Belize's San Pedro: Credit Card Acceptance Explained

Belize is a cash-based society, with most locals opting for cash payments over credit cards. However, credit cards are widely accepted in San Pedro, the main tourist hub. Major credit cards, such as Mastercard, Visa, and American Express, are recognised throughout the town, with nearly all hotels, restaurants, and shops accepting them. Nevertheless, smaller, remote businesses may only deal in cash or traveller's cheques. It is worth noting that some businesses may apply a surcharge of up to 5% for credit card use, although this is not a standard practice.

Major credit cards accepted in San Pedro

Major credit cards are accepted throughout San Pedro, with nearly all hotels, restaurants, and shops in the major towns and tourist areas taking Mastercard, Visa, and American Express. However, it's worth noting that street vendors and smaller establishments in remote areas may only accept cash or traveler's checks.

While credit cards are widely accepted, it's important to be aware of potential surcharges and fees associated with their use. Some businesses may apply a surcharge of up to 5% on credit card transactions, although this practice is becoming less common. Additionally, US and Canadian credit card companies often add an extra 2-5% fee on international transactions. It is recommended to check with your credit card issuer before traveling to understand any additional fees that may be incurred.

ATMs are available in most major towns, including San Pedro, and accept Visa, Mastercard, Plus, and Cirrus cards. However, keep in mind that ATMs only dispense Belize dollars and may charge a fee for each withdrawal, typically allowing a maximum of BZ$500 per day.

Belize is primarily a cash-based society, and some local shops and restaurants may not accept credit cards. It is always a good idea to carry some cash, especially when visiting smaller villages or remote areas.

Credit cards vs cash

Credit cards are widely accepted in San Pedro, Belize, with Mastercard, Visa, and American Express being the major cards of choice. Most hotels, restaurants, and shops in tourist areas will accept credit cards, but smaller vendors and establishments in remote areas may only accept cash or traveller's cheques.

Now, here's a detailed look at the advantages and disadvantages of using credit cards versus cash:

Advantages of Credit Cards

• Security and Fraud Protection: Credit cards offer better security against fraud and loss compared to cash. If unauthorized purchases are made, your maximum liability is typically $50, and many cards offer zero-liability protection.
• Purchase Protection and Insurance: Credit cards often provide purchase protection, extended warranties, price protection, and return protection. Some cards also offer travel or rental car insurance.
• Anti-Fraud Detection: Credit card companies use analytics to flag potentially fraudulent purchases, helping to prevent fraud.
• Building Credit: Using a credit card responsibly can help build your credit score, which can be beneficial when applying for loans or other financial products.
• Rewards and Cash Back: Many credit card providers offer rewards points, cash back, or welcome bonuses on purchases, which can be redeemed for gifts, travel, or statement credits.
• Convenience: Credit cards are often more convenient than carrying large amounts of cash, especially when travelling. They are also essential for online transactions.

Disadvantages of Credit Cards

• Fees and Interest Charges: Credit cards can come with various fees and high-interest charges if the balance is not paid in full and on time. These additional costs can outweigh any rewards earned.
• Encouraging Overspending: It's easier to lose track of spending with credit cards, and the promise of rewards can tempt people to spend more than they can afford.
• Debt Cycle: If you can't pay off your credit card balance, you can quickly get caught in a cycle of debt, with interest charges accumulating.
• Not Universally Accepted: While credit cards are widely accepted, some vendors, especially smaller businesses or street vendors, may be cash-only or have minimum purchase requirements for card transactions.

Advantages of Cash

• No Fees or Interest: With cash, you avoid fees and interest charges associated with credit cards, helping you save money.
• Better Spending Control: Physically handing over cash can make you more mindful of your spending and less likely to overspend.
• No Debt: With cash, you're using money you already have, so you don't owe anyone and avoid the risk of falling into debt.
• Always Accepted: Cash is universally accepted, even in places where credit cards are not, such as small businesses or street vendors.
• Privacy: Using cash helps keep your personal information secure and reduces the risk of identity theft associated with online credit card transactions.

Disadvantages of Cash

• Inconvenience: Carrying large amounts of cash can be bulky and inconvenient, especially when travelling.
• Security Risks: Losing cash usually means it's gone for good, while a lost or stolen credit card can be cancelled and replaced.
• Emergency Funds: In an emergency, you may not have access to cash, whereas a credit card provides a readily available source of funds.
• Large Purchases: For more expensive items, cash may not be a feasible option, and credit cards can offer purchase protection and insurance.
• International Transactions: When travelling internationally, using local currency may be preferred, and exchanging large amounts of cash can be inconvenient and result in unfavourable exchange rates.

