Paying for goods and services in Palau feels straightforward, as the US dollar (USD) is the official currency. This eliminates the hassle of currency conversion, making budgeting for activities like diving seamless.
Travelers should prepare to use cash for smaller purchases, especially in rural areas. While cards are accepted in urban centers, having USD on hand ensures smooth transactions during excursions and local experiences.
Live Palau exchange rates
Exchange rates for the Palauan dollar (USD) fluctuate daily. Use the to check live rates before withdrawing cash or exchanging money. This helps you avoid poor rates at local exchange counters and plan your withdrawals to minimize ATM fees.
Currency Basics: Palau
| Currency Name | United States Dollar |
|---|---|
| ISO Code + Symbol | USD ($) |
| Issuing Bank | Federal Reserve System |
| Coin Denominations in Circulation | 1¢, 5¢, 10¢, 25¢, 50¢, $1 |
| Bill Denominations in Circulation | $1, $5, $10, $20, $50, $100 |
| Current Series in Circulation | Federal Reserve Note Series |
The current series of US dollar notes features various security elements. The $5 note has a security thread and a watermark, while the $20 note includes a color-shifting ink feature. All denominations have microprinting and a distinct texture that can be felt when handled.
Inspect $20 and $100 bills carefully, as they are more commonly counterfeited. In Palau, it’s customary to handle notes respectfully; crumpled or torn bills may not be accepted in transactions.
How Payment Works in Palau
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In Palau, tourists can rely on credit and debit cards in urban areas, but cash remains essential for many transactions. While major hotels and restaurants accept cards, smaller establishments and local markets often do not, making cash a necessity for a seamless experience.
Foreign cards are generally accepted in the main tourist areas, but travelers should be aware of potential fees and limitations. For the best experience, withdraw cash from ATMs upon arrival to cover expenses in less accessible locations.
Where you need cash
| Situation | Why cash-only |
|---|---|
| local markets | Many vendors operate without card terminals, relying on cash transactions for efficiency. |
| tuk-tuk rides | Drivers typically prefer cash, as they may not have the means to process card payments. |
| small guesthouses | Many family-run accommodations do not have the infrastructure for card payments. |
| entrance fees to natural parks | Some parks only accept cash, as they lack the technology for electronic payments. |
| transportation to outer islands | Ferry services often require cash for tickets, as card processing is not available. |
Where cards work
| Situation | Caveat |
|---|---|
| hotels and restaurants in Koror | Some establishments may impose a minimum spend requirement. |
| tour operators | Expect a surcharge of around 3% for card payments. |
| larger retail stores | Foreign cards may incur additional foreign transaction fees. |
| dive shops | Availability of card payment can vary; confirm before booking. |
| gas stations | Not all stations accept cards; cash is safer for fuel purchases. |
Card network acceptance (Visa, Mastercard, Amex, UnionPay)
| Network | Coverage | Surcharge |
|---|---|---|
| Visa | Widely accepted in urban areas and tourist spots. | Typically 3% on transactions. |
| Mastercard | Commonly accepted at hotels and restaurants. | May incur a 3% fee. |
| Amex | Limited acceptance; primarily at upscale locations. | Higher fees may apply. |
| UnionPay | Increasingly accepted at select locations. | Check with the merchant for acceptance. |
Digital wallets
| Wallet | How tourists can use it |
|---|---|
| Revolut | Tourists can set up an account online and use it for currency exchange and payments without needing a local bank. |
Wallets that don’t work for tourists
| Wallet | Barrier |
|---|---|
| WeChat Pay | Requires a local bank account and Chinese ID for activation. |
| Alipay | Activation requires a local bank account and identification. |
Wise vs Revolut in Palau
When considering multi-currency cards, Revolut stands out for its favorable exchange rates and low fees at local ATMs. Withdrawals are free up to a certain limit, and the exchange rate is competitive. Wise also offers good rates but may have limitations on local currency support, which can affect transactions in Palau. Both cards are useful, but Revolut is generally more accessible for tourists looking to manage their spending effectively.
ATMs & Currency Exchange
Best ATMs for foreign cards
| Bank / ATM | Why use it | Fee note |
|---|---|---|
| Bank of Guam | Dispenses US dollars directly, widely available on main islands, reliable foreign card acceptance | Flat withdrawal fee around $3; no additional local fees |
| BankPacific | Also dispenses US dollars, strong presence in Koror, supports Visa and Mastercard well | Flat $3 withdrawal fee, no hidden charges |
| Citibank Palau Branch | Good network reliability for international cards, located in Koror city center | Standard $3 fee applies; no surcharge for foreign cards |
ATMs to avoid
| ATM type | Why to avoid |
|---|---|
| Standalone ATMs at convenience stores | Higher fees, occasional reliability issues, limited cash availability |
| Airport exchange counters with ATM function | Poor exchange rates, frequent double fees, and no local currency option prompt |
Withdrawal strategy
Withdraw $200 (USD) per transaction at Bank of Guam or BankPacific ATMs to minimize the flat $3 fee impact. These ATMs dispense US dollars, so no conversion loss occurs. Avoid multiple small withdrawals since fees are per transaction. Withdraw once on arrival and top up only if cash runs low, as rural ATMs are scarce and may be offline.
