Payment methods in Dominican Republic

Priscilla wrote:

Hello everyone,

Once youre settled in Dominican Republic, you will need to make some basic purchases, like groceries or pay bills. Hence, it is essential to know the payment methods available in your host country.

Which are the most common payment methods in Dominican Republic? Why would you prefer some forms over others?

Does the amount of money or the type of paid services (groceries, bills, rent, etc.) determine the choice of payment methods?

Are there any apps at your disposal which make the payment process easier in Dominican Republic?

Can certain foreign currencies be used to make payments?

Have your habits in terms of payment methods changed since moving to the Dominican Republic?

Thanks for sharing your experience,

Priscilla

1.- Credit Card and debid cards are the most used, in my case I have Mileageplus United Airlines credit card and earn miles with my local spences and extend the expiration of my miles in every purchase.

2- Less than 100.00 pesos must be paid in cash in almost of the places.

3.- All bigest banks they have apps that you transfer money into other accounts for payments.

4.- Yes, American Dollars and Euros accounts can be used for payments into same kinc of account  currency if you are paying into a diferent bank.    If your payment is into a product under your name and same bank like Credit Card in Dollars you can pay the dollars from your pesos account, the bank make the coversion from pesos into dollars.

5.- Im Dominican so can not answer your last question.

Hope this can help you.

I always keep around $5000 ($100 Usd) in cash on me. I find that paying cash gives me better bartering power. Also, some of the restaurants add 18% on the bill when using a credit card. Supermacardos, gasoline, and major purchases I always use a credit card.

This ^^^  When we are in LT I always carry a good amount of cash, but not too much. $100 US is usually good for us since we are on vacay and eat at restaurants quite a bit, although the first thing we do is hit the Supermercado  :0)  Cash is cheaper and locals appreciate it.  CC's for big purchases for some purchase protection.

Also, I don't believe I would carry a debit card. Too much exposure if it is stolen somehow.

Without doubt I use credit and debit cards much less in DR and indeed anywhere in the Caribbean islands. I use cash for virtually all my transactions except hotel billing and air travel plus online bank transfers for some other payments to utilities, for rent etc.

It means more use of the ATM for withdrawals and less anxiety that ones card may be fraudulently used and you find out at the months end. Plus of course surety of your monthly budget.

It also speeds up transactions at the till especially at the gas station.

Ok we are still old school and cash is king. I have local bank accounts and use my debit card in all big stores, gas stations etc outside of tourist areas.

I use banco popular platform to pay all my bills. There is no regular bill I have that I cannot pay online. 

In smaller shops cash is almost exclusively used.

Do not use foreign money for purchases the exchange rate will add a significant cost to you!  Exchange in an exchange house, western union or bank first!

When you need to purchase something like food clothing and daily living items in the DR you will need pesos.. Foreign currency is not acceptable except at official money exchange locations..
If you have a debit card from your country and they have reciprocity relationship to a bank in DR you may be able to use a Visa debit card at some designated banks.. Although there are ATM machines in location such as department stores, Malls, shopping plazas, ect.. the bank that affiliates with your foreign bank may give the lowest rate per withdrawal against your money back home.. Another reason to use the bank is the security aspect and the possibility of fraud using isolated bank machines..
Some businesses have bankcard machines that you can use for purchasing or services.. Before sitting and ordering something that requires cash only make sure you have cash to pay and not that you expected to pay by bank card when the option does not exist with that business..
Generally there is a cap on the amount of cash you can withdraw from a foreign account daily. However that can be negotiated between you and your bank.
Pay pal accounts may be used but in DR another company name is also used
Moneygram and Western Union and Caribe Express transfer money requiring cash or bank card at the point of transaction.. Depending on the type of service you pay for transactions my be instantly available or next day or longer..
Carrying large amounts of cash are not advisable and understanding the currency, it's spending value, per local interpretation and use is part of the learning process all should undertake while living in the DR.

Foreign currency is often readily acceptable.  Your comment is not correct. However,  the exchange rate offered will often be really bad!   

Paypal is  used here - you can connect it one way with all banks. You can connect it both ways ONLY with Banco Popular currently.  They have the monopoly on that one.

Yes Western Union  is big big business here and they are everywhere! Caribe Express is lesser known but equally useful!

