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What is the primary method or methods of payment through various Latin American countries? I tend to assume cash, but there could be a wildcard. Here in the U.S. most of us use cards nowadays, it's too convenient short-term. But long-term it seems to have issues, credit card debt, databases being hacked, identities being stolen, electronic trail of goods and services purchases, etc.
Is physical cash still the dominant form of payment in Latin American countries?
Cash is the preferred method of payment in the Dominican Republic, but plastic is gaining traction and a large segment of the population has credit cards (often used more as charge cards due to the interests, you have to be crazy to carry a balance every month).
With the way things are going, it will not be long before scenes like this in India are common. lol
Cash is the preferred method of payment in the Dominican Republic, but plastic is gaining traction and a large segment of the population has credit cards (often used more as charge cards due to the interests, you have to be crazy to carry a balance every month).
With the way things are going, it will not be long before scenes like this in India are common. lol
Thank you for the reply. I have one credit card under my own name, have a balance ($1,000-something) on that I am working to pay off. I have two other credit cards I am on as an authorized user, those contain bigger balances. I want to get rid of the credit cards and just use cash or debit cards. Cash is nice, you can touch it, feel it, giving it away hurts. Hopefully the Dominican Republic and the rest of Latin America doesn't become like the U.S. where credit is given out like candy and people/businesses are overextended.
Whatever you do, don't close your credit card, especially if you're in the USA. Pay it off and just leave it there. Closing the account could hurt your credit. Carry the card in your wallet and use in an emergency only.
The other habit that you could develop is to only use an amount of credit that you already have in your savings account and never get more credit card debt than the amount of money in your bank accounts. Anything happens and you will be able to wipe clean your debt, no stress and no worries. This is a sort of hedge, because you can buy the thing for cash right now if you wish, but you use your credit card as a tool to help create and keep up your good credit (plus the points.) Then pay off the bill in full when the monthly statement is ready. Credit card companies would love to charge interest, but they only do that if you carry a balance. If you pay off the balance in full every month, no interest is charged. You will be using your credit card more like a charge card and in lieu of using money in public, just take out the plastic.
The other possibility is to have a credit card you don't use much, just two or three times a year you buy something small to keep it active. Then there is big purchase, say a dining table set. Use the credit card. Wait a week or so, the credit card company will award you X amount of points. Then, kapow, pay off the whole thing, don't wait until the bill. The points will be yours to keep regardless. Comes in handy in the future.
A credit card comes in handy when traveling and booking hotels, renting cars, etc. Many also offer traveler insurance and car rental insurance already included for using the card, don't have to buy the "supplement car insurance" car rentals offer. More often than not, you are simply giving them more cash than you have to and they know it. Free cash for them. Let some other sucker fall for that. lol You also don't want some hotel or car rental putting a hold on your checking account via your debit card. Use the credit card and the hold goes on that. When the bill arrives, pay the whole thing.
It's easier to get a credit card tied to a store or an airline than one to a bank only. Credit limits also tend to be higher. If you travel a lot, consider getting one from your favorite airline. The points add up and often times they can be used for flights. Sometimes the points are so generous, many flights can be paid with points. You are basically flying for free. lol
Lastly, if you are worried about losing a debit card or having your debit card number stolen, get an account with Paypal. Attach it to your checking account and leave the debit card at home in a safe place. Every moment you use the Paypal card, it automatically deducts from your checking account. Basically, it's another debit card without having to use your real debit card. Someone steals the number of your Paypal card or the the Paypal card itself goes missing, simply call Paypal and they will close that card and send you a new one with a different number. If a fradulent charge goes through in the time of loosing it and realizing its lost, Paypal will return the money to your checking account. Others go through that with their debit card and for a moment their entire world crashes. For you, Paypal got your back. No sweats, no worries. In the mean time, go home and get the debit card or use the credit card like it's nothing, because what just happen is simply a blimp, not a ruin your day moment. The new Paypal card arrives and the debit card goes back in the safe place at home. lol
Whatever you do, don't close your credit card, especially if you're in the USA. Pay it off and just leave it there. Closing the account could hurt your credit. Carry the card in your wallet and use in an emergency only.
The other habit that you could develop is to only use an amount of credit that you already have in your savings account and never get more credit card debt than the amount of money in your bank accounts. Anything happens and you will be able to wipe clean your debt, no stress and no worries. This is a sort of hedge, because you can buy the thing for cash right now if you wish, but you use your credit card as a tool to help create and keep up your good credit. Then pay off the bill in full when the monthly statement is ready. The credit card companies would love to charge interest, but they only do that if you carry a balance. If you pay off the balance in full every month, no interest is charged. You will be using your credit card more like a charge card and in lieu of using money, just take out the plastic.
The other possibility is to have a credit card you don't use much, just two or three times a year you buy something smsll to keep it active. Then there is big purchase, say a dining table set. Use the credit card. Wait a week or so, the credit card company will award you X amount of points. Then, kapow, pay off the whole thing, don't wait until the bill. The points will be yours to keep regardless, comes in handy in using it in the future.
