A year ago, I posted the following and was given the data by ONE respondent.
If anyone else can get it done, wake me please when it's over.
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andy a
Silver
Registered: Feb 2002
Location:
Posts: 490
ATM results survey
Lately there have been discussions concerning the slippage (loss) in the use of ATM cards versus what one could get with cash.
Since this hits us all (most, at least) right in the pocketbook, I'd like to take a survey to find out for all of us just how big a problem it is.
If you are interested, could you please fill in 3 numbers for a little equation:
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1) RATE = number of pesos per dollar paid on that date by the local casa de cambio (exchange house).
2) DEBIT = amount charged against your account by your bank for the transaction.
3) PESOS = number of pesos you got from the ATM.
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Explanation:
In 1) above, the rate paid by casa de cambios should be entered because it is normally the best rate available. I suspect that much of the confusion on this subject is by people using bank rates, which are much worse.
If anyone doesn't have the moneychangers' rate for that day, indicate the date, please. The approximate rate can then be ascertained from archived information. In fact, the date is a good idea anyway, even if not necessary.
In 2) above, the amount that your bank charged your account will probably need to be determined online. Service charges, typically 1 or 2 dollars, are insignificant and can be ignored.
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The equation is this:
Slippage = 100 * (1 - PESOS/(DEBIT * RATE)).
a) Multiply DEBIT by RATE.
b) Divide PESOS by the result in a).
c) Subtract the result in b) from the number 1.
d) Multiply the result in c) by 100 to make the slippage be in percent.
If anyone is intimidated by the math, don't bother - I'll figure it out for you (us) from your post.
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Example (hypothetical):
On Feb. 3, the exchange houses pay 22.0 to 1. Our hero withdraws 4000 pesos from an ATM. Later, he goes online to find that his bank charged him $190.00 for the transaction.
The equation is then solved thusly (numbers rounded off):
Multiply 190.00 by 22.0. Result is 4180.00.
Divide 4000 by 4180.00. Result is 0.9569.
1 minus 0.9569 is .0430.
100 times .0430 is 4.30 percent for the slippage.
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By the way, the equation will work for any currency, not just dollars.
In my experience, it amounts to about 7%, but some posters have said that it was negligible for them. I don't know why it would vary significantly from bank to bank, so I'd like to find out for all of us just what to expect. It would certainly be worth switching banks if the saving would be substantial.