You make a great point -  learning the exchange rates and the buying power is critical to living here!

planner wrote:

Foreign currency is often readily acceptable.  Your comment is not correct. However,  the exchange rate offered will often be really bad! 

You make a great point -  learning the exchange rates and the buying power is critical to living here!

Yesterday I was in Jumbo in San Pedro and infront of me there was a group of tourist they paid with US Dollars and the cashier told them the exchange rate was 49.00 x 1,  2 pesos and some cents less than oficial exchange rate, if at some point that your case better go to exchange house and get pesos there before go to buy anything.

Agreed.  But sometimes its not practical or someone is in a hurry. Point is they will take your US dollars and usually your Euros and Canadian dollars in tourist areas.

I am a relative newbie in the DR but the way I use cash and credit has not changed much.  The biggest change I have made is the selection of credit cards I use and I never use my debit card.  Many of my cards and my debit card have a 3% foreign transaction fee.  Accordingly, I use my Chase and BofA Travel cards both to garner points and avoid the foreign transaction fee.  I have found not only do I get my points for purchases but I can keep track of my daily and monthly expenses much better.  Since I get paid in U.S. dollars it is much easier to monitor my expenditures in that currency.

I do have a Banco Popular checking account that is funded directly through a monthly automatic deposit of a portion of my social security check.   However, I only use this account when I need some cash on hand and I never carry more than 5k pesos but even in the states I never carried more than $100.  Also, like at home, I do have a small stash of cash (pesos) in the house to keep me from going to the ATM frequently.  I also have discovered that my Banco Popular account gives me a much better interest rate on my deposits than I could ever get in the U.S.

Great info. Thank you!

Cash, cash and more cash.  My wife's BanReservas credit card was "used" in Santiago during a trip we made to the US.  BanReservas refused to refund the charges so we totally stopped using credit cards for now. 

Previously I had used my US based cards in the DR and they were cloned twice.  My US bank did refund the charges I did not make both times. 

So we use cash, cash, and cash.

The same thing could happen where ever you are. That is why I use my US based cards exclusively because they will refund the amount of the unauthorized charges.    I also use my alerts from my card issuer to verify every purchase.  I stopped carrying cash since I was 16 years old.  I had just gotten paid and I cashed my check to buy something to eat.  As I was leaving the sandwich shop I was bump.  I didn't think anything of it until I went to take the train home and went to get my wallet.  Sure was shocked when it wasn't there.  At 16, my real first job, my first real paycheck after 3 weeks of work and it was gone in less than 60 seconds.  I stopped cashing my check right away and stopped carrying more than $10 in my pocket.  I remember the check was only for like $83.00 but but back then I felt rich!  I learned my lesson quick.  I have been like that ever since.  The schemes are more advanced now but the game is still the same!

I use online banking as much as possible. I use my DR debit cards here in specific locations, everything else is cash.

Not all places take credit - so you need cash lots of times

Robbing -
2 girls from Cabrera were just robbed in Bavaro
Snatch & Run type....their purses
on their way to deposit for their new apartment....lots of $$$

Wow!

I have a better one for you

A couple living in Cabrera decided to leave...back to the US

They called a mover, packed up all their stuff
Mover says $10,000US.... see you at 7:30 tomorrow AM

Couple gets the $10,000, all ready
Out for dinner the Friday night... ByeBye dinner

Come back to find they've been robbed
The $$, passports, the works !!!!

No passport, no leave country !! huh?

She has close to a mental breakdown....
But who would separate themselves from $10K !!???

and you think the mover hasn't pulled that stunt before

$10k at 7:30AM.....on a Saturday morning

I never did hear the outcome........
but they are gone - like snow in July

When it comes to foreign exchange.. I have personally tried to stick to the safest institutional methods due to the exposure of my financial affairs when it comes to transaction between dollars or euros and businesses. I have on occasion done personal and exchange transactions with friends and family at the going rate.. People I know.. My thought was one of  concern that a new comer ( asking such a question) not take for granted that paying in foreign currency is the norm as I had Indian Rupees in 2016 and I could not get them exchanged in DR at any of the exchange points. So it depends also on what foreign exchange you are in possession of...

Because of the road side possibilities I keep change of 1000/2000 peso.. Use online banking and have yet to open a DR account.. I would like to sell water in the future and will open an account for that to pay workers but a bank card and random visits to the bank of choice makes me more thrifty and secure in the moment..

