How to save A LOT of money and have MORE fun

[mspink98]

When we travel to Mexico for a land vacation, we always pull extra out of the ATM to take home, either to use on a cruise stop or to have on hand for the next time we travel to Mexico for longer. When we go to Mexico for land vacations, we go to places where dollars wouldn't usually be accepted (not the big tourist areas, I mean), so we need pesos.

 

In my experience, ATMs are the way to go. Changing currency with a person leaves the rate up to interpretation-as someone mentioned above, the official rate may be 13:1, but street vendors may use 10:1. ATMs are typically more stable. One caveat-make sure you check with your bank to see if they charge any foreign transaction fees. Ours does, but it still works out in our favor to get the amount of pesos we need for several days or a week from an ATM. I'm not sure it would for just one day in port, though.

[bzy1]

You bought the currency for $464 US and have been holding it and you have gained back $10 US or 131 Pesos as of this writing. That is a good return on your investment.

 

In Mexico that is 131 delicious mouth watering tacos!

 

Actually, tacos are quite a bit more than 1 Peso each, more like 10 pesos each now days, so make that 13 mouth watering tacos. :D

 

Otherwise most of your advice is spot on...:)

 

One thing for people to keep in mind, the exchange rate you see online when checking Yahoo or Oanda is the world bank rate for exchanges between banks, not what you would get on the street or at a bank in Mexico. The rate is few percent less. If you want the closest, check an actual bank in Mexico for their exchange rate. This is a link to Banamex's website for their currency exchange rate. At the time I post this it is 12.80 which is what you would receive if you exchanged US at the bank right now.

https://www.ccbusa.com/onlineserv/HB/Forms/OnlineForm.cgi?form=tdrates/FXTrans_sp

 

Most ATMS through Mexican banks do not charge a fee. The fee that is either 3 to 7 Pesos is actually for card holders of that banks ATM advising them of the charges for "retiros" or "saldos" (with drawing money or checking balance over the monthly allowed amount).

Scotia bank DOES charge 10 Pesos for using their ATM if you do NOT have a Scotia bank card.

 

Card holders of Scotiabank, B.O.A., HSBC and some other banks have an alliance with banks here in Mexico, so you may not be charged a fee.

 

There is a 1 to 3 % International fee on all charges through either Visa or Mastercard. The only bank that does not have this fee is Capital One, with exception for an investment house account through Schwab and maybe one or two credit unions. Every other one does and while it is supposed to me shown in your statement, many banks hide it via the "exchange rate".

http://www.moneybluebook.com/list-of-credit-card-foreign-currency-transaction-fees/

 

In the end, it is always best to use the currency of the country you are visiting when it comes to value. Right now, on average it is about 28% that you will save.

 

Happy travels!

[JustCruisin']

This is GREAT information.

 

Yes, the 1% my Visa card charges is in fact hidden in the exchange rate so I don't see it when I have used my card for purchases internationally.

 

Using a Visa, Master Card or Discover Card to take out cash at an ATM, though can be costly since it is considered a cash advance. The finance charges start right away - there is no grace period. Have any of you used your debit card at the ATM instead? I am just a little concerned about using my debit card because they have less consumer protections against fraudulant uses (it doesn't have the $50 max liability that a credit card has).

 

What has your experience been?

[BobandSandra]

Without sharing too much personal information we have been here for more than 30 years.

 

You can order all the foreign currency you want from Wells Fargo we have many locations here.

 

It is probably better to exchange by using ATM machines at your ports of call. You will get the rate set by your card company visa/mc.

 

We like the cold and the snow and winter in general. We are not actually in Denver proper but love this area very much.

 

You can order currency at any bank in the US - give them 5 business days to get it. Normally there is a small charge. When you get back, take your unspent peso's to them and redeposit them to your account.:)

[1 Part Sand 1 Part Sea]

You can order currency at any bank in the US - give them 5 business days to get it. Normally there is a small charge. When you get back, take your unspent peso's to them and redeposit them to your account.:)

 

now THIS seems like the easiest way! I am wondering if i will have a problem as we live in a small town area. but, if its just 'ordered' i assume it will be fine! thanks for the idea!

now all i have to decide how many pesos to bring.... i am thinking 500 or 1000 pesos?

