Bali Money Changer: How to Exchange Cash and Avoid Getting Ripped Off

How Do I exchange Money in Bali?

There are many Money Exchangers in Bali and the exchange rates are often very good.  You can even exchange money on arrival, after customs in the airport. 

You won’t have the same problem with fees exchanging money in Bali as you do back in your home country.  The advertised rate is what you get in return.  Many money exchangers do not charge extra commissions.  Therefore, you can do a simple calculation and know exactly what you are supposed to receive in return. 

EXAMPLE: $100 X (Advertised Exchange Rate) = Total Rupiah

However, you will see some rates advertised in Bali that are higher than the rates you see online.  Don’t be too excited at seeing these very high exchange rates that seem to work in your favor.  Trust me they don’t!  I would advise you not to go to these exchangers.  There are many other reputable money changers here in Bali.       

TIP: I would recommend downloading the XE Currency app for your phone.  It gives updated currency rates every minute.  This comes in handy when wanting to exchange money, or use the ATM.  I use my app all the time.     

Download the XE Currency App

Download the XE Currency app through the Google Play store, or the Apple App Store.  Then follow the steps below in using the app.

1. Add your desired currencies using the big Plus (+) button in the bottom right corner.  If traveling in Bali, you want to add IDR (Indonesian Rupiah).

2. Check the exchange rate.  Enter $1.00 USD (or 1.00 in your home country currency) and the inter-bank exchange rate will be displayed in IDR.

3. Check this against the advertised exchange rate at the money changer.  The exchange rate given in the XE app is basically the best rates you could get if you were a bank.  Unfortunately, you aren’t the bank, so you won’t receive these rates.  However, a good money changer will be within 2-3% of the rate you see within the XE app. 

In other words, if the exchange rates between the XE app and the money changer are within a few hundred rupiah (when comparing USD), then you are getting a good rate.

4. You can check the exact percentage of the exchange by using the “% Compare” button within the app.  Select your currencies, add the amount you “Paid” (want to give to the money exchanger), and the amount you “Received” (what the money changer is going to give you).  The app will do the calculation and display your “Cost” based on the “Mid-market rate” (inter-bank rate).  You will see the percentage you are paying for the transaction. If this percentage is between 2-3%, or less, you are receiving a good rate.

How to Avoid Getting Ripped Off at a Money Changer

First, be smart!  Go to a money changer that faces a main road, and preferably with a lot of pedestrian traffic.  Also, make sure the exchange rate is advertised.  Don’t be foolish and think that you can “shop” rates and negotiate a better rate.  Unfortunately, many tourists in Bali think they can do this.  It will never work in your favor.

Second, remember to always count your money yourself!  In lieu of hidden fees, many, unscrupulous, money exchangers will use “sleight of hand”, to obtain more money, by giving you less.  This is how the process usually works with the less scrupulous money exchangers.

How Money Changes will Rip You Off

1. Money exchanger will do same calculation you did, above.  (advertised exchange rate multiplied by the amount of money you want to exchange equals total rupiah).  They will show you this amount, and if you agree will then take from you the amount of money you want to exchange.

2. Money exchanger will then obtain rupiah and count out the total amount in front of you.  All seems to appear legit at this point.  However, while giving you your money they will “palm” some bills, resulting in you receiving less money.

This is where many naïve travelers get scammed because they didn’t do the next step.

3. ALWAYS recount the money you just received!  In doing so you may find that the amount you counted differs from the amount the money changer counted, and definitely not in your favor. 

4. You tell the money exchanger the amount you have is wrong.  So, they will count it again in front of you (replacing the money they originally “palmed”), and the amount they count will be exactly what the calculated total should be.  They then hand you back the money.

5.  Being the savvy traveler you are, you are catching on to their deceit, so you count it again and sure enough it is different.

At this point you begin to question the money exchanger.  Of course, he will deny any wrongdoing.  You now have a few options. 

• First you can accept the fact that you got scammed while trying to do “business” in a foreign country, accept your loss and take the money and leave. 
• Second, you can tell the money exchanger to give you the exact amount as calculated, or you will contact the police.  They will probably then get mad at you. There is a very small chance they may want to avoid any further confrontation, and return your original money and tell you to leave.  Make sure to count your original money as well! 
• Third, you can push your limits and try to get your money back, but it may not end well for you.  Indonesians never act alone and you may find yourself in a dangerous situation.

Lesson:  Don’t think you are smarter than the people who scam foreign tourists for a living.  Because, as high as your IQ may be, this will never end well for you.

Reputable Money Changers

Please keep in mind, you will not have this problem at every money exchanger.  Many are very reputable and legitimate.  You may encounter crooked money changers if you decide to make the mistake of walking down some small Gang (alley) expecting to negotiate a better rate.  However, if you see an advertised rate that seems too good to be true, it probably is, and you should not use them so as to avoid any confrontation and problems.  Remember to be smart!

The reputable money changers usually face a main road and will fill out a form indicating the amount of foreign currency you want to exchange as well as the exchange rate.  They will also do the calculation and indicate the amount you will receive in return.  Again, you can check all of this in your XE Currency app.

How Much Money Can I Bring to Bali?

Beginning on March 8, 2018 the Central Bank of Indonesia enacted a new regulation that foreigners are only allowed to bring in 1 Billion rupiah (approx. CODE) into Indonesia, including Bali. 

“Starting from March 5, 2018, Indonesian citizens as well as foreigners need to be a bit more careful when bringing foreign-denominated cash money into Indonesia. A new Bank Indonesia regulation sets a IDR 1 billion (approx. USD $70,000) ceiling on the total amount of foreign cash money an individual can bring into Indonesia.”

IndonesiaInvestments.com

You can read about it here.

I’m sure you won’t have a desire to bring more than IDR 1 Billion if you are simply vacationing in Bali.  So, bringing cash to cover your expenses, while in Bali, should not be a problem.

Which Currency Should I Bring to Exchange?

The reputable money changers usually have enough rupiah to cover most currency exchange transactions.  They will exchange most currencies and usually advertise many exchange rates (USD, AUD, SGD, BRL, CAD, CNY, EUR, GBP, etc.).  Therefore, exchanging money for rupiah won’t be a problem for your Bali cash needs.  Just use your XE app to check the rates.

However, if you have a bunch of extra cash left over at the end of your trip and you want to exchange it back for your home country currency, this is where you may run into some problems.  The money changers will have plenty of money in rupiah, but may not have enough in the currency you want back. 

Also, if you are wanting to exchange rupiah, for another foreign currency, your “sell” rate may not be as good as your “buy” rate for rupiah.  Just keep this in mind when exchanging back rupiah.  However, it will probably be a much better rate than exchanging it back at a bank in your home country.

Can I Use My Credit Card and Receive Cash at a Money Changer?

Although many credit cards give you the option of using your card for “cash advances”, you will not be able to use them to make a transaction at the money changers.  You will need to bring cash to exchange, and in return receive Indonesian Rupiah.  If you want to use your credit card to receive cash, you can use the ATM’s in Bali to do so if you have a PIN associated with your credit card for such transactions.

TIP: Contact your bank and request a PIN for your credit card.  Although you are hit with higher fees, and interest rates, for using your credit card for cash, if you are ever in an emergency it may be a beneficial option to have.

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