Newcomer Foreign Credit Card purchases at MEP rate?

[Opera Fan]

Forgive this newbie but I'm coming to Buenos Aires for 1 month in a few weeks. I read that foreigners can use their credit cards from their home countries (I am American) and I will get a special exchange rate. I read some old articles and I found these:

Government tries to tempt tourists in search for dollars

Authorities to let tourists use their credit and debit cards to tap more generous parallel new exchange rate in bid to boost Central Bank reserves.

batimes.com.ar

Nuevo dólar para extranjeros: todo lo que hay que saber sobre la divisa para quienes viajen al país

Entrará en vigencia esta semana. Reconocerá un tipo de cambio de $292, según la cotización del MEP de hoy, para gastos con tarjetas

www.infobae.com

Nuevo dólar para extranjeros: 12 claves sobre el tipo de cambio a $ 290 para gastos con tarjeta

El valor dependerá de la cotización del MEP. Quiénes pueden aprovecharlo. Buscan captar US$ 1.100 millones en reservas.

www-clarin-com.translate.goog

It seems like this has been around for about 1 year now. I wanted to research a bit before just posting. Is there any where I can see what exchange rate I will get? This seems like a much better option than carrying around a lot of cash which I understand their biggest bill in Argentina is 2,000 peso note which is just $2 US?

Any advice would be greatly appreciated.

 

[earlyretirement]

You don't have to be sorry or feel like a newbie. Financial and banking matters are VERY complex in Argentina. Even for expats who have lived here for many years.
It is also constantly changing and evolving and the government puts new rules and restrictions all the time. Fortunately, Javier Milei just got elected President of Argentina and he starts on December 10, so things should gradually improve.

It will take a lot of time for him to unwind the mess of previous administrations. But the complexity hopefully will get easier.

You can see all the different exchange rates here: https://www.ambito.com/contenidos/dolar.html

There are many exchange rates but just know you should bring some $100 US dollar bills. The brand new bills if you can with the bigger faces. Make sure the bills don't have any marks or torn. They should be brand new as many exchange places won't allow you to use any that have marks, torn or worn. Even if you plan to use your credit cards, you will need some cash for taxis and many restaurants don't allow you to tip on the card. A normal gratuity for good service is around 10%.

You can see Western Union to get some cash or bring some $100 US bills to exchange some. You will get the "Dolar Blue" rate for cash. I listed some money exchange places on a different thread.

Mastercard's Conversion Rate: https://www.mastercard.us/en-us/personal/get-support/convert-currency.html

Visa's Conversion Rate: https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html

And in March 2023, AMEX started also giving a better rate too but keep in mind the AMEX rebates can take up to 14 days for some people. The exchange only works ARS -> USD. The other direction was exploited and thus reverted.

*Make sure to use a credit card that has no international forex fees when using it to get the maximum bang for your buck. You charge it and it converts at the official rate and then a few days later you get a rebate for the difference.

The actual exchange rate you are paying is about 7% less than the "Dolar MEP" rate here: https://www.infobae.com/economia/di...O568naKaOxK_OjQVkUi4skII11gK-2BhoCaFQQAvD_BwE

Remember that you will get a better rate exchanging cash but you MUST put a value on your time waiting in line and the other possible risks of walking around with lots of cash.
It's just super convenient. Sure, for those that live in Buenos Aires long-term you would probably just exchange some cash and save but many people like tourists that only go to Buenos Aires for work or short trips and you have to assign a value to your time. Time always = money. And the time you spend going to exchange the money along with the possible risks of something happening during that exchange. (Possibly getting robbed, followed to your apartment, getting counterfeit bills, etc).

For tourists, this is a no-brainer and makes it so easy. Sure, you can get a better rate bringing cash but there are a lot of risks of something happening to Cash vs. just charging to a credit card.

Credit card charges are effortless and easy to do and totally avoid having to deal with cash which has to have some value placed to it. I'm still amazed that the government was able to pull this off. It's clear to see with the volume of $ spent how valuable this is to people.

