BajaNomad

Buying Pesos

pascuale - 6-9-2012 at 09:15 AM

I am headed to Puerto Vallarta next week for some fishing at El Banco:spingrin:. With the Peso Rate being pretty good right now, should I buy some pesos before my trip and use them? Should I just use U.S. Dollars? Does anyone know a good currency exchange in SD area/ San Ysidro/ Otay? Thanks.

Ethan

DavidE - 6-9-2012 at 09:32 AM

Is there something that would prevent you from using an ATM card? Tourist magnets in Vallarta love dollars because only the most expensive golden zone (poorest value) businesses accept dollars and then nick maybe ten percent off the exchange rate.

I would use dollars only up to such time as I could take a combi to a cajero automatico and get real money. Right after I checked into a hotel. My dollars would be one's and five's, nothing larger unless I needed cash to check into the hotel.

On 805 at San Diego, exit San Ysidro Blvd. At the traffic light, at the bottom of the ramp, turn left and go under the freeway and keep going. About a quarter mile further on your right side you will see a couple of exchange buildings with big bright signage advertising the buy and sell rate. You will get the lower of the two rates exchanging dollars for pesos. Ignore the small exchanges that seemingly offer a better rate. Their so-called "commission" will eat a large hole in your exchange rate. Do business with the places on the right.

Hope This Helps

pascuale - 6-9-2012 at 10:09 AM

Thanks David, I appreciate the help. I will post a fish report upon my return.

David K - 6-9-2012 at 10:12 AM

Costco in Chula Vista (near I-5) offers exchange to members.

chuckie - 6-9-2012 at 12:04 PM

ATM is the way to go, BUT I got fewer pesos yesterday than I did a week ago....

thebajarunner - 6-9-2012 at 12:19 PM

Costco in SY is where we change when we have a big group and a couple thousand dollars to swap- as per DK advice

For my personal needs I always use the ATM- best exchange rate in my opinion

But the ATM has a limit and if you are swapping major bucks then either a bank or the Costco works

Bajaboy - 6-9-2012 at 12:53 PM

I exchanged pesos at Costco last week and the exchange rate was not favorable. But I was not going to shop around to save a few dollars. Normally I go with ATM but needed to exchange more than normal.

pascuale - 6-9-2012 at 12:59 PM

Grassy mass amigos!!:lol:

[Edited on 6-9-2012 by pascuale]

Bob and Susan - 6-9-2012 at 01:04 PM

you really dont get the best rate at an atm

there are bank fees involved

best rate is at a cambio near the border
figure you NEVEAR get the internet rate

i wouldnt take dollars but a mixture

you can sell the pesos back when you return

DavidE - 6-9-2012 at 04:43 PM

Did the math coming down with both casa de cambio at San Ysidro, and a Bancomer ATM in Lazaro Card##as BC. Five dollars Wells Fargo transaction fee, plus twenty two BBVC peso ATM fee. ATM beat out the best exchange rate in San Ysidro by .7%. Both were used on a Saturday around five hours apart. Your mileage may vary.

chuckie - 6-10-2012 at 04:39 AM

Thats what I have found...

Bob and Susan - 6-10-2012 at 05:18 AM

can we see the math?

Bajaboy - 6-10-2012 at 05:42 AM

Quote:
Originally posted by DavidE
Did the math coming down with both casa de cambio at San Ysidro, and a Bancomer ATM in Lazaro Card##as BC. Five dollars Wells Fargo transaction fee, plus twenty two BBVC peso ATM fee. ATM beat out the best exchange rate in San Ysidro by .7%. Both were used on a Saturday around five hours apart. Your mileage may vary.


It really depends on the size of the transaction with a flat fee of $5. The main convenience of using the ATM is not having to obtain USD first.

DianaT - 6-10-2012 at 06:41 AM

Quote:
Originally posted by Bajaboy
I exchanged pesos at Costco last week and the exchange rate was not favorable. But I was not going to shop around to save a few dollars. Normally I go with ATM but needed to exchange more than normal.


