place. All were smaller hostals and hotels. All but one gave a discount for cash (at one place it was 50%). Sometimes I did better if I paid in USD, sometimes in Nuevo Soles. (My net exchange rate using an ATM after all fees was slightly better than 3 to 1 at the time, your mileage may vary). The Peruvian currency exchange rates seem fairly stable relative to USD, and USD are widely used (and can be withdrawn at ATMs) so the situation may be different than what you are used to.
Perhaps Sanctuary is an exception, or perhaps as detraveler says, it doesn't work the same way in Peru as you are used to elsewhere.
I always asked my hotels which would be the least expensive way to pay. It varied from place to place. All were smaller hostals and hotels. All but one gave a discount for cash (at one place it was 50%). Sometimes I did better if I paid in USD, sometimes in Nuevo Soles. (My net exchange rate using an ATM after all fees was slightly better than 3 to 1 at the time, your mileage may vary). The Peruvian currency exchange rates seem fairly stable relative to USD, and USD are widely used (and can be withdrawn at ATMs) so the situation may be different than what you are used to.
#14
Join Date: Jun 2009
Posts: 1
Likes: 0
Received 0 Likes
on
0 Posts
Thread
Original Poster
Forum
Replies
Last Post
dawbydo
Mexico & Central America
8
Mar 14th, 2005 08:16 AM