If a CC is used in Panama, is there a FTF?

[NRB525]

Since the Panama Balboa is tied to the value of the USD, 1:1, it would seem there is no foreign exchange transaction, so it would seem there should be no FTF.

The only issue would be that it is a foreign country.

Anyone have direct experience to say whether FTF was charged on your card transactions in Panama?

I will be travelling there for work and need to determine personal cards to take along.

[Anonymous]

When I was there in 2010, there was a FTF. They are 1:1, but the Balboa is a distinct currency so there is still an "exchange," technically speaking. Not sure where you'll be, but American dollars were accepted almost everywhere—seemingly moreso in the smaller towns, strangely enough. Cards not widely accepted, except at big restaurants and hotels in Panama City.

[NRB525]

That's kind of what I figured, that there would be a FTF. Will be in Panama City, so the company AMEX for most charges will be fine.

Thanks for the specifics.

[Anonymous]

Look into getting a card without foreign transaction fees. These can save you a ton of money. A lot of cards offered by Chase don't have FTF.

[Anonymous]

The FTF gets triggered for any transaction at a merchant outside the US, even if you accepted DCC (a very bad idea) or they otherwise charged you in USD. A currency conversion fee is one that only gets triggered for non-USD purchases. I'd also recommend a card without a FTF if you can get one before you leave on your trip (CSP, Arrival+ and BofA Travel Rewards are good ones).

[Anonymous]

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@Anonymous wrote:

Look into getting a card without foreign transaction fees. These can save you a ton of money. A lot of cards offered by Chase don't have FTF.

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Or *any* card from Capital One.  Their entire fleet has no transaction fees.  IME, the Chase cards with no FTF tend to be the high-AF ones.  Same holds true for many of the other large issuers.

Chris.

[Gunnar419]

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@Anonymous wrote:

When I was there in 2010, there was a FTF. They are 1:1, but the Balboa is a distinct currency so there is still an "exchange," technically speaking. Not sure where you'll be, but American dollars were accepted almost everywhere—seemingly moreso in the smaller towns, strangely enough. Cards not widely accepted, except at big restaurants and hotels in Panama City.

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+1 US dollars (Jacksons) come out of the ATMs and US dollars are the only paper money Panama uses, but these dollar transactions are still "foreign," go figure.

As others have said, using a CapOne card will avoid the fees. Discover has no FTFs but isn't well accepted in Panama. captain88's right that credit cards in general aren't well accepted there.

Here's a tip: Whatever you decide to do with credit cards, keep not only plenty of cash on hand but get $2 bills from your bank before you leave. Panamanian cabbies, hotel maids, street vendors, etc. love them, and especially love it when they can get $2 bills with three 7s in the serial number.