[WINEMANVISALIA]

Shopped for wine in soriana store in puerta vallarta...the cash registers convert 12 pesos to the dollar...the same thing in cabo so it is not worth the bother to convert...i usually gave left over change to bag lady at the counter...spend the time enjoying instead of looking for money exchanges...just my opinion..here are pics from our last cruise on sapphire princess

 

http://travel.webshots.com/photo/2414648870066043953cLJflu

I have traveled to Mexico more times than I can count. In the past few days my wife and I have noticed a common question: Should I use Mexican Pesos or US Dollars in Mexico. I want to help you with this so you can save a pile of money and have a lot more fun.

 

As of this writing the Peso is 13.24 for one $1.00 US.

 

If you spend US currency 100% of all Mexican people will exchange $1 for 10 pesos.

 

So if you spend $1000 in US currency you will lose $254 of it's conversion value. Meaning you got 10,000 pesos for $1000 US.

 

However, if you convert your US $ to pesos you will retain the value of the Dollar. You will then receive 13,248 Pesos.

 

It is almost like having free money. And that 3,248 pesos you gain will go a long way in Mexico for tours and trinkets and meals.

 

So the real question is, "Do I want to lose money or make my money work for me?"

 

My advice and that of most Economists, paper traders, accountants and such is - Convert your US $ into Pesos.

[Hlitner]

We live in PV during the winters months (am on my balcony overlooking the Bay of Bandaras at this moment) and agree with the OP that when in Mexico it's best to use Pesos. As to the ATMs, most of the Mexican banks charge a transaction fee of about 7.5 pesos (about 60 cents) for every withdrawal. Your own bank may or may not charge additional fees so its good to check before your trip. But we find that ATMs are generally the best way to get Pesos and right now we are getting approximately 13 to 1. We suggest that cruisers get their Pesos at their first port of call. If you want to exchange US dollars, the best rates will always be at real banks in Mexico. By the way, if you plan to use ATMs or credit cards it is wise to notify the issuing bank(s) before your trip and give them a copy of your itinerary. This prevents possible security issues where you may find that your card has been cut-off because of unusal use patterns.

 

Hank

[tracyvansmith]

We live in PV during the winters months (am on my balcony overlooking the Bay of Bandaras at this moment) and agree with the OP that when in Mexico it's best to use Pesos. As to the ATMs, most of the Mexican banks charge a transaction fee of about 7.5 pesos (about 60 cents) for every withdrawal. Your own bank may or may not charge additional fees so its good to check before your trip. But we find that ATMs are generally the best way to get Pesos and right now we are getting approximately 13 to 1. We suggest that cruisers get their Pesos at their first port of call. If you want to exchange US dollars, the best rates will always be at real banks in Mexico. By the way, if you plan to use ATMs or credit cards it is wise to notify the issuing bank(s) before your trip and give them a copy of your itinerary. This prevents possible security issues where you may find that your card has been cut-off because of unusal use patterns.

 

Hank

 

PV will be our first stop. Where is the best place to exchange the money near the cruise ships?

[grammacassi]

Can anyone answer this?? If I go into Senior Frogs and ask for a Cervasa and they tell me $3.00 do I then tell them I am using pesos? and would it ( at 13:1 for ex.) be 39 pesos for that bottle of beer?:o

[grammacassi]

I have traveled to Mexico more times than I can count. In the past few days my wife and I have noticed a common question: Should I use Mexican Pesos or US Dollars in Mexico. I want to help you with this so you can save a pile of money and have a lot more fun.

 

As of this writing the Peso is 13.24 for one $1.00 US.

 

If you spend US currency 100% of all Mexican people will exchange $1 for 10 pesos.

 

So if you spend $1000 in US currency you will lose $254 of it's conversion value. Meaning you got 10,000 pesos for $1000 US.

 

However, if you convert your US $ to pesos you will retain the value of the Dollar. You will then receive 13,248 Pesos.

 

It is almost like having free money. And that 3,248 pesos you gain will go a long way in Mexico for tours and trinkets and meals.

