# Using USA Credit Card in Mexico



## rpattyn (Mar 11, 2016)

Hi,

I have a chip Visa credit card and have had no issues using it where I would expect to be able to (larger shops in cities etc.) but when I handed it to the pump attendant when filling my car at the petrol station it was declined. Has anyone had this happen to them? I am wondering if it is because they maybe thought it was a debit card and needed a pin or something? hablo solo un poco de Espanol asi que I didn't ask.

thanks for any help/tips/aqdvice 
Rosalind


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## Gatos (Aug 16, 2016)

rpattyn said:


> Hi,
> 
> I have a chip Visa credit card and have had no issues using it where I would expect to be able to (larger shops in cities etc.) but when I handed it to the pump attendant when filling my car at the petrol station it was declined. Has anyone had this happen to them? I am wondering if it is because they maybe thought it was a debit card and needed a pin or something? hablo solo un poco de Espanol asi que I didn't ask.
> 
> ...


Perhaps 1 time in 20 their little gizmo cannot make a connection. They should hand you a short slip recording the failure - then retry. Maybe 1 time in 50 I'll hand them a different card (Mexican or US).


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## perropedorro (Mar 19, 2016)

rpattyn said:


> Hi,
> 
> I have a chip Visa credit card and have had no issues using it where I would expect to be able to (larger shops in cities etc.) but when I handed it to the pump attendant when filling my car at the petrol station it was declined. Has anyone had this happen to them? I am wondering if it is because they maybe thought it was a debit card and needed a pin or something? hablo solo un poco de Espanol asi que I didn't ask.
> 
> ...


I see that more Pemexes are announcing the acceptance of a card for gas, especially on the autopista, but I've never tried it so don't know if it's because you used a foreign card or if because their connection was acting up that day. Never been an issue in retail stores. The only industry I'm aware of that generally doesn't accept a foreign CC but where a Mexican debit card works fine is the online purchase of bus or sporting event tickets. Also might be local if a fraud problem popped up recently. Last year for a while, merchants were refusing to accept American CCs in, of all places, Tijuana.


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## circle110 (Jul 20, 2009)

Be careful paying at Pemex stations with a credit card. There is a small triangular pirate swiper that some attendants have been caught using to steal/clone credit cards. It sits in their hand along side the legit portable unit they use and they quickly double scan.

I don't use credit cards in Mexico hardly ever. I only use them on rare occasions for large purchases in major chain stores where I can watch the swipe happen in plain sight. Everything else I do in cold hard cash. That's just my M.O. -- YMMV.


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## rpattyn (Mar 11, 2016)

*Thank you*

Thank you very much for the warning - I should have thought of that since we have the same sort of issues in USA. The Pemex that I went to had a unit at the pumps with kind of shield panels around it so we could not actually see what they were doing - next time I will get out of the car and hand the card to him at the pumps if I need to use a card.


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## sparks (Jun 17, 2007)

Gas stations and smaller stores are a bad idea for credit cards. Get cash

Credit cards are also expensive to use


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## Gatos (Aug 16, 2016)

sparks said:


> Gas stations and smaller stores are a bad idea for credit cards. Get cash
> 
> Credit cards are also expensive to use


If you pay off your balance each month - credit cards are no more expensive than using cash. In fact both our Mexican and US credit cards issue reward points. Last year our BofA blue travel rewards card paid for a week's hotel stay in the States...

A rule I do follow is to not use my Mexican credit cards on US websites, nor use my US credit cards on Mexican websites.


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## joaquinx (Jul 3, 2010)

In areas where there are few tourists and fewer using US credit/debit cards, many stores do not subscribe to foreign card service. They do subscribe to Mexican card service. You have to ask the clerk if they accept foreign cards first. 

It costs the businesses to honor foreign cards and if very few people present these cards for purchase, they lose money.


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## perropedorro (Mar 19, 2016)

Gatos said:


> If you pay off your balance each month - credit cards are no more expensive than using cash. In fact both our Mexican and US credit cards issue reward points. Last year our BofA blue travel rewards card paid for a week's hotel stay in the States...
> 
> A rule I do follow is to not use my Mexican credit cards on US websites, nor use my US credit cards on Mexican websites.


