In AC do most places take US currency or should we change US $'s for Belizean currency?

Do NOT bother exchanging for Belizean dollars, everyone accepts greenbacks. Most often they'll give you your change in Belizean dollars.

Yes everyone takes US. If you run out of cash watch out using credit cards. They take them but most charge 3 to 5 % more if using a card.

Do the hotels do this as well because I did not see this posted anywhere on Banana Beach's website and we have already booked our stay there for two weeks. Not that it matters as this point - but they should make it understood. In either case, I am looking forward to my first time going to AC and having the time of my life diving.

Hi Scubacat: I'm not sure if it's credit card specific, but I used my credit card all over the island and on Caye Caulker and never experienced an increase of any %.

We didn't experience that at BB in June. NOTE: Your credit card company might hit you for an additional "exchange" fee on every transaction.
Oh well, vacation time, why worry...

BB will exchange travelers checks for you.

Not every place charged but some of them said there would be an additional charge as soon as you showed a card. So I think they will tell you first. Ours was used mostly at resturants so maybe they are worse.

Travelors checks for everything and bring several.

Nobody should charge the 5% fee. The only reason most businesses do is so that their bank fee is covered by your 5%.

Do not agree to pay this.

Larry is right bring loads of traveler's checks they are accepted everywhere and you hotel can cash them in for you.