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David Rodwell

ATM Fees Going UP

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18 hours ago, David Rodwell said:

I am not to sure of this. It would appear the banks may or may not choose to use the Mastercard or Visa rates.

 

Bank of America on their site says they set the exchange rate.

"Answers

  • Hide How does Bank of America determine foreign exchange rates and why might I see different rates online or in the newspaper?

    The consumer exchange rate that Bank of America N.A. (Bank of America) offers you is determined by Bank of America and is based upon such factors as we determine relevant, including without limitation, market conditions, exchange rates charged by other parties, our desired rate of return, market risk, credit risk and other market, economic and business factors. When you order foreign currency online or at one of our financial centers, the exchange rate we offer is, in effect, a rate quotation. You may accept or decline our rate quotation. If you accept our rate quotation and we have not canceled your order, you have entered into a final and binding transaction at the rate you accepted. Exchange rates shown in the newspaper and on some currency conversion sites are generally inter-bank rates available only to banks for transactions in an amount of $1 million U.S. dollars or more effected during regular business hours. These rates are not generally available to consumers obtaining foreign currency for international travel and likely will be different from exchange rates offered by Bank of America. Exchange rates offered by other dealers or shown at other sources (including online sources) may be different from Bank of America's exchange rates.Footnote1  The exchange rate you are offered may be different from, and likely inferior to, the rate paid by us to acquire the underlying currency."

    And from Mastercard:

    "Please Note: The foreign exchange rate and the converted FX amount are indicative only and inclusive of the bank fee you entered. Your bank may or may not use Mastercard foreign exchange rates to bill you and may impose additional fees in connection with foreign currency transactions. Foreign exchange rates are specific to the date and time Mastercard processes the transaction which may be different from the transaction date. If your transaction is converted by the merchant or ATM operator, Mastercard foreign exchange rates will not apply. This will usually occur when you select to pay in your card's currency as opposed to the currency of the merchant or ATM. "

This article says exactly what I stated. The foreign exchange rate at an ATM or Credit card terminal is determined by Visa or Mastercard. They are not what you would see on a FX website, or a bank's exchange website.

Some banks have an additional surcharge and if you visit the Visa or Mastercard calculators you must enter it if your bank has a "foreign exchange fee"  and enter the transaction date to see the final rate. 

That does not change the fact that the issuing  card company determines the daily exchange rate.  It is not determined by the ATM, or issuing bank

Can you imagine every bank in the world having the staff on hand to check every currency versus every currency every day and then setting a rate for their cards?   That is a service of Mastercard and Visa.  Individual bank cards ( ie: Bankamericard) went out of existence in the early 70's

https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html/

https://www.mastercard.us/en-us/consumers/get-support/convert-currency.html

 

 

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On 10/24/2019 at 2:34 PM, David Rodwell said:

I hear some Lakeside banks are bumping up ATM fees and possibly adding surcharges for accessing funds in banks NOB. What are the best places to access funds from US banks in Ajijic or at least Lakeside?

"Accessing funds" can be realized many ways. The responses here immediately turn to ATM cash and which ones have the smallest surcharge and aren't empty when you need money. Banking has changed a lot in the 16 years I've been here with credit/debit cards being able to reduce the need for paper bills meaning fewer visits to ATMs.

Charge as much as possible. With a NOB credit card that doesn't have international exchange fees you get a good rate and can be used in many places now. Gasoline, utilities, restaurants, shopping and other places all accept credit cards. Some however need a Mexican credit card.

I set up a Bancomer checking account many years ago. Got a debit card which can be used at any Bancomer ATM without any fee. It was a long a tedious process but I got a credit card and by using it a lot got a usable line of credit. Bancomer charges too much for wire transfers so I set up a checking account with a debit card at Multiva.

Inbound wires only cost $10US no matter the amount. Most US brokerage firms offer outbound wire transfers with no fee so the cost to transfer money is only $10, much less than all the ATM surcharges you might encounter (unless you use Schwab). They offer a daily balance interest bearing account where you can park money not needed immediately. I charge as much as possible using the Bancomer credit card and amass points for free stuff, more than offsetting the cost of the card. When the Bancomer balance is low I can transfer money from Multiva on my phone. Today I transferred money using the Bancomer phone app to my pipa truck driver in Guayabitos to fill my aljibe. 

Every month or two I walk into the Bancomer branch and get change for gardeners, maids and other cash purchases which are now very minimal.

This process won't work for everyone but it has saved me a lot of time, money and aggravation. Increased acceptance of plastic over the last few years has made a huge difference.

