Safe Money

[timberline742]

Where are you going in Peru? Outside of Lima, I don't think you'll have much luck with travelers checks. I was there last year and people had problems with them even in Iquitos.

I used debit cards without problems, but you'll want to bring U.S. cash. You can exchange it easily enough. Be sure to bring clean bills, not creased, not ripped, not stained... not even a little. The money changers refuse those.

I had a great time in Peru myself. Would love to go back.

[oregonwoodsmoke]

My experience with traveler's checks, which was 20 years ago, was that no one would accept them. I had to take them to a major bank and convert them to local currency. The exchange rate was at the tourist rate and there was a hefty fee.

Some of the banks keep very restricted hours and none of them were very happy to take the travelers checks and charged accordingly.

I suggest that you open an account with a financial institution that has a low foreign fee PLUS will give you the commercial exchange rate. That is substantially cheaper than the tourist exchange rate.

I use a couple of different credit unions, so can't recommend anyone, but Charles Scwab is supposed to be a good one to use for overseas transactions. I haven't used them myself, so no experience with them, but that information must be on-line if you do a quick Google search.

I use my credit card, but just about everyone else I know in South America uses their ATM card. You shlould be able to find a money machine that is on the same system as your own bank, with very little problem.

Wiring money to bank in South America and opening an account is nearly impossible. No one wants to deal with the IRS, and so they solve that issue by not accepting money from the USA. Apparently, that causes a huge problem if you are attempting to buy real estate down there.

I suggest that you check the Peru Expat forums and see what those people, the ones who live there, are doing about money.

[Yeledaf]

Call/visit your bank before you leave. Tell them when you're leaving and where you'll be. That will eliminate any embarrassing "holds" on your account.

Then use your debit card in the ATMs for cash (and follow the excellent security advice posted above) and your credit card for larger purchases.

You'll be fine.

[Dd714]

Originally Posted by azoria

AVOID using credit cards for payments! Fraud in SA isn't as bad as Eastern Europe, but it's still bad. You may use credit cards as payment for hotel bills at the front desk or for air fare, but avoid plastic for all other purposes. PAY CASH....And we lived in eastern Europe for years. Very high risk.

Ahh, the second sentence explains the first - Perhaps you do not realize - by US federal law, credit card fraud liability is limited to $50, there is no risk except for inconvenience, if used fraudulently. Does not matter if it occurs in a foreign country, does not matter if they physically steal your credit card numbers, or the card itself. Almost all banks will waive the $50 in any event.

[thedwightguy]

I have a secret and notsosecret zippered pocket and split my money, ID, and documents.
Avoid the money belt because not only is that where the money is, it's also near your vital
organs and it's usually a fast knife move to cut it off you before you react, or after you're
distracted. Might as well come back with at least your replacement parts.

I also pack my expired Passport in an obvious pickpocket place so I hope they go for that as a decoy.

[TheCityTheBridge]

Originally Posted by mllex

I second the traveler's checks. I've used them several times while traveling overseas and have not regretted it. Just be aware that there may be a fee to get the traveler's checks, unless you're a member (for example, if you have an AmEx credit card, AmEx waives the fees). The advantage of traveler's checks is that if you ever lose them, you can get the money back, provided you saved the receipt containing the serial numbers of your checks. Plan wisely and ahead. I would cash enough money for a leg of the trip until I could get to the next big city. That way, I never carried around too much cash.

Alternatively, get a credit card that doesn't charge you foreign transaction fees. CapitalOne has one and I used it exclusively while living overseas. Never had a problem.

If all else fails and you must carry around stacks of cash, invest in a good, sturdy money belt.

Traveller's checks are not a good idea and neither is a money belt. The only way to avoid fees is to find an excellent bank that won't charge them (try a local credit union). Money belts are not secure. Wallets should be in front pockets and purses should be carried across the body.

Originally Posted by azoria

Travelers cheques are useless in 'developing' countries. You'll be lucky to find a bank in Peru that will cash them. Forget about it.

