BajaNomad - Schwab...Fail X 2

Schwab...Fail X 2

Jack Swords - 2-6-2015 at 02:30 PM

Once again Schwab blocked our ATM card in Baja. Last year it was blocked after 4 weeks, so this year we again contacted them about being in Baja for several months and requesting written verification that they had in fact noted that we would be in Mexico. We received written verification. We used the same ATM machine, took the same amount each time, used it each week for expenses. After 6 weeks of having no problem, we were once again blocked. This is a large deposit account with Schwab having way more money than we could tap over a large period of time. Contacting Schwab they indicated possible fraudulent activity. Fortunately, we had other ATM cards on our home bank and these worked flawlessly (they always have). I know, I know, some will say "I never had a problem..." That's great, but if you do, have a back-up of another ATM card. In fact, before next year's trip I'll open yet another deposit account with a real bank to have another alternative.

MitchMan - 2-6-2015 at 03:18 PM

Good to know that, Jack. So far and for the past year or so, I haven't had any problems but I only go to Baja for a couple of weeks at a time about 6 times a year. I always let Schwab know when I go and all has worked flawlessly.

Banks are big and bureaucratic with complicated detailed systems and are always trying to limit the amount of labor they use. Many good people that work for them leave early to find higher paying positions so it is and has always been loaded with trainees at almost every level all the time. Stuff absolutely falls thru the cracks, all the time. It is an ongoing thing with all banks. That's they way it has always been thru my career in the financial world. Big banks are worse than small banks, but all banks suffer.

The effective trick with working with banks is to know how to navigate their bureaucracy. Having large accounts with them helps. But large in this regard means in the millions. If you only have a few hundred thousand with them, your clout is not that much greater than small account holders outside of your branch. Weird, but true.

I have always taken two different bank debit cards and a credit card from a third bank with me to Baja. A decent par amount of pesos doesn't hurt either. I never, ever want to be a single day in comparatively lawless, confoundedly outrageously inefficient bureaucratic fraud infested Mexico (particularly considering their ridiculously structured internal control overkill) without purchasing power.

Other than that, all has been good.

Martyman - 2-6-2015 at 03:25 PM

I was planning on getting one. Zero ATM charges right? Always good to carry a backup though.

Tod - 2-6-2015 at 04:17 PM

We have had to call them 5 times in the last month after the first 6 weeks with no problems. Always get the same amount at the same two ATMs and explain
This every time.

bajajudy - 2-6-2015 at 04:25 PM

Try First Republic
They reimburse all fees!

MitchMan - 2-6-2015 at 04:33 PM

Zero ATM charges used at HSBC in La Paz, that I can vouch for with first hand knowledge.

I was required to open a Schwab brokerage account with a deposit. Then I could and did open a checking account that was connected to the broker account. The ATM debit card given to me was for the checking account. The way I fund the checking account is to first deposit money (I deposit a check drawn from a different bank) into the brokerage account. As soon as the check deposit clears, the funds in the brokerage account become "available" and can be transferred by way of internet access to the Schwab accounts. Done.

I also have my Schwab accounts configured to allow an online electronic transfer of funds from my other bank to the Schwab brokerage account. Never used that because I do not know if there is a charge for doing that. If there was, I think that would defeat the entire purpose of using Schwab to avoid fees in the first place. The other and more compelling reason is that a paper check used for the transfer of funds serves as a better quality paper trail and provable record of the deposit. Official tangible evidence of transactions will always and forever be a superior record than any electronic record that resides on some hard drive somewhere...out there... wherever that place is.

[Edited on 2-6-2015 by MitchMan]

MitchMan - 2-6-2015 at 04:43 PM

Judy, what amount(s) is/are the account balance(s) that you are required to maintain at First Republic Bank for the benefit of using their ATM card for withdrawal of pesos at banks in Mexico with no fees?

wilderone - 2-7-2015 at 07:53 AM

I have a First Republic account. There are various checking plans - possibly amounts have been changed (check online or call), but if you maintain at least $3500 in an account, no monthly services charges. And they reimburse service fees at ATM machines. I checked my statement after a trip to Loreto where I withdrew pesos, to see the conversion rate (withdrawl in dollars), any foreign transaction fees, etc., and saw that there were no fees associated with the transactions.

