CREDIT CARDS:
Most of the island businesses are not equipped to take credit cards, though that appears to be rapidly changing. If they do take credit card on island, expect to pay a surcharge for using credit cards with the businesses (2%-5%), though its not always the case.
TRAVELER’S CHECKS:
Most businesses are unable to accept travelers checks. However a few (including Kate’s La Piccola Italian Restaurant do). They are still a nice back up to carry- and you can cash at the bank with a passport. Also, “Archies”, which is in between La Cuerva and Munchies on the main street will generally cash them at a decent rate for you with ID.
update July 2011: Okay folks, listen up! We just heard from Pat E, July 2011 who wrote in to let us know that he was unable to cash his American Express Travelers check either at the bank or at Archies. We’ll do a little more research and find out whats changed- they may still allow the Visa Traveller checks, but as of now wanted to pass on this heads up for AMEX traveler’s checks. Thanks Pat!
EXCHANGE RATE
You can use US dollars almost anywhere on Utila, but it will be easier for you to pay in lempiras, and you’ll probably save a few bucks with the exchange. The banks exchange at 18.8951 lempiras to 1 usd dollar (as of Feb 2011), but many folks prefer to go with “Archie”, who is just to the left of the main intersection as you get off the boat (same spot you buy beer by the case) where you get just about the same rate (slightly lower) and no lines. Archie will also accept travellers checks. Also, note you will need your PASSPORT to exchange US dolllars into lempiras at the bank.
Almost all of the businesses on Utila will accept USD dollars but many offer a reduced exchange rate of about 18 or 18.5 lempiras per dollar.
ATMS:
There are now 2 ATMs on Utila, but yes, it is still possible for both to go down at the same time, or even be out of cash during busy times. ATMS pay out in the local currency of lempiras. The ATM at Banco Atlantida has a limit of 4000 lempiras per transaction (about $211 usd) and the other ATM lets you take out 5000 lempiras ($264 usd) per transaction. Both machines will let you withdrawl 3 times in a day. Be aware that your home bank will likely charge a $5 outside bank ATM fee, and then many will charge an additional foreign transaction fee (about $2usd for taking out 5000 lps). Basically plan to see an extra $7 in fees on your statement that your home banck charges for each ATM withdrawl.
PAYPAL
For some of the hotels and vacation rentals, the owners will accept Paypal. You can either do this ahead of time or once on island through a computer. Remember that Paypal charges additional 2% fee, which will most likely be passed on to you by the business.
CASH ADVANCE:
You can get a cash advance on your credit card at the banks, and also at a few locations around town. Most people prefer to do it at one of the business locations as it goes down as a purchase- letting you avoid costly cash advance fees. Check out Riveras, Bush’s, or Bobbys. They will add 6-7% fee, but in most cases thats far less than what your credit card will charge you for cash advance if done through the bank. Also, there is only 1 bank on island, so sometimes that means very long bank lines, and you are not restricted to banking hours.
LEMPIRAS
The bank and ATMS all tend to give out 500 lempira bills; if it’s a weekend or other busy time, you may have trouble changing these, especially at the smaller venues as its difficult for the smaller operations to keep up enough change.
“WE DON’T LIKE TO CARRY A LOT OF MONEY- WHAT DO YOU SUGGEST”
Typically, there is not a need to travel with more than $300 at any one time. You can almost always withdrawl on your ATM card at 1 of the 2 machines. The exception would be around Semana Santa (week before Easter) and Christmas when the island is really busy and the machines seem to break or run out of money. IF both ATMS are down, then you can get the cash advance as a purchase at the stores noted above. As far as exchanging from US dollars, you may find it easiest to exchange a little of your currency to lempiras at the airport with the money exchangers there, just to use for food and cabs along the way, and then exchange the majority of your money while on island. We suggest coming with some some cash, and use the ATM as a back-up. You may also consider travelers checks (USD) in the form of American Express or Visa, but those are becoming less accepted as well. You will need your passport to change them
