Peso Exchange Rates and the Taxi Mafia

[Fireworkswi]

You ask them for the price? I usually tell them what I am willing to pay.

---------- Post added August 3rd, 2015 at 02:09 PM ----------

By way of random thoughts:I was surprised to see that the cambio on the ferry pier was offering a pretty decent rates even compared to what I saw posted in town.I noticed that a couple restaurants were charging in dollars on my credit card and stated asking to make sure they run them in pesos instead.I asked the girl at the duty free yesterday if they could run my card in pesos and they said they could. They were converting at 15.5. (Of course I asked her AFTER I ran the card....)My RR card should post a statement tomorrow so I can see what rate they were handing out.

I thought I saw you at the airport. I think my receipt was 15.3. I know a week ago Mega was 16.3. Time to buy pesos for the year.

 

[Skittl1321]

I just use pesos for everything when I'm there. You want a cab, ask for the price to go somewhere in pesos. Even better if you can ask in Spanish

I can ask in Spanish, but unless they answer really really slowly, and they rarely do, I don't know what the response is.

(Maybe it would help if they yell the answer; at least- I've heard that works when speaking English to someone who doesn't know the language well)

 

[Christi]

When you use a credit card or debit card - it is YOUR BANK, not the establishment or bank who owns the ATM that is doing the conversion if charged in pesos.

 

[gopbroek]

When you use a credit card or debit card - it is YOUR BANK, not the establishment or bank who owns the ATM that is doing the conversion if charged in pesos.

That is good info to know. I have always assumed that the rate would be set by folks who's Pesos are loaded into the machine. This makes more sense as the ATM gets a fee for the transaction plus is owed the currency dispensed, so if I pull 6K Pesos out of Banamex's ATM with a Charles Schwab debit card all Banamex cares about is getting the 6K + 30 Pesos transaction back from Chuck. Now how much Charles Schwab charges me is an entirely separate deal. I am really beginning to appreciate Charles Schwab's practices. I got the idea for the CS card for travel from a similar thread earlier this year on SB.

 

[cvchief]

When you use a credit card or debit card - it is YOUR BANK, not the establishment or bank who owns the ATM that is doing the conversion if charged in pesos.

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.

Say for instance I took a crap load of people out to dinner and the bill was $3,356 pesos at Pepe's on 1 August. Now if they had run that in pesos, my Southwest RR Visa would have converted in the neighborhood of 15.99 on that date with no bank fees. Bill should have then cost me 209.88 give or take.
Not bad.

INSTEAD, Pepe's Grill chose to convert to dollars at 14.5 and then charge in dollar. 3356/14.50 is 231.45. Which is what they charged. The difference is about $21.56 US which means they manipulated the currency to cost me MORE than 10% more than I should have had to pay. 10 PERCENT?!?!?

I would also say, the MOJO SERRANO dorado with rice pilaf and lime sauteed spinach wasn't anything to write home about. No spice and the fish didn't seem that fresh. My buddy's steak was really pretty good though. The burgers were ok according to reports. Service was really pretty good.

Still thanks for taking the extra 10% , Pepe.

I had never made to Pepe's before and it might be awhile until I go back. Mainly went because some of our contingent wanted AC. It is a beautiful restaurant. If you go, get steak and make sure they run the card in PESOS.

---------- Post added August 3rd, 2015 at 05:17 PM ----------

I thought I saw you at the airport. I think my receipt was 15.3. I know a week ago Mega was 16.3. Time to buy pesos for the year.

I was there on Sunday for the 1100 Mayair. Xoom is lagging. They are only at 15.70 today.

 

[gopbroek]

With restaurants, taxi's, DM tips and local merchants I use actual pesos, which I pull from the ATM.For the Dentist US cash. For diving Dollar's or trade flights or merchandise. Vehicles on the card

 

[Skittl1321]

So I see in Jefe's example he got screwed by a credit card being run in dollars.

Stupid question (maybe?) If the price was quoted to me in dollars- is it okay for them to run the CC in dollars? Is there any reason that would result in the amount I pay being different than the amount they said? Or should I ask for them to run it in equivalent amount of pesos?

 

[cvchief]

So I see in Jefe's example he got screwed by a credit card being run in dollars.

Stupid question (maybe?) If the price was quoted to me in dollars- is it okay for them to run the CC in dollars? Is there any reason that would result in the amount I pay being different than the amount they said? Or should I ask for them to run it in equivalent amount of pesos?

Good question. I read some visa thing while checking rates that says something about dynamic currency conversion. It sort of says I am supposed to agree or they are supposed to use the local currency. I didn't agree or check any boxes. I did however sign the slip when they printed it in dollars. They did print their conversion rate to dollars on the bottom of the bill. I just never asked for dollars, cuz hey, I am in Mexico. Visa sort of talks like I can contest the charge on the VISA Website. Interesting I thought. And the waiter got a nicer tip since I tipped on the jacked amount.

 

[mmmbelows]

When you use a credit card or debit card - it is YOUR BANK, not the establishment or bank who owns the ATM that is doing the conversion if charged in pesos.

If you're making a cash withdrawal from an ATM, orthe vendor is running it as a straight US dollars transaction.

The issue is when he converts it to pesos first, then you're at their mercy, and a $1000 US dollars charge instead of showing up as a 16,000 peso charge can show up as a 18,000 peso charge, your $1000 charge just turned into a $1100 charge. (like what they did to CVChief at the restaurant)



---------- Post added August 3rd, 2015 at 08:22 PM ----------

So I see in Jefe's example he got screwed by a credit card being run in dollars.

Stupid question (maybe?) If the price was quoted to me in dollars- is it okay for them to run the CC in dollars? Is there any reason that would result in the amount I pay being different than the amount they said? Or should I ask for them to run it in equivalent amount of pesos?

Not a stupid question at all, they count on the confusion to be able to steal from you.

You do want it run in US dollars and/or you want to see the exchange rate being used.

Check out this menu...

So which would you pay in ? US dollars or pesos?

I'd pay this one in pesos because they are charging you 40% more if you pay in US dollars. A free 40% additional profit on every order just by screwing tourists on the exchange rate. I don't think it would be too far of a leap to think Mr Sancho's is making more money off the exchange rate game than from their food and drinks.

 

[Skittl1321]

So which would you pay in ? US dollars or pesos?

Obviously that I'd pay in pesos. It's a terrible deal in dollars. Although with it plainly marked that way, I wouldn't call it "stealing from you". If you're an idiot who can't do math, well... they made it very clear.


The thing is, Mr. Sanchos says All-Inclusive is $50 (or something close to that). I cannot find ANYWHERE what it costs in pesos. I've emailed them with no response (I just now asked on their facebook page.) My instinct is paying in pesos would be better; but not if they have no actual peso price; so if they will just back convert $50 into pesos (right now 50 dollars is about 800 pesos), that doesn't really make a difference. But if they say "AI is 600 pesos"- then I'd pay in pesos. But if they tell me AI is $50 and won't quote a price in pesos; if they run the CC in dollars, am I actually paying $50 or is something in there going to be hidden (my credit card does not have foreign transaction fees.) I've just always been told to NOT run dollars in Mexico; but I'm wondering if that is only when being quoted in pesos and letting them do the exchange.

It probably doesn't matter; it will be a few dollars different, and I'm getting screwed on the price anyway. No way will I eat or drink $50 worth...but I'm going along with the group...and if one person does AI, everyone does.

The whole credit card thing just really confuses me. Maybe I'll just bring it all in dollars so I don't have to think about it. Of course then, I don't get any points. This would all be easier if I could go diving this trip (my buddy is going without me). Our op has us pay ahead of time on paypal