We use the Costco exchange all the time and not too long ago we had a strange experience. We needed to exchange $1000.00 USD and we did not have our passports with us and we don't like the paper work. Thus we did what we have done many times before. Away from the window we divided the money, I exchanged $500.00, no problem.

John walks up and hands the lady $500.00 and she asked for his passport. He said I am only exchanging $500.00 so you don't need it. The lady pointed at me and said, but you are with her and together you are over the limit. A bit sarcastically, John said he had no idea who I am. The lady finally made the exchange. :dudette:

Costco is often not the very best rate, but it is fair enough and convenient for us.

DavidE - 6-10-2012 at 08:28 AM

Bob & Susan,
That transaction was performed in early March, for the sum of $500 US + 5.00 ATM fee + 22.40 BBVA fee incl. IVA. My destination was a place 120 KM from the nearest ATM so I "loaded up". Wells placed a conversion fee atop subsequent transactions then stopped and re-credited my account. I am fortunate enough to have online access to my VISA account, so at Baja Cactus I wi-fi'd it and then spent a half hour triple checking my figures, which included the printed receipt from San Ysidro, and cross checking the ATM talon given to me by the machine in Lazaro Card##as.

ADDING the five dollar non-wells ATM transaction fee, PLUS the 22.40 BBVA fee to the TOTAL shown by Wells Fargo from my account, arrives at a gross amount of monies withdrawn. Divide that by the amount of pesos given by the machine and presto: Real Life Tipo de Cambio.

I stopped in San Ysidro solely to get enough pesos to last until encountering the first convenient ATM machine. For me, convenient means ability to access while hobbling with a cane. Ensenada banks were plugged with cars and ATM customers.

Keeping close track of my account is what lead me to determine accurately that BANAMEX /ATM machines are stingy compared to Bancomer BBVA machines. At home I use wither Hongkong Shanhai Bank Corp., machines or ScotiaBank machines.

Try exchanging a very large amount of Dollars at a casa de cambio sometime. In 1988, I had to jump through hoops in San Ysidro exchanging 55,000,000 (that's fifty five million) pesos for dollars from a bank transfer from a cooperativa in Guaymas to the caracol branch of BanaMex in Ensenada. Today, the way I understand it, things are far more strict, no comparison. Without the letter from Juan Lopez Ventura, with five signatures and seals on it, and the Banamex transfer paperwork no one in San Ysidro would have touched that stack of 50,000 peso notes.

Bob and Susan - 6-10-2012 at 08:56 AM

the reason i asked is because i did the same exercise the other day

the walk-in rate to exchange dollars in mulege was 13.9
the cambio at the border in san diego was 13.6

i got 1500 pesos out of the ATM from my usa bank account
USA fee $3.16 usa
Mexican bank fee $1.58
Total taken out of my bank account $110.88

actual in-the-pocket ATM rate turned out to be 13.52

if i took 110.88 to the cambio in san diego i would have received 1508 pesos

so in this case the cambio in san diego is a better deal

absinvestor - 6-10-2012 at 10:29 AM

The key seems to be the amount withdrawn. I get 6000 pesos at a time at the Mulege ATM. I get a $5 fee at Wells Fargo and another 22 pesos from the ATM. I haven't been to the border for 6 months so can't compare that but the sign at Bancomer Mulege said they would have given me 13.42 pesos to the dollar and on the same day I got a net 14.14 from Wells. (I took the net $ that Wells took from my account and subtracted the $5 fee that won't show for a day or so to figure my actual rate of exchange. The 22 pesos doesn't show but is somehow figured into the amount that Wells takes from my account) I can consistently get nearly 5% more at the ATM than the bank at Mulege.The same is true at Santa Rosalia.

