How is the new Mexico rule about accepting dollars affecting people?

[Mike]

I haven't seen any posts about how the new rules in Mexico about how businesses cannot accept more than $100 US dollars per transaction has been going? Has anybody been effected or has anything changed as a result?

 

[DandyDon]

Got a link to info on that? We paid our Op in US C-notes in August, more than one each.

 

[Diver Kat]

went into effect in September .....

Mexico currency law makes it tougher to pay in dollars - USATODAY.com

 

[Sue Sue]

On our trip a couple of weeks ago we did come across a minor hassle. For the most part, it seems that most businesses are taking US dollar without a problem. However, El CID did not accept USD without first making a copy of photo I'D. The ID was even requested to pay for a $13.00 lunch at the restaurant. This is strange as the new rule is set up, from what I understand, to target large amounts of cash. A $13.00 lunch is not the usual amount or method for laundering money.We declined that request and scrimmaged up the 130 or so peso. But, since we took almost all of our spending cash with us as we did not want to bother with ATM's, we did present a picture ID to exchange money at the desk. Leaving picture ID is something we really did not want to do, but we had no choice. Next time I will try to exchange USD into Peso either before I go, Or, use a bank ATM and withdrawl peso in Cozumel. We also have about 1000 peso we purposly kept as seed money in order to start off the next trip. At least we should not have any problem buying shuttle tickets at the airport if they also decide to accept only peso.

 

[blue steal]

Well the taxis are taking either dollars or pesos and I noticed it's 12:1.
Mega has a sign that's 12.36:1.

 

[DandyDon]

That was silly, Sue Sue. Amazing what happens huh? I guess we will have to start asking if places even take USD? My daughter's group is doing a cruise there this winter. :silly: Guess I'd better warn her.

 

[Colin Gray]

Thanks for posting the newspaper info Diver Kat. I have forwarded it to friends going with us. Are there new limitations on the amount of U.S. dollars that we can bring into Mexico?

Colin

 

[lamont]

On our trip a couple of weeks ago we did come across a minor hassle. For the most part, it seems that most businesses are taking US dollar without a problem. However, El CID did not accept USD without first making a copy of photo I'D. The ID was even requested to pay for a $13.00 lunch at the restaurant. This is strange as the new rule is set up, from what I understand, to target large amounts of cash. A $13.00 lunch is not the usual amount or method for laundering money.

I think the problem comes on the back-end when the restaurant takes all the US$13.00 lunches and tries to deposit that in the bank. Not sure why your photo ID would have helped them there though...

 

[Diver Kat]

Thanks for posting the newspaper info Diver Kat. I have forwarded it to friends going with us. Are there new limitations on the amount of U.S. dollars that we can bring into Mexico?

Colin

My understanding is that any time you leave or enter the US with $10,000 or more of cash, you have to report it. I have not found anything that shows a restriction from the Mexican government when entering Mexico, but that doesn't mean they don't have one!

 

[Mike]

Got a link to info on that? We paid our Op in US C-notes in August, more than one each.

I thought everybody knew about this!

Just kidding.

Some info --

The Mexican Government passed a new law, which comes into effect in Mexico starting September 14, 2010.

Starting September 14, 2010 the use of CASH American Dollars to make purchases in Mexico will not be as free as it has been in the past.

Many repeat guests to Mexico who have become accustomed to using American Dollars CASH in Mexico as though they were effectively in the United States will notice the difference. Other payment methods such as Credit Cards of all types and all issuing banks, Travelers Check’s, Mexican Pesos and non American Dollars foreign currencies in cash (ex Euros or Canadian Dollars) are not affected in any way by this new law.

The most noticeable differences to Apple Vacations’ customers will be:

1. Hotels and Exchange Booths will only be able to change a maximum of $1,500 USD CASH per person per month into Mexican Pesos. Previously there was no limit.
2. Businesses (including Amstar DMC in Mexico) will only be able to accept a maximum of $100 USD CASH per transaction - but the number of transactions per customer is not restricted.
3. Certain businesses may not be able to, or may choose not to accept American Dollars CASH for any purchase at all (this may include shops etc)

If a customer wants to purchase an excursion (for example) that costs $139 US dollars per person, he/she will only be able to pay $100 USD of this amount in USD CASH and the remainder will need to be in another form of payment (credit card, Mexican Pesos cash, etc).

LC says:
September 28, 2010 at 9:09 pm
I am in the rivera maya right now and was not aware or informed of this change and it has been a nightmare trying to get my money exchanged. They do want a copy of your passport and it takes forever. They just have you wait so long that you just say forget it.

Effective Sept. 14, as part of an effort to stem drug-related money laundering, the Mexican government capped the amount of dollars foreigners can trade for pesos at banks and money exchangers to no more than $1,500 per month.

The $100 limit per transaction on cash purchases in dollars, which also took effect Sept. 14, "is causing a lot of confusion within Mexico," admits Tim Wheatcroft, a spokesman for the tourism board in Baja California.

Mexico Tourism Board spokesman Joel Staley says the $100 per transaction limit is not part of federal policy but is being imposed in some Mexican states - including Quintana Roo, home to the major resort destinations of Cancun, Cozumel and Playa del Carmen. Elsewhere in Mexico, Wheatcroft says the Baja California government is "urging merchants to accept dollars on all purchases, even those over $100."

The laws don't affect credit or debit card purchases, or the amount of pesos that U.S. travelers can withdraw from Mexican ATM machines. But, the tourism board adds, U.S. travelers should purchase pesos before they arrive in Mexico "to minimize any inconvenience the exchange cap at banks may cause."

Sep 15, 2010, 6:02 PM



I was in Tijuana on 9/14/2010 and not knowing anything about this topic, I was surprised that I went to a movie theatre and they would not accept U.S. dollars. There was a sign posted having to do with a law. That being said, one hour earlier, I went to the Wal-mart in the same shopping center and bought a bottle of tequila with U.S. dollars. So now I am on the internet trying to find out what is going on

Sep 15, 2010, 11:50 PM



There total misinformation by travel agents and some businesses as well as to what is acceptable and what is not as to US Dollars.



ALL banks will accept US $ up to $350 per day to a maximum of US $1500 per month. They will take your ID to make sure you do not exceed this limit. I still want to know how one bank will know if you went to the bank next door and exchanged money but that is a different situation that I bet Mexico forgot about.



Businesses will accept US dollars though reluctantly due to the new law since they will not be able to cash it into pesos unless they are smaller amounts. So many businesses will not accept the dollar because of that. Exchange booths will accept the dollars still since they have arrangement with banks. They will limit your exchange though.



This is all due to the drug traffickers trying to cash in their dollars to launder the money.

As an unintended effect of the banking regulation, Mexico’s travel destinations, such as hotels in Puerto Vallarta, Cancun, Playa del Carmen and Los Cabos are limiting the acceptance of US Dollars.
These foreign exchange limits make it more difficult for locals to convert the US greenback to pesos in Mexico. For example, a five-star hotel at a vacation destination may receive much more than the allowable monthly $7,000 US Dollar limit in just a single day. The hotel manager, however, needs to pay its employees and suppliers in Mexican pesos, creating a serious Peso imbalance for the hotelier.
Hotels are beginning to feel the cash crunch and are limiting their guests’ exchange of US Dollars to minimum courtesy amounts.

Dirty money
"This measure is consistent with a strategy of fighting not just drug trafficking but also organised crime," said Treasury Secretary Ernesto Cordero.
"We have to close the way to dollars from sources that may be illegal."
The new law applies to currency exchange and cash deposits, but no limits will be placed on the purchase of dollars.
Businesses that work in tourism or close to the US border will be able to deposit up to $7,000 a month.
The illegal flow of billions of dollars from the US is fuelling Mexico's escalating drugs war, the government says.
Huge incomes allow the drugs gangs to buy advanced weaponry to fight the security forces and each other.

Sunday evening, I was at a dinner at a restaurant at the Rosewood Mayakoba, a pricey 5 star resort north of Playa del Carmen. When our benefactor went to pay the bill with U.S. dollars, she was informed that by a new Mexican law, they are no longer permitted to accept US dollars.

Just wanting to see what people are facing, seems like there will be a lot of confusion for a while.