Best ways to spend travel money in Colombia

Many larger establishments in Colombia will take credit card and debit card payments, with Mastercard, Visa and American Express all being accepted. However, you’ll also need to have some cash in your wallet to use where you cannot pay by card.

ATMs are fairly easy to come by, but you should aim to use them during business hours inside a bank, supermarket or large commercial building. If you are using an ATM on the street, be vigilant as robberies are common, especially at night.

Travel money options for Colombia

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UK debit cards

Debit cards enable you to pay for items quickly and easily in shops and restaurants, and you will also be able to withdraw cash from your nearest ATM.

However, many debit cards charge a foreign transaction fee of around 2.75% to 2.99% whenever you pay for an item, and some also charge a cash withdrawal fee of around 2% to 2.75% on top. That means it’s important to look for one that won’t charge these fees if you plan to use your card abroad.

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Prepaid travel cards

Prepaid travel cards enable you to load your card with money before you head off on holiday and then use it like a debit or credit card. For a trip to Colombia, you’ll usually need to load your prepaid travel card with pounds sterling and then, when you pay for an item, your pounds will be converted to Colombian pesos at the exchange rate on that day.

Prepaid travel card providers use either the interbank exchange rate or the rate set by Mastercard or Visa, or one of these with a fee on top.
Prepaid cards can be useful if you need to budget as you can only spend what’s on the card (or top it up again if you run out of funds).

Credit cards

Using a credit card is another quick and easy option for payments in shops and restaurants. Plus, you’ll have Section 75 protection, which means purchases that cost more than £100 and up to £30,000 are covered if something goes wrong.

However, be aware that if you don’t pay off your balance in full each month, you’re likely to be charged interest. Many credit cards also charge a foreign transaction fee of up to 2.99% every time you spend and if you use your card for cash withdrawals, you’ll pay another fee on top. So look for a credit card that lets you side-step these fees.

Note that cash withdrawals on credit cards are best avoided anyway as you will usually be charged interest from the moment you get your cash, even if you pay off your balance in full that month.

Traveller’s cheques

Traveller’s cheques can be hard to cash in in Colombia and are generally best avoided. Even if you find somewhere that will accept them, fees can be high.

Bottom line

If you’re planning a trip to Colombia, your best bet is to bring a combination of cash and plastic with you so that you’ll be covered in all events. The type of plastic you take is up to you – if you’d prefer not to risk getting into debt and paying interest, a debit card or prepaid card will likely be more suitable. But if you can afford to pay off your balance in full each month, a credit card might be better as you’ll get Section 75 protection. Just make sure you don’t use your credit card for cash withdrawals, and always look for a card that won’t charge foreign usage fees.

Frequently asked questions

• What is the currency of Colombia?

  The official currency of Colombia is the Colombian peso. Unlike many of its neighbouring countries, the US dollar is not generally accepted in Colombia so it’s important you take pesos with you. Banknotes are in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 pesos and coins are in denominations of 50, 100, 200, 500 and 1,000 pesos.

• What does dynamic currency conversion mean?

  Dynamic currency conversion is when a retailer converts your purchase into pounds sterling rather than keeping it in the local currency. If this happens, the exchange rate will be poor value and you’ll end up paying more for your purchase. If you’re given the option of paying in the local currency or pounds sterling, always choose the local currency.

Written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio