ATM's and Exchange Rate

[Golden sunsets]

We spend two months in Mexico every winter. We have always used an ATM at the airport to withdraw pesos for our stay. That rate has always mirrored the exchange rate that our Credit Card records on the same day. These exchange rates have historically been equal to the "Mid Market Exchange Rate". We use a Capitol One Checking Account which does not charge a foreign transaction fee.

Last year though that parity didn't happen. The exchange rate at the airport was 5.25% less than our CC exchange rate on the same day which was the same as the quoted exchange rate on XE. A few weeks later we took out additional pesos, at a different bank ATM, not at the airport and the same thing happened.

I was wondering if anyone else has experienced this? I wonder if this is unique and new to Mexico. I'd like to find a way to avoid the roughly 5% difference between the going rate and the rate we experience at the ATM machine. It is my impression that ordering pesos from a US bank or through an XE currency provider in the states would incur a fee.

 

[davebarnes]

my impression that ordering pesos...through an XE currency provider in the states would incur a fee.

May2019
Silly wife exchanged $USD to $MEX at a foreign exchange service in Denver. The haircut was 17%. Me not happy.

 

[OldShooter]

Exchanging currency at a counter or a kiosk is always a good way to get ripped off. @GoldenSunsets, was your second transaction with an ATM or with an exchange counter? We have always found ATM rates to be good.

 

[audreyh1]

VISA controls and uses the same exchange rate everywhere, ATMs or credit. I suppose the Mexican ATMs could be rigged in such a way that they are charging you a fee without you knowing.

ATM withdrawals use the immediate same day exchange rates whereas credit card transactions use the rate one or two days later when the transaction posts. So you can’t compare the same days rates. Still 5.25% is extreme.

 

[Golden sunsets]

Exchanging currency at a counter or a kiosk is always a good way to get ripped off. @GoldenSunsets, was your second transaction with an ATM or with an exchange counter? We have always found ATM rates to be good.

Yes. The first was at Banco Santander. The second was at BANORTE.

 

[Golden sunsets]

VISA controls and uses the same exchange rate everywhere, ATMs or credit. I suppose the Mexican ATMs could be rigged in such a way that they are charging you a fee without you knowing.

ATM withdrawals use the immediate same day exchange rates whereas credit card transactions use the rate one or two days later when the transaction posts. So you can’t compare the same days rates. Still 5.25% is extreme.

Yes It seemed extreme to me too. The transaction fee charged by the banks in Mexico is minor, between $1 an $2 depending on the Bank. The stated exchange rate on the receipt though was way off from the standard FX exchange rate for that day. (eg: From $18.98 to $18.03) As far as the two day lag, that would not have mattered, as the CC exchange rate we were experiencing during the few days after the ATM withdrawal remained within cents. So I don't know. I'll try HSBC this year and see if the same thing happens. I have used their ATM's in the past with no inconsistencies.

 

[Golden sunsets]

May2019
Silly wife exchanged $USD to $MEX at a foreign exchange service in Denver. The haircut was 17%. Me not happy.

Yikes!

 

[ShokWaveRider]

I will be doing this in Puerto Vallarta next week. There are some Allpoint ATMS at OXXO gas stations that have no transaction fees according to my CU. But are not handy to the Airport. So my plan is to get $100 US in Pesos from one of the Bank affiliated ATMS upon exit. Then find a no fee one later on. I figure the fees will be minimum at HSBC or Scotiabank.

 

[Golden sunsets]

SWR: The experience I related (OP here) in my opener related to Puerto Vallarta. There is an OXXO in the parking lot steps from the exit of the airport. I am also aware that AllPoint ATM's are free for CapOne debit cards. I did a search to find them in PVR or Nuevo where we reside in the winter. The map does not show an AllPoint ATM at the airport OXXO, but it's possible that there is one there now. It wouldn't be too hard to check out. If you find one there please PM me or respond to this thread, if you don't mind.

There is one thing that makes me nervous about using a non bank ATM in Mexico. I feel that there is a greater likelihood that the ATM has been hacked if it is not related to a bank and is in a store (like OXXO).

