Yes, credit card fraud is a problem in most of Latin America, but it is particulary rampant in the DR. In all my trips, I have used my credit card exactly one time. (at an international hotel chain in Santo Domingo.) The transaction went through, but after I used it, my credit card company put a security block on my card simply because a transaction was made in the Dominican Republic. I didn't realize it until I was back in the States and I tried to use the card and it was rejected. I was told it is their policy to put a security block on cards when transactions appear from the DR.
I would never use a credit card there, except in an absoulte emergency where I had no other option, and I very rarely (if ever) use an ATM there. When I do, it's located right at the bank and during opening hours.
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