Costa Rica is a magical country with lush rainforests, beautiful beaches, and active volcanoes. If you’re traveling there or planning to send money to Costa Rica, it’s best to understand the Costa Rican currency, the colón.
In this guide, we’ll explain what you should know about the colón, its history, and tips for exchanging US dollars (USD) for colones (CRC) in Costa Rica.
Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.
What is the currency in Costa Rica?
The currency of Costa Rica is the colón. It’s abbreviated as CRC and symbolized as ₡. Here are a few important facts to know about the currency:
- Issuing bank: The Central Bank of Costa Rica (Banco Central de Costa Rica)
- Year established: 1896
- Currency replaced: Costa Rican peso
- Circulating banknotes: ₡1,000, ₡2,000, ₡5,000, ₡10,000, ₡20,000,
- Coins: ₡1, ₡5, ₡10, ₡25, ₡50, ₡100, ₡500
- Subunit: Centimos
The colón has several security features that help make the currency difficult to counterfeit. These include raised printing, holographic elements, security threads, and watermarks.
History of the Costa Rican colón
Before becoming an independent country, Costa Rica was a colony of Spain for almost 250 years (1561 to 1821). Costa Rica used the Spanish real as currency for many decades. After gaining independence, the Costa Rican peso was introduced and circulated alongside the real.
In 1896, Costa Rica adopted the colón as its national currency. The colón replaced the peso at a one-to-one rate. Both currencies circulated together for some time. The colón gets its name from Christopher Columbus (in Spanish, Cristóbal Colón), the first European to visit Costa Rica in the 16th century.
Shortly after its introduction, gold colón coins denominated between ₡2 and ₡20 began circulating. At the time, the country’s central bank, Banco de Emisión, subdivided a colón into centimos and minted a silver 50-centimos coin.
Since then, various central banks in the country have managed the currency of Costa Rica.
| Central Bank | Years of operation | Notes |
| Banco de Emisión | 1884-1914 | Costa Rica’s first official bank |
| Banco Internacional de Costa Rica | 1914-1948 | Issued currency and served government and commercial banking needs |
| Banco Central de Costa Rica | 1950-Present | Established following the Costa Rican Civil War to stabilize the economy and currency. It adopted a floating exchange rate regime within a band, providing flexibility while managing volatility |
7 tips for exchanging US dollars for colones
There are a couple of things you should know to ensure you get a good USD to CRC exchange rate. Here are tips for exchanging or spending Costa Rican currency.
1. Research and compare exchange rates
To secure the best exchange rate and minimize fees for your Costa Rican colones, it’s wise to compare offers from multiple providers. Consider checking rates from banks, exchange kiosks, and online platforms like Western Union. Western Union often provides competitive exchange rates and transparent fees, making it a convenient option for obtaining colones.
You can easily get the most up-to-date USD to CRC exchange rate directly on Western Union’s website and compare that with other money exchange services.
2. Notify your bank ahead of traveling
Your bank is constantly monitoring your account for suspicious activity. If you don’t let them know of your travel plans before heading to Costa Rica, they may flag and freeze your account if you use your bank card in the country, thinking that it has been compromised. You’ll want to call your bank or go to your online account and tell them when you plan to travel to Costa Rica.
3. Avoid exchanging money at airports, hotels, and tourist areas
While exchanging money at the airport or your hotel might seem convenient, these locations often have less favorable exchange rates and higher fees. To avoid overpaying for Costa Rican currency, consider exploring other options.
Before your trip, you can research exchange rates and fees from various providers, including banks, authorized exchange bureaus, and online platforms like Western Union. This enables you to make an informed decision and potentially save money on your currency exchange.
It’s also crucial to be careful of unlicensed street vendors. Their seemingly attractive exchange rates can be misleading, and they might offer counterfeit banknotes or engage in other fraudulent practices. Stick to reputable providers like Western Union to ensure a straightforward and reliable currency exchange experience
4. Consider commissions and fees
Your exchange rate isn’t the only factor when converting USD to Costa Rican currency. You must also consider any commissions or fees you’ll pay your money exchanger.