The exchange for $$CAD is notoriously bad
RD prefers $$US
Euros and UK pounds are good too

For UK trips, my local man gets me a few hundred pounds

I had a Banco Popular account and it was not that good service I got there .
I went to Banco leon they are now Part of BHD . And their Service has been very good .
At BR I made the most horrible Experience their service several Times has been a real pain ..
The last years Requirements for Bank Accounts have changed a lot . Now in Days they do a Background check and a credit check but so or so a Foreigner needs an Dominican  Guarantor and recommendation from 2 Dominicans . For Biz Accounts the Requirements are even higher .
I get Money send directly to my Bank Account in US $ take it out there and change it because at the Bank it is also worst Course you get for your money . It is going a lot better with Bank transactions . 10 years ago there have been lot less options and I had cases that Money simply disappeared , that has been wit Banco Popular . Be careful  paying  by Credit/Debit Card at Restaurants , Gas Stations , and Stores . Because this are the Places where Credit cards go copied and they take Money from Your Account . Going to free standing ATM : Allways check where you put your Card in and where you put your Pin . I never walk around with all Money together I have it split . After I left North Coast I had never ever again a Problem that they did try to rob me but my Ex-wife got attacked  3 Times but only for the Phone. So be carefull everytime !

planner wrote:

I use online banking as much as possible. I use my DR debit cards here in specific locations, everything else is cash.

I do the same, specially when the amount to pay has cents,  that way the supermarket has to charge me the exact amount with the cents, paying cash a lot posibilities that I lose those cents and the supermarket keep it for them.   No body here wants to rule about not use cents if they are no able to have the change in cents.

Wow I  just dont care about "cents".  I find it amusing to be given a "chiclet" insteas of a peso.

And many places require a minimum to use their  debit card or charge card system.  Fees on charge cards here are huge.

planner wrote:

Wow I  just dont care about "cents".  I find it amusing to be given a "chiclet" insteas of a peso.

2 years working in a big chain store in Santo Domingo make change my mind about it, they pocket very big amount of money with the change game  with the cents..

only a Sample . At Jumbos Las Colinas has 2500 clients on everage 365 Days a Year this makes                     
912500 Clients per Store and only put it by 10 is 9 125000   an average on Cents they cash in 46 Pesos makes  4 Milion 197500 . TAX FREE! and this is low Numbered . That is why I only pay with my debitcard it does not cost me a Dime and sometimes get till 5% off  and pay on the Cent . It has been that the had 3 Chiclets for 1 Peso , now it is 1 Chiclet 1 peso  we do not talk about Cent anymore some Colmados and Minimarkets do it round till the next  10 this Way sometimes they get 3 to 4 pesos . It is a Jackpot for a Biz like Colmado . My Colmado at least 2 times a year does a Rifa and this Way some money comes back . The Supermarkets till go to sell you Numbers for their Rifa this Way making extra Biz . And this is what makes Things worst . people who get good money from the States having 2 till 3 K in Cash and go : ' oh boy why I di fight for cents"  Or going to a Restaurant or bar and leave 500 or 1000 Pesos Tip . The People who see that will think you have too much money . And this is what makes many Think : "all gringos are rich"! And if they go and take advantage of them you can see in the news : The DR full of Scam and Thief's nobody ask who made this happen . It start's with small Things.......

FYI
Canada did away with pennies - years ago

They round up/down....  seems to work well

WillieWeb wrote:

Not all places take credit - so you need cash lots of times

Robbing -
2 girls from Cabrera were just robbed in Bavaro
Snatch & Run type....their purses
on their way to deposit for their new apartment....lots of $$$

TGhe girls have returned -- broke & broken hearted

The story is worse than I reported

It was at GUNPOINT...
each girl had a gun in her ear while they stole the purses

One is street smart... they had their phones and cedulas in their pants

Tourist areas... dangerous

I wonder who knew they were carrying a lot of cash to pay the rent deposit? Always makes me wonder when this type of thing happens. Often not a coincidence.

On another note an article in Dominican Today says MasterCard has been secretly working in a new payment platform and cashless system.  Interesting!  That will be a tough one here where transactions are tightly controlled.

I am asking that question
They went straight to the landlord.....and didn't/don't suspect him

May have been random
but a morning robbery.....doesn't sound right

I wonder who they knew  and may have casually mentioned it..... you know how things spread here.  Landlord was not my first thought at all.