 

So the real question is, "Do I want to lose money or make my money work for me?"

 

My advice and that of most Economists, paper traders, accountants and such is - Convert your US $ into Pesos.

 

If I go into a local tavern in PV and ask for a beer. Will they tell me dollars or pesos and if they tell me dollars do I then ask how much in pesos?

Thanks

[konatyme]

Our first stop will be Acapulco. I thought I'd read something quite a while ago about an ATM at the cruise terminal there. Anyone know anything about this?

Thanks!

[JOVERNITE]

Actually, tacos are quite a bit more than 1 Peso each, more like 10 pesos each now days, so make that 13 mouth watering tacos. :D

 

Otherwise most of your advice is spot on...:)

 

One thing for people to keep in mind, the exchange rate you see online when checking Yahoo or Oanda is the world bank rate for exchanges between banks, not what you would get on the street or at a bank in Mexico. The rate is few percent less. If you want the closest, check an actual bank in Mexico for their exchange rate. This is a link to Banamex's website for their currency exchange rate. At the time I post this it is 12.80 which is what you would receive if you exchanged US at the bank right now.

https://www.ccbusa.com/onlineserv/HB/Forms/OnlineForm.cgi?form=tdrates/FXTrans_sp

 

Most ATMS through Mexican banks do not charge a fee. The fee that is either 3 to 7 Pesos is actually for card holders of that banks ATM advising them of the charges for "retiros" or "saldos" (with drawing money or checking balance over the monthly allowed amount).

Scotia bank DOES charge 10 Pesos for using their ATM if you do NOT have a Scotia bank card.

 

Card holders of Scotiabank, B.O.A., HSBC and some other banks have an alliance with banks here in Mexico, so you may not be charged a fee.

 

There is a 1 to 3 % International fee on all charges through either Visa or Mastercard. The only bank that does not have this fee is Capital One, with exception for an investment house account through Schwab and maybe one or two credit unions. Every other one does and while it is supposed to me shown in your statement, many banks hide it via the "exchange rate".

http://www.moneybluebook.com/list-of-credit-card-foreign-currency-transaction-fees/

 

In the end, it is always best to use the currency of the country you are visiting when it comes to value. Right now, on average it is about 28% that you will save.

 

Happy travels!

 

While Capital One does not charge a conversion fee, it IS considered a cash advance and you are charged the cash advance fee at the rate your card calls for and interest. I was going to get one for our 12 day Med cruise last year but it wasn't going to save as much as I thought after I spoke to them on the phone.

 

Since we have no Wells Fargo where I live, I went online daily to their site and checked for the best USD to EU rate. When it got decent (never great) I bought online. It was a straight $8.00 fee regardless of how much or little you bought plus I was able to charge it to my Visa as a purchase, not a cash advance. I racked up 3008 points on my cc. I pay my balance every month so there was no interest.

 

At the end of our cruise, we turned in our EU for USD on the ship. We understand the ship will not give you the best exchange rate but we didn't have many EU's left. Plus, the USD was stronger than when we started our trip so we actually did better than we thought we would.

[downsized]

now THIS seems like the easiest way! I am wondering if i will have a problem as we live in a small town area. but, if its just 'ordered' i assume it will be fine! thanks for the idea!

now all i have to decide how many pesos to bring.... i am thinking 500 or 1000 pesos?

 

The exchange rate that your bank will offer is less than the internet rate (I found out this by surprise.)

That being said, my bank also charged me (I think) $7.00 exchange.

500 Pesos is only about $39 (today) so if that is all you figure you will spend in Mexico, I think that I would just use dollars.

If you expect to spend over $500 while shopping, my opinion is that you might want to order Pesos through your bank. Too...if it were me...I would stipulate that I wanted all bills to be 500 Pesos in value, or less.

[gtaylor]

While Capital One does not charge a conversion fee, it IS considered a cash advance and you are charged the cash advance fee at the rate your card calls for and interest. I was going to get one for our 12 day Med cruise last year but it wasn't going to save as much as I thought after I spoke to them on the phone.

