Laos is a funny country it is the only place where ATM withdrawal limits are so low that I need to visit the ATM almost every second day to get some cash especially if I want to save some money and would like to pay for accommodation in cash.

Do I need a cash? Why I can’t pay by card?

The good thing is that card payments are quite available. But the bad message is that most businesses charge 3% for card payments. It is pretty similar to Thailand. I believe that they just simply pay that 3% to local banks. Because generally, it is possible to withdraw money for a fee of around 1 – 2% then it is generally cheaper to get money from an ATM and pay by cash.

What is the problem then?

Almost all ATMs have quite low withdrawal limits – 1 – 2 million KIP (~ 44 – 88 EUR) and all ATMs have fees for the foreign card (around 30 – 40 thousand KIP). Because of that is worth finding ATMs with the biggest withdrawal limit and always using max withdrawals, so the ATM fee is a smaller percentage of the whole amount.

BCEL ATMs

Feels like BCEL is the most popular bank in Laos, the good thing is the second best ATM from my perspective. It allows to withdraw up to 2 000 000 KIP and the ATM fee is 30 000 KIP. Also, accept all popular cards. With a good card that doesn’t change too much (or nothing) for withdrawals and currency change, BCEL ATMs could be your first choice.

Indochina Bank ATMs

Indochina Bank allows for withdrawals up to 3 000 000 KIP and the ATM fee is 40 000 KIP. So quick calculation shows that is a bit better deal. What is the problem then? Indochina Bank ATMs accept only Visa cards, and not all fintech banks, issue them (Revolut does). The second problem with Visa is that, if your bank uses Visa rates to change your currency for KIP (that is quite an oriental currency for many banks), it will give a worse rate than Mastercard. Still after checking my ATM withdrawals, getting 3 000 000 KIP from this ATM was a better deal than max from BCEL.

Other options

Electronic wallet for tourists

So Loas (not like Thailand) allows tourists to register in some electronic wallets. The only problem is that to top up these wallets their fees are almost as bad as paying by card, so I don’t see a reason to use it.

You can read more in my posts:

Pay by foreign currencies or Currency exchanges

Everyone who travelled around Laos noticed that many places accept USD and THB. If you have too much of this currency you can simply pay in most places using it. But after a quick calculation, you will notice that nothing is for free and it is just simply cheaper to pay in Laos KIP.

There are also of course Currency exchanges, I believe that in Laos like in every country you need to simply look for one that offers a good conversion rate, because if you pick a random one then you can lose the conversation. I am simply too lazy to look for that and second also find bringing tons of cash with myself not comfortable and a bit dangerous.

Conclusion

Get a good travelling card and go to BCEL or Indochina Bank and you will pay the lowest fees. In Laost there are no free ATMs but by simply using max withdrawal limits of these ATMs you will save money.

Useful links

Categories: AsiaLaos