So don't use the Santander ATM at the airport, as that is where I experienced the artificially low exchange rate last year. And I would not use a Banorte either. I plan to use the HSBC ATM, unless you find me a convenient AllPoints.

 

[ShokWaveRider]

^^^^^^^^^^^^^ GS The more I read, I think I am only comfortable using the BANK airport ATM or the ones inside an actual bank. Those OXXO ones do not make me feel very reassured just to save a small charge. Depending on the shafting I get at the money changers, I may get an initial supply there then go to one in a bank in town.

 

[anethum]

It has been 12 months since I was last in Mexico and withdrew money from an ATM. I got the rate which xe.com was showing. I have a Schwab checking account which refunds ATM fees. My withdrawals last year were from Banamex and the fees which were refunded by Schwab were about US$1.75 for each withdrawal. I noticed on previous trips to Mexico that the ATM fees refunded by Schwab were significantly higher for withdrawals at foreign banks with a presence in Mexico, e.g. HSBC & ScotiaBank. I now avoid them because they're ripping people off, even though it would ultimately be Schwab getting ripped off.

 

[Golden sunsets]

Yep. Not worth it. Would you do me a favor and report back on your exchange rate and the bank ATM you used?

PS. I'm envious that you'll be there next week. We don't arrive until 2/1.

 

[Golden sunsets]

It has been 12 months since I was last in Mexico and withdrew money from an ATM. I got the rate which xe.com was showing. I have a Schwab checking account which refunds ATM fees. My withdrawals last year were from Banamex and the fees which were refunded by Schwab were about US$1.75 for each withdrawal. I noticed on previous trips to Mexico that the ATM fees refunded by Schwab were significantly higher for withdrawals at foreign banks with a presence in Mexico, e.g. HSBC & ScotiaBank. I now avoid them because they're ripping people off, even though it would ultimately be Schwab getting ripped off.

Yes Banamex is at the airport too. We've been traveling to Mexico every winter since 2007 and last year was the first year that a discrepancy popped up. The $1 to $2 fees don't bother me. It's the 5.25% on the roughly $700 in cash that irked me.

 

[ShokWaveRider]

Yep. Not worth it. Would you do me a favor and report back on your exchange rate and the bank ATM you used?

PS. I'm envious that you'll be there next week. We don't arrive until 2/1.

Will do.

 

[ShokWaveRider]

Yep. Not worth it. Would you do me a favor and report back on your exchange rate and the bank ATM you used?

PS. I'm envious that you'll be there next week. We don't arrive until 2/1.

Reporting back as promised, here are the numbers........ Money changer at Houston airport = 16 pesos to 1 dollar + Fee. I was disgusted and left. Money changer in PV Airport = 15 pecos to 1 dollar + Fee. Again left disgusted. Hotel in PV = 18.5 pecos to 1 dollar NO FEE. Excellent! Took the deal.

 

[dixonge]

Within the last year most of the ATM's in Mexico have started adding an extra feature when you withdraw cash. Basically a screen pops up that asks if you want to lock in the exchange rate. If you take the time to read the fine print, not only is the locked in rate probably worse than what you would otherwise get, you are giving them a 5% bonus on top of that. Just hit decline and move on.

Sounds like you may have run into this new 'feature' ...

 

[audreyh1]

Wow - mystery solved!

Sounds like the pay in USD options offered now by many overseas hotels and restaurants and retailers. Always a pricey conversion rate.

 

[Golden sunsets]

Reporting back as promised, here are the numbers........ Money changer at Houston airport = 16 pesos to 1 dollar + Fee. I was disgusted and left. Money changer in PV Airport = 15 pecos to 1 dollar + Fee. Again left disgusted. Hotel in PV = 18.5 pecos to 1 dollar NO FEE. Excellent! Took the deal.

Thanks Shock Wave Rider. Enjoy PV, a very special place.

