Everything you need to know about managing money in Costa Rica is right here. This guide covers the essentials of local currency, exchanging money, and using US dollars in Costa Rica. One key fact to start with: US dollars are widely accepted in Costa Rica. We’ll delve deeper into the details and also explore options for Canadian visitors looking to make payments.
Costa Rica Currency
Costa Rica Colon to USD Exchange Rates
The exchange rate between the Costa Rican colon and the US dollar fluctuates constantly, with changes occurring daily. The rate can vary significantly over a short period, even within a day. As of mid-June 2024, the approximate exchange rate stands at 510 CRC to 1 USD, which represents a significant shift from the previous year’s rate of around 560 CRC to 1 USD.
It’s important to note that exchange rates can differ across banks and financial institutions, as the colon is not pegged to the Central Bank of Costa Rica. Since 2006, the Central Bank’s exchange rates have served as a reference, leading to daily fluctuations in Costa Rica’s money exchange rates.
Costa Rican Currency Bills and Coins
The Costa Rican currency, colon, is available in various denominations, including 1000, 2000, 5000, 10000, 20000, and 50000 colones in bill form. Coins are available in denominations of 5, 10, 25, 50, 100, and 500 colones.
Notably, the 1000 colones bill, recognizable by its red color, features the national animal of Costa Rica, the white-tailed deer.
All current bills are made from plastic substrate, replacing the previously used cotton bills, which are no longer accepted in circulation.
Can USD Be Used in Costa Rica?
Yes, US dollars are widely accepted in Costa Rica. The country’s tourism industry and strong commercial ties with the United States, where many American companies have operations, contribute to the widespread acceptance of USD.
As a result, tour prices, hotel rates, and even some restaurant menus in tourist areas are often quoted in USD. This means that travelers with US dollars may not need to exchange their money before arriving in Costa Rica. However, there are some exceptions and important considerations to be aware of, which will be discussed further below.
What's the Ideal Amount of Cash to Bring to Costa Rica?
The amount of cash to bring to Costa Rica depends on several factors, including the length of your stay, your planned activities, and your destinations. While credit cards are widely accepted in Costa Rica, it’s essential to have some cash on hand.
Some businesses, particularly in areas like Tortuguero, Santa Teresa, Drake Bay, Bijagua, Osa Peninsula, Samara, and Tamarindo, may not accept credit cards. For a one-week trip, consider starting with $300 in US dollars cash per person. Upon arrival, exchange around $100 USD to Costa Rican colones at a bank or supermarket. If needed, you can exchange more later, as services like ATMs and currency exchange offices are readily available.
Our Recommendation for Using US Dollars in Costa Rica
When traveling to Costa Rica, we suggest bringing small denomination US bills, specifically fives, tens, and twenties. Larger bills, such as fifties and hundreds, can be challenging to use, unless you plan to visit a bank or casino.
Additionally, ensure that all bills are in pristine condition, with no tears, rips, misprints, stains, or excessive wrinkles. Costa Rica has strict standards for accepting US currency, and any flawed bills may be rejected. We learned this firsthand when a $20 bill from a Costa Rican bank ATM was refused by merchants due to a minor folding error, highlighting the importance of bringing flawless bills.
What Are the Best Places to Exchange Currency in Costa Rica?
To get the most favorable exchange rates in Costa Rica, visit a bank. Various banks, such as Banco Nacional, BCR, and Scotiabank, offer currency exchange services. Remember to bring your original passport to complete the transaction.
Currency exchange is also available at Costa Rica’s international airports, including Guanacaste and San Jose. After passing through immigration, you’ll find exchange offices that accept currencies like the Euro and CAD, in addition to USD. However, airport exchange rates may not be the most competitive, so consider waiting until you reach a bank.
Some hotels, typically larger chain establishments like Marriotts or Hiltons, offer currency exchange services. However, this is not a universal practice among all hotels.
Additionally, supermarkets, gas stations, and restaurants may exchange Costa Rican currency, providing change in colones if you pay in USD. Be sure to check the posted exchange rate before proceeding.
Which Currency is Best to Use in Costa Rica: Dollars or Colones?
In Costa Rica, both US dollars and local colones are accepted, but it’s essential to know when to use each currency for a smoother experience.
