Using a credit card in Bhutan
Hiking the Himalayas? Here's how to get the best out of your credit card and your cash on holiday in Bhutan.
As an enchanting destination nestled in the Himalayas, Bhutan offers a unique cultural experience and breathtaking sites. If you’re planning a trip to Bhutan, knowing how to navigate the local financial landscape is important.
While Bhutan primarily operates on a cash-based economy, the use of credit cards is gradually gaining popularity. In this article, we’ll provide you with a comprehensive guide on using a credit card in Bhutan, including acceptance, fees, currency considerations and essential tips to ensure a smooth financial experience.
Acceptance of credit cards in Bhutan
Credit cards aren’t widely accepted in Bhutan, particularly outside major cities and tourist areas. It’s recommended to carry sufficient cash to cover your expenses, as many establishments prefer cash transactions, including small shops, local markets and rural areas. If the establishment takes credit cards, Visa and Mastercard are the most commonly accepted credit card networks in Bhutan.
Currency and exchange rates
The official currency of Bhutan is the Bhutanese Ngultrum (BTN). It’s advisable to exchange your currency for BTN upon arrival in Bhutan, as local businesses primarily deal in cash. Foreign currency exchange services are available at banks and authorised exchange counters in major cities like Thimphu and Paro. It’s important to know the current exchange rates and any associated fees to get the best value for your money.
What about fees?
Before using your credit card in Bhutan, familiarise yourself with the fees and charges associated with your card. These may include foreign transaction, currency conversion and cash advance fees. Contact your credit card issuer to understand the specific charges that may apply while using your card in Bhutan.
Cash machines in Bhutan
ATMs in Bhutan are limited and mostly concentrated in urban areas. While some ATMs accept international cards, carrying enough cash is advisable, as you may not always have access to an ATM. Cash advance fees and higher interest rates often apply to credit card withdrawals, so it’s recommended to use ATMs as a last resort.
The table below serves as an example of how much extra you may pay to use your credit card in Bhutan.
Additionally, you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
What is a cash advance fee?
A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.Is it safe to use my card in Bhutan?
To ensure the security of your credit card information while in Bhutan, consider the following precautions:
- Keep your credit card in a safe place and report any loss or theft immediately.
- Be cautious when using your card online and only make purchases from reputable websites with secure payment gateways.
- Regularly monitor your credit card statements for any unauthorised transactions and report them promptly to your issuer.
- Get cash out at a reputable ATM – e.g., a bank – and watch out for skimmers. If you feel the card slot is not as smooth as it should be or there’s a problem with the keypad, cancel your transaction and look for another ATM.
How to prepare before traveling to Bhutan
- Get a credit card without foreign transaction fees. Travel cards usually come with no foreign transaction fees.
- Opt for a Mastercard or Visa. They’re more universally accepted in Bhutan.
- Get a backup card. This is particularly useful if something happens to your primary card. With a backup card, you’ll never be caught without money.
- Get some cash. If you cannot pay by card, cash is a fail-safe option, especially as most establishments outside major cities are cash only.
- Notify your card issuer. This way, you’ll avoid your card from being flagged for suspicious activity and prevent the bank from blocking your card.
- Get your bank’s phone number. In case you lose your card or have other issues with your account whilst in Bhutan, you can quickly call your bank and sort it out.
Bottom line
While Bhutan remains primarily a cash-based economy, credit cards can offer some convenience in certain establishments in urban areas. However, it’s crucial to carry sufficient cash as a backup, and be prepared for limited credit card acceptance. By understanding the local financial landscape, fees and security measures, you can navigate Bhutan’s unique financial system and have a pleasant and worry-free experience during your visit to this extraordinary kingdom.
Compare cards with fee-free currency conversion in Bhutan
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Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
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