Cash vs Credit Cards: Which One is Better to Use in Bali?

Illustration of Cash vs Credit Cards, photo by Ahsanjaya on Pexels

As you prepare for your adventure in the island paradise of Bali, the crucial question looms: should you rely on cash or trust in the convenience of credit cards? Which one is better to use in Bali?

The choice between these two payment methods can significantly impact your travel experience. In this guide, we’ll delve into the advantages and drawbacks of both options, helping you make an informed decision tailored to your specific needs and preferences. So, whether you’re strolling through vibrant markets in Ubud or lounging on the pristine beaches of Seminyak, let’s embark on this financial exploration to ensure your Bali getaway is unforgettable and financially savvy!

Basic Understanding of the Local Currency in Bali, Indonesia

Indonesian Rupiah, photo by Robert Lens on Pexels

Getting to know the currency in Bali, Indonesia, is a key step in ensuring a smooth and enjoyable trip. The official currency is the Indonesian Rupiah (IDR), symbolized as Rp. 

Familiarizing yourself with the different denominations and exchange rates will make your transactions in markets, shops, and restaurants a breeze. Let’s take a closer look at the basics of the Indonesian local currency and rules regarding bringing money from abroad, so you can make the most of your adventure and holiday.

How Much Cash Can I Bring into Indonesia and Bali from Abroad?

It’s essential to be aware of the regulations regarding the amount of cash you can bring with you. The Bank of Indonesia, the country’s central bank, enforces strict regulations on the amount of foreign currency that can be brought into the country. Travelers entering Indonesia are required to declare any amount exceeding the equivalent of 100 million Indonesian Rupiah (IDR) or its equivalent in foreign currency.

What is The Exchange Rate of Indonesian Rupiah?

The exchange rate of the Indonesian Rupiah can be influenced by two primary factors: the official exchange rate set by the government and the market rate, which fluctuates based on supply and demand in the foreign exchange market. While the official rate is generally more stable, travelers often encounter the market rate when exchanging currency.

In rough estimation, IDR 100,000 equals:

• 10 Australian Dollar
• 7 US Dollar
• 8 Singapore Dollar
• 6 Euro
• 5 Pound sterling
• 530 Indian Rupee
• 10 Malaysian Ringgit

Cash vs Credit Cards: Which One Should You Use?

Illustration of Credit Cards, photo by Tim Samuel on Pexels

When it comes to managing your finances while exploring the enchanting island of Bali, the choice between cash and credit cards can significantly impact your travel experience. Each method comes with its own set of advantages and considerations, making it essential to weigh the pros and cons. Here’s an in-depth exploration of whether cash or credit cards are the better choice for your Bali adventure.

Pros of Credit Cards

• Convenience and Security: Credit cards are secure and convenient, reducing the need to carry large sums of cash.
• Widespread Acceptance: In established businesses, hotels, and restaurants, credit cards are readily accepted.
• ATM Withdrawal as Backup: Credit cards can be used to withdraw cash, also known as ‘cash advance’ from ATMs if needed, offering you a backup option.
• Rewards and Travel Benefits: Some credit cards offer rewards, cashback, or travel insurance, providing additional benefits.

Cons of Credit Cards

• Potential Fees: Foreign transaction fees or ATM withdrawal fees may apply, impacting the overall cost of using credit cards.
• Dependent on Technology: Card readers or EDC may not always be available, and you may encounter issues in areas with poor internet connectivity.
• Exchange Rate Variability: The exchange rate applied by your bank may not always be as favorable as local exchange services.

Pros of Cash

• Widespread Acceptance: Cash is universally accepted in Bali, thus making it easier for you to make transactions, especially in smaller establishments, markets, and for services like taxis and street vendors.
• Avoiding Fees: You won’t encounter any foreign transaction fees or potential issues with card acceptance. Although rare, by using cash, you can avoid getting caught in the card skimming. Although it is a bit small margin, you can avoid sudden exchange rate fluctuations.
• Budgeting Control: With cash, it’s easier to stick to a budget, avoid buying unnecessary stuff, and manage your expenses, as you can physically see how much you have left.
• No Dependency on Technology: You won’t face issues with card readers, internet connectivity, or potential card malfunctions.

Cons of Cash

• Higher Security Risks: Carrying a large amount of cash can be risky, especially in crowded places or tourist-heavy areas. Make sure to carry your cash in separate places, to avoid not having any money when getting pickpocketed.
• No Electronic Record: Transactions made with cash do not leave a digital trail or transaction history, which can be inconvenient for tracking expenses or for reimbursement purposes.

Ensure to Carry a Mix of Cash and Credit Cards

Opting for a blend of cash and credit cards presents a versatile financial strategy for your journey in Bali. Cash offers immediate accessibility and is indispensable for transactions with local vendors, markets, and small-scale services. It ensures you have a seamless experience in places where electronic payment methods may not be prevalent. 

On the other hand, credit cards offer a layer of security and ease, particularly for larger expenses, hotel bookings, and in establishments equipped with card terminals. This dual approach empowers you to navigate diverse spending scenarios with confidence and adaptability, enhancing the overall enjoyment of your Bali experience.