In fact Travelers cheques are just about useless worldwide. Waste of time, effort, and money. Just no.

In 'developing' countries like Peru, pay for everything with cash. Get the cash from bank ATM machines. Use these bank ATM machines during daylight only, and only when the bank is open for business (in case the machine eats your card). Usually major hotel and shoppping mall ATM machines are ok as well. Eschew cash machines at bus stops, on the street, any other questionable places. Observe the ATM carefully to look for any kind of machine slot tampering. In south America many ATM's have several steel bars over the card slot to prevent machine tampering. Seeing these steel bars is a good thing. A guard nearby with a Klashnikov is a better thing.

AVOID using credit cards for payments! Fraud in SA isn't as bad as Eastern Europe, but it's still bad. You may use credit cards as payment for hotel bills at the front desk or for air fare, but avoid plastic for all other purposes. PAY CASH.

After you have gotten cash from the ATM's you need to stash it in a hidden place. There are pouches you can get which fit snugly under you shirt underarm, pouches which attach to your belt and drop just inside the waist of your pants, and my favorite--the calf pouch with a velcro calf band. Google search money pouches and study the options.

You want to keep daily spending money in your front pants pockets, organized before you go out for the day. Small bills and change in one front pocket, larger bills in the other front pocket. Never rummage through your pockets dragging out cash and sifting through it when you need to pay for something. NO.
Know where your money is and be discreet. NEVER carry cash, wallet, plastic cards, or passport in your back pants pocket. N.e.v.e.r.

Countries like Peru are a risk. You go there for a couple of months you're taking on risk. You need to do everything possible to reduce your financial risk. The advice I have given you is good advice to reduce your risk of loss. Outside of that, there is no sure thing in this world, you just need to be aware of how best to reduce the risk.


P.S. We went to Ecuador last year and were very concerned about all of the above risks, and no incident occurred. I would hazard that Peru is a less economically equitable country and therefore has a higher risk than Ecuador.

And we lived in eastern Europe for years. Very high risk.

Use bank ATMs to take out cash. Use your credit card when it is accepted. If there is a fraudulent charge on your credit card or your bank card, report it. It will be resolved. Hopefully your ATM card doubles as a credit card so that you have two cards in case something happens and one of your cards must be cancelled. You can also probably set up your credit card to give you cash advances from ATMs with a pin number. Do that so that you have a backup for cash. Inform your financial institutions that you will be abroad. Chances are you'll be fine. The more frequently you take out money from ATMs, the more you will pay in fees; but the less often you go, the more cash you will need to have at any given time. Do whichever makes you more comfortable.

[jtur88]

Buy a lighweight money belt, get used to wearing it around your waist all the time except when you shower, and keep it in sight then. Carry cash in that, it will be safe. Put at least a thousand in there in Euro or US $100 bills, and make sure US bills are clean, crisp and fresh, and of the current design. Rumpled old bills can be hard to exchange.

Travelers checks are now maybe the worst way to carry money, they are almost impossible to cash anywhere except at upscale hotels and banks, and even then only if you can present the original purchase receipt.

The overseas fee on credit cards is negligible, only two percent or so, max. Currency exchange bureaus charge at least that much, too, it is the cost of doing business in foreign exchange. Make sure your cards have the modern mictochip, and carry at least two in case an ATM eats one or it gets compromised, carry it in s separate place in case of loss or theft. Be sure to tell your CC company you plan to travel overseas, or they will disable your card the mimute they see a foreign charge.

If your trip is to Europe and you plan to return there some day, bring home a hundred euros or so, so on your next trip you don't have to deal with airport exchange. which is never a good deal. Outside of Europe, there are a lot of countries where banks don't exchange money, if you have US bills or euros, there are money exchange shops. They are safe and trustworthy, everyone uses them. Make sure you always have a few small US bills, in case you underestimate how much you'll need at the ATM, you don't want to be running back to an ATM for $20. Most places in the world, people know exactly what a US dollar is worth, and US paper money will be accepted by anyone, even street vendors and cab drivers.