Dynamic Currency Conversion — always decline
ATMs in Palau always prompt to choose between ‘US Dollar (USD)’ and your card’s home currency. Always select ‘US Dollar (USD)’ to avoid Dynamic Currency Conversion (DCC) fees. For example, the screen will say: ‘Withdraw in USD or your home currency? Press 1 for USD, 2 for home currency.’ Choose option 1 every time.
Skimming & card fraud
High-risk ATMs include those at Koror’s main tourist strip and standalone machines in convenience stores. Check for card slot wobble, keypad shielding, and hidden cameras before use. Avoid using ATMs late at night or when alone. Bank of Guam and BankPacific ATMs inside bank branches have lower skimming risk.
Currency exchange
| Where | Why it works |
|---|---|
| Bank of Guam exchange counters | Offers fair rates, no commission, and uses official USD currency |
| BankPacific counters | Transparent fees and reliable service, located in Koror |
Exchange counters to avoid
| Where | Why to avoid |
|---|---|
| Airport exchange booths | Poor rates and high commissions |
| Hotel front desk exchange | Significantly worse rates and added fees |
How much cash to carry
Carry $50 (USD) in cash daily for markets, local transport, and small vendors outside Koror. Keep an additional $150 in a secure stash for emergencies or rural trips where ATMs are unavailable. Dive shops and hotels accept cards, but locals prefer cash for taxis and small purchases.
Emergency backup
Bring two cards: one Visa or Mastercard for Bank of Guam ATMs, and a backup card stored separately. Keep $100 USD emergency cash hidden in your luggage. If a card is blocked, contact your bank’s emergency line immediately and use Wise or Revolut apps to freeze cards instantly. Avoid calling home before confirming local bank support options.
Scams, Safety & Cash Handling
Common money scams in Palau
Taxi meter manipulation
How it works: Some taxi drivers turn off or reset meters mid-ride, then demand a flat fare much higher than the meter reading.
How to avoid: Always insist the meter stays on from the start. If the driver refuses, get out and find another taxi or agree on a fare upfront before entering.
Wrong-change trick
How it works: Vendors or drivers give incorrect change by shortchanging travelers, often in busy markets or at transport stands.
How to avoid: Count your change carefully before leaving the counter. Use small bills to simplify transactions and avoid confusion.
Fake police money inspection
How it works: Scammers posing as police request to inspect your money for counterfeit bills, then pocket some cash or demand a bribe.
How to avoid: Ask for official identification and refuse on-the-spot money inspections. Report suspicious officers to your embassy or local authorities.
Exchange sleight of hand
How it works: Currency exchangers at airports or tourist spots swap bills during the transaction, giving less than agreed or fake notes.
How to avoid: Use ATMs to withdraw local currency on arrival. If exchanging cash, count bills in front of the clerk and avoid crowded exchange counters.
Currency confusion (mixing denominations)
How it works: Some vendors confuse travelers by mixing Palauan dollars with US dollars or using similar-looking bills to overcharge.
How to avoid: Palau uses the US dollar (USD) exclusively. Confirm prices clearly in USD and familiarize yourself with US bill designs to spot fakes.
Transport surcharge bait
How it works: Minivan or boat operators add unexpected fees after the ride, claiming fuel or port fees not disclosed upfront.
How to avoid: Agree on the total transport cost before departure. Request written or digital confirmation if possible and avoid operators who hesitate to confirm prices.
Anti-theft carry method
Use a neck wallet under your shirt in Palau. Tourist areas and dive shops are low-risk, but crowded markets and ferry terminals attract pickpockets. A neck wallet keeps cash and cards close while allowing quick access for payments without exposing valuables on the beach or boat.
The three-wallet system
Carry a dummy wallet with small US bills ($1-$5) and a few coins for low-value transactions or as a decoy if targeted. Your day wallet should hold $20-$50 in small bills and cards, kept in a front pocket or inside a dry bag during water activities. Store passports, extra cash, and backup cards in the hotel safe, as ATMs outside Koror may be unreliable.
