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Visa and American Express credit cards are accepted in few places but have limited use. Travellers cheques as well as Euro, US Dollars, Pound Sterling, Swiss Francs, Singapore Dollar, Australian Dollar and Japanese Yen can be exchanged at banks and most of the hotels.
Cash in US Dollar bills in small quantity is the most practical and convenient way for personal expenses in Bhutan.
Credit/Debit Cards can be used at ATMs to withdraw cash. You can also swipe at handicraft shops and hotels. But the processing fee for Credit Cards transactions in Bhutan are very high. Most of the handicraft shops charge a processing fee of 7% on the sum. American Express and Visa are accepted cards in Bhutan, but they would have very limited use.