Money

Currencies

The Cook Islands use New Zealand dollars, and American Samoa spends U.S. greenbacks. Otherwise, each South Pacific country has its own currency -- Fiji dollars (F$), French Pacific francs (CFP), Samoan tala (S$), and Tongan pa'anga (T$). See the individual country chapters for details. U.S., Australian, and New Zealand dollars are accepted widely in the islands (Euros, too, in French Polynesia), and the local banks will change other major currencies.

The major banks have ATMs and exchange booths at the international airports with the same rates as in the cities and towns.

Before you leave home, if you can find a bank which has the local currencies-not a likely prospect-you can avoid lines at the airport banks and ATMs by changing enough money to cover airport incidentals and transportation to your hotel. Otherwise, bring a few U.S., Australian, or New Zealand dollars or Euros to tide you over.

You'll get a better rate by exchanging currency or traveler's checks at a bank or currency exchange shop, not a hotel or store.

To find exchange rates, go to www.xe.com/ucc, which gives the present exchange rates for French Pacific francs, Fiji dollars, Samoan tala, Tongan pa'anga, and the New Zealand dollar.

ATMs

Banks in all the main towns have automated teller machines (ATMs), at which you can use your Visa or MasterCard (but not necessarily those without such an international affiliation) to withdraw local currency against your credit card or check (debit) card account. I tell you in the "Fast Facts" in each section whether an island has ATM machines. Be sure to read the information -- or check with the banks or tourist offices in the main towns -- before heading off cash-less to an outer island.

When I use credit or debit cards, I get a better exchange rate than if I had changed traveler's checks, and I avoid the local banks' fees for changing traveler's checks .

Visa and MasterCard tack on a 1% currency conversion fee, and many American banks add up to 5% as their own "foreign transaction fee." Visa and MasterCard have already converted the other currency into dollars by the time it hits your bank, so this additional fee is nothing but a gouge. To my mind, it's also grounds for finding another bank.

I have a Capital One credit card which charges no foreign transaction fee, and it has no annual fee. Read your own card member agreement -- or better yet, call your bank's customer service department -- for charges.

Also ask if they levy a fee even if you pay in dollars, or when you charge a U.S. dollar purchase to an overseas company or Website and the vendor sends the transaction through a foreign bank.

You may be charged lower fees by using your debit or ATM card, as opposed to a credit card, but even then your bank may charge you for using another bank's ATM. For example, my commercial bank tacks on $1.75 per transaction for using its Visa check card in someone else's ATM plus the 1% Visa foreign transaction fee. On the other hand, my credit union charges no fees for my using its Visa check/debit card to withdraw cash overseas, and it even rebates the 1% charged by Visa. Obviously I use my credit union card to withdraw cash from ATMs overseas.

I carry the two debit cards so that if my credit union card doesn't work in a bank's ATM, I have a back-up.

One way to avoid the charges is to pay for your airfare and hotel in U.S. dollars before leaving home, such as through a travel agent.

Be sure you know your personal identification number (PIN) for each card before you leave home and be sure to find out your daily withdrawal limit before you depart.

Small Change -- When you change money (or after you've withdrawn local currency from an ATM), ask for some small bills or loose change. Petty cash will come in handy for public transportation (South Pacific taxi drivers never seem to have change for large bills). Consider keeping the small money separate from your larger bills, so that it's readily accessible and you'll be less of a target for theft.

Getting Rid of Your Left-over Currency -- Use your left-over currency to pay part of your hotel bill when leaving the South Pacific. Put the rest on your credit card. It will save you the trouble of having to change it at the airport.

Traveler's Checks

Traveler's checks are something of an anachronism from the days before the ATM. I carry a few hundred dollars' worth in case the ATMs are broken, have run out of cash, or for some reason won't accept my credit or debit card (more likely in French Polynesia than elsewhere), but I did not cash a single check during my recent three-month trip. Banks in all the main towns will cash, and most major hotels, resorts, restaurants, and car-rental firms will accept, traveler's checks issued by American Express, Thomas Cook, Visa, Bank of America, Citicorp, and MasterCard.

You won't necessarily be able to cash traveler's checks on many outer islands, which often have limited, if any, banking facilities, so read the applicable "Fast Facts" section in each of the following sections before heading to an outer island. Also note that banks in French Polynesia and some other countries charge fees of up to US$5 per transaction.

You can get traveler's checks at almost any bank or from an American Express office. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7282 (www.americanexpress.com); Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%. Call tel. 800/732-1322 (www.visa.com) for information. MasterCard also offers traveler's checks. Call tel. 800/223-9920 (www.mastercard.com) for a location near you.

AAA members can obtain checks without a fee at most AAA offices.

Credit Cards

Most hotels, car-rental companies, restaurants, and large shops accept Visa and MasterCard, and some accept American Express. Only the major hotels and car-rental firms accept Diners Club. Leave your Discover card at home; it isn't accepted anywhere in the islands. Always ask first, and when you're away from the main towns, don't count on putting anything on plastic.

Tipping & Taxes

Although the custom is changing, tipping is considered contrary to the Polynesian and Melanesian traditions of hospitality and generosity. You may get that "Where's-my-tip?" look from a porter as he delays leaving your room, and there's a sign in a Tahiti restaurant proclaiming that "Tipping Is Not Illegal." Nevertheless, you don't have to tip out here. That's not to say that a gratuity isn't in order for truly outstanding service. I usually give a small tip to porters who wrestle with my heavy international bags.

You will not be socked with a service charge on your hotel and restaurant bills. So for the most part, you can forget that hidden 15% or more your vacation could cost in the United States or Europe.

Hotel rooms are subject to an additional levy everywhere, and most countries impose a hidden "value-added tax." Except in Tonga, direct sales taxes aren't added to your restaurant, bar, shopping, and other bills as they are in the United States.