Peso Exchange Rates and the Taxi Mafia

[kss1dvr]

Yep, got the CC statement. Night before at Kinta used the card in pesos and got an exchange rate of more than 15.99. Same thing the day after. No fees. Just Pepe pulling the no bueno tricks.

Kinda sorta same thing happened to me at Lobster Shack. Ordered the lobster burrito and the bill came in dollars. Asked for the bill in pesos and got the dollar price converted to pesos. Not the end of the world, but it definitely worked out to more than it would have been if I had gotten the peso menu price. Disappointed me, I was happy until then. Oh well, back to Le Chef!!!

 

[cvchief]

Kinda sorta same thing happened to me at Lobster Shack. Ordered the lobster burrito and the bill came in dollars. Asked for the bill in pesos and got the dollar price converted to pesos. Not the end of the world, but it definitely worked out to more than it would have been if I had gotten the peso menu price. Disappointed me, I was happy until then. Oh well, back to Le Chef!!!

Really? That is disappointing. I thought there was a profecto rule that you had to post prices in pesos no matter what else you do? How was the lobster? I hear it is tasty there?

 

[kss1dvr]

They had a dollar menu and a peso menu, so it was posted. Peso price was better, which I why I requested the bill in pesos after they brought it in dollars. Like I said, no big deal, but disappointing. I just considered it their tip. We had the burrito and the rolls, which were good. To my unrefined Midwest taste the Le Chef sandwich is better.

 

[DjDiverDan]

WHOA!!! Just looked at the Bloomberg site for currency exchange rates, and the Peso exchange rate this morning was 16.7298 Pesos to the U.S. Dollar this morning! The Peso seems to be in a bit of a freefall!

 

[mmmbelows]

Not sure if it's the peso weakening or just the dollar strengthening further. Heading to Europe soon and the euro is being crushed by the dollar, things are going to be about 25% cheaper than they were when we were there just a few years ago. It's a great time to travel if you're American right now.

---------- Post added August 20th, 2015 at 11:29 AM ----------

Right but apparently you need make sure they run it in pesos!! However I found Pepes' stuck one up my posterior when it charged me in USD at a rate of 14.50 pesos to the dollar.

I was doing to reading a few days ago and actually came across some information on this type of thing, there is actually an official name for this rip off. It's called Dynamic Currency Conversion.

If you’ve traveled abroad lately and used a credit card (or even if you’ve just charged something from a company outside the US on PayPal) you’ve probably noticed the increasing prevalence of something called “dynamic currency conversion.” Basically, instead of just charging the amount in Euros or pounds or whatever currency the purchase is in, merchants give you the choice of “paying in dollars” and will show you the amount you will owe. While it may seem like a cool convenience in an increasingly complicated world where currency values fluctuate from hour to hour and day to day, as TPG contributor Nick Ewen details, dynamic currency conversion is just another added fee to the cost of traveling abroad – sort of like paying an exchange fee for changing your money – and should be avoided whenever possible.

Dynamic currency conversion is an aspect of the international currency market that is relatively new and masquerades as an easy way to pay more for goods and services abroad. In essence, it capitalizes on the fears and ignorance of a casual traveler that they do not know just how much of their own currency they are spending. More and more, when you are out of the country and use a credit card to charge a purchase – anything from clothes or a meal to hotel rooms, you are asked whether you want to be charged in US dollars or the local currency. Paying in dollars is almost always a bad deal, though, so always choose the local currency. In doing so, you avoid the pitfalls of the phenomenon (and money-making scheme) known as dynamic currency conversion.

Just Say No
Some Americans, when offered the choice, might immediately assume that it’s much better to have the charge made in dollars. After all, that’s my home currency, right? The only problem is that the merchants are the ones calculating the exchange rate. In doing so, they are building in an additional fee that the customer may never explicitly see. Of course, this is all supposed to be disclosed up-front, but in every scenario I’ve been offered the choice, it’s always been that same simple question: “dollars or insert foreign currency here?”
The only real benefit to dynamic currency conversion is that it allows a customer to immediately see how much their transaction will cost in their home currency rather than estimating or trying to do the math on the spot. If you accept that option, however, you’re in for a rude awakening when your credit card bill arrives because these transactions inevitably tack on additional fees.

The additional fees can be as low as 1%, but they could wind up tacking on as much as 7% of the purchase price! Much of this goes directly into the seller’s pocket, and in fact, many companies that provide this service for merchants even tout the additional commissions in their promotional materials (see CyberSource’s Dynamic Currency Conversion resource) when selling them to merchants.

CyberSource’s materials even go so far as to say: “Plus, you can generate a new revenue stream – you earn commissions every time a customer selects DCC. This revenue can be used to offset the cost of acquiring foreign transactions.” It’s literally just a money-making scheme dressed up as an excuse for merchants to shift credit card processing charges onto consumers.

Sounds like Pepe is doing a little dynamic currency conversion without even asking you

 

[cvchief]

Sounds like Pepe is doing a little dynamic currency conversion without even asking you

Yea, I read that on the VISA site. I think I could have contested it as I didn't check a box or request it. I did Trip Adviser it though! Thanks again, Pepe, you stinkin' chayote.