Thread: Credit Cards in Panama

Are there many companies in Panama offering credit cards? I know in the U.S. it's hard to live without a credit card. Of course, most Americans live in debt. Is Panama the same when it comes to credit cards?

Credit cards are widely available in Panama - most banks offer them. However, I've lived in Panama for over 40 years using only a U.S. credit card. To the merchant, it makes no difference.
I keep most of my funds in an account in the U.S. and pay for most things with my credit card. If I need cash, I go to one of the hundreds of ATMs in Panama and pull out some money. It costs me nothing (no fees).
On the other hand, if I deposit a U.S. check in my bank (HSBC), they charge a fee for converting dollars to Balboas and freeze the funds for, I believe, 20 business days.

Is it common to not have to pay extra fees for using a U.S. credit card in Panama?

I only have one credit card - a US-based VISA card. I pay no extra fees for using it in Panama or any other country, and I would be surprised if any card charged any extra fee for using it in another country.

Having travelled in approximately 20 countries using credit cards almost exclusively, I have never had to pay fees. The fees if any are wrapped up in the exchange rate so it would be almost impossible to tell what they are. As the exchange rate fluctuates you will see the variances in the exchange rate on your statement. There are merchants in various locations who will give discounts for payments in cash or debit card but will charge normal sticker prices when you use a credit card. This could be considered a form of fee I suppose.......

Are exchange rate fees common when using credit cards while in a different country?

Are exchange rate fees common when using credit cards while in a different country?

Well, there are exchange rates, and there are foreign transaction fees. To figure exchange rates, you have to find out whose rates your credit card provider is using; a difference of just half a point can be a big deal, especially on larger purchases. Note that this does not apply to US people in Panama, however, since our currency (the Balboa) is pegged to the US dollar. Foreign transaction fees are *usually* a flat fee per transaction, ranging from $1-3. However, there are some companies that charge a percentage. The only commercial vendor that does not charge foreign transaction fees is Capital One (no, I don't work for them). But some credit unions, as well as some brokerage houses, do not charge foreign transaction fees. And when it comes to Panama, banks vary: Some *still* charge foreign transaction fees (which is a rip, since we use the dollar), and some don't. As one poster said, these fees are often buried. The best way to check is to call them in advance, and give them some examples: If I were to make a MXN$1,000 charge on my Visa/MC/Amex in Guadalajara today, what total charges show up on my credit card bill? Unfortunately, getting to someone who can give you the answer is often very difficult...

What american card would everyone recomend... I want one that works in many countries....

I currently have a mastercard.

I recommend Capital One No Hassle Miles Rewards (http://www.capitalone.com/creditcards/products/miles/?linkid=WWW_0508_CARD_tg01_CCMAIN_H3_01_T_CCPM): Visa or Mastercard, no annual fee, no foreign transaction fees, very good exchange rates, and a rewards program that works on any airline with no blackouts -- you can also use points for hotels and other travel expense. Or, if you want, you can exchange points for cash back. (No, I do not work for them; I am just a happy customer of 6+ years.)

I'll take note of that last card, thanks.

Although a word of advice in terms of using the credit card as a tourist, it might attract the attention of thieves so it's best to use it in a discrete matter and it might be better to pay in cash in certain areas. However, carrying that cash around might be a potential danger too, so it's not a fail proof method either.

Some time our credit card cant use at other country even already mention its valid international. I ever experience this before.

I have both Visa and Mastercard and used them both internationally. However, while with the Mastercard I never had any problems, the Visa one didn't always work. In my opinion it's better to get them both and put money on each of them. One it's bound to be accepted/work.

The question is whether it is safe to use our credit cards in Panama or not. I have heard some scary stories from my friends who visited Brazil. Don't think Panama is that rotten, but still I have my own apprehensions. (Past experiences also).

"Credit cards" in Panama aren't quite CREDIT cards.
They are really debit cards.

Why?

Because you have to give the bank a deposit
for the amount that you want on your credit card.
And they hold that as a deposit.

I'm not sure if that's how all banks operate.
But, most are like like that.

I think that's non-sense.
No-Non-Sense Matt

Personally, I use credit cards wherever possible. If a credit card is stolen or abused, the issuing company takes the hit. Naturally, you have an obligation to report it ASAP. Carrying large sums of cash to pay everything is an open invitation to be rolled.

Originally Posted by JustWow

I'll take note of that last card, thanks.

Although a word of advice in terms of using the credit card as a tourist, it might attract the attention of thieves so it's best to use it in a discrete matter and it might be better to pay in cash in certain areas. However, carrying that cash around might be a potential danger too, so it's not a fail proof method either.

Absolutely, credit/debits card it's the safest way to use it and now most of merchants take them. I normally have a small amount of cash for emergency or in case I can't use the card but other then that just using the card.
The fee depends on the bank that issued the card, for England for example you do pay a fee of 2.5 pounds per transaction. Not sure how the exchange rate is calculated thou.

Is it difficult to cash traveller's checks? Do any merchants accept them? Do all banks accept American Express or other traveller's checks?

I too do not want to carry large sums of money with me. I'd rather go to a bank and use and ATM when necessary. Seems a LOT safer. No need to put temptation in front of people.....

From what I understand travellers checks can be a bit of a hassle, thou not impossible.
This is what a fellow member had to say about it:
"
Hi!
Traveler's checks are hard to cash - even at the banks in Panama City. Small towns are worse, including the banks in the smaller towns.

Use your credit card and cash. Most places accept credit cards.

Mary
whypanama.com"

HSBC offers a non-secured card to those who open a premier account.

Is there a Standard Chartered Bank in Panama City?