Money

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, debit cards, and, occasionally, traveler's checks. In many international destinations, including Costa Rica, ATMs often offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

Currency

The unit of currency in Costa Rica is the colón. In March 2008, there were approximately 500 colones to the American dollar. In late 2006, the Costa Rican government eliminated decades of programmed regular devaluations of the colón. Since then, the exchange rate has stayed remarkably stable at somewhere between 490 and 515 colones to the dollar. Still, because of past devaluation and accompanying inflation, this guide generally lists prices in U.S. dollars and British pounds only. To check the very latest exchange rates before you leave home, point your browser to www.xe.com/ucc.

The colón is divided into 100 céntimos. Currently, two types of coins are in circulation. The older and larger nickel-alloy coins come in denominations of 10, 25, and 50 céntimos and 1, 2, 5, 10, and 20 colones; however, because of their evaporating value, you will probably never see or have to handle céntimos, or anything lower than a 5-colón coin. In 1997 the government introduced gold-hued 5-, 10-, 25-, 50-, 100-, and 500-colón coins. They are smaller and heavier than the older coins, and while the plan was to have them eventually phase out the other currency, this hasn't happened yet.

There are paper notes in denominations of 1,000, 2,000, 5,000, and 10,000 colones. You might also encounter a special-issue 5-colón bill that is a popular gift and souvenir. It is valid currency, although it sells for much more than its face value. You might hear people refer to a rojo or tucán, which are slang terms for the 1,000- and 5,000-colón bills, respectively. One-hundred-colón denominations are called tejas, so cinco tejas is 500 colones. The 2,000 and 10,000 bills are relatively new, and I've yet to encounter a slang equivalent.

Forged bills are not entirely uncommon. When receiving change in colones, it's a good idea to check the larger-denomination bills, which should have protective bands or hidden images that appear when held up to the light.

If your ATM card doesn't work and you need cash in a hurry, Western Union (tel. 800/777-7777 in Costa Rica or 2283-6336; www.westernunion.com) has numerous offices around San José and in several major towns and cities around the country. It offers a secure and rapid, although pricey, money-wire service. A $100 (£50) wire costs around $20 (£10), and a $1,000 (£500) wire costs around $80 (£40).

You can change money at all banks in Costa Rica. However, be forewarned that service at state banks can be slow and tedious. The principal state banks are Banco Nacional and Banco de Costa Rica. You're almost always better off finding a private bank. Luckily, there are hosts of private banks around San José and in most major tourist destinations.

Since banks handle money exchanges, there are very, very few exchange houses in Costa Rica. One major exception to this is the Global Exchange office at the airport. However, be forewarned they exchange at more than 10% below the official exchange rate.

Hotels will often exchange money and cash traveler's checks as well; there usually isn't much of a line, but they might shave a few colones off the exchange rate. Be very careful about exchanging money on the streets; it's extremely risky. In addition to forged bills and short counts, street money-changers frequently work in teams that can leave you holding neither colones nor dollars. Also be very careful when leaving a bank. Criminals are often looking for foreigners who have just withdrawn or exchanged cash.

ATMs

The easiest and best 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 (tel. 800/843-7587; www.visa.com) networks span the globe. Go to your bank card's website to find ATM locations at your destination. Be sure you know your daily withdrawal limit before you depart. Note: Many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5/£2.50 or more) than for domestic ones (where they're rarely more than $2/£1). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Note: Banks that are members of the Global ATM Alliance charge no transaction fees for cash withdrawals at other Alliance member ATMs; these include Bank of America, Scotiabank (Canada, Caribbean, and Mexico), Barclays (U.K. and parts of Africa), Deutsche Bank (Germany, Poland, Spain, and Italy), and BNP Paribas (France). Scotiabank has branches in Costa Rica.

It's probably a good idea to change your PIN to a four-digit PIN. While many ATMs in Costa Rica will accept five- and six-digit PINs, some will only accept four-digit PINs.

Credit Cards

Credit cards are another safe way to carry money in Costa Rica. You can withdraw cash advances from your credit cards at banks or ATMs but high fees make credit card cash advances a pricey way to get cash. 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).

MasterCard and Visa are the most widely accepted credit cards in Costa Rica, followed by American Express. Most hotels and restaurants accept all of these, especially in tourist destination areas. Discover and Diners Club are far less commonly accepted.

Traveler's Checks

Given widespread acceptance of credit cards and growing prevalence of ATMs, traveler's checks are becoming pretty anachronistic in Costa Rica. Still, they do provide a level of built-in insurance, and are accepted by most major tourist hotels and some restaurants around the country. 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. 800/807-6233 or tel. 800/221-7282 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 (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $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.