Exchange rate?

[Snoweman]

ATM anywhere in the world beats bank conversion rates! Period!

You'll find the ATMs in the grocery store....Mega.

Ummm..., not exactly true. On my purchase, it was $240 USD (cash), and the Pesos amount equaled about $320 (credit card).

I get what you are saying, but I advocate for keeping USD on your person. The amount depends on what you are thinking of buying.

 

[ReefHound]

Ummm..., not exactly true. On my purchase, it was $240 USD (cash), and the Pesos amount equaled about $320 (credit card).

I get what you are saying, but I advocate for keeping USD on your person. The amount depends on what you are thinking of buying.

My rule is: Priced in pesos, pay in pesos. Priced in dollars, pay in dollars.

My bet is your purchase was priced in dollars which means they prefer dollars. They will accept pesos but the exchange rate they apply will not be favorable. Also some of that difference may be due to credit card, which I believe all banking transactions have to be in pesos. What would it have been in cash pesos?

 

[gopbroek]

When using an ATM there is a charge for the convenience (Banamex and Santander ATM's charge about $30.5 MXN) then the money is dispensed from your bank account. The exchange rate is done by your friendly banker back home which sets its individual fees and exchange rates. Your bank then electronically replaces the funds owed to the the dispensing bank from your account. The dispensing bank relies on the dispensing service fee for its profits any other extra fees or profits on the exchange rate spread are kept by your friendly banker. I use Schwab which gives me almost the full value of the interbank FOREX (OANDA) rate and then picks up the ATM convenience / service fee. Currently, today, the Oanda rate is $18.6329 MXN to $1 USD, with Schwab I would expect about $18.6 to $1 USD.

 

[DandyDon]

Just use a bank owned ATM and get your cash in pesos.

Yep. Be sure to tell your bank that you are traveling and will be using your card before you leave, or the machine may eat your card.

If you forget, like I have, instead of reporting it to your bank which will cancel the card - you might go to the bank during business hours the next day to see if you can retrieve it. If you can, then call your bank to ask they clear it to use in Mexico.

Same goes for credit cards, of course.

 

[Snoweman]

Yep. Be sure to tell your bank that you are traveling and will be using your card before you leave, or the machine may eat your card.

If you forget, like I have, instead of reporting it to your bank which will cancel the card - you might go to the bank during business hours the next day to see if you can retrieve it. If you can, then call your bank to ask they clear it to use in Mexico.

Same goes for credit cards, of course.

Ha! I forgot once and spent two hours on several wifi dropped phone calls to my bank in Atlanta. They wanted me to fax them something from the B&B I was staying at in Tulum. There was no way that was going to happen. I finally convinced them to let me have access to my money. Now, they know me every time I go to the bank to fill out the travel form.

Amex doesn't seem to care if I am traveling. My Visa and MasterCard do, though.

 

[Lorenzoid]

I recall an ATM in Coz acting up--like maybe the keys were sticky or something--and requiring me to give it multiple tries. After the third try or so, Charles Schwab apparently decided something was amiss and locked my card. I had to phone them from the Mega to get them to unlock it. Keep your bank's phone numbers handy, and carry a phone. I know the last part is obvious, but when I'm on a dive vacation I often leave my phone back in the room, turned off, because my goal is to unplug from the world for a week.

 

[ggunn]

Yep. Be sure to tell your bank that you are traveling and will be using your card before you leave, or the machine may eat your card.

I don't know that from firsthand experience; it seems to me that it would just decline the transfer. If what you say is true, that's bad customer service, IMO.

That said, I know from unfortunate experience that if you walk away from the red Banorte ATM in the Palacio Municipale (across the street from Cozumel Palace) without taking your card, the machine will shred it. It's really easy to do; the machine dispenses your cash, then the receipt, and then about 10 seconds later, spits out your card. That's plenty of time for you to put the cash and receipt in your wallet, pocket your wallet, and walk away. Been there, done that, lucky I had a card for a different account with me.

But yes, it is a very good idea to let all card issuers know when you will be traveling outside the US.

 

[DandyDon]

I don't know that from firsthand experience; it seems to me that it would just decline the transfer. If what you say is true, that's bad customer service, IMO.

My first hand experience is that it keeps the card, as well as declining. Excessive security maybe, but safe. After I reported it to my bank, and the card canceled, then some FB or SB friends told me to go to the bank during business hours to ask for it, showing ID - but it was too late.

 

[JamesBon92007]

Good advise from @Snoweman . Always get money from atm for best exchange rate. In June we got around 20.10 to usd today you might get 18.1 from atm, little lower from cambio and even lower at local us bank. We opened an account in Santander because of local branch in Cozumel. Also lot of people on scubaboard have accounts with Charles Schwabb for no atm withdrawal fees. Either ways never use roadside atm when in Cozumel. Have fun

I'd just like to add "never withdraw US cash." Of course, that may be all you can get from the "roadside atm." aka "Cashola."

I've been to Mexico about 10 times in the past few years so I think it's time to get a Charles Schwabb account. And maybe a Sam's Club membership too.

 

[WetInPortland]

I'll be happy to sell you 15 pesos for one US dollar - probably better than what you'll get in a taxi!

Seriously, I had to withdraw USD from an HSBC yesterday in Tulum. They showed an 18.5 or 18.65 rate (can't quite remember), and a $68.50 peso fee. The rate on xe.com this morning is 18.65, so HSBC is running pretty darn close to the official rate, and I assume they're using the same rate in the other direction. That works pretty well for me - I suspect that by the time you pay for processing at your bank, plus whatever their exchange rate is, the ATM will work out pretty well.

And I'd also be happy to buy back your excess pesos at the end of your trip - one US dollar for every 25 pesos!

p.s. Always try to use ATMs at a bank branch. They are less likely to have had a skimmer installed.