Exchange rate?

[mstevens]

What's the current exchange rate on the island?

Whatever it was when you posted the question, it's at least a little different now. Exchange rates vary constantly.

Ummm...., on one purchase, I got a MUCH better deal by having USD compared to a credit card or pesos.

That's extremely unusual. My supposition is that you still overpaid and that the high quoted peso price was to make you think you were getting a great deal in dollars.

By law, prices in Mexico are supposed to be posted in pesos. Anyone (say, souvenir shops) who does otherwise is already violating Mexican consumer law so is a bit suspect to begin with. For example, at Los 5 Soles price tags show dollars but always show a price in pesos as well. If there's no posted price, the seller will quote whatever they think they can get you to pay.

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

Credit charge surcharges are common (and legal) in Mexico, so for almost any honest transaction your best bet is to pay cash in pesos.

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.

There is really no reason ever to carry foreign currency in Mexico, just as it's practically never useful in the US

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.

Sam's Club memberships are significantly less in Mexico, and memberships from any country work anywhere else.

So what is the maximum one can withdraw from an ATM at a time from a bank owned machine?

That depends on a combination of your issuing bank's maximum withdrawal limit and the dispensing bank's per-transaction limit as well as the current exchange rate. At Banamex using my Banamex card, I can get a maximum of MXN$8,000. Using my USAA debit card at the machines in Soriana Mega, I seem to be limited to MXN$6,000 per transaction.

 

[Snoweman]

That's extremely unusual. My supposition is that you still overpaid and that the high quoted peso price was to make you think you were getting a great deal in dollars.

By law, prices in Mexico are supposed to be posted in pesos. Anyone (say, souvenir shops) who does otherwise is already violating Mexican consumer law so is a bit suspect to begin with. For example, at Los 5 Soles price tags show dollars but always show a price in pesos as well. If there's no posted price, the seller will quote whatever they think they can get you to pay.

Well..., I can state that they had the conversion posted, but were charging significantly more in Pesos. I was originally quoted in dollars. When I got my charge, it was not at the posted 18-1 rate (which is good for converting cash - for the store). I told them to reverse the charge and paid in USD. I supposed they could say they were giving a steep discount for payment in USD - better than their posted conversion rate.

However, I think it's a little naive to think that everyone in MX follows the letter of the law.

There is really no reason ever to carry foreign currency in Mexico, just as it's practically never useful in the US

I would counter that most countries want/like USD, while the USA doesn't like/want foreign currency.

 

[BRT]

So what is the maximum one can withdraw from an ATM at a time from a bank owned machine? With a 30 peso fee, not really important, but wondered.


True at money changing booths, too - or so I was told the one time I used one.

Depends on the booth.

 

[DandyDon]

Depends on the booth.

Well, she told me it was Mexican law, but then...

 

[Streydog]

So what is the maximum one can withdraw from an ATM at a time from a bank owned machine? With a 30 peso fee, not really important, but wondered.


True at money changing booths, too - or so I was told the one time I used one.

I think the fee is based on a percentage of the withdraw. If I remember correctly I was charged 33 Peso's for a withdraw of 7,000 Peso's.

 

[BRT]

Well, she told me it was Mexican law, but then...

That is what they say at the booths that want a passport. It may well be the law.

 

[mediumone]

I think the fee is based on a percentage of the withdraw. If I remember correctly I was charged 33 Peso's for a withdraw of 7,000 Peso's.

There are two charges on ATM withdrawals
1) Commission
2) Tax

The commission varies by location. For example, I was charged $26.00 for an $8,000 withdrawal at a Santander on Cozumel, and $30.00 at a Santander in the greater Cancun area for an $8,000 withdrawal.

Santander charged me $26.00 for a $6,000 peso withdrawal on Cozumel, while Banamex charged me $26.50 for a $6,000 peso withdrawal. Both of these withdrawal's were from ATM's in Mega.

I made two withdrawals fro a Banamex ATM on Isla Mujeres for $6,000, and was charged the same amount as in Cozumel: $26.50.

If the location is the same, it appears that the commission and tax are the same regardless of the amount:
A $6,000 withdrawal from the Santander at Mega had a $26.00 commission, and a tax of $4.16. (6/20/18)
An $8,000 withdrawal from the same Santander also had a $26.00 commission and a tax of $4.16 (6/21/18)

I was limited to a $6,000 peso withdrawal at Banamex, and did not try to withdraw more than $8,000 at Santander, so don't know if that was the upper limit there or not. I have a daily limit of $1,000 or $1,500 USD from my local credit union.

 

[JamesBon92007]

I think the fee is based on a percentage of the withdraw. If I remember correctly I was charged 33 Peso's for a withdraw of 7,000 Peso's.

A while back I was under the mistaken impression that it was a set fee (Banamex) so I always withdrew larger amounts to save on the fees, but after getting home and examining my receipts and bank statements it looks like it is a percentage of the amount so now I usually just get pesos 3000 at a time. I like to leave Mexico with about 1500 for the next trip but taking home any more would be like betting on a horse race--you never know if the exchange rates will go up or down before the next trip. Of course, if the rate is 21:1 it's probably a "sure thing."

 

[mediumone]

A while back I was under the mistaken impression that it was a set fee (Banamex) so I always withdrew larger amounts to save on the fees, but after getting home and examining my receipts and bank statements it looks like it is a percentage of the amount so now I usually just get pesos 3000 at a time. I like to leave Mexico with about 1500 for the next trip but taking home any more would be like betting on a horse race--you never know if the exchange rates will go up or down before the next trip. Of course, if the rate is 21:1 it's probably a "sure thing."

You will save on fees/taxes by withdrawing larger amounts. You'll also need to factor in any charges by your US bank. My credit union charges a flat rate per transaction.

Yes, I know, I could do away with those fees by opening a Schwab or Fidelity account, but not worth it to me in the grand scheme of things.

 

[gopbroek]

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. .

Which is why I do not use HSBC OR Scotia. Even though Schwab picks up the fee, I think it is excessive