Using ATMs, Cashpoints, Money Machines in Costa Rica

ATMs in Costa Rica dispense both of the widely accepted currencies (colones and dollars), and are the most common way for travelers to access cash.

ATM Fees Can Add Up

ATM fees can range from 0% (see zero fee cards) to 65% of the total transaction. If your issuing bank charges the standard $5 per transaction and you use a convenience store cash machine like the one pictured below with a separate $7.95 fee to take out twenty bucks the fees total to 65% of the amount withdrawn which is insane.

This machine from Banco Lafise was convenient but charged ¢3,950 ($7.95) in addition to any in or out of network fees charged by the card issuer or intermediary banks.

In order to make even more money from high fees a low withdrawal limit forces multiple transactions and multiple fees. The Banco Lafise machine above had a maximum transaction of $100 forcing ten separate transactions and $79.50 in machine owner fees to reach the daily limit of $1,000. Any other fees would multiply by 10x as well…it can get crazy expensive.

Zero Fee ATM Cards

At least two U.S. banks offer checking accounts with zero fee ATM cards. Not only are there no in house fees, but they pay any machine owner surcharges, out of network bank fees and all other fees. If you withdraw $20 from any ATM anywhere in the world your checking account balance goes down by exactly $20, always. Schwab and TD bank are the two that we know work but there may be others.

There are also banks (Alliant, Ally, Axis, Navy Federal, Everbank) that pay some of the out of network fees for their customers. It’s not unlimited but they may cover the first $15-$35 per month.

Reduce & Avoid Fees

If you don’t qualify or didn’t read this soon enough to apply for a zero fee card there are ways to reduce the amount you spend on extra charges.

Use the ATM less. Use credit cards for purchases instead of cash unless there’s a large discount for cash.
Take out larger sums when it’s safe. A $7.95 fee is 40% on twenty bucks but only 1.6% on five hundred.
Bring some cash with you from home. If you’re from the U.S. or have cheap easy access to U.S. dollars (far more likely than cheap easy colones) then bring a couple hundred along. That may be all the cash you need if you’re staying for less than a month and mainly use credit cards as recommended.
ATMs at banks and sometimes supermarkets have lower fees than machines at airports, resorts, casinos, convenience stores and gas stations. Some travelers have reported that Banco Nacional does not charge out of network fees on their ATMs.
If you decide, despite our advice, to use your credit card in ATMs then consider prepaying to avoid interest charges. If your last bill before you head to Costa Rica is $500 you can pay $2,500 and you won’t be charged interest on cash advances until the extra $2,000 is gone.
There are a couple of apps out there like “ATM finder” and “ATM fee saver” that claim to locate the lowest fee machines. As far as we can tell they don’t work in Costa Rica. Lots of diddling around, few or no locations and the apps don’t seem to have a clue what the fees are. If you find one that works well let us know.

Credit Cards in ATMs

Because they incur fees plus very high interest rates on cash advances, credit cards cost more for withdrawals from an ATM than debit or bank cash cards. They’re great for purchases but expensive in cash machines.

Even if you pay off 100% of your balance every month, you will pay interest on any money you withdraw from an ATM using a credit card. ATM and other cash advances start accruing interest at rates up to 22% the instant the transaction is complete.

Safety

ATMs inside or attached to banks are generally safer than the ones in the parking lot of a convenience store. They also usually have lower fees.

For privacy and security reasons the little air conditioned ATM room is for one person only. You wait your turn outside even if it’s 105℉.

Don’t make it obvious that you’re withdrawing large amounts (if you head to the ATM directly from the boat charter dock everyone knows you’re taking out $1,000…) and put your cash away before walking away.

It’s obvious but we’ll say it anyway… never visit an ATM alone, late at night, in a dark alleyway and then count your money out loud as you head back to the bar.

ATMs Run Out of Money & Don’t Always Work

We’ve said it before but it’s worth saying again. The best strategy for spending is to use a no international fee credit card for most things.

One of the reason not to rely on cash is that ATMs don’t always work as expected. It’s fairly common in Costa Rica to see a message “transaction failed” with no explanation. Be careful if you try again because after 2-3 attempts the machine may confiscate your card. It’s better to move on and try a different bank.

If you are counting on cash be sure to stock up for the weekends because local are. Since the machines are not refilled on weekends and holidays they frequently run out of money.

If Money is Debited from Account but Not Dispensed

If you attempt a transaction but don’t receive your cash check your bank balance because reports of the money being deducted from the account but never dispensed are becoming more common.

Contact your HOME bank (usually the toll free number on the back of the card). Travelers report little or no assistance from the Costa RIcan banks involved. As far as we know, everyone has gotten their money back but it takes between 1 and 30 days.

This is another good reason to follow the guidelines for the best way to spend money in Costa Rica.