Palau’s untouched reefs, crystal-clear waters, and eco-adventures make it a paradise for nature lovers – but knowing how to handle money in Palau and how currency works is essential for a smooth experience. Whether you’re diving with manta rays, visiting Rock Islands, or paying for boat tours, being prepared to pay the right way matters. This guide outlines what currency to bring, how to get money and currency in Palau (US Dollar – USD), tips for handling payments safely, and important dos and don’ts. With this knowledge, you’ll avoid fees and fully enjoy Palau’s natural beauty.
How to pay in Palau – cash or card?
In Palau, cash is the primary payment method, especially outside the main tourist areas. Cards are accepted in a few modern establishments, The U.S. dollar (USD) is the official currency.
You can use cash for:
- Public Transportation: Local taxis, boats, and buses are cash-only.
- Street Vendors and Markets: All food stalls, craft markets, and small vendors prefer cash.
- Small Businesses: Local shops, cafés, and tour operators often require cash.
- Hostels and Guesthouses: Many budget accommodations operate on a cash-only basis.
- Tips and Gratuities: Cash tips are common for guides, boat crews, and hospitality staff.
- Outer Islands: Card facilities are rare outside Koror.
You can use card for:
- Hotels: Most mid-range and upscale hotels in Koror accept Visa and Mastercard.
- Restaurants: Some larger restaurants in tourist areas take cards.
- Retail Stores: A few larger stores in Koror accept cards, but confirm first.
- Car Rentals and Tours: Major operators may accept cards, though cash is still common.
- Online Bookings: International flights and some hotels can be paid online by card.
What’s the best currency to take to Palau?
The United States Dollar (USD) is the official and only accepted currency in Palau. There’s no need to exchange money – simply bring USD for all your expenses.
Other currencies like EUR, GBP, or AUD are not accepted, and there are no money changers or banks exchanging foreign cash.
Where to get currency in Palau?
There are 2 main ways to get cash in Palau. They are:
- ATMs, or
- One bank for currency exchange, or
- Bring cash with you.
Types of cards to swipe in Palau
Visa and Mastercard transactions are commonly accepted for swiping. You might also find some places that accept Amex and other cards, albeit less frequently.
Types of cards at ATMs in Palau
If you’re withdrawing money in Palau from an ATM, ATMs commonly accept Visa, Mastercard, Plus, Cirrus, CUP, Maestro cards. Others like JCB, American Express, Diners, Discover and Rupay cards are generally not accepted.
Should I exchange money before travelling to Palau?
Palau uses the US Dollar (USD) as its official currency, so travelers from the U.S. do not need to exchange money. If you’re coming from another country, bring USD cash for your initial and daily expenses.
You can use ATMs too – they are available in Koror and larger towns, and most accept Visa and Mastercard. However, machines may occasionally be out of service, and availability is limited on outer islands – so it’s best to bring enough cash for your stay.
Currency exchange services are very limited, so don’t rely on exchanging foreign currency once in Palau.
Where to withdraw money in Palau
You can withdraw money in Palau at leading bank ATMs in the country. The best ATMs for foreigners to use in Palau are those owned by popular banks such as:
- Bank of Guam and
- Bank of Hawaii.
There are no known Global ATM Alliance member banks or All Points network banks in Palau.
For a detailed guide, read Cash and ATMs in Palau.
Where to exchange currency in Palau
There are no foreign exchange kiosks or bureaux on the islands. Exchange services are virtually non-existent.
Pro Tip: Arrive with enough USD in cash to cover your entire trip. Cards may work at higher-end hotels or tour providers, but cash is essential – especially for remote islands or small businesses.
You can find good currency exchanges in Palau using the ATM Fee Saver app – it will guide you to the nearest currency exchange on the map. The app helps you with forex places in 160+ countries, including Palau. Download now from the App Store or Play Store.
Is carrying cash in Palau safe?
Carrying cash in Palau is safe and necessary, as many local businesses – especially in rural areas – do not accept credit or debit cards. Although crime is rare, planning ahead with your cash needs is essential due to limited ATM access outside of Koror.
To carry cash safely in Palau:
- Bring enough US Dollars for your entire stay, especially if traveling to outer islands.
- Use a travel pouch or zipped wallet to store your money securely.
- Avoid carrying all your cash at once – split it between bags or secure places.
- Use ATMs in Koror, inside banks or major hotels, and avoid late-night withdrawals.
- Cash is needed for everything from boat tours and souvenirs to local meals and taxis.
- Be discreet when handling money in markets or near the docks.
Is it better to use debit or credit cards or pay by cash in Palau
Use a card if it is fee-free i.e. your bank does not charge any fees to swipe the card, when the merchant / POS also does not impose any extra charge to use a card, you need to use the insurance of the card, don’t want to block cash of large purchases and card’s swipe fees are lower than withdrawal fees.
Pay by cash by withdrawing cash from ATM or exchanging currency where – fees on ATM withdrawals are lesser than fees on swiping cards, you don’t want to leave any digital footprint of your expenses, it is convenient and easier to conduct transactions.