Depending on where you exchange money, fees may include:
- Transaction fee: A flat fee charged per transaction.
- Commission: Money exchangers may charge you a commission for their services.
- Processing fee: Paying for goods and services with your credit or debit card could result in a processing fee.
- Dynamic currency conversion (DCC) fee: A fee for converting currency at the time of purchase.
It’s important to compare fees across different providers. Western Union is upfront about fees, enabling you to factor them into your decision and avoid surprises. This transparency helps you make an informed choice and save money on your currency exchange.
5. Withdraw Costa Rican currency instead of US dollars from ATMs
You may incur DCC fees if you withdraw USD from ATMs in Costa Rica. You’ll want to request Costa Rican currency when withdrawing from an ATM to avoid these fees. Opting for colones at an ATM is one of the best ways to exchange currency because it lets your bank handle the conversion, often at a better rate. It could also help you avoid additional fees associated with DCC.
6. Exchange money in Costa Rica instead of the US
As a rule of thumb, exchanging USD for CRC in Costa Rica is generally better than in the US. Doing so often leads to more favorable exchange rates and a wider selection of exchange services. You can bring USD, a debit card, or another form of payment into the country to exchange for Costa Rican money.
Remember that you can also utilize online platforms like Western Union to secure your Costa Rican colones before your trip or once you arrive. This provides added convenience and allows you to compare rates and fees from various providers, ensuring you get the best value for your money.
7. Use reputable exchanges
It’s crucial to choose a reputable and established provider to ensure you receive authentic Costa Rican currency and a fair exchange rate. Try to choose options like authorized exchange bureaus or reliable online exchange platforms such as Western Union.
Western Union offers added security benefits like transfer tracking, encryption, and Touch ID, providing peace of mind during your currency exchange. Additionally, Western Union has several agent locations in Costa Rica if you prefer in-person transactions.
Using money in Costa Rica
It’s important to know a few things when using the Costa Rican currency, including when to tip and whether you can use USD in Costa Rica.
Can you use US dollars in Costa Rica?
You may find some businesses in major tourist areas and cities like San José or Puerto Viejo accept USD. However, you could face a few issues when trying to use it:
- Not all merchants are required to accept USD
- You may receive a poor exchange rate from merchants
- If you can’t find a local money exchanger, it may be difficult to get the colones you need
It’s best always to carry some colones for your purchases or be ready to exchange your USD for them when possible. Fortunately, 150 Western Union agent locations across Costa Rica can help you exchange USD for CRC.
Tipping etiquette in Costa Rica
Historically, tipping in Costa Rica wasn’t common. But in the past several decades, tipping for many services has become more normalized. In restaurants, a 10% service fee is automatically added to the bill, and if you feel that you had great service, you can include an additional tip. For other services like taxis, tour guides, and hotel staff, tipping between 10 and 15% is appreciated but not mandatory.
Where to get Costa Rican colón near me?
If you’re in a major city, you’ll likely find a currency exchange near you in Costa Rica. You should have no issue exchanging USD for Costa Rican currency at ATMs, established banks, and currency exchange services like Western Union.
However, if you’re traveling off the beaten path in rural areas, you might find it difficult to exchange your dollars for colones, and you’ll want to bring some banknotes with you, so you aren’t stuck without a payment option.
FAQs
You can send money to someone in Costa Rica through an online or in-person exchange provider like Western Union, a bank transfer, or a money order. Before sending money to Costa Rica, you’ll want to check exchange rates and exchange service provider fees to ensure you’re getting the best value.
The CRC to USD exchange rate fluctuates daily, so you’ll want to get the most updated rate before sending money.
Yes, you can receive money from someone in Costa Rica in the same way you might send money to someone in the country. This includes online or in-person transfer services like Western Union, bank transfers, or money orders.
When you travel to Costa Rica, you can exchange money at local banks, currency exchange bureaus, or even online with exchange services like Western Union. ATMs can also convert your currency from USD to CRC if needed.
Yes, Western Union has numerous agent locations across Costa Rica where you can exchange currency or receive money sent from abroad.