Plus this leaves no real "paper trail" in Argentina from having to have records of you sending cash all the time into Argentina. I don't honestly see any real way that Argentina would even know what you were doing in Argentina financially if you were using a credit card issued outside of Argentina. Western Union is definitely being tracked so there is that reason too.

This program is a win-win-win for the government, tourists, and even the credit card companies. Remember that credit card volumes went up significantly and will continue to go up as news spreads and people get comfortable with it. Also, people don't get the true MEP rate since they take a cut as part of the currency exchange, in addition to the fees they charge the vendors.

Articles in the past year that talk about this program:

Argentina’s New Tourist Exchange Rate Will Effectively Double Your Cash Back

Traveling to Argentina has just become the biggest budget hack as the government launched new tourist exchange rate that will double your cash

www.traveloffpath.com

Argentina’s Elaborate Ploy to Lure Tourists Has Begun

The central bank's aim is to allow credit card companies to use exchange rates on purchases made with foreign-issued cards that are similar to the black market, and which is currently about double the official rate

www.bloomberglinea.com

Tourist dollar quintuples foreign spending in January - Buenos Aires Herald

Tourists spent US$5 million per day through official channels, five times more than in 2022

buenosairesherald.com

PS. If you're American the BEST ATM debit card to get is this one:

https://www.schwab.com/checking. Hands down the BEST bank account for an Ex-Pat. Unlimited ATM fee rebates. That's the daily card I use when I travel around the world. I'm on the road over 100+ days a year and this is perfect. They always rebate me fees that ATM machines charge me. I get over $1,000 a year rebated in various ATM fees. Anyone that travels should have this bank account with ATM card.

 

[Opera Fan]

Wow! Thanks. More of an answer than I could have expected. You are making my first trip to Buenos Aires very easy. This is much better than the TripAdvisor forum!

 

[Darksider415]

If you have a Visa, it’s been giving at or better than WU over the past few days, and I’ve just been getting cash as needed from the nearest Galicia ATM.

Crisp $100s still get you the best rate, but if you’ve been here a while like I have, those are in short supply.

 

[earlyretirement]

If you have a Visa, it’s been giving at or better than WU over the past few days, and I’ve just been getting cash as needed from the nearest Galicia ATM.

Crisp $100s still get you the best rate, but if you’ve been here a while like I have, those are in short supply.

Wow that's great information Darksider415. Yes, there are a few times when the MEP rate is better than WU. People have to always check on the Western Union app what is the effective rate they will get after they pay the commissions. Also, as I always mention, people have to put a value on their time. I use Western Union a lot when I'm there as you always need cash.

I love when the MEP rate is high and better than Western Union. This usually signals that it's going up even higher. Things are crazy cheap right now if you have US dollars. Buenos Aires is a dream right now and on sale.

 

[Darksider415]

Wow that's great information Darksider415. Yes, there are a few times when the MEP rate is better than WU. People have to always check on the Western Union app what is the effective rate they will get after they pay the commissions. Also, as I always mention, people have to put a value on their time. I use Western Union a lot when I'm there as you always need cash.

I love when the MEP rate is high and better than Western Union. This usually signals that it's going up even higher. Things are crazy cheap right now if you have US dollars. Buenos Aires is a dream right now and on sale.

At least for the weekend, I calculated I’d need to pick up at least 1,000,000 pesos for the rate to work out enough in my favor to go to WU, but I don’t want to be stuck holding a million pesos right now. 😅

The time spent is less bad now, as a lot of WU locations let you book a turno online, but you still have to factor in time to get there and back.

 

[Canada Goose]

At least for the weekend, I calculated I’d need to pick up at least 1,000,000 pesos for the rate to work out enough in my favor to go to WU, but I don’t want to be stuck holding a million pesos right now. 😅

The time spent is less bad now, as a lot of WU locations let you book a turno online, but you still have to factor in time to get there and back.

