Foreign Exchange Rates on Credit Cards

[thcoalso]

Hi all,

I'm curious to hear what you all are using to minimize FX fees from using credit cards.

For my Visa debit card with Chase bank (denominated in USD), i'm getting charged about 14%

For my American Express credit card, i'm getting charged about 6% (this is after the adjustment that comes 7-10 days later)

Are there any better options out there?

 

[arvest]

Hi all,

I'm curious to hear what you all are using to minimize FX fees from using credit cards.

For my Visa debit card with Chase bank (denominated in USD), i'm getting charged about 14%

For my American Express credit card, i'm getting charged about 6% (this is after the adjustment that comes 7-10 days later)

Are there any better options out there?

The best option is to use cash pesos so you can take advantage of the black market exchange rate. Credit cards you'll lose 12%+. To get cash pesos in hand you can exchange Zelle or use Crypto (USDT).

 

[LuckyLuke]

Hi all,

I'm curious to hear what you all are using to minimize FX fees from using credit cards.

For my Visa debit card with Chase bank (denominated in USD), i'm getting charged about 14%

For my American Express credit card, i'm getting charged about 6% (this is after the adjustment that comes 7-10 days later)

Are there any better options out there?

Howdy,

I use a Citi American Airlines AAdvantage credit card. No foreign transactions fees. You get miles to spend on traveling too. There an annual fee, but it's more than worth it down here.

 

[arvest]

Howdy,

I use a Citi American Airlines AAdvantage credit card. No foreign transactions fees. You get miles to spend on traveling too. There an annual fee, but it's more than worth it down here.

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.

For example on a 100k peso dinner you'd be spending 100,000/1200 = $83.33 USD on your card vs 100,000/1372 = $72.88 if you paid cash. If you live here full time that difference starts to add up fast.

 

[LuckyLuke]

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.

For example on a 100k peso dinner you'd be spending 100,000/1200 = $83.33 USD on your card vs 100,000/1372 = $72.88 if you paid cash. If you live here full time that difference starts to add up fast.

Excellent point arvest. This is true if you brought physical bills down here and still have them. But if you don't have any more? Then you're in the jungle with every other Argentinean going around with a dozen virtual wallets trying to fight a million different commissions while dodging the minefield of AFIP as well. IMO credit cards offer something expats are accustomed to in the US...simplicity.

 

[arvest]

Excellent point arvest. This is true if you brought physical bills down here and still have them. But if you don't have any more?

Then you need to do transfers via Zelle or Crypto (USDT).

 

[thcoalso]

Then you need to do transfers via Zelle or Crypto (USDT). You can dm me if you have questions on how to do that

Can you clarify what you mean by transfers via Zelle or Crypto? Neither option are accepted as payment in stores and they dont have options to withdraw cash, so I assume this has to do with sending to some counterparty, which has much more risk than 12%

Is there another method you're referring to that doesn't involve sending money to a counterparty

 

[Frinkiac8]

Can you clarify what you mean by transfers via Zelle or Crypto? Neither option are accepted as payment in stores and they dont have options to withdraw cash, so I assume this has to do with sending to some counterparty, which has much more risk than 12%

Is there another method you're referring to that doesn't involve sending money to a counterparty

Would like to know this, too. If it’s as simple as sending it to the recipient or to the guy who is immediately going to turn around and give you cash pesos at the blue rate, then yes. If it’s anything like sending yourself a Western Union, going to the place, waiting, hoping they have enough cash to be able to fill your order, then carting around stacks of cash for the rest of the week, I am with the other guys here and I vote for convenience. 10-12% to be able to use your card and never worry about it is fine by me.

 

[arvest]

Can you clarify what you mean by transfers via Zelle or Crypto? Neither option are accepted as payment in stores and they dont have options to withdraw cash, so I assume this has to do with sending to some counterparty, which has much more risk than 12%

Is there another method you're referring to that doesn't involve sending money to a counterparty

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

 

[arvest]

Would like to know this, too. If it’s as simple as sending it to the recipient or to the guy who is immediately going to turn around and give you cash pesos at the blue rate, then yes. If it’s anything like sending yourself a Western Union, going to the place, waiting, hoping they have enough cash to be able to fill your order, then carting around stacks of cash for the rest of the week, I am with the other guys here and I vote for convenience. 10-12% to be able to use your card and never worry about it is fine by me.

Absolutely not, apart from the worse exchange rate WU gives you, not every WU branch has sufficient cash. And then you need to worry about physical security. I just spoke with a nomad from Gemany that received around $2k USD in pesos at a WU branch, as he was leaving someone followed him on the street and he had to run away!