 

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We had to withdraw large amounts of cash in the last few weeks for repairs upgraded systems for n the house we are renting. The closest atm (other than one at one of the spas in San Juan Cosala is at Santander bank in Jocotepec. Of the roughly 10-12 atms we have utilized it had the lowest atm fee at 34 or 38 pesos per transaction. When we use the Charles Schwab card the fees are unimportant but we have had to use our small bank in WA state debit card so the fees stand out to me:/

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If one has residency, why not set up  Mexican bank account that you transfer funds into via an online currency exchange site, like xetrade, transferwise, etc? It seems absurd if you live in Mexico and have residency to have to constantly use ATMs to access money from your NOB account. 

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There are reasons some tax reporting reasons Americans do not want to have an account in a foreign country.

Also if you have a Mexican bank account you still would need to use an ATM to withdraw funds.   By using your home account for those funds you money is sitting in your home country. 

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1 hour ago, mudgirl said:

If one has residency, why not set up  Mexican bank account that you transfer funds into via an online currency exchange site, like xetrade, transferwise, etc? It seems absurd if you live in Mexico and have residency to have to constantly use ATMs to access money from your NOB account. 

I used to maintain an account with Actinver but found their service fees punitive. Also, the U.S. Internal Revenue Service requires you to include, in your tax filings, foreign bank accounts with balances over U.S. $10,000. Rather than paying my accountant an extra fee to include this step, I closed down my account. I do not pay any fees to maintain my  U.S. bank account, and they reimburse any ATM fees incurred when withdrawing cash, domestically or in foreign countries.

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FYI, while foreign bank accounts over 10K USD require separate FBAR filings with IRS, any person who files a Federal tax return and has a foreign bank account regardless of the balance, must file IRS Form 1040, Schedule B, part III.  

I do not have a Mexican bank account.  Have never needed one since we first moved here in 2008 even when doing renovations to our 2 homes using ATM withdrawals.  Plus the acceptance of foreign credit cards (in my case US) is more common than ever for large purchases at Home Depot, Walmart, Costco, Liverpool, etc.  And I earn miles with airlines!  The chip embedded cards have an excellent layer of security; every foreign transaction is immediately emailed to me in real time.  Never a hiccup; even bought a new car using a US card.

Schwab account reimburses fees from ATM's worldwide; highly recommend.  

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4 hours ago, FlyFree said:

I used to maintain an account with Actinver but found their service fees punitive. Also, the U.S. Internal Revenue Service requires you to include, in your tax filings, foreign bank accounts with balances over U.S. $10,000. Rather than paying my accountant an extra fee to include this step, I closed down my account. I do not pay any fees to maintain my  U.S. bank account, and they reimburse any ATM fees incurred when withdrawing cash, domestically or in foreign countries.

Yes, I also had an Actinver account, which I closed because of their fees. My Bancomer account has no fees. And there's no need to keep a balance over 10,000 in your Mexican bank account-you could keep as little as a couple thousand in it. 

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5 hours ago, Mostlylost said:

There are reasons some tax reporting reasons Americans do not want to have an account in a foreign country.

Also if you have a Mexican bank account you still would need to use an ATM to withdraw funds.   By using your home account for those funds you money is sitting in your home country. 

Okay, I understand the tax implications. But the difference in using a debit card from a Mexican bank at an ATM is that as long as you use an ATM from your own bank, there aren't any ATM charges, which is what this thread was about.

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The banks are going to get you one way or another so it's up to the individual on how they want it squeezed out of them. You're either going to pay for a wire transfer TO your Mexican bank so that you can use the Mexican banks ATM without being charged or you're just going to pay ATM fees wherever suits you unless they're reimbursed by your bank.

I can hardly wait for the banks' ATMs to charge for trying to use their machines even when there's no money in them. ;)

 

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1 hour ago, Ferret said:

The banks are going to get you one way or another so it's up to the individual on how they want it squeezed out of them. You're either going to pay for a wire transfer TO your Mexican bank so that you can use the Mexican banks ATM without being charged or you're just going to pay ATM fees wherever suits you unless they're reimbursed by your bank.

I can hardly wait for the banks' ATMs to charge for trying to use their machines even when there's no money in them. ;)

 

I don't pay any wire fee when transfering funds from my Canadian bank account to my Mexican one. It's an EFT transfer through xetrade. I'm just subject to whatever their exchange rate is that day.

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12 hours ago, mudgirl said:

I don't pay any wire fee when transfering funds from my Canadian bank account to my Mexican one. It's an EFT transfer through xetrade. I'm just subject to whatever their exchange rate is that day.

Many of us have financial institutions that reimburse 100% of ATM fees worldwide. We can use any ATM and don't have to search for one from any certain bank.  

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I'm late to this but and I am not sure of a few things.  I am coming down and getting my RT visa, yes I am seeing the consulate here in Canada first, and opening a bank account so I can pay my utility fees for my house when I am back in Canada in the summer. 

