Best ways to spend travel money in South America: Debit and prepaid cards

South America is made up of 12 different countries, each with different currencies. For example, Colombia has Colombian pesos, Argentina uses Argentinian pesos, Brazil the real and Peru the nuevo sol. We look at the cards which have the lowest fees to use over the counter and to withdraw cash from on your South American getaway.

Low cost travel money options for South America

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Debit cards

A travel friendly transaction account is a better travel money option for a trip to South America. By choosing a debit card which lets you transact in a foreign currency without paying for currency conversion, you can use the account over the counter in South America as you would in the UK for no extra cost. Most debit card providers apply a charge for international ATM withdrawals.

As mentioned above, digital banking apps work as normal bank accounts do. They come with a debit or credit card, often supported by big names like Visa or Mastercard, and topping up your balance simply consists of transferring money into that account.

Credit cards

Credit cards provide a line of credit with limited interest-free terms which can be used all over the world (American Express and Diners Club cards in fewer places than Mastercard and Visa). Choose a credit card which doesn’t charge for currency conversion to save money on international transaction fees when travelling through South America. ATM withdrawals using your credit card are not advised if you’re concerned with saving money, as you’ll be charged high cash advance fees. But you can sometimes load a credit card with a positive balance to cut out cash advance fees and charges when used at an ATM. The card scheme anti-fraud guarantees don’t apply when you withdraw from an ATM using a credit card with a positive balance.

Travel prepaid cards

In a relatively recent development, some prepaid travel money cards now support South American currencies. For example, the Wise International Card allows you to convert, hold and spend Argentine pesos, Chilean pesos, Peruvian soles and Uruguayan pesos, as well as US dollars, which are also accepted in certain places.

• Tip: French Guiana and the Falkland Islands adjacent to Argentina use the euro and pound, respectively. Most travel cards can be suited to spend in these overseas departments of France and United Kingdom.

Traveller’s cheques

Don’t bother taking traveller’s cheques to South America. They’re difficult to cash and expensive, and no more secure than using a debit card (ATMs in South America are everywhere), credit card or prepaid travel card.

Cash

South America is one destination where you’re going to need to have a supply of cash for emergencies. Although you can use your card in more places now more than ever, there’s no guarantee that you’ll be able to access cash at any given moment, especially outside of major cities. Card payment facilities vary greatly depending on the location. You won’t have a problem with card acceptance and ATM withdrawals in the capital cities, especially in countries like Chile, Brazil, Colombia and Argentina, for example. However, there are major tourist attractions, like the Amazon, where you’re going to need enough cash to last you for the entire leg of your trip.

How much money do I need to bring to South America?

From country to country and region to region, prices in Brazil are more expensive than Ecuador, Ibague (the 7th largest city in Colombia) is cheaper than Medellin (the 2nd biggest city in Colombia). You’ll find prices are varied in South America. Wherever you travel, the continent can be as expensive as you make it. Below you can find some budget prices for different countries in South America.

	Bogotá (Colombia)	Brasília (Brazil)	Lima (Peru)	Santiago (Chile)
	Hostel dorm bed £7 per night	Hostel dorm bed £13 per night	Hostel dorm bed £7 per night	Hostel dorm £12 per night
	Arepa con queso on the street £1	El Negro Food Truck: La Matanza (hot dog) £4	Ceviche de pescado in a cheap restaurant £1–£3	Empanada on the street 70p
	Bogotá graffiti tour Free (donation based on satisfaction)	See the city from the top of the television tower Free	See the changing of the guards at the Presidential Palace Free	Museo Histórico Nacional Free on Sundays and holidays

*Prices are approximate and are subject to change.

Exchange rate history

*2024 price is average from 1 January to 25 March.
Some of the major South American currencies include:

Travel card, debit card, or credit card?

Visa and Mastercard branded credit cards, debit cards and travel cards enjoy wide acceptance throughout the continent of South America. Merchants that have the facilities to accept card payments will accept both these card scheme brands, American Express is accepted in few places besides high-end businesses. Stick to a Visa or Mastercard product so you can make withdrawals and card payments in a variety of places.

Most digital banking apps, which are a great option owing to very low transaction and withdrawal fees, come with either a Visa or Mastercard bank card. They work as normal bank accounts do, so the “topping up” process simply consists of transferring money into the account.

Travel money options for South America at a glance

_{This table is a general summary of the travel money products in the market. Features and benefits can vary between cards.}

What’s the alternative?

Digital banking apps are certainly worth a look owing to their very low, if not flat, transaction and withdrawal fees, and mobile nature. The big names in this field, Starling, N26 and Revolut, offer a way to manage your travel spend on the move without having to worry about currency conversion.

Using ATMs in South America

Visa and Mastercard should work at all ATMs where you can see a Maestro, Cirrus, Mastercard or Visa logo on the front of the machine.

• Tip: Anecdotal evidence suggests that ATMs in the Amazon region of Brazil, some parts of Venezuela and Bolivia will not accept foreign debit cards. Ensure you have enough cash to last you the duration of your stay if you’re visiting these regions.
• Tip: Smaller towns in rural areas may not provide ATM facilities. Research your destination for advice from other travellers before you arrive. Always try to use ATMs attached to the side of a bank.
• Tip: ATMs will give you your money before your card, which can lead to instances of people leaving their card in the machine.

Exchanging cash in South America

ATM withdrawals are by far the most efficient way to get local currency in cash on your holiday. ATMs are located all throughout the continent. If you want to carry cash as an emergency backup, US dollars are widely accepted and the choice of money if you can’t pay in the local currency. While the major exchange offices in shopping centres and in tourist locations will exchange British pounds, but US dollars are preferred.

A quick guide to the Brazilian real

Why you’ll need a combination of travel money options

It’s important to take a combination of travel money options wherever you go in the world, but this is especially true for a trip to South America. As we’ve seen, while using credit, debit and prepaid travel cards in large urban centres should not prove too difficult, many of the continents biggest tourist draws, like the Amazon rainforest and Machu Pichu in the Andes, will require cash to cover the lion’s share of your costs while you’re visiting.

Having US dollars on hand to use in emergencies and a travel card or debit card and credit card combination to use when necessary can serve you well.

Digital banking apps are also a solid option, owing to their international nature and low, if not zero, transaction and withdrawal fees.