 

Since we have no Wells Fargo where I live, I went online daily to their site and checked for the best USD to EU rate. When it got decent (never great) I bought online. It was a straight $8.00 fee regardless of how much or little you bought plus I was able to charge it to my Visa as a purchase, not a cash advance. I racked up 3008 points on my cc. I pay my balance every month so there was no interest.

 

At the end of our cruise, we turned in our EU for USD on the ship. We understand the ship will not give you the best exchange rate but we didn't have many EU's left. Plus, the USD was stronger than when we started our trip so we actually did better than we thought we would.

I think a couple of thoughts are getting mixed up here.

 

The Capitol One no fee statement has to do with using their Credit Card. There is no foreign transaction fee.

 

If you try to use the Credit Card as an ATM card, as for a cash advance, then there will be the fee and the interest starts running immediately.

 

When we cruise to Mexico we hit a bank ATM at the first port and draw what we think we will need. Our credit union charges 75 cents for the transaction and I don't recall ever seeing a bank charge.

 

Any leftover Pesos (rare) go in a jar for the next cruise.

 

gary

[bzy1]

Just to clarify, I pointed out that Capital One does not charge a fee on CHARGES, I said nothing of cash advances which is a whole different story.

[oceanaddict4life]

So far there seems to be a clear consensus that buying Mexican Pesos is the best thing to do to save money and retain your currencies value.

 

Buying pesos with a Credit Card cash advance is expensive and not a good plan.

 

Using your card with a Visa / MC logo in major stores will give you the exchange rate set by Visa (period. There is no exception to this rule.)

 

Using your credit card can be expensive.

 

It is better to use your visa/mc Debit card to withdraw pesos from Mexico ATM machines and is the most cost effective even if there is a fee.

 

Capital One Card is an alternative if you pay your bill in full each month.

 

Bank purchased foreign currency is sold with a fee. Banks move money to make money. But if you buy when the conversion rate is crazy at say 15 to 1 then you win no matter what. BIG TIME.

 

And the overall consensus: If you do not convert your $$ to MX Pesos - You Lose and will spend an average of over 30% more.

[Hlitner]

Shopped for wine in soriana store in puerta vallarta...the cash registers convert 12 pesos to the dollar...the same thing in cabo so it is not worth the bother to convert...i usually gave left over change to bag lady at the counter...spend the time enjoying instead of looking for money exchanges...just my opinion..here are pics from our last cruise on sapphire princess

 

http://travel.webshots.com/photo/2414648870066043953cLJflu

 

The things is that when you were getting 12 pesos to the dollar we were getting 13 pesos to the dollar using ATMs. The supermarkets (plus Walmart, Sams and Costco) do give pretty fair rates of exchange, but we can never understand why cruise passengers would want to spend their time in supermarkets (we live here in the winter and try to minimize our time in supermarkets). When in Mexico use Mexican money (it is called the Peso....not the US dollar) and you will save money. As to looking for money exchanges, we have never ever looked for a money exchange as there are numerous ATM machines (even in some of the large stores) just like at home.

 

Hank

[WINEMANVISALIA]

pay for massages at in dollars...supermarkets and la europea in cabo have great wines we cannot get in the states..especially chilean or argentinian reserve wine for 10-15 dollars...we drink for our health...wine is divine right after great massages!!!

 

The things is that when you were getting 12 pesos to the dollar we were getting 13 pesos to the dollar using ATMs. The supermarkets (plus Walmart, Sams and Costco) do give pretty fair rates of exchange, but we can never understand why cruise passengers would want to spend their time in supermarkets (we live here in the winter and try to minimize our time in supermarkets). When in Mexico use Mexican money (it is called the Peso....not the US dollar) and you will save money. As to looking for money exchanges, we have never ever looked for a money exchange as there are numerous ATM machines (even in some of the large stores) just like at home.

 

Hank

[oceanaddict4life]

I see many new topics about using Pesos or using Dollars.

 

Whether to use pesos depends on perspective. Most vendors and tour operators would like you to believe that it is much better for you to use American Dollars.

 

Of course they are going to say that! They want the extra 30% they will gain by fleecing you during your trip.