Yes, when I first got here I exchanged too much at one time. I figured it is better to just exchange a few hundred dollars at a time as the rate went up as well. It is crazy the biggest bill is only worth $2 dollars. And don't even have the 2,000 peso bill. I tried at the money exchange place on Serrano and they only have 1,000 peso bills. No one seems to have much change. In the taxis I just round up to the 1,000 peso bills I have. The taxi drivers love me! But even rounding up I forget it's only $1 US. I get the sense that the locals love tourism and appreciate us more right now during this difficult time.

I feel welcomed every where I go.

That is great to know about the Western Union turno online! Is that available on their app? I haven't heard of that feature. That's for sharing that advice!

 

[Darksider415]

Yes, when I first got here I exchanged too much at one time. I figured it is better to just exchange a few hundred dollars at a time as the rate went up as well. It is crazy the biggest bill is only worth $2 dollars. And don't even have the 2,000 peso bill. I tried at the money exchange place on Serrano and they only have 1,000 peso bills. No one seems to have much change. In the taxis I just round up to the 1,000 peso bills I have. The taxi drivers love me! But even rounding up I forget it's only $1 US. I get the sense that the locals love tourism and appreciate us more right now during this difficult time.

I feel welcomed every where I go.

That is great to know about the Western Union turno online! Is that available on their app? I haven't heard of that feature. That's for sharing that advice!

I actually have a few thousand pesos in 10s and 20s for making change, because everyone needs it lately. I also keep a few thousand in 100s for the same reason, given how things are going. 😅

As for the mythical 2000 note, I’ve only got them once, and it felt like I’d won the lottery.

For the WU turnos, it’s not in the app, but there are signs about it.

Here’s the link: https://westernunion.agenda.whyline.com/

 

[earlyretirement]

I actually have a few thousand pesos in 10s and 20s for making change, because everyone needs it lately. I also keep a few thousand in 100s for the same reason, given how things are going. 😅

As for the mythical 2000 note, I’ve only got them once, and it felt like I’d won the lottery.

For the WU turnos, it’s not in the app, but there are signs about it.

Here’s the link: https://westernunion.agenda.whyline.com/

You're a genius!! But those smaller bills I guess would be like carrying around pennies. But yes the 100's would come in handy I guess as I'm constantly rounding up all day long. I'm in 10-12 taxis a day. Usually I just let them keep the change but I guess this adds up daily.

I didn't know about the WU turnos either so I'll check it out. I guess I'm not at WU that often. Did I give you my finance guy Darksider415? If not, remind me as you can just send a Zelle to him or wire transfer and pick up in his Recoleta office. Not far from where you're living. Great guy.

That 2,000 peso bill I did get a bunch at the Western Union location at Armenia and Guatemala but only one time. It's a big difference as it takes half the room in my pocket. I've never owned a man purse but you almost need one in Buenos Aires do to all that worthless currency.

 

[IrishLad]

I actually have a few thousand pesos in 10s and 20s for making change, because everyone needs it lately. I also keep a few thousand in 100s for the same reason, given how things are going. 😅

As for the mythical 2000 note, I’ve only got them once, and it felt like I’d won the lottery.

For the WU turnos, it’s not in the app, but there are signs about it.

Here’s the link: https://westernunion.agenda.whyline.com/

Darksider,

How did you go about getting these smaller bills? Did you go to the bank or just collect them over time? Is there any way to easily get smaller bills?

 

[Darksider415]

Darksider,

How did you go about getting these smaller bills? Did you go to the bank or just collect them over time? Is there any way to easily get smaller bills?

