Bajatripper
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Bank Scam in Mexico
A tip I picked up on YouTube is how banks in Mexico are screwing us at the ATM machines when we withdraw funds from our stateside accounts. Perhaps
others have already reported on this here but I didn't look too hard to find out and apologize if such is the case.
Until a couple of months ago I had been falling victim to this situation: when I would withdraw funds from my account using Banorte's ATMs (I assume
it also applies to other banks' machines, but may be wrong), at some point deep into the transaction, probably just before the funds are dispensed, a
screen pops up advising me what the exchange rate will be and asks if I accept this rate. I assumed (and we all know where that leads) that if I
rejected the rate offered my transaction would be cancelled, end of story.
However, such is not the case. It turns out that if one rejects this exchange rate, the transaction proceeds anyway and one's money comes out.
Following the tip, I went home to do the math, opening up my bank account online and seeing how many dollars were taken from it and then dividing the
peso amount I requested by that to see what the exchange rate was (assuming transaction fees are the same in either case). As it turns out, I'm
getting over a peso better exchange rate than what that screen offers. In yesterday's transaction, the scam screen offered me an exchange rate of
15.56 pesos to the dollar, which I rejected to receive an exchange rate of 16.67 for the dollars withdrawn.
So, assuming (there I go again) that other banks are in on this scam, I would encourage everyone to start rejecting this and see what the results are
for themselves...if you aren't already doing it.
There most certainly is but one side to every story: the TRUTH. Variations of it are nothing but lies.
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pjpvi
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I learned about this about a year ago in La Paz when I had to pull out a lot of cash to pay for a vehicle repair. I think I read it somewhere online
and, like you, I learned to not accept the rate and ended up with a better one exchange rate. I don't recall which bank(s) I was pulling money out
from but every ATM was the same.
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AKgringo
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I don't think it qualifies as a "scam", but it certainly throws the exchange rate to the favor of the ATM owner. It comes down to the difference
between the rate your US bank charges VS the Mexican bank.
If you know the US bank rate of exchange is in your favor, decline. That is the case with my account, but I imagine that some US institutions may
have an even worse rate than the Mx bank. That is my unprofessional understanding of the situation, am I wrong?
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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RFClark
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We use BankNorte in Todos Santos there fee is much lower than BVVA and we always reject their exchange rate for our US bank’s rate. Which is always
better.
A similar problem occurs when you pay for anything with a US Credit or Debit Card. We always pay in Pesos never in dollars for the same reason.
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AKgringo
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I just checked the exchange rate Wells Fargo is using, it is 15.73 right now, which means no big deal accepting or declining unless you are talking a
lot of dollars.
I could not find what my Edward Jones account is charging today, but it is usually better for me than W.F. exchanges.
Paying with Pesos is always best, but I would rather get slightly screwed on the exchange than lose a bunch of cash! I don't have a peso based credit
or debit card.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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RFClark
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AK,
The decision as to dollars or pesos is a button on the CC machine charging your US CC as far as I know.
In fact a common CC scam in Mexico is to quote you pesos and then press the dollar button. Charge $200 pesos they press the dollar button. You pay
$200 US. (Think PEMEX here)
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AKgringo
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RF, that is a great reminder! I don't use plastic for gas or groceries, but I would rather top off my Peso supply frequently at trusted sources than
carry a wad of cash.
Many of my trips to Baja have been in a soft top Kia that is only as secure as the window zippers. I love that little car, excellent smiles per
dollar!
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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BornFisher
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AK-- Siri says it`s 16.97 now. Yesterday it was 16.6.
"When you catch a fish, you open the door of happiness."
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AKgringo
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What I posted is what Wells Fargo would give me today, not what the international rate is. In other words, they are in line with the Mexican ATM rate
they want us to accept.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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RFClark
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BofA Pesos/Dollars US Today’s rate
16 Pesos buy
18 Pesos Sell
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RFClark
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Here’s todays information Peso/US Dollar
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Bajatripper
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Quote: Originally posted by AKgringo  | I don't think it qualifies as a "scam", but it certainly throws the exchange rate to the favor of the ATM owner. It comes down to the difference
between the rate your US bank charges VS the Mexican bank.
If you know the US bank rate of exchange is in your favor, decline. That is the case with my account, but I imagine that some US institutions may
have an even worse rate than the Mx bank. That is my unprofessional understanding of the situation, am I wrong? |
Thanks for providing an explanation for this transaction as the video I watched didn't and called it a scam. I agree with you that it would not
qualify as a scam, given the reason you stated.
There most certainly is but one side to every story: the TRUTH. Variations of it are nothing but lies.
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AKgringo
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To double check my earlier comment about Wells Fargo, I just went through the process of requesting a thousand US dollars' worth of Pesos. The
transaction came up with 15,700 pesos for a cost of a little more than $997.
I did not go through with the transaction, but it gives me a good reference point since I need to get some pesos soon.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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RFClark
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AK,
We looked over our BofA statement. The add ons are $5 ATM fee and a percentage which is $8 for $5000 Pesos. We also have a Schwab Debit card. Schwab
refunds ATM fees and doesn’t charge the BofA percentage or BofA’s below market exchange rate. On a daily $231 exchange rate purchase Schwab
charged $233 which is close to the real exchange rate.
There may be another choice I will post information after I do my due diligence.
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AKgringo
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I am a frugal (aka cheap) traveler that tries to get as much as possible out of my limited travel funds. What it costs to exchange money is chump
change compared to filling up at the wrong stations along the way.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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RFClark
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Schwab also refunds fraudulent (extra PEMEX charges) debit care charges.
There is a system called “REVOLUT” which issues an account that can be accessed through Apple & Google pay in addition to a physical chip
debit card and that is international. I wonder if anyone has any experience using it.
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AKgringo
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I apparently dropped my Edward Jones debit card after making a withdrawal at an ATM in the La Paz Walmart. Records showed a denied second withdrawal
shortly after the one I made. (PIN was required)
The card was then run as a credit card at two different OXXO stores for a lot of gasoline plus beer for several hundred dollars. I was able to get
the card cancelled the same day I discovered the activity, and the charges were reversed to my account.
[Edited on 1-9-2024 by AKgringo]
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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msteve1014
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that is the rate they use if you want to pick up pesos at the bank, or somewhere in Mexico. you get a better rate when taking cash at an atm, i use
wells fargo to send cash to myself or a friend in mexico, | Quote: Originally posted by AKgringo | To double check my earlier comment about Wells Fargo, I just went through the process of requesting a thousand US dollars' worth of Pesos. The
transaction came up with 15,700 pesos for a cost of a little more than $997.
I did not go through with the transaction, but it gives me a good reference point since I need to get some pesos soon. |
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