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  • 11 months later...

Fri. Oct. 23, 2020. I just got hosed! The Scotiabank bank machine near Walmart in Ajijic charged me a 12% markup (on the exchange rate) plus a 100 peso fee. I was using a Canadian bank card (TD debit card) and I withdrew 10,000 pesos.

C$712.23 (Canadian dollars) was withdrawn from my TD checking account when I went home and checked online. I also checked the exchange on XE.com for Canadian dollars to Mexican pesos and it was 15.89 pesos per Canadian dollar.

Using this exchange rate, 10,000 pesos should cost C$629.33 if there were no fees or exchange rate markup. So, I ended up paying C$82.90 to withdraw 10,000 pesos. This is insane!!!

Before using the Scotiabank machine I tried the CI bank first but it was out of money (it's Friday morning now). Then, at the Citibank machine in Walmart I tried to withdraw 10,000 pesos and it wouldn't let me withdraw any money, then I tried 8,000 pesos and again it wouldn't let me again. I can't remember now what the message was why not.

I will try the HSBC machines tomorrow. Hopefully the exchange rate markup will be less. 

Don't be fooled, it's not the bank fees that kill you it's the crappy exchange rate they give you or as the bank machine says the "markup".

 

 

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You may have unwittingly accepted the now infamous "will you accept our bank rate" screen, which attempts to con you into thinking your must say YES, thereby allowing their other-worldly BS bank rate. The trick is to say NO. But many people the first time think if they say no they will not be able to get their money. The Scotia machine only started doing this recently; most other machines have been at it for a long time.

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We use intercam. When I need money in my mx account I write a check from my canadian account and deposit it here. Takes max 10 days to clear but once it clears my cdn account I can take a printout of my cdn account showing it has cleared to intercam and i can access the money right away.  Exchange rate is going to vary from day to day so....

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30 minutes ago, Scott D said:

Thanks John. What is the best way to send money from Canada to a Mexican bank account? That is, lowest fees and best exchange rate? 

First of all there is no single best way to transfer money internationally. Over the years I've found the best way for me but as you can see, many others have their own best way based on their circumstances.

I have a brokerage account at TD Ameritrade which was recently acquired by Charles Schwab. TDA provides outbound international wires at no charge. I have only wired money to BBVA and Multiva. The exchange rate on a wire can fluctuate a bit based on the amount transferred but I found that Multiva exchanged about 10 basis points under the international rate and BBVA about 80. BBVA also charged about $800 pesos to receive a wire while Multiva charges $10US in pesos based on the rate used in the transfer.

Of course when transferring a large amount you're stuck with one exchange rate that can then move in either direction until you need more money. Sometimes you get lucky and hit when it's favorable, other times not so much. 

I use BBVA as my primary bank so once the money arrives at Multiva, normally the afternoon after a morning electronic wire request, I move money needed to pay bills, etc. to BBVA by cell phone and then transfer most of the remaining funds to a Multiva daily interest bearing account, leaving some in a checking account for withdrawals.

This has proven to be the best way for me but if you don't have a brokerage account and/or local bank accounts it won't work for you.

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3 hours ago, Scott D said:

Fri. Oct. 23, 2020. I just got hosed! The Scotiabank bank machine near Walmart in Ajijic charged me a 12% markup (on the exchange rate) plus a 100 peso fee. I was using a Canadian bank card (TD debit card) and I withdrew 10,000 pesos.

C$712.23 (Canadian dollars) was withdrawn from my TD checking account when I went home and checked online. I also checked the exchange on XE.com for Canadian dollars to Mexican pesos and it was 15.89 pesos per Canadian dollar.

Using this exchange rate, 10,000 pesos should cost C$629.33 if there were no fees or exchange rate markup. So, I ended up paying C$82.90 to withdraw 10,000 pesos. This is insane!!!

Before using the Scotiabank machine I tried the CI bank first but it was out of money (it's Friday morning now). Then, at the Citibank machine in Walmart I tried to withdraw 10,000 pesos and it wouldn't let me withdraw any money, then I tried 8,000 pesos and again it wouldn't let me again. I can't remember now what the message was why not.

I will try the HSBC machines tomorrow. Hopefully the exchange rate markup will be less. 

Don't be fooled, it's not the bank fees that kill you it's the crappy exchange rate they give you or as the bank machine says the "markup".

 

 

Were you using a Mastercard  or Visa debit card?

Today for Mastercard  (need to add ATM fee if any)

Your transaction amount of 10,000.00 MXN = 636.20 CAD in your card currency

The currency conversion rate and your card currency amount are as of now and includes a bank fee of 1%

Today for Visa 

10000 Mexican Peso = 633.895558 Canadian Dollar
 1 Mexican Peso = 0.0633895558 Canadian Dollar
1 Canadian Dollar = 15.775469 Mexican Peso

Currencies fluctuate every day. The rate shown is effective for transactions submitted to Visa on October 23, 2020, with a bank foreign transaction fee of 1.0%.

Unless you accepted the banks rate instead of Visa or Mastercard's rate those should be the amounts

 

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4 hours ago, John Shrall said:

Another reason to maintain an account at a local bank and withdraw funds from their ATMs or in person at the branch. A lot less hassle and minimal concern about fees.