A credit card comes in handy when traveling and booking hotels, renting cars, etc. Many also offer traveler insurance and car rental insurance already included for using the card, don't have to buy the "supplement car insurance" car rentals offer. More often than not, you are simply giving them more cash than you have to and they know it. Free cash for them. Let eome other sucker fall for that. lol You also don't want some hotel or car rental putting a hold on your checking account via your debit card. Use the credit card and the hold goes on that. When the bill arrives, pay the whole thing.
It's easier to get a credit card tied to a store or an airline than one to a bank only. Credit limits also tend to be higher. If you travel a lot, consider getting one from your favorite airline. The points add up and often times they can be used for flights. Sometimes the points are so generous, many flights can be paid with points. You are basically flying for free. lol
Lastly, if you are worried about losing a debit card or having your debit card number stolen, get an account with Paypal. Attach it to your checking account and leave the debit card at home in a safe place. Every moment you use the Paypal card, it automatically deducts from your checking account. Basically, it's another debit card without having to use your real debit card. Someone steals the number of your Paypal card or the the Paypal card itself goes misding, simply call Paypal and they will close that card and send you a new one with a different number. If a fradulent charge goes through in the time of loosing it and realizing its lost, Paypal will return the money to your checking account. Others go through that with their debit card and for a moment their entire world crashes. For you, Paypsl got your back. No sweats, no worries. You go home and get the debit card in the mean time or use the crecit card like it's nothing, because what just happen is simply a blip, not a ruin you day moment. The new Paypal card arrives and the debit card goes back in the safe place at home. lol
I have three credit cards, one of my own two in which I am an "authorized user". I don't like that about the U.S. how everything is centered around credit. I always say, "take away credit and you'll see the true standard of living in the U.S.". I would like to move to and live in Argentina or Chile eventually. I asked because I know many Latin American countries and non-North American countries still tend to have more cash-based economies.
The thing about credit is that every country uses its own system. Even if they use say Transunion, the one there is not tied to the one in the USA, despite it's the same company. If you ruin your credit in the USA (or more often is ruined for you, think medical bills which are ridiculous when its so cheap elsewhere for quality health care), guess what? It will not follow you if you move to another country. There it's a clean slate.
If you have good credit in the USA and move to another country, it's a clean slate. However, some countries are more relaxed than others. In the more relax types, technically they have to go by the national credit system and you, being a newcomer, have no credit with them. Alas, the bank calls Transunion or Equifax or whatever and gets a hold of your US credit. They see it's very good and you never missed a payment. Just like that, they give you the loan. The national credit system may say you don't have credit, but with the US system they know you are a good pay. Hence, the loan for the new car or whatever.
The thing about credit is that every country uses its own system. If you ruin your credit in the USA, guess what? It will not follow you if you move to another country. There it's a clean slate.
If you have good credit in the USA and move to another country, it's a clean slate. However, some countries are more relaxed than others. In the more relax types, technically they have to go by the national credit system and you, being a newcomer, have no credit with them. Alas, the bank calls Transunion or Equifax or whatever and gets a hold of your US credit. They see it's very good and you never missed a payment. Just like that, they give you the loan. The national credit system may say you don't have credit, but with the US system they know you are a good pay. Hence, the loan for the new car or whatever.
Interesting to know that, as I've heard a credit score in the U.S. has no real standing outside of the U.S.. However, I am sure that cash will be done away with in the near future. Many of us young people use cards or a contactless form of payment - it is too convenient. At least in other countries a credit score isn't a factor in renting a residence.
What is the primary method or methods of payment through various Latin American countries? I tend to assume cash, but there could be a wildcard. Here in the U.S. most of us use cards nowadays, it's too convenient short-term. But long-term it seems to have issues, credit card debt, databases being hacked, identities being stolen, electronic trail of goods and services purchases, etc.
Is physical cash still the dominant form of payment in Latin American countries?
Yes, according to this report cash still accounts for about 58 percent of all point of sale transactions.
That said, I've used debit or credit cards all over Latin America (from Mexico to Brazil to Colombia to Central America). Granted, I am thinking mostly of larger cities. Smaller towns could be a different story.
What is the primary method or methods of payment through various Latin American countries? I tend to assume cash, but there could be a wildcard. Here in the U.S. most of us use cards nowadays, it's too convenient short-term. But long-term it seems to have issues, credit card debt, databases being hacked, identities being stolen, electronic trail of goods and services purchases, etc.
Is physical cash still the dominant form of payment in Latin American countries?
In Brazil physical money is mostly used for cheap purchases.
The PIX (instant transfer between checking accounts) and debit card are more used than credit card. Credit card in brazil is widely used to buy in installments.
Card machines that accept debit and credit cards are widespread, even street vendors have it.
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