DavidE - 6-10-2012 at 10:33 AM

Hi, I'm a little confused. Is there a bank in Mulegé now? Or a casa de cambio? "The Other Day" I got 14.25 pesos per dollar at a BanComer BBVA ATM. For the last three days the rate has sagged to around 13.90 +1%, but I do not remember it being below that for the last week to ten days. I complained when BanComer gave me 14.25 pesos (gross) versus Banamex 13.95. This was on the second of the month, eight days ago.

absinvestor - 6-10-2012 at 10:35 AM

Yep there is a bancomer in Mulege. Just down the street from the laundramat and the ATM is next door.

Bob and Susan - 6-10-2012 at 10:40 AM

david...there has been a bank in mulege for a few years...

abinvestor
the posted rate is not the rate
the girl at the window gives you

the rate changes almost hourly
the posted rate is just a guide

since abinvestor doesnt know what the san diego cambio rate is then how can he compare or know if hes even getting the best rate

you do get a better rate if you walk in with dollars and exchange them but there is a monthly limit you can exchange without a tax

DavidE - 6-10-2012 at 10:55 AM

Aha! Mil Gracias! Do you remember the dates? I just crunched my account and came up with 14.04 Bancomer and 13.77 Banamex, net. Meaning all fees were first subtracted, for 2 June, when the public rate was 14.25 +1%

absinvestor - 6-10-2012 at 11:10 AM

My transaction date was June 5th. I'm getting ready to head to the States and will need another withdrawal for gas etc before leaving. I'll post an update on my next trip to the bank which will be tomorrow or Tues. Ron

AndyP - 6-10-2012 at 08:07 PM

Wow, I'm horrified that any frequent traveler- let alone expat- is using a regular bank like Wells Fargo to withdraw money from an ATM. A $5 transaction fee, plus conversion fee, charged by your own bank is CRIMINAL!

Most credit unions will only charge the normal 1% foreign conversion fee, saving you that $5 over and over again. Even better, get a Charles Schwab checking account. Not only do they not charge you any transaction fee, they REFUND you any local ATM fees that you incur. That means you don't have to worry how many pesos Santander or whatever is charging to use their ATM. I just got back from a long trip where I used the card exclusively for my money, and every month they refunded me $15 to $30 bucks or so, money that banks in Central and South America charged me. Works in the States too. I need to double check this but I also don't think they charge the conversion fee.

Don't pay BS fees! You have options; vote with your feet!

baja and 100's

captkw - 6-10-2012 at 08:10 PM

the past two seasons in BCS I found the stores were not happy anymore with us greenbacks !! K & T:?:

dtutko1 - 6-11-2012 at 06:33 AM

Quote:
Originally posted by AndyP
Wow, I'm horrified that any frequent traveler- let alone expat- is using a regular bank like Wells Fargo to withdraw money from an ATM. A $5 transaction fee, plus conversion fee, charged by your own bank is CRIMINAL!

Most credit unions will only charge the normal 1% foreign conversion fee, saving you that $5 over and over again. Even better, get a Charles Schwab checking account. Not only do they not charge you any transaction fee, they REFUND you any local ATM fees that you incur. That means you don't have to worry how many pesos Santander or whatever is charging to use their ATM. I just got back from a long trip where I used the card exclusively for my money, and every month they refunded me $15 to $30 bucks or so, money that banks in Central and South America charged me. Works in the States too. I need to double check this but I also don't think they charge the conversion fee.

Don't pay BS fees! You have options; vote with your feet!

I've been using Schwab bank for several years. They don't charge a fee (B of A charged $8) and they reimburse the local Mex Banks fee. I have to wait until I return home and fax Schwab bank my ATM reciepts, but I was reimbursed $134 usd last winter.
Used the Chula Vista Costo one year and did not receive the best exchange rate

absinvestor - 6-12-2012 at 07:11 AM

Update. Yesterday I got 6000 pesos at the Bancomer ATM. Net 13.78 pesos to $. Bank posted exchange $13.26. I continue to use Wells Fargo. The $5 charge amounts to about 1% and I like them for other services. I had a Schab account for a few months but I actively trade stocks and have found Fidelity to be much more efficient for what I do.