expatplayer

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?

Ajay

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.

coolandhot

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

Ajay

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.

GordonS

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.......

__________________
Gordon and Randy,
Canada

panamapal

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

soltero

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...

GeekZ

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

I currently have a mastercard.

soltero

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.)