The peso is the monetary unit in the Philippines and there are 100 centavos to one peso. The Central Bank there issues different bank notes from 5 cents up to 1,000 pesos. The U.S. dollar, pound sterling, Swiss franc, French franc, Deutsche mark, Canadian dollar, Italian lira, Australian dollar and Japanese yen are easily convertible - though the U.S. dollar is more widely accepted.
Especially outside Metro Manila and Cebu, the Philippines is a cash economy. Even travelers' checks can present something of a challenge even in Manila. It is advisable to bring your purchase receipt and passport to a bank and be prepared for a queue.
Most ATM machines are open 24 hours and easily found in major cities. Maximum daily withdrawal is about 15,000 pesos. During holidays, withdraw cash early, before ATM's run out of cash.
Credit cards are widely accepted throughout Manila and major big cities, although service charges prevail. In rural areas, only major establishments accept credit cards. Be prepared to have cash. Many travelers cut short of their trips in the provinces due to lack of cash money. Licensed moneychangers on Mabini Street in Ermita, Manila and major shopping malls accross the country like Shoemart/SM offer safe money-changing and reasonable currency conversion rates.
When shopping, taxes are included in the listed price. Major restaurants and hotels add a 10 percent service charge; hotels tack on an additional 10 percent Value Added Tax/VAT.