Another note re "have a back-up of another ATM card" - I had forgotten my bank debit card on a trip to Lake Tahoe once and used a couple checks that I always keep in my wallet, but after that really had no other money or way to get money. I got along, but on the way home needed gas, and I tried using my Macy's card, which was declined. When I got home, I had a message about the declined Macy's card and they declined the attempted purchase because they thought it might be fraudulent because I hadn't used that card in long time and it was out of town purchase. Point being, if you don't use the account regularly you might have same problem (so maybe same pre-notification)?

Former Military

bajaguy - 2-7-2015 at 08:04 AM

My everyday card is from our local Credit Union, but my back up is USAA. No problems, great service.

If you are former military, check out USAA

daveyjoans - 2-7-2015 at 08:07 AM

Our Schwab cards were working fine for the first 2 months, then we used our first card, it went fine, used my wifes card and it was rejected. I figured maybe because using both cards back to back was the problem, and we did have enough Pesos for where we were going, so we left. 3 weeks later, in Cabo, Both cards were rejected. I called Schwab, They told me being I didn't report the issue on my wifes card when that happened, it was blocked for good, my card was unblocked while I was on the phone with them at the bank. Great down to one Schwab card. Went to the bank days later, my card is blocked again, another call, and it takes 25 minutes to unblock. Next time same thing, but I complain its costing me money each time I call and takes so long to unblock, they said they would credit my account for $25, and they did. Next time same thing, call them, I'm peeed by now, I tell them I want a supervisor. I complain about my time and money for the phone calls and ask her to credit me for $100, she ask if I have another bank card I can use if this keeps happening, I say yes but there will be charges. She says ok, I will credit your account for the $100 you asked for, and I will give you $50 more to cover any fees from your other bank. I'm not so peeed anymore. We our going into our 5th month here now, and it has been rejected one more time, I call, they unblock it while I wait at the bank. I guess we will see how this plays out for the rest of our trip, then decide if there is a different bank we will use next season. http://forums.bajanomad.com/images/smilies/lol.gif

Hook - 2-7-2015 at 02:25 PM

Quote: Originally posted by wilderone

I have a First Republic account. There are various checking plans - possibly amounts have been changed (check online or call), but if you maintain at least $3500 in an account, no monthly services charges. And they reimburse service fees at ATM machines. I checked my statement after a trip to Loreto where I withdrew pesos, to see the conversion rate (withdrawl in dollars), any foreign transaction fees, etc., and saw that there were no fees associated with the transactions.

Wilderone, have you made a determination as to how close to the bank-to-bank exchange rate (on the day you use it) that you are getting? Say, compared to a site like xe.com?

And what about using the card as a point of sale/debit card? Is that also fee free in Mexico? Have you used it at the cash register at, say, a Walmart in Mex?

Hook - 2-7-2015 at 02:53 PM

It's beginning to sound like Schwab is either:

-overly cautious about their cards being used for long periods, internationally

-losing interest in absorbing all the fees they incur by persons using their cards, internationally.

Possibly Schwab embarked on this no-fee card to try and persuade people who travel a lot to move their entire brokerage monies into Schwab from another institution.

I suspect that many of you are just keeping a minimum amount in the Schwab account (plus what you need each month) and not much more? What is the minimum amount?

