Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £3 per month, your representative rate is 27.7% APR (variable).
Brazil is the most popular country for tourism in South America. Several regions across the country attract millions of visitors per year, with Rio De Janeiro, Sao Paulo, Iguazu Falls and tours of the Amazon rainforest proving especially popular.
In the major urban areas of Brazil, credit cards will be accepted more or less anywhere. However, if you’re visiting smaller rural towns, it’s recommended to carry plenty of cash, in case you come across retailers that don’t accept credit card payments.
Mastercard and Visa are the most commonly-used credit card networks in Brazil, and you should have little problem using American Express as well.
You’ll find cash machines linked to the Plus or Cirrus systems in all urban areas of Brazil, allowing you to withdraw cash using your Visa or Mastercard card. However, many of these machines are contained within cages, which are locked late at night. It may therefore be more difficult accessing cash at this time. You may also find it tougher to find an ATM within the rainforest areas and in smaller rural parts of the country.
Brazil uses a currency called reais. While it’s recommended to keep cash on you at all times in case of an emergency, you can expect most vendors you deal with in major urban cities to accept credit cards, even on smaller purchases. The retailers least likely to accept credit card payments are smaller independent traders in smaller towns.
Find a great deal on your travel money for Brazil
Brazil has moved from magnetic-stripe to chip cards, and all banks in Brazil now issue the latter. You’ll still be able to use your magnetic-stripe card in Brazil, although you can expect some confusion. In the switching of technology, some retailers falsely believe that they can no longer accept magnetic-stripe cards while some others will not let you use them, to do their bit in reducing credit card fraud. All they basically need you to do is swipe your card instead of inserting it into the machine, and then get you to sign for the purchase.
If you use a chip-and-signature card, you can use it in Brazil just about everywhere you find a manned credit card machine. However, some businesses are hesitant in accepting them because they are not sure if it’s allowed and some others don’t accept them to cut down on credit card fraud. If you are getting tickets from a machine, you will need to enter a PIN, in which case your chip-and-signature card won’t work.
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 will actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you are 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 normally higher than your purchase APR. Typically, you get no grace period and you will 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 Brazil.
Additionally, you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
Bank and credit card fraud is common, including card cloning from cash machines. Make sure you are in sight of your card at all times and do not use an ATM if you notice anything suspicious.
If you withdraw cash and it has any sort of pink marks, speak to the bank or police immediately to get it changed as it may have been marked as damaged or counterfeit. Don’t carry large sums of money and consider wearing a money belt.
Remain alert to street crime, especially where two or more people work in distracting victims before decamping with their valuables. Instances of theft at airports are not uncommon, so stay vigilant while arriving and departing. There have been numerous instances of thefts from hired cars so don’t leave your wallet or purse in a parked car.
Ask yourself these simple questions before you leave so your spending in Brazil does not hit any roadblocks.
When you’re in Brazil, you don’t have to worry about where and when you can use your credit card. Just keep some cash handy to pay for small purchases.
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