The Solution
Yes! The fact of the matter is, you will always encounter an exchange rate when converting from one currency to another. Good, bad or meh, there will always be an exchange rate. The ATM’s exchange rate will likely be bad. Going back to our example above, the ATM will give you an option to accept or decline the exchange rate. Here’s what you need to do. Tap “DECLINE”. This is the part where you say, “But wait Black Gringo, why would you hit decline? Won’t that just cancel the transaction?”. Well, counter-intuitively, no. When you hit “DECLINE”, you will be charged the exchange rate offered by your bank instead which tends to be a lot batter. Contact your bank to find out how their exchange rate is calculated. Usually it’s calculated relative to the current market rate. Alternatively, you can compare your withdrawal amount to the current exchange rate online.
You may be wondering why the ATM is offering you an exchange rate at all. In Mexico, it’s legal for ATMs to offer their own exchange rate. Fortunately, that exchange rate is optional (and sometimes manipulative). Using your banks exchange rate is usually the cost-efficient option.
Extra tip: Consider getting a card that reimburses your travel fees. I use a free Charles Schaub Checking Account that reimburses ATM fees at the end of every month.
I hope this saves you a peso or two. Let me know! Until next time,
Hasta Luego,
TBG