Jack Swords - 2-7-2015 at 06:38 PM

Hook...you make good points. I do like the ATM fee reversals provided by Schwab, but am willing to pay them for more reliability in acquiring funds while in Mexico. Calling them, as indicated above, can be difficult in Mexico. Their ATMs are handled by VISA and when we call them (Schwab)after returning home, they have blamed VISA. Interestingly, our other ATM bank cards are VISA and we have not had difficulty with them over the years. We have just used the Schwab card in the past two years. Each year we depart with $10K in the Schwab account, so the balance is not the issue. We have a boat! and potentially could have to tap the account for more than weekly living expenses, so far we have not needed to do that. The posting was simply to give a heads up to have alternative ATM cards to the Schwab one.

Hook - 2-7-2015 at 10:14 PM

Well, 10k is a decent sum in a checking account at a conventional bank. But Schwab is probably hoping for people with a lot more than that in their brokerage account.

A guy can rack up a fair amount of intl transaction fees and ATM fees that Schwab might have to swallow. Certainly, the simple interest they might earn on 10k is low these days. Outside of how they invest it in non-interest bearing investments (with risk!), a frequent international ATM user is probably costing them more than the simple interest on 10k.

B of A cut their losses on these types of accounts. Maybe Schwab is too, by making it difficult for cardholders who have what they consider to be "inadequate" balances. It could be an internal decision. Maybe people with, say, 50k in their brokerage account, aren't having to deal with card suspensions..........

I dont know; just speculating. I'm just looking for an inexpensive way to convert dollars to pesos.

First Republic is worth looking into. For someone who spends so little time in the US like me, it would be nice to simply perform a free ETF from my credit union to another domestic bank with no fees. I dont care about convenient branch locations.

My credit union has fairly low fees, but not zero fees. So, I investigate the possibilities.

That's why I am wondering about exchange rates and any point-of-sale fees.

BTW, when I was in a Mexican Costco a few months back, I noticed that they have begun accepting the Amex cards that many of us have as Costco membership cards. I decided to try it to see what the fees were. On a total bill of about 400.00, the fees were about 9.00 US. Not cheap, in my book.

No problems

bigmike - 2-8-2015 at 06:48 AM

I had exactly the same problems with Schwab when I first opened my account.
I would call them and tell them where I would be and still be blocked.
Got the same answer that it was Visa blocking me.
I have not had a problem now in almost a year with them, almost all of
my withdrawals are done in Mexico because I live here but do occasionally
withdraw funds in the states, just spent 17 days in Southeast Asia and never had a problem with the card being rejected.
The exchange rate is always excellent. So maybe it will get better as time goes along, but I know it is very frustrating when the card is rejected.
I know friends who have the card and it has never been rejected.

Jack Swords - 2-8-2015 at 07:37 AM

Followed up with VISA and was told the card was rejected because of a $25 ATM fee. Had to explain that that number was in PESOS! VISA also said that any notification about travel out-of-country is only good for TWO weeks. So, that's what we are dealing with and certainly warrants having a back-up ATM card.

Hook - 2-8-2015 at 08:59 AM

TWO WEEKS??!! That's a complete non-starter for me, living down here.

woody with a view - 2-8-2015 at 09:27 AM

i understand the whole "no fees" view of cutting costs, but aren't people getting the benefit of money being available 24/7? why not just get a Mexi-bank ATM card? if those have fees but don't get rejected then maybe your time is worth more than $5-$10 in fees every month.

aggravation is bad for your health!

wilderone - 2-8-2015 at 09:33 AM

"Wilderone, have you made a determination as to how close to the bank-to-bank exchange rate (on the day you use it) that you are getting? Say, compared to a site like xe.com?
And what about using the card as a point of sale/debit card? Is that also fee free in Mexico? Have you used it at the cash register at, say, a Walmart in Mex?"

I have used my 1st Repub. card at the winery, restaurant, to buy a tire, ATM cash. No extra charges were applied, and I got an "international ATM rebate" of $2.21.
I couldn't say, penny-for-penny, what the converted charge vs. my Mexican bills was, but I think my charges were slightly less than what I understood I was paying in Mexico. (E.g., my meal bill was supposed to be about $38.00, and my debit statement shows $35.33). In any event, to my advantage and not a problem.
As for the peso cash, I can't say exactly - I don't have that data any longer to be able to make a specific comment, but it is what it is. I learned that banks can use two methods to convert foreign currency, and the consumer has no control over that.

