# Banking Question



## grotton (Apr 20, 2012)

I know banking and money transfers have been covered to death in the forum but my situation is a little different. My Mexican partner and I are moving to Mexico in just two days. We planned to open a Mexican bank account in her name and fund the account with a wire transfer from BOA using Safepass. We were just told that we can not set up Safepass wire transfers abroad, the initial set up has to occur in the USA and the banking system will detect a Mexican IP address and freeze things. This throws a wrench into our plans because we planned to wire $20,000.00 for the purchase of a car and now we don't know how to get the money. And of course we learned about this problem two days before we travel. So my question:

I've read about people using a bank check from a US bank to make a deposit into their Mexican bank account. Does anyone have experience with this and what are the fees and expenses associated if this can be done. Specifically, i would right a check from BOA to my partner and she would then deposit it into her/our new bank account at Santandor. How long does it take for the money to clear. 

If anyone has specific information on that please share. Otherwise I suppose I can just do daily withdrawals from the ATM until I have the necessary amount which would be annoying. I know I can also send $3000.00 a month with safesend. 

Advice much appreciated, thanks in advance.


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## AlanMexicali (Jun 1, 2011)

grotton said:


> I know banking and money transfers have been covered to death in the forum but my situation is a little different. My Mexican partner and I are moving to Mexico in just two days. We planned to open a Mexican bank account in her name and fund the account with a wire transfer from BOA using Safepass. We were just told that we can not set up Safepass wire transfers abroad, the initial set up has to occur in the USA and the banking system will detect a Mexican IP address and freeze things. This throws a wrench into our plans because we planned to wire $20,000.00 for the purchase of a car and now we don't know how to get the money. And of course we learned about this problem two days before we travel. So my question:
> 
> I've read about people using a bank check from a US bank to make a deposit into their Mexican bank account. Does anyone have experience with this and what are the fees and expenses associated if this can be done. Specifically, i would right a check from BOA to my partner and she would then deposit it into her/our new bank account at Santandor. How long does it take for the money to clear.
> 
> ...


We use wire transfers in both directions . From our bank in Mexico to our bank in the US the Mexican bank fee is always $450.00 pesos no matter the sum and our US bank fee is always $15.00 US. 

The reverse is $30.00 US fee from our US bank, international wire transfer fee, and $300.00 pesos international wire transfer fee from our Mexican bank, plus the converstion rate is usually a bit higher {maybe 50 centavos per dolar} than a "casa de cambio" on the border. It shows up in the account within 30 minutes to 10 hours so far {after midnight it has happened once}. I think over $10,000 US there is addition fees and US forms to be filled out, I have a feeling. It is safe to do and the very many times we have done it, no problems.

You can not do it online and have to go into the bank you are sending from. So in your case you would not be able to do it unless you opened an account in Mexico first and had a trusted person wire money to this new account from their bank in the US.


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## kito1 (Aug 4, 2012)

I tried sending money to myself with Xoom but it picked up the IP addresses. I also tried using several VPN's to show I was actually in the US (they work fine with Netflix!!) but they blocked them also!

I purchased a car in Managua and needed money transferred and got someone at my bank to help me out. I went in once when I was home and introduced myself to the branch manager and told him where I was and that I might call on him for help sometime and he agreed. So, when I needed the money for the car I called in and spoke with him, he got everything authorized via fax and email. Email can be legally binding in case you didn't know.... and the wire came thru the next day! You could try that or if you have someone you trust back home that you can walk thru how to do the transfer then just have them do it for you.


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## RVGRINGO (May 16, 2007)

It may take a few weeks for a deposit to clear. 
You can usually buy a car with a check, although they may prefer that you use a card. If that's the case, be sure they accept the current exchange rate and don't stick you with their bank's fees for processing.
You can phone your US bank and have them raise your credit card or debit card limit for just a few days, in order to make a large purchase, such as a car, etc.
Then, you can continue to live from ATM cash for your usual needs. By the way, your debit card may have a default limit of a few hundred dollars. You can also ask your bank to increase the daily limit to $1000.00, for example. This will reduce your transaction fees and also your visits to the ATM locations. In many places, the limit indicated on the machine is meaningless and you can draw up to your personal daily limit; assuming the machine has enough cash, which can be problematic on weekends and Mondays.
We/ve lived in Mexico for more than a decade and have never had the need for a Mexican bank; they're not easy to deal with and can be expensive. No FDIC here, either.


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## chicois8 (Aug 8, 2009)

If you deposit more than 10,000 dollars within a 30 day period will you be charged a 3% bank fee?

If this car is from a dealer just write them a check from the BOA account....good luck


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## grotton (Apr 20, 2012)

AlanMexicali said:


> We use wire transfers in both directions . From our bank in Mexico to our bank in the US the Mexican bank fee is always $450.00 pesos no matter the sum and our US bank fee is always $15.00 US.
> 
> The reverse is $30.00 US fee from our US bank, international wire transfer fee, and $300.00 pesos international wire transfer fee from our Mexican bank, plus the converstion rate is usually a bit higher {maybe 50 centavos per dolar} than a "casa de cambio" on the border. It shows up in the account within 30 minutes to 10 hours so far {after midnight it has happened once}. I think over $10,000 US there is addition fees and US forms to be filled out, I have a feeling. It is safe to do and the very many times we have done it, no problems.
> 
> You can not do it online and have to go into the bank you are sending from. So in your case you would not be able to do it unless you opened an account in Mexico first and had a trusted person wire money to this new account from their bank in the US.


