PAYING BY CREDIT CARD

Depends on your cards foreign exchange policy.  I generally use a “travel card” that charges no fees on foreign transactions. These usually run about 3% of the transaction.
I would think paying in USD on a regular card would incur no fees.

As Tripp789 said, it depends on your card! Check your card to see if you have foreign transactions fees, and if they apply to all foreign transactions or just those in other currencies. If you only pay the fee with conversion, then go with Canadian dollars. If you pay the fee regardless of currency, or your card doesn't have a foreign transaction fee, then it's almost always best to go with DOP and let your bank do the conversion.

hope you are using a credit card and not a debit card.. I did once and oh boy! the fees racked up in a heart beat...

ok my 2 cents.  Not sure if this is feasible for you but you might consider to open a bank account in Dominican Republic (not easy but worth it when its done).  In DOP.  Then move money from home into that account.  Now dont use an international credit card.  Use the debit card they give you for the account. No more fees except to transfer the money into your account in the first place.   We bank at Scotiabank and Banreservas.  Banreservas has alot lower fees.  Need to keep a balance of 2500 pesos but if you do not, they charge 50 pesos and its 50 pesos for each transaction.

I experimented with this at the grocery store and Amazon purchases.  In the beginning, I automatically hit the CAD option.  But then, I started paying attention to the exchange rate I was being charged, and my Visa Avion gave me a better rate, every time.  It may only be a few dollars at the grocery store, but it all adds up, so now I hit DOP every time.  Same with Amazon.  They offer a much worse exchange rate from USD or DOP to CAD than my Visa, so I purchase in the local currency.  All these fees add up, and it can be a death by 1000 cuts, as the saying goes.

Always pay in DOP.... the cards give better rates

Always pay in local currency (DOP) when using your credit card.  It doesn't matter if your credit card charges for exchange or not.  Let your credit card do the exchange and not the vendor you are buying from as the fees can be quite high.  I have paid as much as 9%.

You are in the DR and local currency is pesos, if you select USD with a USD card, the vendor still has to do a currency exchange from pesos, hence the higher rate.

When you select pesos the vendor doesn't do any exchange and then it is deferred to your card.  If you have a no exchange fee card like I do then you get a current exchange without paying the usual 3% fee.

goinforit wrote:

When paying by credit card you are given the option of paying in DR pesos or Canadian dollars.
Just wondering what is the best choice in order  to be cost effective ?

In my experience using my Dominican Credit card in places with other currencies that is not dollars, is better to pay in local corrency, so the intermediation to get the Canadian Dollars will be made by your Bank.   I was in transit in Colombia and my purchase at the airport they asked me and i said charge in Colombian pesos, and the conversion into Dollars in my next statement was slaily lower than the amount they was charging in dollars.

@UncleBuck Agree I use and selection Peso vrs dollars, the local banks here now will add  a up to 5% guarantee conversión rate but I always save using and selecting peso

i have a chase credit card on file w/all my utilities , now my payments for the month aren’t a lot but the transfer “exchange rate”fee from chase came to $2.89  for the month for all the bills combine 😏can’t get too excited about it …when I’m in the stores or restaurants i pay in pesos , i don’t want anyone getting hold of a debit or credit card # especially in a third world country….

@Tippj this developing country has so much to offer.

Additionally, I use my Fedility Investment debit cash card. no ATM fees local or international, no fees for international wires, up to 2000 ATM withdraw daily. Ino fee for conversion and i use selected PESO at ATMs t's been a life save for me.

Silly question perhaps....but is choosing CAD worse than USD because the basic exchange rate is generally worse for CAD? Or does that matter at that point? My card has no foreign transaction fees and we are American. But I didn't realize that no FTF didn't negate exchange rate fees. Or are they one and the same?

I don't think ATM will give you that option. Regardless choose local currency

I've never heard of an “exchange rate”  fee, only foreign transaction fees. We make sure the cards we use here don't have FTFs. The FTF is applied regardless of the currency selected. its based on the location of the merchant.

I think the options when you use a credit card are local currency and the home currency of the bank that issued the card. Using local currency is always better!

I chose DOP over USD at Jumbo yesterday. Choosing US would have been $75 and change. After choosing DOP, the text alert I received alerting me of the transaction, was $66. Robert says maybe it works that way cause the grocery and other stores aren't in the business of selling or exchanging money.  So, there are no profits built in for that part of the transition?

I always use our BDH Leon debit card for most purchases as I deposit monthly from Canada. If I need to use my debit or credit card from Canada I do so without hesitation as I found during the first 3 years here the exchange rate is not worth the worry. I only use my USD account (from Canada) when I fly with stopovers in the US. As I said, for me, I found rates very reasonable & they still are as I just had to use my Cdn card the other day - house construction brings unexpected/unplanned expenses sometimes!!

I usually choose dollars over pesos. The rate i get is usually .5 - 1 peso better. The exchange rate is bases on the posted date not the sales date. Which can be a few days later.

In local places I use cash to avoid the 18-28% tax.

Stores will have a bad exchange rate, in their favor, to avoid exchange rate risk and for convenience. As posted by many use local currency on your cards.