Hook - 2-8-2015 at 01:20 PM

Quote: Originally posted by woody with a view

i understand the whole "no fees" view of cutting costs, but aren't people getting the benefit of money being available 24/7? why not just get a Mexi-bank ATM card? if those have fees but don't get rejected then maybe your time is worth more than $5-$10 in fees every month.

aggravation is bad for your health!

We do have a Mexican bank ATM/debit card as well. But filling it with converted dollars to pesos, there is some loss. I lose about 0.3 pesos from the bank to bank rate. We fill it by giving our credit union draft to a relatively new bank in Mexico; a predominately exchange bank that is moving into opening branches. It's called CI Banco, and the check goes from them to Mellon Bank of New York and then into our Banamex account. Usually takes about 48 hours, but we have to take the check into the CI Banco branch. From there, we use the ATM card as a debit/POS card at supermarkets and restaurants. It saves us from having to always carry lots of cash. That reduces aggravation.

While I'd love to use it at Pemex stations, too, there have been too many reports of cards being compromised at Pemex stations over here. We've never heard of it happening at Leys, Sorianas, Walmart/Sams, Santa Fe, Costco.

0.3 pesos does add up. I'm not expecting to get the bank rate, but on a conversion of 1000.00 US (that's about what we convert with this method, per month), one would lose about 23.00 US if you get 0.3 less than some other method. Maybe some bank gets you the equivalent of 14.5 and one gives you 14.2, when the bank rate is 14.8. 23.00 x 12 months is about 275.00 year. That's a few fishing trips. Then, if additional fees are involved, it's even more.

bajajudy - 2-8-2015 at 01:45 PM

Quote: Originally posted by MitchMan

Judy, what amount(s) is/are the account balance(s) that you are required to maintain at First Republic Bank for the benefit of using their ATM card for withdrawal of pesos at banks in Mexico with no fees?

Sorry Mitch..just saw this
We have no minimum. There are no ATM fees anywhere. We used it all over Europe.

Edit to add something to woody's comment.
I personally prefer my money in a US bank(FDIC). We have peso and dollar accounts in Banorte for our business but we keep the balances down just in case they decide to devalue the peso again. Well actually I guess that it is being devalued daily anyway with the fall of the peso. I read that it will be at 15 by March.

[Edited on 2-8-2015 by bajajudy]

Hook - 2-8-2015 at 02:20 PM

Judy, the First Republic website seems to indicate the minimum balance for NO FEES OF ANY KIND is 3500.00 US.

bajajudy - 2-8-2015 at 02:33 PM

I was only talking ATM fees.

kiterkip - 2-8-2015 at 03:10 PM

Huh? I have a C Schwabb account with the soul purpose of ATM & Foreign Transaction savings while in Mx. My "investment" account sits at about $2K, and I have my checking account set with a $500USD limit balance & per-day transaction.
The card was blocked a few weeks ago... 3 minutes on the phone (Skype) and no problem since. Never have had problems over 4 years.
Maybe my days are numbered with this great bargain.

Hook - 2-10-2015 at 04:21 PM

I emailed First Republic, asking them if there was a way I could determine what my exchange rate would be on the day I conduct a transaction. I asked for an online source for this information.

This is the link they sent me. A rather generic Visa card link.

I put in a value for tomorrow and it gave me back 14.85. Right now, on XE.com, it's hovering around 14.95. Pretty decent rate, really.

For the bank fee on the calculator, enter zero.

http://usa.visa.com/personal/card-benefits/travel/exchange-r...

Tod - 2-10-2015 at 05:30 PM

Got blocked again today at Bannorte ATM. Got it open again with call and got compensated for all the calls we have had to make.

willardguy - 2-10-2015 at 05:37 PM

got blocked for the first time last week. the rep I spoke with suggested once a month I log-in and update travel status.
sounds simple, but probably won't remember to!