Tipping in Palau
| Situation | Amount | Local norm |
|---|---|---|
| Restaurant/sit-down dining | $2–$5 (USD) | Tipping is appreciated but not mandatory; avoid rounding up excessively or tipping in coins. |
| Taxi or private driver | $1–$3 (USD) | No tipping expected; over-tipping can cause confusion or encourage inflated future fares. |
| Hotel staff (porter/cleaner) | $1–$2 (USD) per day | Do not tip if a service charge is included in your bill. |
| Tour guide or day trip guide | $5–$10 (USD) | Avoid tipping before the tour; tip only if service meets expectations. |
| Massage or spa | $2–$5 (USD) | Tipping is optional; do not tip if a service charge is already included. |
Cash handling quirks
Palau uses US dollars exclusively. Vendors prefer clean, crisp bills; torn or heavily worn notes may be rejected. Small denominations ($1, $5, $10) are essential for markets and transport, as large bills can be hard to break. Change can be scarce at small stalls and boats, so carry exact change when possible.
Bargaining
Bargaining is common at local markets and for boat charters or minivan rides, with a typical margin of 10-15%. Avoid negotiating at fixed-price venues like hotels, dive shops, and supermarkets, where prices are non-negotiable and haggling is considered rude.
Quick Reference
5 money rules for Palau
- Withdraw Palauan dollars (USD) from ATMs at Koror International Airport on arrival; the fixed $3.50 fee per withdrawal makes taking out larger amounts more cost-effective.
- Use credit and debit cards for hotels and restaurants in Koror, but carry cash for rural islands and local markets where card acceptance is rare.
- Avoid exchanging money at local exchange desks in Koror; their rates are worse than airport ATMs and banks like Bank of Guam.
- Carry small USD bills ($1, $5, and $10) for taxis, market purchases, and tips, as change is often limited outside major hotels.
- Declined cards often result from lack of chip-and-PIN support on Palauan terminals; use cards with magnetic stripe fallback or notify your bank beforehand.
| Daily cash to carry | 50 USD (~50 Palauan dollars, USD official) |
|---|---|
| Typical ATM fee | 3.50 USD flat per withdrawal at Koror airport and local ATMs |
| Standard tip % | 10% tip is customary in restaurants; tipping taxi drivers and guides is optional but appreciated |
| Best foreign card | Wise card – no foreign transaction fees and widely accepted at Palau’s ATMs and merchants |
| Worst money mistake | Relying solely on cards outside Koror, where many vendors and transport options accept only cash |
| Best wallet app for tourists | Revolut – supports offline card use and quick top-ups, useful given Palau’s spotty internet in remote areas |
| Must-carry denomination | 10 USD bills cover most small purchases, transport fares, and tips |
A local bus ride costs about 5 USD [ESTIMATE], so 5- and 10-dollar bills handle most transport payments without needing change. Street food and market snacks generally run 3 to 7 USD [ESTIMATE], making 1- and 5-dollar bills essential for quick transactions. Small souvenirs often cost around 10 to 20 USD [ESTIMATE], so carrying a few 10-dollar bills avoids overpaying or waiting for change.
Frequently Asked Questions
1Should I exchange Palauan dollars before arriving or after landing?
Palau uses the US dollar officially, so exchange before arrival if you want USD bills. Otherwise, withdraw cash at Koror International Airport ATMs for better rates and convenience than local exchange counters.
2Is tipping expected in Palau?
Tipping 10% at restaurants is standard. Taxi drivers and tour guides do not expect tips but appreciate small amounts. Cash tips are preferred since card terminals rarely add gratuity options.
3What should I do if my card is blocked or declined?
Palauan ATMs often lack chip-and-PIN support, causing declines. Contact your bank immediately to enable magnetic stripe fallback or use a different card. Carry backup cash to avoid disruption.
4Can foreign currency (USD, EUR, or other) be used directly in Palau?
Palau uses the US dollar officially. No need to exchange currency if you already have USD. Other currencies like EUR are not accepted and must be exchanged to USD before arrival.
5How much cash should I carry for a typical day?
Carry about 50 USD daily in small bills to cover transport, meals, and tips, especially outside Koror where card acceptance is limited.
6Are ATMs safe to use at night in Palau?
Koror airport and city ATMs are generally safe but poorly lit at night. Withdraw cash during daytime hours or inside bank branches like Bank of Guam for added security.
7Which app should I install before arriving?
Install Revolut for easy card top-ups and offline payment capabilities, essential for Palau’s limited internet connectivity in rural areas.
8What if I only have large-denomination bills?
Large bills ($50, $100) are often refused at small shops and markets. Exchange them for smaller denominations at banks or withdraw smaller bills from ATMs to avoid payment issues.