What currency does Palau use?

Palau uses the US Dollar (USD) as its official currency. There is no local Palauan currency. All prices are in USD. ATMs dispense USD. This makes Palau one of the simplest Pacific destinations for American travelers, with no currency exchange needed.

Are there ATMs in Palau?

Yes, but only in Koror. The Bank of Hawaii and Bank Pacific (BPNG) have ATMs in downtown Koror. There are no ATMs on any outer islands, at the Rock Islands, or in Babeldaob (except possibly near the Compact Road). Withdraw enough cash in Koror before any excursions.

Do dive shops in Palau accept credit cards?

Major dive operators like Sam's Tours, Fish 'n Fins, and Neco Marine accept Visa and Mastercard. The Palau Pacific Resort, Palau Royal Resort, and most Koror hotels accept cards. However, some smaller operators, boat captains for private charters, and village homestays on Babeldaob or Peleliu prefer cash.

How much does diving in Palau cost?

A two-tank dive costs $130-200 per person depending on the operator and site. Blue Corner and German Channel are the most popular sites. The Jellyfish Lake permit costs $100 per person (separate from the Rock Islands/Southern Lagoon permit of $100). Liveaboard trips run $350-500+ per night. Bring enough cash for tips and extras beyond card-payable bookings.

Yes. Palau is one of the priciest Pacific destinations. A restaurant meal costs $15-35, a beer runs $5-8, and hotel rooms start at $100-150 per night. Diving packages are the biggest expense. The $100 Rock Islands permit and $100 Jellyfish Lake permit are mandatory for most visitors. Budget at least $200-350 per person per day.

Do I need to tip in Palau?

Tipping is appreciated but not mandatory. At restaurants, 10-15% is standard if no service charge is included. For dive guides and boat captains, $10-20 per person per day is a generous tip. Liveaboard crew tips are typically 10-15% of the trip cost, divided among the crew. Tip in USD cash.

Money in Palau: Currency, USD, ATMs & Tips

💰 Quick Context: US Dollars in Palau

Palau uses the US Dollar (USD) as its sole official currency. There is no local Palauan currency. All prices, ATMs, and transactions are in USD. This makes Palau financially simple for American visitors. No exchange rate math needed. The challenge is not currency but access to cash: ATMs exist only in Koror, and the outer islands, Rock Islands tours, and Babeldaob are cash-dependent. Palau is expensive by Pacific standards, driven by world-class diving and limited tourism infrastructure.

🎧 Already Using USD

Palau uses US dollars. No currency exchange needed. Bring cash from home.

Cash vs. Card: What to Expect in Palau

Koror (where nearly all tourists stay) has decent card acceptance. The Palau Pacific Resort, Palau Royal Resort, Cove Resort, and most dive operators (Sam's Tours, Fish 'n Fins, Neco Marine, Unique Dive Expeditions) accept Visa and Mastercard. Restaurants like Elilai, Drop Off Bar & Grill, and the WCTC Shopping Center food court take cards. The WCTC and Surangel supermarkets accept cards for groceries.

Cash is essential for smaller restaurants, local eateries, taxi rides ($5-10 around Koror), the Belau National Museum entrance ($10), and any purchases on Babeldaob (the large main island connected to Koror by the Japan-Palau Friendship Bridge). Rock Islands tour operators accept cards for the main booking but tips for guides and boat captains should be in cash. The Rock Islands/Southern Lagoon Permit ($100) and Jellyfish Lake Permit ($100) can sometimes be paid by card at the Koror State Government office, but bring cash as backup.

How to Get Cash for Your Palau Trip

Palau uses the US dollar as its sole currency, so US travelers face zero exchange friction. Cards work in Koror at Palau Pacific Resort, Palau Royal Resort, Cove Resort, the major dive operators (Sam's Tours, Fish 'n Fins, Neco Marine, Unique Dive Expeditions), restaurants (Elilai, Drop Off Bar & Grill), and WCTC and Surangel supermarkets. Cash is essential for taxis ($5–$10 around Koror), the Rock Islands and Jellyfish Lake permits ($100 each), tips for boat captains and dive guides, and almost everything on Babeldaob, Peleliu, and Angaur. ATMs exist only in Koror; the outer islands have zero infrastructure.

✈️ Easiest Arrival

Bring USD cash before you fly

Cost: 0% (USD is the local currency) Convenience: Critical for outer islands & permits

Palau runs on USD natively, so US travelers don't need a currency-exchange service for this trip. Bring USD in clean post-2009 mixed denominations: $1, $5, $10, $20 for daily spending, plus $50s and $100s for the Rock Islands/Southern Lagoon Permit ($100), Jellyfish Lake Permit ($100), and dive-package balances. If you're flying in from outside the US (most arrive via Manila, Taipei, or Seoul) and don't have USD on hand, CEI Currency Exchange can ship clean USD with insured 2–5 day delivery, and Bank of America, Chase, Wells Fargo, and Citi all stock USD by default. Palau does not have a Bank of America Global ATM Alliance partner. Budget aggressively: dive-trip days $150–$250, snorkel tours $80–$150, food and lodging $100–$250 per day. Bring 25% buffer for guide tips and the Babeldaob/Peleliu cash-only segments.

💰 Cheapest

Withdraw USD from a Koror ATM

Cost: Standard rate when functional Convenience: Koror only

On the ground, the only working ATMs are in Koror. Bank of Hawaii Palau and Bank Pacific (BPNG) both have ATMs that accept Visa and Mastercard at the WCTC Shopping Center and along the main Koror commercial strip. Reliability is generally good for a Pacific island nation, though machines occasionally run low on cash before weekends. Withdrawal limits run roughly $300–$500 per transaction. Coverage on Babeldaob (despite being the larger island), Peleliu, Angaur, and the outer Rock Islands is zero. Decline DCC every time the screen offers a non-USD charge. Curious how this compares to a normal-banking-country path? Our ATM fee calculator shows the math for somewhere your card actually works.

⚠️ Avoid

Hotel exchange windows & airport counters

Cost: 5–10% hidden markup Convenience: High (right at arrivals)

Three traps to walk past in Palau. Since USD is the working currency, there's almost no legitimate reason for a US traveler to use any in-country exchange service, but if you arrived with foreign currency the resort front desks at Palau Pacific and Palau Royal can run 5–10% off the interbank rate. The currency-exchange counter at ROR (Roman Tmetuchl International) airport similarly bakes markup into the rate. The cleanest move for non-USD travelers is to convert to USD before flying in (Manila or Taipei usually have better rates than Koror). For US travelers, the only meaningful trap is DCC at Bank of Hawaii or Bank Pacific ATMs (decline if the screen offers a non-USD conversion) and assuming cards work outside Koror's named hotels and operators (they don't). Palau does not yet have a city-specific guide on this site, but the ATMs section below covers the (Koror-only) bank lineup.

For a side-by-side comparison of every method (bank wire, travel card, pre-order, ATM, exchange counter) including USD-only timing tips, see our complete Getting Currency guide →.

Palau Money Guide