They’ve built up over time as I’ve been here. As for the 100s, those came from the WU run where I got the money to buy wedding rings. 😅

WU only had 100s that day, so we bought our wedding bands with 450k in 100 peso notes

 

[earlyretirement]

They’ve built up over time as I’ve been here. As for the 100s, those came from the WU run where I got the money to buy wedding rings. 😅

WU only had 100s that day, so we bought our wedding bands with 450k in 100 peso notes

Wow that's a lot of 100 peso notes! I remember when I first moved to Buenos Aires shortly after the corralito. 100 peso was the biggest bill. I remember there were such strong currency controls back then. And I needed a TON of cash. I was sending in funds but we were managing so many properties. I used to withdraw from my ATM card the maximum of I think $400 US per card. Machines back then would let you take out a maximum of about $400 US equivalent.

100 pesos back then were about $33 US dollars. Now to think they are just worthless breaks my heart. I guess wherever you bought the rings I'm not sure if you made their day or they wanted to kill you! It would be akin to paying for something with a jar of dimes!

 

[Darksider415]

And now, it’s 40k pesos max per card, at the ATM… So at today’s Visa rate, $44

 

[earlyretirement]

And now, it’s 40k pesos max per card, at the ATM… So at today’s Visa rate, $44

How much of an ATM surcharge are they charging these days? I haven't used an ATM machine in Argentina in many YEARS now. I get rebated the fee with Charles Schwab but as you mentioned, you can barely pull out any funds so I never bothered. But back then I think it was $3 US per withdrawal (10 pesos) fee.

 

[Darksider415]

How much of an ATM surcharge are they charging these days? I haven't used an ATM machine in Argentina in many YEARS now. I get rebated the fee with Charles Schwab but as you mentioned, you can barely pull out any funds so I never bothered. But back then I think it was $3 US per withdrawal (10 pesos) fee.

$3700 per withdrawal, so about the same.

 

[earlyretirement]

$3700 per withdrawal, so about the same.

Ah ok got it! Thanks for sharing. That's a brutal fee % for only being able to pull out a small amount of money. At least before you could take out a lot of $$$$. Money matters are complex there but I think it adds to part of the fun!

 

[Tim Joe]

I just did a withdrawal at the ATM a few days ago. Effective exchange rate of 949 pesos to $1 US.

Significantly better than Western Union and even slightly better than trading dollars on the street.

I haven't seen that in a while. I use Fidelity and I have no foreign exchange rate fees or surcharges. All the ATM fees including international ATM withdrawal surcharges get reimbursed. I get great customer service and I highly recommend it.

 

[Canada Goose]

Which banks ATMs are trustworthy not to swallow your card? I had a friend that visited Buenos Aires and they were at a HSBC machine and the machine retained his card and he said it was a nightmare to get it back. It took a few days. He couldn't just get it from the bank branch. They made some long drama about him having to go somewhere else. He almost gave up but it makes me not want to try. Western Union works well and people are reporting low withdrawal limits.

 

[Betsy Ross]

Which banks ATMs are trustworthy not to swallow your card? I had a friend that visited Buenos Aires and they were at a HSBC machine and the machine retained his card and he said it was a nightmare to get it back. It took a few days. He couldn't just get it from the bank branch. They made some long drama about him having to go somewhere else. He almost gave up but it makes me not want to try. Western Union works well and people are reporting low withdrawal limits.

I have been here a while in Buenos Aires and I've never had issues at the ATM machines. I did have a friend that had this happen to her last year. If this happens you need to go ASAP. She went 2 days later but they told her that for safety they destroy the ATM cards if it's been 48 hours or more. She went within the 2nd day before 48 hours and they still "destroyed it". Who knows if that was true or not but locals don't like to work so probably just said that so they didn't have to deal with her.

 

[Rick]

You don't have to be sorry or feel like a newbie. Financial and banking matters are VERY complex in Argentina. Even for expats who have lived here for many years.
It is also constantly changing and evolving and the government puts new rules and restrictions all the time. Fortunately, Javier Milei just got elected President of Argentina and he starts on December 10, so things should gradually improve.

It will take a lot of time for him to unwind the mess of previous administrations. But the complexity hopefully will get easier.

