Foreign Exchange Rates on Credit Cards

[carride]

Note that the currency conversion rate you get when you use a credit card is 12%+ less than the black market rate you would get for cash, with the government pocketing the difference. A transaction done today with Visa or Mastercard is billed at 1200 pesos per USD. Whereas the black market rate is at 1372 today.

That is helpful information, though remember that the credit card rate tracks the MEP rate, not blue. Often the MEP is closer to the Blue and occasionally above. Then visa calculates a percentage.
As an example, July 2nd and those weeks before the BCRA started injecting USD into the MEP/CCL market.

Blue. Compra. Vente.
02/07/2024 1400,00 1430,00
01/07/2024 1375,00 1405,00

MEP
02/07/2024. 1428,46
01/07/2024. 1413,01

Visa online calculator shows it was 1316.60 on July 2nd, which is based on the July 1st close. Visa Mastercard shopping that day was 6%+ less that the 1400 Blue.

 

[thcoalso]

It works the exact same way as exchanging cash USD bills for pesos. You pay, and then you receive the pesos cash in hand. The only difference is for Zelle or crypto you can use what's in your foreign bank account to pay, and you're not limited by the physical quantity of USD cash you can bring to Argentina.

If you'd like to learn more you can dm me and I can help you with either Zelle or a crypto transfer for pesos or USD cash here

I'd be interested to learn more as would others, so it would benefit everyone for this discussion to be public.

I did see in another post that you were suggesting to be the counter party and you would be the recipient to transfer manually in person or to an Argentina bank. This seems more risky than WU as this would depend entirely on trusting you more than a financial institution. If there's another idea in mind, we'd all be happy to learn more. Thanks for your help!

 

[dlish]

I love how everytime someone asks for info on the more advanced ways to transfer money, the responses turn into "DM me and I'll arrange it for you"; suddenly everyone is Argentinean, trying to make 3 peso off somebody else's transfer. LOL.

For crypto: it's pretty simple. Some cuevas accept a transfer in USDT, aka Tether. You make a crypto account in the USA, like a Coinbase account. Transfer funds from your bank to your Coinbase account and purchase USDT (always 1:1 to the USD). You get in touch with the ceuva to finalize the rate for your amount; when you go to pick up the cash you transfer the USDT in Coinbase from your wallet to their wallet. It's like any other transfer.

You can DM me and I'll send you phone numbers to two of these, and you can contact them directly via Whatsapp.

Zelle is more complex. I don't know cuevas who take it but the more serious money transactors dealing with more affluent business people who need to move bigger sums of cash accept it, and depending on the market you pay a few percentage points or they may even pay you, depending on the supply/demand. Zelle is part of the regular US banking system and it makes me nervous that I could be transferring funds to an account connected to lord-knows-what, so while I use Zelle transfers all the time I stick to local friends I know, business owners, who need to get rid of their peso and we mutually help each other. I haven't done it via a professional (yet).

Hope that helps!

 

[LuckyLuke]

I'd be interested to learn more as would others, so it would benefit everyone for this discussion to be public.

I did see in another post that you were suggesting to be the counter party and you would be the recipient to transfer manually in person or to an Argentina bank. This seems more risky than WU as this would depend entirely on trusting you more than a financial institution. If there's another idea in mind, we'd all be happy to learn more. Thanks for your help!

I contacted the user via DM and it is exactly as you described. The solution to the counterparty risk is simple, the dollar buyer can transfer the pesos first. I suggested this and received no response.

Which cracks me up, because god forbid you never know how what kind of criminal expats are lurking around here trying to con gullible Argentines into trading the fastest depreciating currency on the planet for their useless dollars

Long story short, stick to P2P where everyone is protected. There's no easy way out of this one folks.

 

[arvest]

I love how everytime someone asks for info on the more advanced ways to transfer money, the responses turn into "DM me and I'll arrange it for you"; suddenly everyone is Argentinean, trying to make 3 peso off somebody else's transfer. LOL.

For crypto: it's pretty simple. Some cuevas accept a transfer in USDT, aka Tether. You make a crypto account in the USA, like a Coinbase account. Transfer funds from your bank to your Coinbase account and purchase USDT (always 1:1 to the USD). You get in touch with the ceuva to finalize the rate for your amount; when you go to pick up the cash you transfer the USDT in Coinbase from your wallet to their wallet. It's like any other transfer.

You can DM me and I'll send you phone numbers to two of these, and you can contact them directly via Whatsapp.

Zelle is more complex. I don't know cuevas who take it but the more serious money transactors dealing with more affluent business people who need to move bigger sums of cash accept it, and depending on the market you pay a few percentage points or they may even pay you, depending on the supply/demand. Zelle is part of the regular US banking system and it makes me nervous that I could be transferring funds to an account connected to lord-knows-what, so while I use Zelle transfers all the time I stick to local friends I know, business owners, who need to get rid of their peso and we mutually help each other. I haven't done it via a professional (yet).

Hope that helps!

It's simply an offer, nobody is obligated to accept. If someone is able to transfer funds in a cheaper or more convenient way doing it themselves then more power to them. Likewise, if you're satisfied with the exchange rate WU or your credit card gives you, then that's fine too.

As you've mentioned, Zelle is difficult to find with a cueva as it's an American system. And even for those that do offer it, the fee is quite substantial, I'd imagine they have to find people in the US who will let them use their account to receive inbound Zelles, and that's probably not for free. When you deal directly with an American, that's not an issue obviously

 

[NeoWonk]

I noticed when I was in Jujuy recently that some of the money exchange booths have the Tether (USDT) logo on the storefront. Waiting in line, I saw a customer and the staff exchanging QR codes - so maybe it's catching on... In Salta, I didn't see any Tether logos, but in Salta, the tradition is to do the exchange on the street just off the main square.

I just messaged my dentist to see if he'll accept Tether - fingers crossed.

 

[LuckyLuke]

With the AFIP limits on transactions being reduced it makes sense that the push to transact in alternate currencies is accelerating. Pretty bold to put a sticker directly on your storefront announcing the tax evasion though.

 

[NeoWonk]

With the AFIP limits on transactions being reduced it makes sense that the push to transact in alternate currencies is accelerating. Pretty bold to put a sticker directly on your storefront announcing the tax evasion though.

I wish I had taken a photo while I was in Jujuy. The signage was quite big and one of the storefronts spelled out cryptomonedas.

I don't understand why this would be tax evasion. Cash is totally untraceable. USDT is stored permanently on the blockchain (ledger).

 

[NeoWonk]

My dentist got back to me about payment options. If they really take Tether (USDT) I'll be very happy. Why 21% tax on foreign credit card...

With a card is + 21% (tax)
With paypal is 7% (tax)
In cash the tax is not necessary.
If you pay with pesos in cash we take the blue dollar rate.
Yes, you can pay with USDT.

 

[LuckyLuke]

My dentist got back to me about payment options. If they really take Tether (USDT) I'll be very happy. Why 21% tax on foreign credit card...

I don't think it's as much as it's a foreign card, but rather that the credit card goes into their merchant account, which means they have to charge IVA. 21% is the standard IVA rate, but I believe the IVA on medical services is only 10.5%. The Paypal fee is probably for the online transfer commissions to convert it to pesos. Tether sounds much easier than having to walk around with wads of cash.