I am aware of what is involved in wiring money and your email summarizes my problem very well. The problem is, I will already be in Mexico. I understand I can set up a wire transfer from a bank branch in the USA.


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## joaquinx (Jul 3, 2010)

grotton said:


> . . . using Safepass. We were just told that we can not set up Safepass wire transfers abroad, the initial set up has to occur in the USA and the banking system will detect a Mexican IP address and freeze things.


Last month, I went through this with BofA telephone "helpers". I don't have Safepass and I needed to transfer 2,000USD to my Mexican bank. I couldn't because the limit without Safepass is 1,000USD per day. 

The transfer denial doesn't come from the IP address, but your street address. With a Mexican address, you will get an "invalid address" error. Change it to a US address and no problem. Yet it is subject to the 1,000USD limit unless you use Safepass. The catch is that after you change the mailing/street address, you have to wait 30 days to make a transfer. Also, BofA will give you the exchange rate of the transfer. Caution here. Check with a on-line FX service on what the current exchange rate is and you will find the exchange rate provide by BofA being very, very low. Transferring 2,000 USD doesn't impact your transfer much, but 20,000 USD will. Sometimes you will have to "bite the bullet" and make the transfer. Rule of thumb: the best rates are at the ATM, especially Santander and Scotia because there are no fees levied either by these local banks nor by BofA.

Finding a "good" US bank, is the "black hole" of living in a foreign country.


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## grotton (Apr 20, 2012)

RVGRINGO said:


> It may take a few weeks for a deposit to clear.
> You can usually buy a car with a check, although they may prefer that you use a card. If that's the case, be sure they accept the current exchange rate and don't stick you with their bank's fees for processing.
> You can phone your US bank and have them raise your credit card or debit card limit for just a few days, in order to make a large purchase, such as a car, etc.
> Then, you can continue to live from ATM cash for your usual needs. By the way, your debit card may have a default limit of a few hundred dollars. You can also ask your bank to increase the daily limit to $1000.00, for example. This will reduce your transaction fees and also your visits to the ATM locations. In many places, the limit indicated on the machine is meaningless and you can draw up to your personal daily limit; assuming the machine has enough cash, which can be problematic on weekends and Mondays.
> We/ve lived in Mexico for more than a decade and have never had the need for a Mexican bank; they're not easy to deal with and can be expensive. No FDIC here, either.


Thanks you sir, great information. I didn't realize I could write a check from my USA bank to a Mexican car dealer. I would rather not hassle with opening a bank account in Mexico if it is not necessary. I assume the dealership would need to wait for the check to clear before I could drive away with said car?


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## RVGRINGO (May 16, 2007)

chicois8 said:


> If you deposit more than 10,000 dollars within a 30 day period will you be charged a 3% bank fee?..../QUOTE]
> 
> No, you won't; unless it is hard, cold cash. Checks, wires and other instruments are OK>


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## AlanMexicali (Jun 1, 2011)

chicois8 said:


> If you deposit more than 10,000 dollars within a 30 day period will you be charged a 3% bank fee?
> 
> If this car is from a dealer just write them a check from the BOA account....good luck


Wow $600.00 US on $20,000 US is a lot for nothing. It may be better to have a few different accounts at different Mexican banks in this case.

Edit: I just saw RV´s post. This is for cash. OK


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## RVGRINGO (May 16, 2007)

grotton said:


> Thanks you sir, great information. I didn't realize I could write a check from my USA bank to a Mexican car dealer. I would rather not hassle with opening a bank account in Mexico if it is not necessary. I assume the dealership would need to wait for the check to clear before I could drive away with said car?


Possibly, although they might confirm the check by phone through their bank, if you are really lucky.
Back in 2007, we wrote a check for a new car and they then asked us to use plastic instead. We got the credit card or debit card (don't recall which) limit raised for that purpose and all was OK. Of course, you'll need to have the necessary funds in your US bank to cover the transaction. This would probably not work at a used car lot, but most new car dealers do have a few good recent trades on the lot. Actually, I helped a friend buy a two year old Nissan Platina that way, and he did write a check for that one and got the car delivered to his house three days later, all papered and plated. It also took three days for our purchase of a new car, and it also was delivered from Guadalajara to Chapala. I don't think they have dealer plates or temporary plates here.


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## grotton (Apr 20, 2012)

RVGRINGO said:


> Possibly, although they might confirm the check by phone through their bank, if you are really lucky.
> Back in 2007, we wrote a check for a new car and they then asked us to use plastic instead. We got the credit card or debit card (don't recall which) limit raised for that purpose and all was OK. Of course, you'll need to have the necessary funds in your US bank to cover the transaction. This would probably not work at a used car lot, but most new car dealers do have a few good recent trades on the lot. Actually, I helped a friend buy a two year old Nissan Platina that way, and he did write a check for that one and got the car delivered to his house three days later, all papered and plated. It also took three days for our purchase of a new car, and it also was delivered from Guadalajara to Chapala. I don't think they have dealer plates or temporary plates here.


We plan to buy used probably from the dealer. We saw a 2010 Rav4 online we think looks good. We asked the dealership if they would take Visa and they said they would with a 3% fee attached. I imagine once we finish negotiations, the dealership will figure out some way to get our money if it is possible. In your experience did the dealership dicker on price as is normal in the States?


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## RVGRINGO (May 16, 2007)

No, they don't dicker much here, especially on new cars. The prices are fair, in most cases.
Even for the two year old company car trade-in, purchased by my friend, the 'dickering didn't amout to 509 pesos on a 95,000 pesos purchase; hardly worth the hours it took. 
Buena suerte.


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