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Pay Hotel Deposit in Pesos or US dollars?

Pay Hotel Deposit in Pesos or US dollars?

Old Feb 24, 17, 11:07 am
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Pay Hotel Deposit in Pesos or US dollars?

Please help me make sense here.

I am going to put a deposit down on a hotel stay in Mexico for next January.

Paying with an Amex they charge you in pesos.

Paying with Visa in US dollars.

Which one should I use based on currency fluctuation.

Thanks.

Last edited by david55; Feb 24, 17 at 12:17 pm
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Old Feb 24, 17, 8:59 pm
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Originally Posted by david55 View Post
Please help me make sense here.

I am going to put a deposit down on a hotel stay in Mexico for next January.

Paying with an Amex they charge you in pesos.

Paying with Visa in US dollars.

Which one should I use based on currency fluctuation.

Thanks.
Well, the likelihood here is the peso will continue to drop in value against the dollar.

Another thing you'll want to think about is whether you'll pay a foreign exchange fee (most AMEX, no; some others, ~3%.

Right now, one dolls is MXP 19.91260; this is better than recent figures, but historically it has gone down in value in the long run.

Look here; when the new Peso was introduced on December 22, 1994, it was MXN 4.8875 to the dollar.

Feel like small time currency speculation? Pay it in pesos. I think you'll come out ahead, but it's just a somewhat informed guess from someone who has lived in Mexico and has been through a lot of currency change. When I began this observation, the Peso was 12.50 to the dollar; I've seen it as low as 3,068.90 to the dollar, before they issued new currency.
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Old Feb 25, 17, 3:20 pm
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Originally Posted by JDiver View Post
Well, the likelihood here is the peso will continue to drop in value against the dollar.....
I'm not sure this is relevant if the OP is supposed to pay the deposit now. The way I read the question, the hotel will be performing DCC on the Visa, thus using its own rate to convert MXN to USD which would add ~4-5% to the actual exchange rate at the time it charges the card. Amex does not support DCC therefore the hotel can only charge in MXN, and with US-issued Amexes, you will get the actual Amex exchange rate with no further fees.

david55, can you confirm whether the stay is actually priced in USD or MXN? And how much is the deposit as a percentage of the total stay?
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Old Feb 25, 17, 3:46 pm
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Originally Posted by :D! View Post
I'm not sure this is relevant if the OP is supposed to pay the deposit now. The way I read the question, the hotel will be performing DCC on the Visa, thus using its own rate to convert MXN to USD which would add ~4-5% to the actual exchange rate at the time it charges the card. Amex does not support DCC therefore the hotel can only charge in MXN, and with US-issued Amexes, you will get the actual Amex exchange rate with no further fees.

david55, can you confirm whether the stay is actually priced in USD or MXN? And how much is the deposit as a percentage of the total stay?
The hotel is priced in US$. The hotel contacted me for permission to make the charge ( about $1000 which is about a third of the total) and indicated that Visa would be in US dollars....Amex in pesos. It is a moot question as I already authorized the Amex....
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