Although I've a low opinion of BofA in general--watch the terms of foreign ATM withdrawal-- their Travel Rewards is my go-to CC, but there are others who offer a 0% foreign transaction fee cards. Get one before you travel abroad. As a rule, _never take out a Mexican CC_. Their terms are rapacious: almost always an annual fee, minimum use requirements, and if you ever miss a payment, you'll get a better interest rate from a loan shark. Even Mexicans of the professional class, platinum level CC customers, don't get much of a break. Santander gives me a no-fee debit card linked to my modest peso account and that works fine.


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## rpattyn (Mar 11, 2016)

Gatos said:


> If you pay off your balance each month - credit cards are no more expensive than using cash. In fact both our Mexican and US credit cards issue reward points. Last year our BofA blue travel rewards card paid for a week's hotel stay in the States...
> 
> A rule I do follow is to not use my Mexican credit cards on US websites, nor use my US credit cards on Mexican websites.


thanks - I agree about the cost of using credit card. I love my hotel rewards points and it doesn't cost me because I never carry a balance, also my card has no foreign transaction fees. All of these points make my card good for me but am now learning that I need to consider more carefully where I choose to use it.


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## TundraGreen (Jul 15, 2010)

Gatos said:


> If you pay off your balance each month - credit cards are no more expensive than using cash. In fact both our Mexican and US credit cards issue reward points. Last year our BofA blue travel rewards card paid for a week's hotel stay in the States...
> 
> A rule I do follow is to not use my Mexican credit cards on US websites, nor use my US credit cards on Mexican websites.


I do the same, I use a Mexican bank card to pay my Mexican utility bills online, and US bank cards for dollar priced online purchases. I no longer ever hand a bank card to anyone in Mexico. I was burned once by doing that. I paid a Megacable bill in person with a debit card and afterwards, spurious charges started showing up on my account. Restaurants in the US are the only time anyone else ever touches a bank card and really they shouldn't be doing than anymore with the chipped cards. They should bring a reader to the table for me to enter a PIN. I haven't seen many in the US that do that though.


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## rpattyn (Mar 11, 2016)

thanks that makes a lot of sense


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## rpattyn (Mar 11, 2016)

joaquinx said:


> In areas where there are few tourists and fewer using US credit/debit cards, many stores do not subscribe to foreign card service. They do subscribe to Mexican card service. You have to ask the clerk if they accept foreign cards first.
> 
> It costs the businesses to honor foreign cards and if very few people present these cards for purchase, they lose money.


Ah, that really makes a lot of sense and I had not thought about that. I was definitely in a non-tourist area and will understand more in the future where I can use my credit card. Thank you very much for this information, very helpful.


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## Gatos (Aug 16, 2016)

joaquinx said:


> In areas where there are few tourists and fewer using US credit/debit cards, many stores do not subscribe to foreign card service. They do subscribe to Mexican card service. You have to ask the clerk if they accept foreign cards first.
> 
> It costs the businesses to honor foreign cards and if very few people present these cards for purchase, they lose money.


I would never even contemplate using a CC at a Mom & Pop store. Our local ferreteria or viveros won't take them. Some stores - like the very small pool supply store has a sign posted they charge 4% for the use of any CC. 

I've been warned by a friend at the Mexican bank - you do need to use your Mexican CC/Debit cards periodically - or they will be frozen.

I think 99% or maybe even 100% of the time I use a CC in person the transaction is done with one of those little hand held devices - in front of me - and the person shows me the amount on the screen before initiating the transfer.

We have had 2 bad CC experiences during our 4+ years in Mexico. Someone was trying to use my Mexican CC number (I still had the card) at a home depot in Texas. It could have been a glitch in the transaction I don't know. The Mexican bank disallowed the transaction because I had not told them I was travelling to Texas and issued a new card.

I stupildy tried to use my US CC on MercadoLibre. Shortly thereafter there was a large charge on that card for AeroMexico. The US bank put the charge through but later issued a refund - and overnighted a new card (for free).

You can set up a limit on your US credit cards at which point they will call your cell phone to confirm it is really you making the purchase.