For tourist-related expenses like tours, shuttles, hotels, and other high-end services quoted in USD, it’s best to pay in US dollars. This applies to the more expensive aspects of tourism.
For smaller purchases, like those at farmers markets, street vendors, taxis, buses, supermarkets, souvenir stores, gas stations, and toll booths, where prices are quoted in colones, it’s more practical to use Costa Rican colones. This way, you avoid exchange rate losses and the need to calculate exact change.
When visiting the Central Valley cities like San Jose or rural areas, it’s recommended to use Costa Rican currency.
Additionally, during the low season (September and October), some businesses may offer extra discounts for cash payments, making it a good idea to have some local currency on hand.
Other Places to Pay in Colones
In addition to smaller purchases, there are other instances where it’s best to use Costa Rican colones:
- Public buses in San Jose only accept colones as payment, so it’s essential to have some on hand.
- For cross-country bus travel, like from San Jose to Liberia or Puerto Viejo, tickets must be purchased in advance at the bus station using cash (USD or CRC) or credit card.
- Toll booths quote prices in colones, and while they accept US dollars and credit cards, paying in local currency is recommended to avoid unfavorable exchange rates.
- When it comes to tipping, both colones and dollars are accepted, but locals prefer to receive tips in Costa Rican currency.
Can I Choose to Pay in Colones for a US Dollar-Quoted Service?
Yes, in most cases, you can pay in Costa Rican colones even if the price is quoted in US dollars, but there are some exceptions. Certain car rental companies, for instance, may only accept USD. However, it never hurts to ask if they accept CRC, and if so, be sure to verify the exchange rate.
To confirm the official exchange rate, known as the “tipo de cambio,” you can check the latest rates here.
Are Canadian dollars, Euros, or other foreign currencies accepted in Costa Rica?
Generally, no, only US dollars are widely accepted. Additionally, not all banks in Costa Rica exchange or accept Canadian dollars or Euros; only a few, like Scotiabank and occasionally Banco Nacional, may do so.
However, San Jose and Guanacaste Airports have currency exchange services that can exchange your Canadian dollars, Euros, Pounds, or other currencies. If you don’t have USD and your hometown bank doesn’t carry Costa Rican colones, consider exchanging some currency at the airport, especially if you’re heading to a rural area.
Once in Costa Rica, use a credit card (Visa is the most widely accepted) with no foreign transaction fees for as many transactions as possible. When paying, request to be charged in CRC to avoid conversion to USD; this way, the exchange rate from the Central Bank of Canada will be applied directly from CRC to CAD.
ATM
Costa Rica has a widespread network of ATMs, offering convenient access to both Costa Rican colones and US dollars. These machines are available at all banks and operate 24/7, with menus in both English and Spanish.
For safety reasons, we suggest withdrawing cash during daylight hours and being mindful of your surroundings. It’s essential to keep your PIN secure and remember to retrieve your card after completing your transaction.
Credit Card Acceptance in Costa Rica.
In Costa Rica, the following major credit cards are widely accepted: Visa, Mastercard, and American Express. However, American Express is only accepted in select locations, making Visa the most reliable choice. It’s recommended to have a Visa card handy, as it is the most widely accepted credit card in the country. Note that Discover cards are not accepted in Costa Rica.
Key Considerations for Credit Card Payments
When using a credit or debit card, it’s crucial to be aware of the currency in which you’re being charged. Some vendors may ask if you prefer to pay in Costa Rican colones or USD, while others may not. If you’re not careful, you could end up being charged in colones instead of USD, resulting in a significant difference in the amount.
For instance, a charge of 10,000 Costa Rican colones may be equivalent to approximately $20 USD, rather than the intended $10 USD. To avoid such discrepancies, always confirm the currency with the vendor and double-check the amount on the payment terminal before proceeding.
Using Debit Cards in Costa Rica
Using debit cards in Costa Rica can pose challenges. Based on our expertise, we advise exercising caution due to the limited security measures in place.
Car rental companies often have strict policies, typically not accepting debit cards for deposits. This is because the refund process can be lengthy, taking several months. In some instances, they may accept debit cards, but you’ll need to sign a waiver acknowledging the extended refund timeframe. This is because debit card transactions are treated as “real cash transactions.”
To ensure a secure and protected experience, we recommend opting for credit cards in Costa Rica. This will provide you with enhanced security and protection against theft, giving you peace of mind during your trip.
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