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I've crossed a couple of times between Colon and Paysandu and haven't had any problems. It's very quiet. I can also recommend the Duty Free shop on the Uruguayan side. They have very cheap Bombay Saphire Gin :)

I'd recommend First Republic's ATM Rebate checking account. They're a small, boutique bank with branches in California and New York. The account does not charge any foreign currency conversion fees. I should also mention their daily withdrawl limit is $500 so you've got to plan a little in...