Mexico is a special case - but in many places in the world it is becoming a cashless society...


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## rpattyn (Mar 11, 2016)

Gatos said:


> I would never even contemplate using a CC at a Mom & Pop store. Our local ferreteria or viveros won't take them. Some stores - like the very small pool supply store has a sign posted they charge 4% for the use of any CC.
> ......
> Mexico is a special case - but in many places in the world it is becoming a cashless society...


Thank you very much. I am learning so much and agree with you that Mexico is a special case. I do not have a Mexican CC and have no plans for getting one since I am just 'travelling through' (though this may take a couple of years ..) for now. I think that what I am going to do is to see how everyone else pays, if I see a card machine being brought to customers, I will use my USA CC, otherwise will stick to cash.

I also have a USA chip debit card which I intend to use to get cash from ATMs, any advice about that? this card also has no foreign transaction fees - we sorted all this out before leaving USA 

thank you for all your help
Rosalind


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## joaquinx (Jul 3, 2010)

I had used my BoA credit card to purchase a flight to Europe last November and within 5 minutes I get an email from BoA saying that the charge was denied. I called them and they said that charges such as this from Mexico where the card holder seldom used the card for large purchases, they deny it. They ok'd the charge and I called the booking agency and got the ticket. Within 5 minutes, I got a email from BoA saying that the charge went through.

I prefer using PayPal. I have used my HSBC Mexican debit card in MercadoLibre and, yes, have had strange purchases charged to it within days.


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## sparks (Jun 17, 2007)

I bought something at Costco in Cuernavaca years ago and there was a 3% charge from Visa for that. That's when I said no more


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## Gatos (Aug 16, 2016)

sparks said:


> I bought something at Costco in Cuernavaca years ago and there was a 3% charge from Visa for that. That's when I said no more


That is an issue between you and your bank - nothing to do with Visa or Costco. Your bank charged you a 3% fee.


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## RickS (Aug 6, 2009)

_..."I also have a USA chip debit card which I intend to use to get cash from ATMs, any advice about that? this card also has no foreign transaction fees - we sorted all this out before leaving USA "_

This is the route that many/most folks use, even those living full time in Mexico. And if your banking institution refunds your fees so much the better. Just be sure that they know that you are going/will be in Mexico. We used to try and find ATMs that you didn't have to "let go of the card", but they are now hard to find. I'd suggest that you try and bring 2 cards just in case an ATM eats one of yours.


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## Gatos (Aug 16, 2016)

rpattyn said:


> Thank you very much. I am learning so much and agree with you that Mexico is a special case. I do not have a Mexican CC and have no plans for getting one since I am just 'travelling through' (though this may take a couple of years ..) for now. I think that what I am going to do is to see how everyone else pays, if I see a card machine being brought to customers, I will use my USA CC, otherwise will stick to cash.
> 
> I also have a USA chip debit card which I intend to use to get cash from ATMs, any advice about that? this card also has no foreign transaction fees - we sorted all this out before leaving USA
> 
> ...


We happen to have an HSBC Mexico account. We also have a Schwab One account. From time to time I use my Schwab debit card in an HSBC ATM. All fees (33 pesos or so are reimbursed by Schwab). I get the daily exchange rate as posted on the Visa Exchange rate calculator website. No bank fees.

That works if we are trying to pull 7000 pesos (perhaps 14000 pesos I've never tried). If you need more than that - I ask Schwab to buy me some pesos and wire them to HSBC. When I go that route I get an even better exchange rate than via Visa - but it does take 3 days for settlement - and there are now other fees etc.


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## rpattyn (Mar 11, 2016)

*Thanks for all the info*

Wow - so much useful information and great help. You guys are the best and make me so glad that I joined this forum. I do have a debit card that refunds all atm fees and I have tested it and get refunded once a month  However, I never even thought about getting an extra debit card in case one gets swallowed at the ATM - not so bad in USA but not so easy to get mail delivered to Mexico when you don't have a fixed address 

thanks again everyone !
Rosalind


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## Gatos (Aug 16, 2016)

rpattyn said:


> Wow - so much useful information and great help. You guys are the best and make me so glad that I joined this forum. I do have a debit card that refunds all atm fees and I have tested it and get refunded once a month  However, I never even thought about getting an extra debit card in case one gets swallowed at the ATM - not so bad in USA but not so easy to get mail delivered to Mexico when you don't have a fixed address
> 
> thanks again everyone !
> Rosalind


Good luck with your future !