 

At the end of the day they all line up at the money exchange and laugh about how much EXTRA they made that day.

 

30% extra can be quite a chunk of change. You would not spend 30% more at home for purchases, why do it on vacation?

[jones391]

I see many new topics about using Pesos or using Dollars.

 

Whether to use pesos depends on perspective. Most vendors and tour operators would like you to believe that it is much better for you to use American Dollars.

 

Of course they are going to say that! They want the extra 30% they will gain by fleecing you during your trip.

 

At the end of the day they all line up at the money exchange and laugh about how much EXTRA they made that day.

 

30% extra can be quite a chunk of change. You would not spend 30% more at home for purchases, why do it on vacation?

 

Well said. I agree.:D

[alanswife]

Thanks for useful info - wondered if you could help me understand if it is better for us Brits to convert £ to Pesos, or indeed £ to $ to Pesos? What do you think?

 

 

Ok. Here is part 2.

 

So you spent your 3,248 pesos which in Mexico was spent just like $324 US. You ate good food, you bought a hammock for your dog spot. You took in some sight seeing and you have $10,000 pesos in your pocket.

 

What now?

 

You take that 10,000 pesos to a money exchange or bank and the teller gives you roughly $754 US.

 

But ColdinDenver I thought I was saving a pile of money!!

 

Well my dear readers you did save. You actually spent $246 of your own American dollars by converting.

 

Had you not converted and received 10 pesos to the dollar you would have actually spent $324 (3,240 pesos rounded) of your hard earned money based on the loss of the conversion rate.

 

You have retained $78 US Dollars. That is about 32% saved by converting.

 

Well how is that like free money?

 

Let's say you decided to spend the extra $78 US in converted pesos that you did not lose because of the conversion or 1,034 Pesos. In Mexico that looks like $134 US to the locals that think in multiples of 10. Kind of like having free money. But not exactly you still paid for it but your dollars went a lot farther. You were ahead by 1,034 pesos because you converted your US $.

 

My math is not spot on as I have rounded everything and this is only for demonstration purposes.

 

But what is the bottom line? By converting your US $ to pesos you will save an average of 32% as of this writing. So instead of getting to spend 3,240 pesos you get to spend 4,274 because of what you did not lose on the conversion. Still within the budget. And that is a lot of fun money in Mexico. You spend the same $324 that you would have spent with out converting but came out 32% ahead instead of behind. Your money went farther and worked 32% harder for you.

 

It seems confusing and it also confuses me a bit going back and forth between currencies. But it is well worth your time to convert your $ to Pesos.

 

My brain is now swimming in conversion soup.

 

Now to convert currency at most Mexico banks you will need to present your passport or bank account with the bank.

 

At a "casa de cambio" conversion house you will not need a passport. But make certain to check the bills for fakes, old currency and defects as they are not accepted by vendors.

[Hlitner]

Thanks for useful info - wondered if you could help me understand if it is better for us Brits to convert £ to Pesos, or indeed £ to $ to Pesos? What do you think?

 

What I think is that every time you exchange one currency for another you lose a little money. However, trying to change pounds sterling to Pesos here in Mexico might be a problem in some banks and kiosks where they might not accept pounds. Your best option is to simply use your ATM card at a Mexican ATM where you will directly get pesos.

 

Hank

[lilly4350]

OK No one has actually answered the question - can we exchange $US into Pesos on the ship? We are travelling from Australia, arriving day before cruise. We will have some $US with us that we want to exchange. We do not particularly want to use our CC. (And we cannot get Pesos in Australia)

[oceanaddict4life]

1 £ = $1.55 US.

1 £ = 19.97 Pesos

 

The British Pound has a very high value for a world currency. I would not convert to US $ and then to Pesos.

 

I would use my ATM card (Bank debit card) and get pesos from an ATM as needed. You will get the correct exchange rate.

 

I can not answer as to if your ship has an exchange on-board. That would be a good question for your Travel Agent.

[Marie321]

We live in a small town. I ordered pesos online through our bank and they were delivered fedex today. I ordered $200. A problem. The bank sent two 500 peso bills. Now how do we get this broken down smaller????