Credit and debit card payments are generally accepted by most vendors in Nicaragua, especially in the tourist areas in Managua and León. However be aware that all payments terminals in Nicaragua are ‘swipe and sign’, not ‘chip and pin’.

British cards don’t have the swipe and sign method activated by default and unless the feature is activated your card payments in Nicaragua will be declined. ATM’s are also swipe and sign. Therefore it’s important that you activate this feature if you plan to withdraw money or use your bank card in Nicaragua.

Be aware of currency conversion fees: British banks may charge heavily for international card payments and ATM withdrawals in Nicaragua. In addition, your bank’s NIO to GBP exchange rate may be dramatically bad. This is how banks make money. Before using your bank card for payments in Nicaragua or anwyere in Central America, it’s certainly a good idea to contact your bank. This will avoid your card becoming blocked due to international transactions that your bank may find suspicious.

It’s certainly a good idea to take local cash with you on your trip to Nicaragua. ATMs and card terminals use swipe-and-sign, which means that British chip and pin cards are by default not compatible unless they have the swipe and sign feature activated beforehand.

A number of vendors will only accept cash payments. Examples include taxi drivers, smaller shops, local markets and street food carts.

An important advantage of paying cash is that you will not have to pay the 15% IVA sales tax in restaurants, saving you money.

Nicaragua is a destination where prices are overall significantly lower than in the UK. The average cost of living in Nicaragua is 35% lower than the cost of living in the UK.

For a coffee in a cafe in Managua you’ll pay around C$65 NIO. A three-course meal in a mid-range restaurant will cost around C$500 NIO per person.

Tipping in the Central American country of Nicaragua is in line with tipping in North America: A 10% or more tip is expected for table service, with higher tips for exceptional service.