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Frommer's lists exact prices in U.S. dollars throughout this guide, as they are widely accepted throughout The Bahamas. However, rates fluctuate, so before departing consult a currency exchange website such as www.oanda.com/convert/classic to check up-to-the-minute rates.

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

Currency

The currency is the Bahamian dollar (B$1), pegged to the U.S. dollar so that they're always equivalent. There is no restriction on bringing foreign currency into The Bahamas. Most large hotels and stores accept traveler's checks, but you may have trouble using a personal check. It's a good idea to exchange enough money to cover airport incidentals and transportation to your hotel before you leave home.

Be sure to carry some small bills or loose change when traveling. Petty cash will come in handy for tipping and public transportation. Consider keeping the change separate from your larger bills so that it's readily accessible and you'll be less of a target for theft. In general, prices are about the same as in urban America, but they are less expensive than costs in the U.K. Food is often more expensive, however, since so much of it has to be imported.

ATMS

The easiest way to get cash away from home is from an ATM (automated teller machine). The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on and then call or check online for ATM locations at your destination. Know your personal identification number (PIN) and your daily withdrawal limit. Ask your card carrier if your current PIN works in The Bahamas, particularly in the Out Islands. Every card is different, but some need a four-digit rather than a six-digit PIN to withdraw cash abroad.

Many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones. On top of this, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank. You can also get cash advances on your credit card at an ATM. Credit card companies do try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so notify your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

On New Providence Island and Paradise Island, there are plenty of ATMs, including one at the Nassau International Airport. There are far fewer ATMs on Grand Bahama Island (Freeport/Lucaya), but those that are there are strategically located -- including ones at the airport and the casino (of course).

Very few ATMs are in the Out Islands. If you must have cash on your Out Island trip, make arrangements before you leave Nassau or Freeport; outside of Freeport, we counted just seven ATMs in the entire remaining Out Islands, including the one at the post office in Marsh Harbour. This situation is fluid, however, and more ATMs may be added in the future.

Credit Cards

Credit cards are another safe way to carry money, but their use has become more difficult, especially in The Bahamas. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can usually withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).

There is almost no difference in the acceptance of a debit or a standard credit card.

Be aware: Some establishments in The Bahamas might not accept your credit card unless you have a computer chip imbedded in it. The reason? To cut down on credit card fraud.

Chip and PIN represents a change in the way that credit and debit cards are used. The program is designed to cut down on the fraudulent use of credit cards. More and more banks are issuing customers chip-and-PIN versions of their debit or credit cards. In the future, more and more vendors will be asking for a four-digit personal identification number, or PIN, which will be entered into a keypad near the cash register. In some cases, a waiter will bring a hand-held model to your table to verify your credit card.

More and more places in The Bahamas are moving from the magnetic-strip credit card to the chip-and-PIN system. In the changeover in technology, some retailers have falsely concluded that they can no longer take swipe cards, or can't take signature cards that don't have PINs any more.

For the time being, both the new and old cards are used in shops, hotels, and restaurants regardless of whether they have the old credit and debit card machines or the new chip-and-PIN machines installed.

Beware of hidden credit card fees while traveling. Check with your credit or debit card issuer to see what fees, if any, will be charged for overseas transactions. Recent reform legislation in the U.S., for example, has curbed some exploitative lending practices. But many banks have responded by increasing fees in other areas, including fees for customers who use credit and debit cards while out of the country -- even if those charges were made in U.S. dollars. Fees can amount to 3% or more of the purchase price. Check with your bank before departing to avoid any surprise charges on your statement.

Traveler's Checks

You can buy traveler's checks at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/528-4800 or 221-7282 for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee), Visa (www.visa.com; AAA members can obtain Visa checks for a $9.95 fee -- for checks up to US$1,500 -- at most AAA offices or by calling tel. 866/339-3378), and MasterCard (tel. 800/223-9920).

Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.