Questions about Credit Card Transactions in Mexico

[ampanda52]

Hi!  This post goes out to anyone who has gotten married or has used a credit card in Mexico.  I'm hearing that banks typically charge you 3% on all transactions using your card.  I plan to pay my balance of my destination wedding with mine and 3% could turn into a decent chunk of change.  Is this true and are there any ways to get around it besides carrying a load of cash?  Thanks!

 

Mandy

[SweetFire]

Hey Mandy!

 

I believe any fees are generated by your own bank, not the Mexican bank the transaction is going through.  So, the best course of action would be to check with your bank to see what kind of international transaction fees they charge if any.  I occassionally use my US card down here and there don't seem to be any extra fees on my statement, other than sometimes a not super favourable exchange rate.

 

A couple of heads up though.  Mexico does have a reputation for credit card fraud so many banks will automatically blocked CCs once used down here.  Make SURE that your bank is aware you will be travelling to Mexico ahead of your trip.  I also try never to use my card at any really small shops or anywhere where my card will be out of my sight while they process it.  Keep cash on hand for small stuff.

 

Hope that helps!!

 

Happy Planning!

 

Sofia

Lori's Office Assistant

 

 

 

[ampanda52]

Sofia,

That helps ALOT!  I had already planned on calling my bank and making them aware.  I heard some people have asked the hotel to charge them in pesos instead of USD.  I don't know if that's a good idea or not. 

 

Thanks again!!!!

 

Mandy

[SweetFire]

Hey Mandy,

 

I'm not sure how it works with the big hotels, but I know for sure that in town (smaller businesses), the amount in USD on the credit card machine is changed to pesos anyways but the Mexican bank handling the payment and charged to your bank in pesos.  Your bank then transfers it BACK to dollars (assuming you are in the US).  So, charging in pesos would avoid that double conversion.  But, I guess it really depends on what currency your bill is in and if they would have to "convert" it to pesos anyways...

 

Check out this link for the 2 exchange rates: BANORTE BANK.  Notice the buying and selling exchange for the dollar in the upper left hand area.  Those should help you figure out whether they are exchanging at a reasonable rate or not.

 

Oops, sorry if this post got a little confusing!    Let me know if you have any questions!

 

Sofia

Lori's Office Assistant