You can see all the different exchange rates here: https://www.ambito.com/contenidos/dolar.html

There are many exchange rates but just know you should bring some $100 US dollar bills. The brand new bills if you can with the bigger faces. Make sure the bills don't have any marks or torn. They should be brand new as many exchange places won't allow you to use any that have marks, torn or worn. Even if you plan to use your credit cards, you will need some cash for taxis and many restaurants don't allow you to tip on the card. A normal gratuity for good service is around 10%.

You can see Western Union to get some cash or bring some $100 US bills to exchange some. You will get the "Dolar Blue" rate for cash. I listed some money exchange places on a different thread.

Mastercard's Conversion Rate: https://www.mastercard.us/en-us/personal/get-support/convert-currency.html

Visa's Conversion Rate: https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html

And in March 2023, AMEX started also giving a better rate too but keep in mind the AMEX rebates can take up to 14 days for some people. The exchange only works ARS -> USD. The other direction was exploited and thus reverted.

*Make sure to use a credit card that has no international forex fees when using it to get the maximum bang for your buck. You charge it and it converts at the official rate and then a few days later you get a rebate for the difference.

The actual exchange rate you are paying is about 7% less than the "Dolar MEP" rate here: https://www.infobae.com/economia/di...O568naKaOxK_OjQVkUi4skII11gK-2BhoCaFQQAvD_BwE

Remember that you will get a better rate exchanging cash but you MUST put a value on your time waiting in line and the other possible risks of walking around with lots of cash.
It's just super convenient. Sure, for those that live in Buenos Aires long-term you would probably just exchange some cash and save but many people like tourists that only go to Buenos Aires for work or short trips and you have to assign a value to your time. Time always = money. And the time you spend going to exchange the money along with the possible risks of something happening during that exchange. (Possibly getting robbed, followed to your apartment, getting counterfeit bills, etc).

For tourists, this is a no-brainer and makes it so easy. Sure, you can get a better rate bringing cash but there are a lot of risks of something happening to Cash vs. just charging to a credit card.

Credit card charges are effortless and easy to do and totally avoid having to deal with cash which has to have some value placed to it. I'm still amazed that the government was able to pull this off. It's clear to see with the volume of $ spent how valuable this is to people.

Plus this leaves no real "paper trail" in Argentina from having to have records of you sending cash all the time into Argentina. I don't honestly see any real way that Argentina would even know what you were doing in Argentina financially if you were using a credit card issued outside of Argentina. Western Union is definitely being tracked so there is that reason too.

This program is a win-win-win for the government, tourists, and even the credit card companies. Remember that credit card volumes went up significantly and will continue to go up as news spreads and people get comfortable with it. Also, people don't get the true MEP rate since they take a cut as part of the currency exchange, in addition to the fees they charge the vendors.

Articles in the past year that talk about this program:

Argentina’s New Tourist Exchange Rate Will Effectively Double Your Cash Back

Traveling to Argentina has just become the biggest budget hack as the government launched new tourist exchange rate that will double your cash

www.traveloffpath.com

Argentina’s Elaborate Ploy to Lure Tourists Has Begun

The central bank's aim is to allow credit card companies to use exchange rates on purchases made with foreign-issued cards that are similar to the black market, and which is currently about double the official rate

www.bloomberglinea.com

Tourist dollar quintuples foreign spending in January - Buenos Aires Herald

Tourists spent US$5 million per day through official channels, five times more than in 2022

buenosairesherald.com

PS. If you're American the BEST ATM debit card to get is this one:

https://www.schwab.com/checking. Hands down the BEST bank account for an Ex-Pat. Unlimited ATM fee rebates. That's the daily card I use when I travel around the world. I'm on the road over 100+ days a year and this is perfect. They always rebate me fees that ATM machines charge me. I get over $1,000 a year rebated in various ATM fees. Anyone that travels should have this bank account with ATM card.

I second Charles Schwab. It's the best card I ever had. It charges NO fees and rebates for ALL ATM charges worldwide. I've had it for many years and received thousands of dollars of ATM fees rebated.