Monday, November 20, 2017

Hola, ¿I’m Juanito Cash? Accessing Argentine ATMs Again…

Just over two weeks ago, just before flying south to Buenos Aires, I visited the bank to withdraw US$2000 in large bills—fifties and hundreds. Other things being equal, I’d rather not carry that quantity of cash, but in Argentina it’s an issue of economic convenience, if not necessity. For longer than I care to remember, the manipulation of exchange rates by the country’s previous government required extra-official work-arounds to avoid punishing prices and inflation (which, in fairness, have not ceased under the current government).
What Argentine banks think of you...
The perils of stashing bags of cash aside, changing money here long required seeking informal currency change sites, known as cuevas (“caves”) rather than banks and their ATMs, where one could only obtain the disadvantageous official rate. Cuevas paid the so-called blue dollar rate which, at times, was nearly double that. They did not charge a commission, and did not require waiting in line at a bank or formal exchange house.

There were shorter lines and less bureaucracy at bank ATMs, such as the one at my corner bank in Palermo, but there was still a penalty for using them. Of course, my US home bank would charge a percentage for each transaction and, moreover, the Argentine bank would collect an even larger fee.
My neighborhood cueva was closed over the weekend.
Since arriving here, I’ve usually changed at my neighborhood cueva—there are fewer these days, but they’re still around—where a grumpy old man disappears into the depths of his office and returns with the pesos I need. Friday night, though, in the interest of thoroughness, I chose to use the ATM at the corner. After entering my PIN, I had to choose how much money I would withdraw, and chose “Other” because I wanted more than the A$2000 (about US$114) amount indicated on the display
The bank on the corner is just two doors away from our Palermo apartment.
It was not to be. When I entered the figure of A$3000 (about US$170), the machine rejected it. When I reduced the number to A$2500 (US$143), it did the same. When I capitulated to the original A$2000, it proceeded, but then informed me it would impose a charge of A$106.20 (US$6.08, or 5.31 percent).
Argentina's ATM fees are, arguably, punitive.
In Chile, I regularly withdraw amounts of Ch$200,000 (US$319 at today’s exchange rate), and in Uruguay I’ve withdrawn similar amounts in US dollars (which is not possible at Argentine or Chilean ATMs). There is, of course, a one-time charge for each withdrawal, but as a percentage of the total amount that’s relatively small. In Chile, for instance, the charges range from Ch$4000 to Ch$6000 (roughly two to three percent in the case of the withdrawal above).

In many ways, Argentina is more visitor-friendly than it was recent years, but the banks’ continued insistence on multiple transactions and high commissions is not. Note also that, despite legal requirements, many Argentine businesses (including restaurants) still evade their obligation to accept credit cards in payment for services. They will often accept payment in US cash, but often at a lesser rate.

8 comments:

SaltShaker said...

One of these days you'll start using Xoom, get a better exchange rate, and be able to bring in as much as you want on each transfer....

Wayne Bernhardson said...

I have used Xoom to send money here, but Argentine family and friends have found it awkward to collect. Also, it's not very useful outside Gran Buenos Aires and a few other metropolitan areas, and it's virtually useless in Patagonia.

SaltShaker said...

Certainly fewer locations to pick things up in less populated areas, but not non-existent. As to your Argentine family/friends having difficulty, I can't comment other than that I have yet to have anyone whom I've sent money to have a problem, here or in other countries. You can also transfer money to virtually any bank account in Argentina directly rather than having to deal with cash pickup. And then you/they can withdraw without fees from the account account. And, your post talked specifically about withdrawing money from a bank branch in Palermo, and Xoom here in the city is pretty darned easy.

Wayne Bernhardson said...

Xoom's network is wider than it used to be, but there are still only four outlets in town here, and that can't match the convenience of a corner ATM (remember, I'm usually writing for sojourners).

SaltShaker said...

Errr... totally not accurate. There are 19 locations within BA to use, and plenty in other places. I can see that what you did is chose the option to look at things listed under Capital Federal, but if you look under Buenos áires, there are 14 more. And while yes, it's more convenient to use an ATM, it's notably more expensive, and has the extraction limitations that Xoom doesn't. You posted about a problem, something that's difficult, I offered a solution. You want to argue that your problem is more valid than a workable solution, go for it, it's your blog. I've recommended Xoom to probably over a hundred visitors to the city over the last few years, not one of them has had difficulty in using it.

Wayne Bernhardson said...

Only four appear in town at first, and then you have to go to another page to find additional sites - still less "convenient" than an ATM. I'm merely suggesting that Argentine banks are more out to rip you off than their Chilean and Uruguayan counterparts, but I will add that our contractors here begged us never to use Xoom again.

SaltShaker said...

I could understand that with contractors - you're talking about transferring, mostly likely, a large amount, and that may be an issue for receiving it. But as a suggestion for visitors, who likely only need to transfer a few hundred dollars at a time, it's a very viable option. Oh, and it works in Uruguay and Chile too, plus many other countries - big plus if you're traveling to multiple places.

SaltShaker said...

Oh, and a last point, Xoom typically (thought not always, as the rate is variable) gives you a higher exchange rate than the banks do, plus having a lower transfer fee.

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