In conclusion, both credit cards and cash have their advantages and disadvantages. Credit cards offer convenience, security, and rewards but come with the risk of fees and debt if not managed responsibly. Cash provides better spending control and avoids fees and interest, but may be less secure and inconvenient for large purchases or international travel. The best option often depends on your financial situation, spending habits, and the specific circumstances of your purchase.

Foreign transaction fees

When a credit card is used to make a purchase in a foreign country, the issuer typically charges a foreign transaction fee, which is a surcharge on the purchase. This fee is usually about 3% of the purchase price but can vary depending on the card issuer. So, for example, if you buy something that costs $100 in a foreign country and your card's foreign transaction fee is 3%, you will be charged a foreign transaction fee of $3, bringing the total cost to $103. It is important to note that foreign transaction fees are based on where a purchase is processed rather than your physical location, so even if you are buying something online from a foreign merchant while in your home country, you may still be charged the fee.

Some credit card companies, such as Capital One, Discover, and USAA, do not charge foreign transaction fees on any of their cards. Additionally, many issuers do not charge these fees on specific cards, particularly those marketed towards frequent travellers. When choosing a credit card, it is important to check the terms and conditions to understand if and how foreign transaction fees will be applied.

If you are planning to travel abroad or make frequent foreign transactions, it is advisable to consider getting a credit card without foreign transaction fees. These fees may not seem significant on their own, but they can quickly add up, especially if you are using your credit card as your primary payment method while travelling. By choosing a card without these fees, you can save yourself some money and avoid unexpected charges on your bill.

Credit card surcharges

Credit cards are accepted throughout San Pedro, with nearly all hotels, restaurants, and shops in the major towns and tourist areas taking major credit cards. However, some businesses may apply surcharges of up to 5% on credit card transactions, so it is important to ask before using your card. These surcharges are becoming less common, but they are still applied by some establishments.

According to Belize banking rules, it is illegal and criminal to surcharge customers for using credit cards. All banks offering credit card services in Belize abide by US Visa and Master Card regulations, which do not allow for surcharges, except in ten states in the USA. Despite this, some customers on Ambergris Caye have reported being charged extra when using their credit cards at various businesses on the island.

If you are subject to surcharges when using your credit card in Belize, you can complain to the authorities. You can also visit your bank and file a complaint, providing the name of the business, copies of receipts showing the amount for goods or services, and the credit card receipt slip.

To avoid surcharges, it is recommended that you check with your credit card issuer about fees added to foreign currency transactions before travelling. If your credit card company charges these fees, you may want to consider switching to a different issuer. Additionally, some banks charge hidden fees on foreign currency ATM transactions, so it is important to be aware of these potential charges before withdrawing cash abroad.

Using US dollars in Belize

US dollars are widely accepted in Belize, with many businesses accepting them interchangeably with the Belize dollar. However, it is important to note that US coins are not accepted, only bills, and these must be in good condition. It is recommended to bring smaller US bills ($1, $5, $10, and $20) as larger bills may be hard to cash in smaller villages or shops.

The Belize dollar is the official currency of Belize and is pegged to the US dollar, with a current exchange rate of approximately 1 BZD to 0.50 USD. While US dollars are widely accepted, you may receive your change in Belize dollars, so it is helpful to understand the exchange rate.

Most hotels, restaurants, and shops in major towns and tourist areas, such as San Pedro, accept major credit cards (Visa, Mastercard, and American Express). However, smaller establishments and street vendors in remote areas may only accept cash or traveller's checks. It is important to note that some businesses may apply a surcharge of up to 5% for credit card use, so it is recommended to ask beforehand.

ATMs can be found in all major tourist towns and urban centres, but they may not be as readily available as in larger cities in the US. The ATMs in Belize dispense money only in Belize dollars, and there is often a withdrawal limit of $500-$800 BZD. Additionally, you may be charged fees by both your local bank and the local Belize bank for using the ATM.

It is recommended to bring enough US cash to cover your initial expenses and smaller purchases, as cash is still the standard form of payment in Belize. This will help you avoid any issues with credit card surcharges or ATM fees.

Frequently asked questions