Exchange rate?

[ChuckP]

I think what's happening here is that is what the car rental companies are selling you pesos at an inflated rate, which is not a good deal. For example, let's say you have a rental car bill that is exactly $200 USD. They will write the contract up and charge your credit card $4,000 pesos (200 * 20). Now when that charge is put through on your credit card, the bank isn't going to give you that much, and at $17.50:1, what you will see on your credit card is $228.57 USD (4,000 / 17.5).

If you can, use the car rental company's Mexican site so the quote is in pesos to begin with.

As far as I can tell, Capital One uses the daily peso exchange rate - not some made up number. We get charged very very close to what we are quoted, realize there's 7 days or the rental time between counter quote and actual charge - they charge your card when you return it.

Currency Calculator (US Dollar, Mexican Peso) - X-Rates

 

[DandyDon]

Paying in Pesos is generally the best. When I was there the third week of August this year, the market was quoting about 18.9 to 1. Public postings I noticed in businesses were generally lower, and I can't blame them. If they accept my Dollars, they have to exchange those themselves at their banks, hoping the market doesn't hurt them by the time they get to it, etc.

I bank at Wells Fargo for convenience, and I never cared for ordering Pesos from them before a trip. I expected them to charge me 3% conversion plus fees, but I just don't spend enough to worry about it much. I'm not clear on how they calculated the transactions, but they actually only charged me about 2% total. That'd be a lot if I was buying property there, but for the 8,000 Pesos I withdrew over two days, no big deal about $9 I guess. I did get a slightly better rate the times I took 3,000 vs the time I took 2,000.

Just as a reminder - if the prices are quoted in pesos, pay in pesos - if quoted in dollars then pay in dollars.

Yep. That means carrying cash in two different currencies, but it's still not a big deal. By the time I pay for my air, hotel, and diving - I don't need to carry that much out & about. I generally only pay in Pesos out & about, but keep some Dollars handy.

Three things to never forget...

1. Never, ever forget to tell your bank that you are going to be using your cards in Mexico for the dates of your trip. I have had debit cards kept by ATMs for that failure and credit cards declined & inactivated.
2. Avoid using credit cards in Mexico other than with airlines, dive ops, and hotels as other transactions expose your cards to risks - and I really only used mine at the airline to pay luggage fees.
3. Never use free standing ATMs.

 

[BRT]

I think what's happening here is that is what the car rental companies are selling you pesos at an inflated rate, which is not a good deal. For example, let's say you have a rental car bill that is exactly $200 USD. They will write the contract up and charge your credit card $4,000 pesos (200 * 20). Now when that charge is put through on your credit card, the bank isn't going to give you that much, and at $17.50:1, what you will see on your credit card is $228.57 USD (4,000 / 17.5).

If you can, use the car rental company's Mexican site so the quote is in pesos to begin with.

This is true. The rental car exchange rate being higher works against you.

 

[ggunn]

Three things to never forget...

Avoid using credit cards in Mexico other than with airlines, dive ops, and hotels as other transactions expose your cards to risks - and I really only used mine at the airline to pay luggage fees.

I don't think there is a problem with using a CC at, for example, an upscale eatery on Cozumel, but hang onto your receipts.

 

[DandyDon]

I don't think there is a problem with using a CC at, for example, an upscale eatery on Cozumel, but hang onto your receipts.

I wouldn't mind if they had machines to swipe, the card never leaving your hand. I don't like the card leaving my presence. At least they don't use the old machines that made carbon copies of everything anymore.

 

[CajunDiva]

You won't be held responsible for fraudulent charges...

 

[BRT]

You won't be held responsible for fraudulent charges...

But your cc will stop working.

 

[DandyDon]

You won't be held responsible for fraudulent charges...

Yeah, but...

But your cc will stop working.

And it can take a while to get a replacement card. WF will overnight it a business address, but takes 10 days for a POB, and I no longer have a friend I trust with a business address.

 

[CajunDiva]

I have multiple options available. I carry two and hubby carries two different ones in case mine were to be lost or stolen. Pesos from the ATM are still the best plan, but I don't like limited options - I'm a DIVA!

You can trust me...I have a business address

 

[DandyDon]

I have multiple options available.

It's always best to have options, and I carry a few others as well. I still don't like the hassle so just don't expose my credit cards in Mexico generally. Had problems too many times.