Bank Charges - are they thieves in Colombia - I mean the banks

I just talked to my fiancee who I had sent a check that had cleared my bank in USA on May 13. She got the money finally today - June 7th! But not only have they had the use of my money since may 13th, they gave her 483 out of the 500 I sent, charging $17 for what?
Are all banks this way - another reason to stay away from Colombia then. When I was there and used my ATM card my bank charged me 0. And to top it all, my bank gave me a rate of 2,250 to 2,300. When I cashed actual dollars (not travellers checks) the local bank only gave me 2,000. I knew then to just use my ATM and not bring dollars into the country and now this!
I travel quite a bit to costa Rica and they have not done this kind of thievery to me. I would definitely stay away from Colombia considering this as a very big reason to avoid it.
I want to know from others is - is this normal - is this what you have to put up with?

By rjstuff on Jun 7, 2005, 18:32 in Friendly Talkzone.

lpdiver says on Jun 7, 2005, 18:37:

welcome to the world Of international finance and love. why not open a different accont and send your fiancee an atm card. Then you can transfer into the account what you wish her to have and not worry about getting cleaned out? Then you can handle everything on the internet in an almost instant fashion.

T

"cook some rice!"

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rjstuff says on Jun 7, 2005, 18:42:

Good idea lpdiver Though I was hoping that other than paying her for her trip to Bogota and the ticket back here plus a little more, I wouldn't have to deal with any of this. She already has the second check in the bank. But I will talk to my bank about opening another account for her - but I don't know how to give her authorization without actually having her sign things or do you think I can open an account in my name and send her the ATM card and password and let her use it as if it was me?

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lpdiver says on Jun 7, 2005, 19:08:

rj thats what I did. I did clue in my card issuer that I was going to be using the card in Colombia, Aruba, and Venezuela.I never told them who would be using it.

I let my daughter use my atm card all the time. Same difference.

Tony

"cook some rice!"

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Rubiazo says on Jun 7, 2005, 19:18:

I was actually advised by a citibank rep over the phone to do just that. In his own words 'we don't verify WHO is using the card if nobody complains down there or up here.'

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platano says on Jun 7, 2005, 19:20:

There is a nationwide thievery called "cuatro por mil".... So you may have money deducted anytime you receive money from a bank. It's legal theft of $26 Billion.

Plátano, el banano verde
Oxigeno Verde ¡Libertad por Ingrid y los demás!

plátano

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RecochanBoy says on Jun 7, 2005, 19:45:

Profits up 10% Then from whom do you think they make this kind of profits?

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kernow62 says on Jun 7, 2005, 20:02:

$17 is peanuts on $500. Some suppliers I deal with in the UK I have to send bankers cheques and each one costs far more than that from my US bank no matter whether the cheque is $50 or $500. Banks the world over charge for the simplest things.

Send an ATM card if you trust her. That is the best way. If you aren't sure you can trust her just put what you can afford to lose in the account and add funds as needed.

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Hunter says on Jun 8, 2005, 03:45:

Banks Its not just Colombian banks, nearly all banks make a nice percentage profit on FX transactions.

Go the ATM card route.

Hunter

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viewpoint says on Jun 8, 2005, 04:05:

Mastercard and Visa Now Mastercard and Visa are both imposing a 3% surcharge on all FX "charge" transactions on my USA issued credit cards. US dollar charges in Panama, Ecuador or elsewhere are exempt from this surcharge. AMEX has not taken this action to date.

Kernow is correct a $17 change is nothing serious. If you withdrew the equivilent of US$500 from an ATM in Colombia with a credit card (not debit card) it would have cost you a minimum of $15.00 to $30.00 in cash advance service fees but you would have received better exchange treatment.

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flaleo says on Jun 8, 2005, 04:15:

it's a 1% fee Viewpoint, you have that wrong.

MC & Visa have always carried charges (hidden fee) on int'l transactions. The clearing entity (Visa Int'l or MC Int'l) has always (for over 8 yrs now I should say) placed a 1% add-on to all int'l transactions. I know of no issuing bank (CC company) that doesn't pass this fee to it's customers.

Banks/issuers have the option of adding up to 2% (or more). Citi, Chase, BofA and other add 2% for themselves. MBNA and USAA add 0%.

Amex has always added a full 3% (for over 20 yrs now).

Call you issuer, choose wisely. I have different CCs I use only when I travel overseas, just because they carry no extra costs like this.

I have read of changes in this area soon to come, if anyone has an update...

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viewpoint says on Jun 8, 2005, 04:28:

Flaleo I hate to rain on your parade but you better contact you creditcard companies as the rules and policies have changed during the last 60 days. I have several M/C and Visa credit M/C and the surcharge was increased on all of them. The issuing banks have told this change resulted from M/C and Visa increasing their FX charges from 1% to 3%.

As an example I have a MBNA Quantum card (one of the best they issue) which was issed in 1997. At first there were no cash advance fees for any cash advances in the USA or foreign. That lasted until about 2003 or 2004 when their policy changed and the cash advances fees when from -0- to $10.00 per advance. Three months ago I received written notice from them that a 3% surcharge would be imposed upon future foreign currency charge transactions. I contacted them and explored all the other creditcard options they offered and the only card issued by MBNA that does have a 3% fee on FX transactions is their MBNA America Express card which has a 1% fee on FX transactions. I called all my other creditcard providers including BOA, CITIBANK & two others but they all where charging the 3% surcharge. Call MBNA 1-800-896-3698 and ask them. I was told that the 1% clearing fee of M/C and VISA had been increased to 3% effective a few months ago. I was told by MBNA that NO card they issue except the MBNA AMEX card escaped this new 3% surcharge. I ran into the same response with every call I made to other creditcard issuers.

If you know something that I am missing I would appreciate sharing the information. Now I just use my debit cards issued Conavi and BanColombia for cash advances or purchases in Colombia. Even using the Colombian debit cards doesn't escape the "charges" because if you are wiretransfering funds into your Colombian bank accounts you still get hit with commissions approximating 2-3% minimum.

I just contacted MBNA again and they confirmed that the 3% commission surcharge went into effect April 1, 2005 on FX charge transactions for all of their cards except the MBNA AMEX card which they just told me has "NO" commission.

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flaleo says on Jun 8, 2005, 13:30:

NOT ALL ISSUERS ARE DOING THIS I called MBNA today. Yes, Visa Int'l and/or MC Int'l are raising their fee from 1% to 3%. But not all banks/issuers are passing this charge to customers.

I thus changed my MBNA from Worldpoints (which would have had the new 3% charge) to some Premier Visa (still MBNA) - with that card they are not charging the 3% (still only the 1%).

This is confirmed today.

Yes, there are changes within the last 60 days, but not ALL issuers charge the 3%. Choose your CCs wisely unless you want to pay extra, unnecessary fees.

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