For all the hassle and the waiting in line, etc etc etc, for me that is a very poor reason. A very rare occurrence to begin with. I was just there and got "the screen", said NO, and did not get charged any more than normal, according to the instant report on my cell phone app.

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2 hours ago, AndyPanda said:

For all the hassle and the waiting in line, etc etc etc, for me that is a very poor reason. A very rare occurrence to begin with. I was just there and got "the screen", said NO, and did not get charged any more than normal, according to the instant report on my cell phone app.

You confirmed my point. There is no one size fits all solution to this issue. Everyone figures out their own best option. None of them are wrong.

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I was referring to the hassle and difficulties in dealing with a bank account in Mexico, the ridiculous paperwork, the long lineups, the lack of service, the poor phone and Internet support, the money deposit and transfer limit rules, the paperwork required to satisfy the US gov't, and on and on. Not with going to an ATM where I rarely have a problem. To me, those bank hassles are for worse than the odd, possibly-confusing screen. So I don't see how I confirmed your point. You said banking was a "lot less hassle". I don't see it that way at all.

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Maybe I am just lucky. But I have had good luck at both the Actinver Bank and their brokerage branch. I even get great exchange rates when I send my US funds not to my Bank account but even better to my brokerage account.

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8 hours ago, AndyPanda said:

I was referring to the hassle and difficulties in dealing with a bank account in Mexico, the ridiculous paperwork, the long lineups, the lack of service, the poor phone and Internet support, the money deposit and transfer limit rules, the paperwork required to satisfy the US gov't, and on and on. Not with going to an ATM where I rarely have a problem. To me, those bank hassles are for worse than the odd, possibly-confusing screen. So I don't see how I confirmed your point. You said banking was a "lot less hassle". I don't see it that way at all.

Au contraire. I have had none of the problems that you have mentioned in any way shape or form at my Intercam bank. Opened an account with them when I had constant hassles at the Scotia ATM.  Great dealing with actual humans too!

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So to avoid all this use a money transfer service (example Xoom or XE) and transfer it to a local account and you don't have to worry about all this.   We use XE and get very good rates and we send it to our BBVA (what use to be Bancomer) account.  This is one good reason to get a local account.  Be aware XE only works with certain banks.  We can tell you it works great with BOA to BBVA transfers. Xoom can be faster but doesn't have as good a exchange rate when we checked both services the last time. Another advantage of having a BBVA account is wherever you go you will find a BBVA branch in Mexico so you can take money out without fees when away from Lake Chapala.  Yes I know many of you hate BBVA and they irritate me quite often but having access in Mexico is worth it.  Also BBVA is in many other latin american countries like Columbia. Makes money easy when traveling.

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I make monthly or more frequent transfers between my US bank and BBVA and always compare net pesos received per US dollar with the various transfer services.  Transferwise and Skrill always beat XE and Xoom. Both are fast, Skrill is usually fastest, taking no more than a couple of hours for a transaction. In 5+ years, never had a problem with any of these services. 

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On 10/23/2020 at 1:54 PM, Scott D said:

Fri. Oct. 23, 2020. I just got hosed! The Scotiabank bank machine near Walmart in Ajijic charged me a 12% markup (on the exchange rate) plus a 100 peso fee. I was using a Canadian bank card (TD debit card) and I withdrew 10,000 pesos.

C$712.23 (Canadian dollars) was withdrawn from my TD checking account when I went home and checked online. I also checked the exchange on XE.com for Canadian dollars to Mexican pesos and it was 15.89 pesos per Canadian dollar.

Using this exchange rate, 10,000 pesos should cost C$629.33 if there were no fees or exchange rate markup. So, I ended up paying C$82.90 to withdraw 10,000 pesos. This is insane!!!

Before using the Scotiabank machine I tried the CI bank first but it was out of money (it's Friday morning now). Then, at the Citibank machine in Walmart I tried to withdraw 10,000 pesos and it wouldn't let me withdraw any money, then I tried 8,000 pesos and again it wouldn't let me again. I can't remember now what the message was why not.

I will try the HSBC machines tomorrow. Hopefully the exchange rate markup will be less. 

Don't be fooled, it's not the bank fees that kill you it's the crappy exchange rate they give you or as the bank machine says the "markup".

 

 

It is insane.

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When I use a Bank of America debit card at HSBC the ATM fee is just over 9 pesos. When I use my HSBC debit card there, there is no ATM fee or surcharge. 

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Just to add to my woes, I tried to take 10,000 pesos out of the BBVA machine in the Ajijic square yesterday  machine and after putting my card in and entering the amount the machine just said processing, processing, processing and making the sound of counting money for quite awhile but no cash came out. It finally gave me back my card but no cash or receipt.

When I checked my Canadian account yesterday the Canadian equivalent had been withdrawn! I'll be down at BBVA first thing Monday morning to see if they'll give me my cash. Has this ever happened to anyone else?

By the way, when I went by those machines later in the evening someone had put a handwritten sign on that machine saying it was not working.

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You certainly are having a streak of bad luck. My sympathies. Just to let you know that the BBVA will do nothing to help you nor will any other bank with ATM's or stand alone machines like the ones in Walmart. You must deal with the bank from which your ATM card originated which in your case is probably in Canada. Call the number on the back of your card.

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