Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a. with a fee of £3 per month, your representative rate is 24.7% APR (variable).
As well as shipping rum and sugar around the world, Barbados hosts visitors from just about everywhere, and depends on tourism as a major source of revenue. It’s especially popular with visitors from Canada, the US and the UK.
The local currency is the Barbadian dollar (BBD), and since 1975, it’s been “pegged” to the US dollar at US$1 = Bds$2. When you’re paying in cash, you’ll typically be given the choice of paying in US dollars or Barbadian dollars. For example, a bottle of wine in a supermarket might set you back US$15 or Bds$30 (most food has to be shipped from the mainland, and as a result is not cheap). When you’re paying by card, you’re much less likely to be given the choice – you’ll simply be billed in BBD.
Many of the local small businesses are still primarily cash-based, so you’ll need to carry dollars as well as a card. However, hotels, car hire companies, the majority of restaurants plus the ever-popular boat trip companies will all happily accept card payments. Visa and Mastercard credit cards are widely accepted and you might be able to use your American Express card in some places, too.
Some businesses, including the majority of supermarkets, require you to show a valid photo ID when you use your credit or debit card, and some might insist on looking at your passport. In many locations, you’ll be asked to sign for the transaction, either on paper or on the card reader, so don’t forget to sign your card before you go.
You’ll find ATMs (cash machines) linked to the Plus or Cirrus systems, so using your Visa or Mastercard card will be easy. There are plenty of cash machines in Bridgetown, and in larger towns around the island. You’ll also find them at many petrol stations.
Unlike those in the UK, almost all the local ATMs are in small enclosed rooms that you access one user at a time. Sunglasses or hats are not allowed in these rooms.
Some local bank-affiliated ATMs impose additional fees to those your bank may levy. You might also be asked which account (savings or credit, say) you wish to withdraw your funds from.
Additionally you’ll be given the choice of who should exchange the funds to the local currency – the bank that owns the ATM or your own bank. Normally, if you’ve bagged a card with favourable terms for spending abroad, it’ll make sense to use your own bank to exchange the funds.
Since the official language of Barbados is English, that’s the default for cash machines.
Cash is king in Barbados, and it’s easy to burn through it quickly. Goods and services don’t come cheap, and as a result, coins are largely redundant. Bank notes start at $2 and run up to $100, and whereas if you whipped out a £50 note in the UK a shopkeeper might be annoyed with you, you’ll get no objections when you hand over a $100 bill in Barbados.
Keep around $200 on you in cash to pay for flying fish “cutters”, snacks, drinks, souvenirs, buses and so on, and don’t be surprised if you’re flatly refused when you ask to pay by card. You may also encounter shopkeepers who aren’t particularly comfortable using the card machines they have.
You may find any of these in Barbados. Contactless payments are not prevalent yet, however. Don’t forget that you may be asked for photo ID when you use your card at a shop, and don’t forget to sign your card before you travel.
You’ll need to know your PIN in any case, to use cash machines.
By exercising some caution when using your credit card in Barbados, you’ll have a relatively trouble-free experience.
Remain alert to street crime, especially where two or more people work in distracting victims before decamping with their valuables. There have been numerous instances of thefts from hired cars so don’t leave your wallet or purse in a parked car. In some cases, thieves pose as police and ask to see wallets for identification purposes. In such a scenario, make sure you’re speaking with genuine police officers. It is very unlikely that a real officer will want to sift through your wallet.
Credit card fees can leave a noticeable dent in your pocket when you’re travelling overseas, so know what you’re up against well in advance and choose a card with no or low fees.
British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s fine print to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.
Learn more about cards designed for overseas spending
If a retailer offers to bill your credit card in sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you’ll actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you’re presented with an option, choose to pay in the local currency.
Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you’re likely to pay a cash advance fee. Your APR for cash advances is typically higher than your purchase APR, and you’ll typically get no grace period on interest — instead, you start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.
The table below serves as an example of how much extra you may pay to use your credit card in Barbados.
Additionally, you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
Ask yourself these simple questions before you leave so your spending in Barbados does not hit any roadblocks.
When you’re in Barbados, you won’t be able to use your credit card everywhere, and so you’ll also need to carry cash.
There are other options for spending abroad, such as Revolut, Starling, Monzo and similar digital banking accounts. These function much the same as regular current accounts but you won’t have to visit a branch to organise your finances. Our digital banking apps for travelling will give you lots more options.
Monzo, for example, allows you to withdraw cash at ATMs overseas but there will likely be a limit applicable, otherwise you’ll end up being charged for the privilege. On the other hand, making purchases directly with a Monzo debit card shouldn’t have any restrictions applied. To see which might work for you, compare Monzo, Starling and Revoult.
If you’re heading to Barbados soon, you won’t want to waste any time worrying about how to pay for long lunches and trips when you’re there. But being smart about how you spend before you arrive could help your money go further. Cash is king in Barbados but you’ll have plenty of other options to consider.
Be sure to compare deals if you do decide to use a credit card. You’ll also want to check what the fees, if any, will be for foreign transactions or currency conversions.
A little research goes a long way but once you do, you can focus on your holiday.
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I am having trouble with arms in hometown with MasterCard. They are not accepting them. Is there a problem?
Hi Paul,
Thank you for getting in touch with Finder.
Sorry to hear your trouble in using your Mastercard in your hometown.
On this page that you’re looking at, it says that using a Visa or Mastercard isn’t a problem either in stores or ATMs. If you’re having a hard time using your credit card, it is best to contact your provider on that matter as they may assist you further, like checking if your card is on hold or exceeded limit etc.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni