Sofia Santos
8/5/2024When we travel abroad, one of the first challenges is to exchange our money for the local currency of the country we are visiting. While there are many authorized currency exchange offices as an effective solution, they can be a fertile ground for fraud.
But scams can be avoided by knowing the common tactics used by fraudsters. For this reason, in this guide, we will talk a little about the role and functions of currency exchange offices and what to do to protect yourself from fraud.
So, if you are thinking of traveling and exchanging currencies abroad, you should take note of the following.
These institutions play a vital role for international travelers, offering a convenient service for currency exchange.
Their main objective is to provide immediate access to the local currency of the destination country. This way, tourists can carry out their transactions smoothly and with total confidence.
To do this, they are strategically located in tourist areas, train stations, or airports.
Many of these currency exchange offices offer additional services that increase traveler convenience, such as fund transfers, which is ideal if you want to send money to the U.S., or check issuance.
They operate as intermediaries under financial regulations to ensure transactions are secure.
Once inside a currency exchange office, you will need to do the following:
1. Present a valid identification document (passport, license, or other) to verify your identity.
2. State the amount to be exchanged and the currency you wish to receive (USD, EUR, etc.). The institution will then calculate the amount based on the current rate and give you the corresponding money in the new currency.
Authorized currency exchange offices charge commissions based on the amount and the entity.
Whether you want to obtain foreign currencies from exchange offices in Mexico or another country, you must consider certain factors to ensure your security and get favorable rates.
Therefore, before selecting one, consider the following:
Reputation. Look for authorized currency exchange offices online and review other travelers' comments. Reviews are a clear signal of the reliability of these intermediaries and have a solid track record.
Exchange Rate. Quote the rates first at several centers to determine which one offers the most competitive rate. The more favorable it is, the more money you will receive in foreign currency.
Commissions and Costs. Find out about the fees and commissions applied by different currency exchange offices. Some may come with hidden charges or a very high commission percentage.
It wouldn't hurt to check if the entity offers other services, such as money transfers. Although it might be more convenient to use services like Wise or DolarApp and send digital dollars, allowing you to save cash for your trip.
In the previous section, we mentioned two crucial points when choosing a currency exchange office: commissions and exchange rates.
Here we explain a bit more about them:
Exchange Rate. It is the rate that determines how much can be obtained from one currency when exchanged for another. These vary quite frequently due to economic or political factors.
Commissions. These are the extra charges a currency exchange office tends to charge for its services. Fees can differ depending on the company and the amount of money you are exchanging.
But beware, some currency exchange offices offer a favorable exchange rate but charge high commissions, or vice versa. Hence, the importance of comparing both factors in several intermediary options to give more value to your money.
Exchanging money at a currency exchange office doesn't have to be a difficult task. However, getting the best exchange rate requires knowledge and a bit of strategy.
These practical tips can help you:
Choose about 3 companies and compare both the commissions and the exchange rate they offer, but remember they must be authorized institutions.
You can compare at least 7 exchange offices in Mexico if you want to carry out the process before traveling.
Generally, exchange offices located in tourist areas have less advantageous exchange rates. The reason is obvious: they are high-demand places where people change money at the last minute.
The same happens with airports, as operational costs are high, so you won't get a favorable exchange rate. Opt for entities located in the city and less crowded to get better rates.
Always read the terms and conditions to be aware of any additional charges. If possible, also monitor rate fluctuations to make the transaction when it has the best value for exchange.
Several sites allow you to immediately check current exchange rates. An example is the XE currency calculator.
Although the most common is to use Google, just type "exchange rate," and it will appear for you to enter your currency and the other currency. However, for a more accurate reference and to ensure you are getting a fair rate, try DolarApp.
The app not only allows currency conversion but also offers competitive and updated exchange rates. Additionally, it facilitates the secure and efficient sending and receiving of money in MXN or USD.
You can also take advantage of the DolarCard it provides to make purchases abroad or pay at restaurants you visit.
In fact, it will help you fund your trip online if you use options like Google travel to manage flights and hotels.
Isn't it an excellent alternative?
Protecting your money and personal data is essential when exchanging currencies at these offices. Sufficient reason to adopt security measures such as:
Authorized currency exchange offices have valid licenses granted by relevant financial bodies. Ensure that the chosen option has the necessary permits before making the transaction.
If so, you will know it meets the legal and necessary criteria to keep your interests safe.
Examine the bills you receive carefully to confirm they are genuine and in good condition. If you don't know how to recognize them, it is advisable to find out before exchanging your money.
It is also important not to neglect your identity documents during the process at the currency exchange office.
These sites are frequented by all kinds of people, so you must be aware of those nearby when making the exchange.
Secure your money and personal documents and avoid displaying large amounts of cash in public.
If you need to withdraw cash from your DolarCard or another international card, opt for reliable ATMs in safe locations.
Do not use those located in remote areas or dark places.
Frauds often occur when exchanging at currency exchange offices in Mexico and worldwide.
Here are some of the most frequent tactics and what you can do to avoid them:
Very Generous Exchange Rates. Accepting transactions that are too attractive is a mistake many make. This is usually a sign of a scam, so you should compare the rates offered at different centers or use tools to check the current market.
Hidden Commissions. You may see the same exchange rate at several companies. But some charge an extra fee or a very high commission that is not noticeable at first glance. Explicitly ask about these before proceeding with the exchange or read the terms and conditions.
Counterfeit Bills. This happens mostly in informal exchange offices or when doing it on the street. So, if you suspect they are not genuine, ask for others from the entity and avoid street vendors.
Incorrect Exchange. Some institutions scam by giving you bills of different denominations to confuse you or of another currency. Avoid scams like these by verifying that the currency matches the requested currency and counting the amount received correctly.
Being informed and staying alert to these scams will help you protect yourself and make safer currency exchange transactions.
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