# Best way to minimize foreign currency fees.



## MangoMike (Apr 7, 2010)

Hola,
My wife and I plan to retire in Mazatlan next year. I've been researching all kinds of stuff on the internet and found that a lot of the info is very dated. Some from the 1990's. So, I'm hoping to get current info through this forum from the people who should know best. First, .. I'm wondering if there is a way to get around currency exchange fees. When on vacation I usually get cash from an ATM and get charged a 3% foreign currency transaction fee plus $2. Is there any way to avoid this loss by opening an account in a Mexican bank. 3% doesn't sound like much for a vacation but when you are talking about all expenses all year long it could be substantial. Gracias.
MangoMike


----------



## conklinwh (Dec 19, 2009)

There are a couple of quasi banks(Actinver Lloyd's and Intercam) that most expats I know use to transfer money into Mexico and for use here. You do have to pay the wire transfer fee but a small number if transfer to cover multiple months. We actually find that get better interest here and basically avoid fees.
One thing that I do want to do is get a Capital One credit card as believe that they are the last to not have foreign currency fees on purchases in Mexico.


----------



## RVGRINGO (May 16, 2007)

Welcome to the forum.
Yes, that 3% is outrageous! Most credit card companies charge 1%. Talk to your bank or, change banks. The 1% is not avoidable, but gouging by your bank or by the ATM companies is something you can control. Some banks, like USAA (if you are eligible) refund ATM fees. In other cases, you may want to choose a US bank that has a relationship with a Mexican bank (HSBC, Santander, Banamex, Scotiabank, etc.) whereby you may avoid bank charges for ATM use.
As for opening an account in a Mexican bank: Most expats don't bother, as their fees are high, the lines can be long and the 'complications' can be many. Besides, there is no FDIC here. You may, however, want to keep some funds in a local investment house for ready access, the ability to wire funds, cash checks, etc.
Hope that helps.


----------



## MangoMike (Apr 7, 2010)

What exactly do you mean by "quasi bank" and how do I go about making it happen? Is there an office in Mazatlan? I bank with U.S. Bank here and have been told by them that you can get charges from a wire transfer on both ends. What's the charge on Actinver Lloyd's end, do you know?


----------



## conklinwh (Dec 19, 2009)

The better name might have been investment house as RVGRINGO used.
Although Actinver Lloyd is talking about buying a bank, they operate through a bank here for local ATM card. I transfer money down via Actinver Lloyd account at BofA. I don't knowingly have any but initiation fee on the wire transfer as the pesos meet or exceed the daily exchange rate on the day of transfer.
My offices are in San Miguel so would have to look at Actinver Lloyd on line for other branches.


----------



## sparks (Jun 17, 2007)

You might shop around for a bank or credit union that does not charge international fees before you leave. I get a 1% charge on all my ATM withdrawals. Unless you are building or buying you really don't need bank to bank or other financial services transfers.

Here's Intercam
Bienvenidos a Intercam Servicios Financieros


----------



## RVGRINGO (May 16, 2007)

It is the credit card/debit card companies, like VISA, for example, that charge the 1% foreign exchange fee, which will show up on your end of year statement.


----------



## conklinwh (Dec 19, 2009)

As far as I know Capital One still does charge the exchange fee on their credit cards based on their literature.


----------



## sparks (Jun 17, 2007)

RVGRINGO said:


> It is the credit card/debit card companies, like VISA, for example, that charge the 1% foreign exchange fee, which will show up on your end of year statement.


My 1% fee is right next to the withdrawal every time. They used to bundle the charges but as of a few years ago were required to itemize (in the US)


----------



## Salto_jorge (Mar 28, 2010)

I have been using a card from Bank of America and Scotiabank to avoid card fees.

I have heard a rumor that BBVA has banks in the US (compass) and Mexico (bancomer) and fees are not charged when using a compass card/account at bancomer in Mexico. 

-------------------------------

Beware using your banking cards in Mexico. If you can, change your pin weekly/monthly and inform your bank that where you are in Mexico. 

I like to have credit cards with low limits ( max 2000.00 us ) and card and carry an atm/debit card for emergencies.


----------



## hasher (Apr 8, 2010)

MangoMike said:


> Hola,
> My wife and I plan to retire in Mazatlan next year. I've been researching all kinds of stuff on the internet and found that a lot of the info is very dated. Some from the 1990's. So, I'm hoping to get current info through this forum from the people who should know best. First, .. I'm wondering if there is a way to get around currency exchange fees. When on vacation I usually get cash from an ATM and get charged a 3% foreign currency transaction fee plus $2. Is there any way to avoid this loss by opening an account in a Mexican bank. 3% doesn't sound like much for a vacation but when you are talking about all expenses all year long it could be substantial. Gracias.
> MangoMike


I've been living in Mexico for many years and i have been getting my pension from the UK through my debt card from the UK. I used to transfer from bank to bank but it was to expensive with transfer fee and tax in Mexico. So all i do know is use my debt card in mexico to draw on my account in the UK. That way the Mexican government doesnt know about it and no tax


----------



## chicois8 (Aug 8, 2009)

BanamexUSA is an online bank in Los Angeles, to open an account you need to send a copy of your electric,phone or water bill with your name and address in Mexico. you then get an ATM card that you can use at any Banamex ATM without any international fee or ATM fee...and if you decide to open a Banamex account in Mexico you can wire money without a fee...


----------



## conklinwh (Dec 19, 2009)

If you are still interested, I checked and there is an Actinver Lloyd branch in Mazatlan.


----------

