A Little Something on ATM Withdrawls...

Gomezman5 says on Aug 22, 2005, 07:38:

Interesting point When I travel to Colombia and I use my ATM, I make the withdrawal, and I never really think about what, if anything the bank charges me insofar as a service fee (conversion fee) is concerned. I get my statement when I get back home, or I check my on-line account, and it usually gives me some strange number as an amount. But for all practical purposes, I still have no idea what the bank is charging me or even if they are charging me. In a cursory look, it appeared that the amount on my statement was pretty close to the official exchange rate...

Now as far as credit cards are concerned, Citicard just notified me that effective....??? they will post the cost of the conversion seperate form the item purchased---I think 2% conversion fee in addition to the actual cost of the purchanse. (Maybe it was 1%?) I can't worry about it. What else can I do? But here is the interesting part. They told me that I had been paying it all along but that it was incorperated into the conversion and I never knew the amount. Now they are going to post the cost seperate and apart from the actual cost of the item. Aren't they nice?? Go figure....

0 funny, 0 helpful.

cdyow says on Aug 22, 2005, 08:01:

paying for hotel Thanks for the info gator. I'll be making my first trip to Colombia this weekend, the 26th - 28th.

I plan on taking only my visa logo debit card, so just in case the worst were to happen, there is only a specific dollar value in that account that I could possibly lose.

My question regarding exchange rates however is this: when it comes time to pay for my hotel room, is there any advantage to having withdrawn pesos from an ATM there and pay them in pesos? Or should I just pay with the debit card?

thanks in advance.
Chris

0 funny, 0 helpful.

Gomezman5 says on Aug 22, 2005, 08:48:

Chris, I would just pay with Chris, I would just pay for the hotel with the debit card. Anytime you can avoid carrying to much cash (pesos) around you are better off. I don't know what you are paying per night, but it aside from your airfare, it is probably going to be your largest expense. It is not worth carrying the cash and running the risk of losing it or getting robbed. Since you are not from Colombia, you should know that there is an elevated risk of getting robbed or having your money stolen near an ATM, so be carefull in any event, and pay the small service fee that you will have to pay to not have to carry the cash around.

0 funny, 0 helpful.

Gator says on Aug 22, 2005, 10:03:

Chris.... you might save $8.00 USD by playing in pesos. I do not really agree, totally, with the danger factor expressed by Gomezman5, but there is wisdom on what he says. I would certainly plan to withdraw pesos as close as possible to checkout time.

"Credidi pretio parvo emere et magno vendere tibi in animo fuisse!" .

0 funny, 0 helpful.

Rubiazo says on Aug 22, 2005, 10:21:

If you´ve noticed Many American banks are now charging an extra 3.5% on all international ATM withdrawals. Usually my credit cards and Chase give a great exchange rate. I´ll have to look at the cc statement to see if they are doing it there as well.

0 funny, 0 helpful.

Pete E says on Aug 22, 2005, 10:23:

Pete E I always use ATM's to get pesos for use in Colombia.I find the exchange rates for various Colombian banks to be almost identical.
There is a BIG DIFFERENCE in what my different banks will goive me for an exchange rate plus the ATM fee they will charge.My US credit union gives me 99% plus of the official rate.,Sometimes higher than the official rate,I guess they don't adjust the rate they pay as fast as the real rate changes.I got 2301.5 Thursday 8/18.The official rate today is 2304.5
My Denmark bank gives me about 97% of the official raste plus charges me a $4 fee per transaction,which amounts to about 2% on a 400,000 peso withdrawal.So I don't use them
for ATM withdrawals.Even with purchases I still only get the 97%.
So Shop your bank,not the Colombian banks for the best rate.
Bringing dollars or travelors checks gets you the worst rate.It was 2100 pess/dollar when the official rate was 2350.You lose about 10% doing it that way.Plus you stand in line to get the pesos.
A person might want to bring some dollars as a backup but try not to spend them,use ATM's.

Pete

0 funny, 0 helpful.

Gomezman5 says on Aug 22, 2005, 11:32:

Gator is right If you do it the way he reccomends and that is make sure that the ATM that you use is close to your hotel and that you do not withdrawal the money to early and walk around with it or keep it in your room.

I just tend to be conservative and cautious in my thinking and think that since you will only be staying there three nights, an extra $25 is not a big deal when you consider what you will be spending for the entire trip in general.

Just be careful

0 funny, 0 helpful.

Pete E says on Aug 22, 2005, 11:48:

ATM's in Colombia I get pesos at ATM's in Chipi Chapi,a mall in Cali.No one will mess with you within the mall.Watch you are not followed out.I usually take a taxi from the taxi stand within the mall.
Davidienda will give you 500,000 per withdrawal,but it is all in 50,000 pesos bills.
A woman who works with my girlfriend was followed out of Exito San Fernando,a grocery/depatrment store that has some ATM's and robbed after using an ATM there 3 months ago.

Pete

0 funny, 0 helpful.

flaleo says on Aug 22, 2005, 13:05:

Gomezman5 writes "but what can I do" - simple, use a bank that doesn't charge, rather than an expensive one that does. There are plenty of options for credit cards that don't add up to 2% to the 1% charge Visa/MC charge. And there are many banks that won't charge a per transaction fee for international ATM.

But don't be thinking paying with a debit card is equal to paying with a credit card - debit cards are much riskier than credit cards. Your bank account could be wiped out if you are frauded, that can't happen with a credit card, and credit cards limit your liability in fraud cases.

0 funny, 0 helpful.

Pete E says on Aug 22, 2005, 13:40:

ATM card Fraud amount refunded In May 2004 my ATM account got used fraudulently.
In hindsight it appears someone rigged a device to the slot that you insert your credit card in to.We found a sticky substance around the opening.It was the type that takes your card all the way in,then gives it back.It was probably a sleve type device that read my card.In addition the crooks needed my pin no.Possibly a camera in a box was mounting in the back of the ATM Kiosk.It was a hole in the wall location with a locking door on it adjacent to the Olympica market on Avenida Sexta in Cali.All fraudulent withdrawals came from that location.
I discovered the fraud the 2nd day it happened when checking my balence.They hit it on a Friday for 2,400,000 Pesos and Saturday for 2,400,000 pesos.The account had $1000 a day maximum withdrawal.I discovered it late Saturday.It was a Visa ATM debit card.I called the visa hot line.They said if someone has a copy of the card and the PIN we can't do anything,you need to call your bank.The crooks also got 2,400,000 on Sunday.Monday was a holiday so I coudn't talk to the bank untill Tueday,but I hit the account first Monday Morning and got the 2,400,000 which pretty much wiped out the balence.I talked to the bank on Tuesday.They froze the card and sent me a new one.
Bottom line I got refunded the amount of the fraud,7,200,000 pesos,about $2800 at the time minus $50.I did have to spend a day filing a Cali Police report which was a totally futile jesture required by the bank.
So even though it was a debit card,a visa debit card, I got all but $50 of my money refunded.

Pete

0 funny, 0 helpful.

Pete E says on Aug 22, 2005, 13:46:

Pete E I should have added to my post above its best to use a ATM located on the side of a bank in a Mall ,or at least not one in a little room type kiosk that thieves can mess with without being noticed.If I ever do use a kiosk type ATM,and I have a few times for convenience of location ,I look for camera type devices in the kiosk.And I look around to see who might be watching me.Usually when I do it I have a taxi waiting.

Pete.

0 funny, 0 helpful.