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## eastwind (Jun 18, 2016)

The biggest piece of advice I have for anyone planning to live overseas full time is to get your banking set up the way you want it while you still have a US residential address to use. I tried using texashomebase.com, which is a commerical mail receiving agency, to be my US address for banking and everything else. They claim you get a residential address from them, but two banks that I tried would not accept that address as a residential address. They were demanding a utility statement in my name for that address, and their computer told them the address was associated with a business, so wasn't residential. 

I had to fly back to the US and appear in person in a bank because I had created the account from a Mexican IP address, which red-flagged my account request. In the end one of the banks used my former house address, even though I told them I'd already sold that house. They were nevertheless happy to send all my mail to my texashomebase.com address. 

If you have relatives with the same last name in states that don't collect state income tax, you might be able to use their address, but you also might get caught by the "utility statement" thing. 

Rather, once you have an account set up with a bank, and preferably some history with them, it is a breeze to update your mailing address, and there are no hurdles to using something like texashomebase.com. My old bank that I'd been using 11 years didn't blink at that. And I'm currently still using that bank, because it was already set up, even though their card does not refund fees and they stick me with a 1% foreign currency transaction fee, while I wait on the ATM card from the new bank to finally arrive. 

My saga isn't over, because they promised to fedex my card to texashomebase and it should have arrived last tuesday (today's friday) and I haven't heard that it showed up yet. I'm worried they sent it to my old house regardless of their assurances that it would go to texas. 

All this would be even worse if I was trying to get the bank to issue checks with an address on them.

I got into this mess by dithering. I couldn't make up my mind whether to open a Schwab, Citi or HSBC account, and left it all until after I was here in Mexico. If I could turn back time, I'd open all 3 accounts, it's far easier to close one you don't need after you've been in Mexico a while than to open a new one. And it is a very good idea to have more than one ATM card (and never carry more than one at a time with you) in case you get your pocket picked. That way you won't end up broke while waiting on a replacement card to arrive if you lose your wallet/purse in any way.


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## SirRon (Nov 4, 2014)

when you use a credit or debit card to pay for gas in mexico they scan your card first and put money on hold on your card, then they pump the gas, then they release the hold minus the amount of your gas, mean while you have money in limbo for 24 to 48 hours, do not use use debit/creditcard in mexico pay cash


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## TundraGreen (Jul 15, 2010)

SirRon said:


> when you use a credit or debit card to pay for gas in mexico they scan your card first and put money on hold on your card, then they pump the gas, then they release the hold minus the amount of your gas, mean while you have money in limbo for 24 to 48 hours, do not use use debit/creditcard in mexico pay cash


While I agree about not using plastic to pay in person in Mexico, I use Mexican bank debit cards to pay online for utilities (CFE, Megacable) all the time. I used to pay Megacable in person with a debit card, but one time spurious charges showed up after paying Megacable. That was the last time I handed a debit card to anyone in Mexico.


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## SirRon (Nov 4, 2014)

i meant to say only when paying for gas, i use my debit credit cards many other places as well in mexico with no issues and get many rewards


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## SirRon (Nov 4, 2014)

TIP: I also try to use my credit cards to pay at restaurants since i get double points, but always tell the waiter to close the account, when they make the charge and you will leave your tip paying cash, there has been many horror stories on the interwebs tourists who left what they thought was a 10 dollar generous tip and to find out it was 100 dollars instead !!


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## SirRon (Nov 4, 2014)

also if you use your credit card you get the best possible exchange rate most of the time, money exchange places rob us expats most of the time


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## lagoloo (Apr 12, 2011)

If you have a US credit card and start using it in Mexico, be sure your credit card company is aware of that and will permit purchases out of the country. I had a problem with my first charge at a Mexican Office Depot store and had to do some instant communicating.


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