Tod - 2-13-2015 at 04:14 PM

Got blocked again today at Bannorte ATM. Got it open again with call and got compensated for all the calls we have had to make.

Hook - 2-13-2015 at 04:17 PM

So, that's two blocks within three days, Tod?

Tod - 2-14-2015 at 06:29 AM

No, I some how double posted. Apologies!

We have been blocked at least 5 times since we have been down from December 1 until now. Nothing the first 6 weeks and now it seems every two weeks. The indicate the BanNorte ATM in Todos has a lot of fraud. I don't know about that but it is very heavily used...pretty much nonstop every day.

MitchMan - 2-14-2015 at 07:51 AM

Used BofA debit card for 5 years exclusively at Santander, then went to Charles Schwab for the last 1-1/2 years used exclusively at HSBC.

Becoming concerned with the posts saying that HSBC is taking some debit cards.

Anybody have suggestions for safe Mexican Banks to use Schwab debit card for peso withdrawal in La Paz?

Over the past 6-1/2 years, I have used the Visa website: http://usa.visa.com/personal/card-benefits/travel/exchange-r...
to estimate what the exchange rate might be at the bank when the debit card is used to withdraw pesos. On the average, all things being normal, and NOT during a period of aggressive daily rate change, the internet currency exchange rate usually averages about $0.07 MXN higher than the actual rate experienced at the Mexican bank ATM. Not bad at all.

There usually seems to be a time lag of about a day or two where the actual ATM rate seems to trail the direction of the internet rate. So, you generally get optimal exchange rates at the ATM during periods of a falling internet rate.

I spent quite a bit of time calling BofA trying to find a source that would give me the EXACT rate to expect at any given time at a Mexican bank and no one at BofA could ever correctly answer that question. The only think that they would say is absolute and that is that the ATM exchange rate is set for the entire day and should not change for the day. I found that to be somewhat true, but not entirely.

During a period of fast falling internet rates, I checked the ATM rate at the ATM kiosk at 10am and it was a very good rate. Came back about 2 hrs later after determining that I should get a bunch of pesos, but the ATM had suspended its operations. Came back 2 hours later, the ATM resumed operation, but the rate was not good...so...the rate actually changed during the day a significant amount against my favor. Mexican banks may not be very good at banking, but they are smart enough not to lose money if they can avoid it, no matter what bank representatives tell you about specific policy and procedure either in Mexico or in the USA.

Not going to try to ask Schwab; pretty sure no one there will know anything reliably either. It's been my experience that bank personnel at any bank and at all levels don't know a lot of detail stuff they should know. During my financial career, I have made a ton of money for the companies that I worked for using their (the banks') lack of knowledge to my benefit. However, as a citizen bank customer, their stuff only causes pain. Only remedy is to constantly ask a bunch of questions (pointed interrogation) from different people at the same bank on the same questions to try to stay ahead of curve.

Floatflyer - 2-14-2015 at 07:55 AM

We have been using our Schwab account about every other week in Mexico since the end of October with no problems. Yesterday we had our transaction denied for the first time, but a single phone call to Schwab solved that problem and we went directly back to the same ATM and got money.

We called the US "call collect" number on the back of the ATM card which directly connected to Schwab with no operator involved.

And, the exchange rate for our transactions yesterday was 14.79 pesos! Yippee!!

We called Schwab before we came down to Mexico to alert them of our travel plans and we only use the ATMs in a Santander Bank. So far, we are quite pleased with this arrangement. Best to use an ATM at an actual bank because if the machine "eats" your card, you can go into the bank and get it back by showing ID.

Also, we tried to open an account with First Republic from our home in Washington state but were told we needed to come into a branch office to do so. Our nearest office is in Portland, OR so will plan on doing that next trip there.

[Edited on 2-14-2015 by Floatflyer]