Travel Tip 60
Cash or card while traveling?
In the small town of Purmamarca, Argentina, everything was cash only.
This really depends on where in the world you’re going.
In North America, Europe and some countries in Asia you can get by with credit cards most of the time. If you’re in a developing country, or somewhere in between like Peru, make sure you have cash on hand.
For handmade souvenirs in outdoor markets, like this one in Ollantaytambo Peru, you'll need cash.
Buying in markets
Farmers’ markets and outdoor markets are where you’ll definitely need cash.
In Argentina using a foreign credit card can increase the cost by 50 to 100% because the official bank rate is significantly lower than what you can get exchanging dollars on the street. If you're going to Argentina, look up the "dólar blue" exchange rate.
Surcharges for using credit card
Credit card companies take between 3% and 7% of every transaction from the merchant, so if you’re somewhere that credit card use is uncommon, don’t be surprised if the merchant passes that surcharge on to you. This can be either adding the extra percentage on to your purchase or giving a discount for paying cash.
Countries where credit card use is common build that surcharge into their prices. It’s places where credit cards are uncommon that you should expect different prices for cash or card.
Peru is in the process of rolling out new bills. The old bills (top) are still valid and worth the same as the new ones (bottom).
Counterfeit money
Make sure you know what real bills look like where you’re traveling. If you exchange money in a bank or withdraw it from an ATM, you can be sure it’s not counterfeit. Take a good look at the bills you know are real, so you can spot a counterfeit bill if somebody gives you one. Unfortunately, people who make these often target people who likely won’t notice if a bill is fake, like foreign tourists.
If the bills have a watermark, check that it looks real. If there is a strip of 3D ribbon as a security feature, take a good look at it to see that it looks like the ones you know are not fake.
The Peruvian s/20 soles bill is worth about $5 USD. If you're tempted to bargain, consider if that $5 is worth as much to you as s/20 is worth to the person you'd be bargaining with.
My two cents on bargaining
If you’re tempted to bargain down a price, think about your reason for doing so. Is it to have a conversation and build a connection with the seller? Or do you only have a certain amount of cash on hand and honestly can’t pay the asking price?
If you just want to get a lower price but could afford the asking price, consider if that extra five dollars you want to bargain down means more to you or to the seller. If five dollars doesn’t make a difference for you, but you know it would for the seller, don’t bargain. Just pay the price they ask for.
Blog
My Top Travel Tips for Cusco, Peru
After five years in Cusco (my anniversary was August 9th and I forgot all about it last week), I have a lot of tips for this amazing city! Here’s everything you need to know about where to stay, what to eat, where to shop and how to get around. Plus tips for dealing with altitude and which ATMs don’t charge fees.
My favorite place in Cusco for ceviche is Sakana. It's only open for lunch and you should get there before 2:00 because they're only open until they sell out.
Article
I wrote this for Going, which used to be called Scott’s Cheap Flights. It covers everything from Cusco’s history to the controversial alpaca ladies to ceviche and Machu Picchu.