 

[Golden sunsets]

Within the last year most of the ATM's in Mexico have started adding an extra feature when you withdraw cash. Basically a screen pops up that asks if you want to lock in the exchange rate. If you take the time to read the fine print, not only is the locked in rate probably worse than what you would otherwise get, you are giving them a 5% bonus on top of that. Just hit decline and move on.

Sounds like you may have run into this new 'feature' ...

OMG. This is the answer. Thank you so much. I thought it was odd that the receipt from the Banco Santander ATM at the airport quoted the exchange rate on the receipt. I had never seen that. Shock Wave Rider's rate from yesterday is below the $19.11 rate that I showed yesterday on the currency exchange rate website that I use. So I'll be on the lookout for that ATM screen when I travel to PVR on 2/1.

KCowan on this board lives in PV during the winter. Keith, if you're reading this, have you encountered this new ATM gouging phenomenon?

 

[ShokWaveRider]

Within the last year most of the ATM's in Mexico have started adding an extra feature when you withdraw cash. Basically a screen pops up that asks if you want to lock in the exchange rate. If you take the time to read the fine print, not only is the locked in rate probably worse than what you would otherwise get, you are giving them a 5% bonus on top of that. Just hit decline and move on.

Sounds like you may have run into this new 'feature' ...

Except I did not try any ATMs.

 

[ShokWaveRider]

I felt 3% was a small price to pay for the convenience at the hotel. I brought the cash to use it. I only cashed a small amount for the busses. Today I will check the banks when we go downtown for our exploratory trudge.

Our Credit union CC does not charge for cash withdrawals or foreign transactions, so it is a good backup.

We used it to pay for our tours for the week.

 

[Golden sunsets]

Except I did not try any ATMs.

I think Dixonge was referring to my experience described in my original post. I'm delighted to have figured it out. So I should be able to avoid the 5% hit by declining the offer to lock in the rate. It ends up being about a $35 hit for us-not the end of the world of course, but annoying nonetheless.

Your $18.50 isn't too bad a hit vs. the $19.11 from yesterday's xe quote.

 

[audreyh1]

If trying to pinpoint conversion rates for VISA debit/ATM cards or credit cards, you need to look it up at VISA, not use xe.com. Their daily foreign exchange conversion rate is based on the prior day range. For credit cards you’ll get the rate they quote for the day the transaction posts, which is a day or two later than the actual transaction. ATM is same day. You can check it yourself for a specific date at https://usa.visa.com/support/consum...on.y=13&submitButton=Calculate+Exchange+Rates . Enter 0 for bank fee if you have a no foreign exchange fee card.

 

[Golden sunsets]

If trying to pinpoint conversion rates for VISA debit/ATM cards or credit cards, you need to look it up at VISA, not use xe.com. Their daily foreign exchange conversion rate is based on the prior day range. For credit cards you’ll get the rate they quote for the day the transaction posts, which is a day or two later than the actual transaction. ATM is same day. You can check it yourself for a specific date at https://usa.visa.com/support/consum...on.y=13&submitButton=Calculate+Exchange+Rates . Enter 0 for bank fee if you have a no foreign exchange fee card.

Good site to have Audrey. Thanks. I've just added it to my home screen. Of course the difference in the rates today on VISA and XE yesterday are nearly equivalent(less than .01). I assume there is a similar website for Mastercard?

 

[kcowan]

KCowan on this board lives in PV during the winter. Keith, if you're reading this, have you encountered this new ATM gouging phenomenon?

Yes the first time it happened, I thought the No answer would cancel the transaction but it went through properly after that.

I am a TD bank client and they started charge 3.5% to get my money so I quickly stopped using them entirely. We know use our no fee Visa card or our Intercam debit card.

In GDL last week, one department store would not take our Intercam card while Pottery Barn not only accepted it but was offering 30% off on everything. (We are shopping for our new condo - tabula rasa and spent 155000 pesos even with the 30% off half of it.)

This bulge in purchases is forcing some liquidation of equities - sure hope we are at a relative peak? I view it as an asset allocation shift into real estate.