ATM Exchange Rates

[tez]

Inspired by a recent post on an old thread here about ATM fees (http://baexpats.org/newcomers-forum/11527-atm-limits-best-banks-lost-new-post.html), I decided to do some math and really check what the exchange rates I am actually getting from the ATM machines are.

The advice has always been, "Don't take cash, just withdraw from ATMs for the best exchange rates." I just checked my withdrawals over the past week and at two different banks I have received a very consistent 4.06 peso rate for my US dollar. That's about a USD 7 loss on a 990 AR Peso withdrawal compared to what I would get from selling the dollars here , based on a website I found on this forum (http://www.dolarhoy.com/).

I can't say I've been incredibly vigilant in regards to tracking the ATM rates I'm receiving, but I know I have checked in the past and that, if nothing else, I never felt like the difference between the amount of money withdrawn from my account and how many pesos I should have received in the ATM was very big... More specifically: when I would put 1000 pesos into the online currency converter the number in dollars was always right around the amount of dollars that had been withdrawn from my account.

Is this another way the banks/Argentina is trying to extract more money from tourists?

Is there any way to check the rates that different banks' ATMs give?

 

[igor]

I think the difference that you see is a combination of two currency exchange fees: 1% fee imposed by Visa/MC and 1% fee by your USA bank. That's why they are consistent across local ATM machines. It is quite likely Argentine banks have nothing to do with it at all.

 

[sesamosinsal]

I don't think banks give you a special exchange rate when you withdraw from an ATM. They use the current market rates, which are probably given to them by the networks (Link, Banelco, etc.) that facilitate the transaction.

On July 28, I withdrew $850 ARS at Banco Santander in Puerto Madero. The total withdrawn was $866.68, which includes the $16.68 (~$4.00 USD) access charge. My bank (Schwab) does not charge additional fees, and refunds the access charge at the end of the month. The total dollar amount withdrawn from my account was $209.68. That amount includes the access fee.

According to Yahoo! Finance, the market rate for the USDARS on July 28, 2011 was 4.1316 ARS.

The rate given to me for my transaction at Santander: $866.68 ARS / $209.68 USD = 4.1333

Therefore, the difference between the two rates is a mere $0.0017 ARS, which is due to the constantly changing, 24-hour FOREX market.

 

[scotttswan]

On another note, for uk people i can recommend the http://www.fairfx.com card.
Being a prepaid card it also additionally protects you a little from card scams etc too.