 I have read a few posts about banking and banks and have never heard anyone talk about Itercam Bank.  Do any gringo's use this bank ? I ask this as I have been thinking of opening an account there on a suggestion form a friend. 

 My Canadian bank does not charge me for drawing money from International ATM's.  If you have an account at bank at Lakeside and use their ATM are there fees ?  

 After reading this post I am assuming that an average price for using a ATM other than your banks is going to charge you an average of $65p.  

Any info appreciated. 

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If you have an acount in a Mexican bank withdrawls at their ATMs are free. Using another banks ATM will incur a fee.  I am only aware of Intercam having 1 ATM lakeside.  If your bank reimburses international ATM fees you have many locations available to you.

 

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Inter cam has 2 atms offfice on colon and LCS. Multiva has 2 office Colon and Superlake.

 

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Multiva charges 96 pesos now, Schwab picks that up for me, but they also have a very rude, unsmiling young male teller who is hostile to (gringo) customers, so I am closing my account. You also cannot use their debit card for any online transactions, which is a bummer. I have enquired about other cards, but they have been largely unhelpful.

Volaris fees are less if paid in pesos, almost half the cost for the "club" (which is pretty pitiful, anyway).

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4 hours ago, HarryB said:

Inter cam has 2 atms offfice on colon and LCS. Multiva has 2 office Colon and Superlake.

 

Intercam and Multiva are on the Carretera, not Colon, in Ajijic.

Intercam will soon be opening a new sucursal (branch) in San Antonio T. in the new construction next to the Coca Cola Deposito.

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3 hours ago, Honorandfaith said:

Multiva charges 96 pesos now, Schwab picks that up for me, but they also have a very rude, unsmiling young male teller who is hostile to (gringo) customers, so I am closing my account. You also cannot use their debit card for any online transactions, which is a bummer. I have enquired about other cards, but they have been largely unhelpful.

Volaris fees are less if paid in pesos, almost half the cost for the "club" (which is pretty pitiful, anyway).

Here´s a "gringo" smile for you ………:D (from a Mexican)    Disguise yourself as a Mexican whenever you go there…...works everytime.

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11 hours ago, JGiff said:

I'm late to this but and I am not sure of a few things.  I am coming down and getting my RT visa, yes I am seeing the consulate here in Canada first, and opening a bank account so I can pay my utility fees for my house when I am back in Canada in the summer. 

 I have read a few posts about banking and banks and have never heard anyone talk about Itercam Bank.  Do any gringo's use this bank ? I ask this as I have been thinking of opening an account there on a suggestion form a friend. 

 My Canadian bank does not charge me for drawing money from International ATM's.  If you have an account at bank at Lakeside and use their ATM are there fees ?  

 After reading this post I am assuming that an average price for using a ATM other than your banks is going to charge you an average of $65p.  

Any info appreciated. 

There is a lot of info on Inter cam bank on this forum. You can go to the Lake Chapala Society and they have a rep there .

My spouse and I went right to the bank on the Carretera last week and opened a checking account with Inter cam. Because my wife came as a tourist we had to open it under her name only until I get my RT card then I can be added to that account. She will be added to my RT as a dependent after I get my Card, but that is a different story. They let us use our old home address even though it was sold to get us started, a bank name for reference from back in the states, and a utility bill from back in the states.  I wrote a USA bank check and paid right at 2.5% exchange rate. I had never done a bank wire to Mexico before so we chose that route. We need a used Mexican car and need cash . That would be a lot of ATM withdrawals.

If you can get a Capital one 360  debit card or a Charles Scwabb debit there is only 1.5% exchange rate or ATM fee at the ATM in Walmart the one on the right side.

If you use those cards mentioned or even a Capital one credit card for purchases the exchange rate is less than 1%

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16 hours ago, Youngtimer said:

There is a lot of info on Inter cam bank on this forum. You can go to the Lake Chapala Society and they have a rep there .

My spouse and I went right to the bank on the Carretera last week and opened a checking account with Inter cam. Because my wife came as a tourist we had to open it under her name only until I get my RT card then I can be added to that account. She will be added to my RT as a dependent after I get my Card, but that is a different story. They let us use our old home address even though it was sold to get us started, a bank name for reference from back in the states, and a utility bill from back in the states.  I wrote a USA bank check and paid right at 2.5% exchange rate. I had never done a bank wire to Mexico before so we chose that route. We need a used Mexican car and need cash . That would be a lot of ATM withdrawals.

If you can get a Capital one 360  debit card or a Charles Scwabb debit there is only 1.5% exchange rate or ATM fee at the ATM in Walmart the one on the right side.

If you use those cards mentioned or even a Capital one credit card for purchases the exchange rate is less than 1%

Being from Canada those are not available to me.  Thanks for the info

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