debit cards and costs

[Bill123]

Does anyone have a better feel for this than I? What exactly are the charges for using a debit card down in Colombia to get cash? Supposedly they say it is 2%. So you get 2% lower than the daily interbank rate. Are there other charges? Is there a charge by the bank you are getting the money from AND one from your own bank?

Thanks.

Bill

[Junfan]

I have a little experience in this...I left an ATM card for my fiance to make transferring money more convenient. Usually, the bank charges a total of $4.50 for her withdrawls ($3 is due to the type of bank account I set up for her...it was a checking account that allows for up to 10 withdrawls a month without fee, and thereafter $3 per. But, even with that, it still beats Western Union for convenience for me as well as her. She can use it at all the cajeros, rather than have to wait in a line for Western Union....BTW, WU not only charges you 6% fee, but their exchange rate is at least 5% less than what we get with the ATM card...last time I did the math on one of her transactions, she got over 2200 pesos/$. The other nice thing about the ATM cards is if you have it set up online, you can transfer funds without charge from one account to another, making it that much easier to do as well as keep records....Later,

Mike
www.sparhard.com/colombia.htm

[Jim]

Like Junfan, I left my ATM for my fiancee to use and I have used it many times myself. I either get charged $1 or nothing for the transaction (I bank at a credit union so it has lower charges for almost everything).

ATM's are my #1 and cheapest way to get cash in Colombia. In the end of July Nidia and I are going to Colombia so she can have her K-1 visa interview. With labs, shots and doctors for her and two kids, I'll need about $500 in two days. I'm taking traveler's checks for that since it's such a large amount of money that I can't afford for anything to go wrong.

Peace,

Jim

[Junfan]

Almost forgot, before you go down there, make sure to tell your credit card company before hand that you will be going to Colombia and they should expect to see some out of the ordinary charges. I failed to do this and my CitiBank card was frozen after a few days. I am glad they have this in place for my protection, but you sure can get in a jam if you rely on plastic and don't give the issuers an advance heads up. I have never had any questions or similar issues with a straight bank ATM card (Chase).

P.S. Jim...?? Are you in Dallas? Haven't we talked before??

Later,
Mike
www.sparhard.com/colombia.htm

[Bill123]

I did some more work on this area. I found that I am being charged $2 a transaction. Also the conversion cost was in a range between 1.2% to 2.5% below the interbank rate, depending on the bank, etc..

I am pretty sure that the use of credit cards for purchases carries an additional fee, so I avoid them. In fact, I avoid using even my debit card for purchases, since it too carries an additional fee, even though you avoid the ATM machine fee.

Separately, if the person above is being charged a full $3 or $3.50 over the standard fee for all ATM withdrawals beyond 10 a month, why not tell her to limit her withdrawals to 10 or below?? I was there for three weeks last month, and only used the machine three times...

[Junfan]

Bill,
FYI...the rationale for setting up the checking account that allows you up to 10 withdrawls without charge. I set it up this way because it was the only option to avoid the 15/mo maintanence fee if the account doesn't have $1500 avg. balance....So, really she can use the card 15x before I come out a financial loser on the deal...In the end, I don't sweat it if I do get charged $20 bux or so per month as long as it is convenient. To me, there is alot more to lose if there is $1500 in the account...whether someone steals it or by some bad fortune, your girl abuses the account.

That brings up another issue....it is easy to get conned in SA with a debit card as they typically don't post transactions over the weekend...they all tend to hit up on Monday morning...so in reality, someone could really nail you....

Just my .02
Mike
www.sparhard.com/colombia.htm

[Bill123]

Tis true, debit cards are a bit riskier and just a plain ol ATM card would do the trick for getting cash. I have a very safe place for my plastic and never carry it with me on a day to day basis. Only when I need some cash.