different conversion rates at Mexican shops

[NJMomto2]

Just trying to understand how it is that the Mexican shops all had different conversion rates for USD to pesos? Is it a scam to make more money?

 

[ahain]

Probably. Establishments are free to decide what exchange rate they are willing to transact at, and up to the consumer to decide whether or not they want to buy at that rate. Many stores have a "set" exchange rate and don't revise it even though "real" exchange rates fluctuate. To avoid this, you could always load up on Pesos before your trip

 

[phinz]

As a note, a friend of mine's father owned a gas station in upstate (real upstate) New York for years. His exchange rate for Canadian money was always 2 CAD to 1 USD. When people asked if he took CAD he said yes and informed them of the exchange rate. People would get angry and drive off, angry and still pay it or shrug and pay it. His dad saved all the Canadian money and when the exchange rate got most favorable would cash it in. They took all their Disneyland and other vacations during the off season using that money.

It's smart business, not a scam, to set a flat exchange rate. If the buyer doesn't like the exchange rate they can shop elsewhere or convert their money.

 

[starvenger]

As a note, a friend of mine's father owned a gas station in upstate (real upstate) New York for years. His exchange rate for Canadian money was always 2 CAD to 1 USD. When people asked if he took CAD he said yes and informed them of the exchange rate. People would get angry and drive off, angry and still pay it or shrug and pay it. His dad saved all the Canadian money and when the exchange rate got most favorable would cash it in. They took all their Disneyland and other vacations during the off season using that money.

It's smart business, not a scam, to set a flat exchange rate. If the buyer doesn't like the exchange rate they can shop elsewhere or convert their money.

Wow. He must have had the only gas station around for miles, because 2:1 is an insane markup. Maybe it's not a scam, but if you're making us Canadians (non-hockey edition) angry, then you're doing something wrong.

 

[cruiser21]

Just trying to understand how it is that the Mexican shops all had different conversion rates for USD to pesos? Is it a scam to make more money?

I noticed that in Cozumel. I left a few purchases at the counter and walked out.

 

[cruiser21]

Wow. He must have had the only gas station around for miles, because 2:1 is an insane markup. Maybe it's not a scam, but if you're making us Canadians (non-hockey edition) angry, then you're doing something wrong.

In Vancouver they exept USD, but will only give you an 1:1 exchange rate even though our dollar is worth more.

 

[starvenger]

In Vancouver they exept USD, but will only give you an 1:1 exchange rate even though our dollar is worth more.

This is true. Also talking advantage of the exchange rate. I do wonder if it was still 1:1 back when the Canadian dollar was worth more though.

 

[lanejudy]

They are shops, not banks. If you want the most accurate exchange rate, get local currency through a bank, though be aware that most will also charge you a fee to do so.

We get a lot of Canadians shopping around here. I used to see signs “Canadian currency accepted at par” which meant $1CAD for $1USD. I haven’t noticed lately how it’s accepted, with the Canadian dollar worth ~ 75 cents US.

Accepting a foreign currency is s convenience, and believe me it won’t be done at a loss rate for the business. It is likely to be less favorable to the customer than an accurate conversion at a bank. If you have an ATM Card that is accepted at a foreign bank, that is the best route; though still be aware of possible foreign transaction fees. Or a no-fee credit card.

Enjoy your cruise!

 

[phinz]

Wow. He must have had the only gas station around for miles, because 2:1 is an insane markup. Maybe it's not a scam, but if you're making us Canadians (non-hockey edition) angry, then you're doing something wrong.

You'd have to have met his dad. He's abrasive. He could make the Dalai Lama angry.

 

[gotomu212]

What about when your using a credit card and they still try to scam you. Does using a Visa card make you an "ugly American"too?
I personally don't like that term and If I said the same about Mexicans I'd be called a racist. Business in Mexico aren't always that honest and for some reason they think tourists can't do math.

If you use a credit card you are paying the owner in Pesos and your credit card is determining your exchange rate plus any applicable foreign transaction fees they charge you on your statement.

It’s not that they think Americans can’t do math, but they are charging a conveniance and risk premium. If someone came into your business and wanted to pay with euros, yen, or pesos would you want a small additional amount to cover the cost of you having to go to a bank and exchange them after hours?, what about any fee the bank would charge you? what if the exchange rate dropped between when they paid you and when you eventually got to the bank? All of that has a cost and different business decide how much that extra work and risk should be worth.

 

[CamColt]

Hey gang, let's remember to keep things friendly around here. Posts with valid information are always helpful and welcome. Stereotyping and name calling are not. Thanks!

 

[YawningDodo]

You're certainly going to end up paying more if you pay in dollars, but you can consider it a convenience fee for not having to exchange your money for pesos. I chose to use nothing but cash in Cozumel based on claims I'd read on these boards re: people getting extra charges on their credit cards after using those cards abroad in the Caribbean, and I chose to use American cash because I was only going to be there for one day and decided it was not worth the inconvenience (and expense) of changing money and having to change back any I didn't use. Remember that most of the time when you exchange currencies you're going to end up losing money in the process.

Anyway, it kind of bothers me to see it decried as a "scam" when things are so cheap to buy in Mexico (at least, in Cozumel) even when you pay the stores' flat exchange rates. The prices are a bit higher in the cruise terminal itself, but if you go even a hundred feet farther everything is dirt cheap. I wouldn't begrudge the shops that small amount of extra money.

 

[cruiser21]

If you use a credit card you are paying the owner in Pesos and your credit card is determining your exchange rate plus any applicable foreign transaction fees they charge you on your statement.

It’s not that they think Americans can’t do math, but they are charging a conveniance and risk premium. If someone came into your business and wanted to pay with euros, yen, or pesos would you want a small additional amount to cover the cost of you having to go to a bank and exchange them after hours?, what about any fee the bank would charge you? what if the exchange rate dropped between when they paid you and when you eventually got to the bank? All of that has a cost and different business decide how much that extra work and risk should be worth.

No t necessarily if they use an archaic cash register they can put in anything amount the want and swipe you card. You just have to pay attention. I wasn't referring to cash transsactions anyway, but the dollar is widely excepted in Mexico. It's not exactly the same as going to Europe. I do see your point, but I also have been to Mexico enough to know that merchants, police etc aren't always honest. Not all, but some.

 

[Jenlynn3]

We ran into this at Playa Del Carmen, even with taxi service

 

[NJMomto2]

I noticed that in Cozumel. I left a few purchases at the counter and walked out.

I did the same thing.

In my experience, it was actually that I was paying with my credit card and they insisted on converting price to pesos at a higher amount than agreed to based on US dollars so they were winning all around as I paid the foreign fees etc.

What made me leave a store was when the exchange rate in store A was 25 pesos per dollar and store B was 15 pesos per dollar for example with similar merchandise.

I would be a fool to accept the unfavorability.

I was just curious as to how prevalent this was. Seems like it is common place from responses.