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Author: Subject: Peso
MitchMan
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[*] posted on 2-13-2016 at 11:38 AM


There are 3 different rates that are correlated: Actual real time market rate, Visa internet rate, the actual ATM withdrawal rate.

All things being normal, the actual market rate is usually higher than the internet Visa rate which is usually higher than the actual ATM withdrawal rate.

As a reference rate, I look to the "Visa Exchange Rates Calculator" on the internet:
http://apps.usa.visa.com/personal/card-benefits/travel/excha...

That rate is usually only a 1 day static rate that is set once per day for the entire day and is usually higher by at least 6 or 7 centavos per dollar than the ATM withdrawal rate (but can be up to 30 centavos higher):

Internet Visa Rate 19.12
ATM withdrawal rate -19.06
Net in centavos 0.06

Sometimes your ATM withdrawal rate can be higher than the internet Visa rate if there is a downward rate trend going on in the real time currency market and the Visa credit card department guesses wrong.

One day last year, I was watching the real time market and the Visa internet rate and I checked the ATM withdrawal rate in the morning. Then about 3 hours later, I noticed that the real time market rate took a sudden daytime drastic down turn. I went back to the ATM to make a withdrawal to take advantage of the ATM rate that was much higher than the actual market rate at that moment. BUT, “inexplicably” the ATM was “out of service” for about 2 hours. When it came back into service, the ATM rate had changed much lower than it had been earlier that day. However, now and then, you can catch the rates in your favor…not often though.

Mexico doesn’t get a whole lot right, but the banks efficiently watch these things very closely to their benefit.
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Howard
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[*] posted on 2-13-2016 at 11:45 AM


Thank you for the clarification.




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