Tag Archives: banking in mexico

January 29, 2024 · 7:44 am

Show Me the Money (Setting up a Community Bank Account)

The amount of money needed to complete the utilities projects being what it was, SuperPrez started pushing for a mandatory deposit to a bank account. He brought it up at several juntas (meetings), and most seemed to think this was a good idea. However, we needed to open said bank account before any deposits could be made.

So, since we wanted this to be a non-lucrative community account rather than a personal or business account so that SAT wouldn’t charge for taxes, there were some hoops to jump through. The bank required:

Legal Status of the Organization:
- The organization must be legally established in Mexico. This often involves registering with the appropriate government authorities. (We were registered as an Asociación de Colonos (Community Association) in 1995.
Legal Documentation:
- Articles of Incorporation: Provide a copy of the organization’s articles of incorporation or equivalent legal documents. (We submitted the Acta Constitutiva)
- Bylaws: Submit a copy of the organization’s bylaws, which outline the internal rules and regulations. (We actually don’t have any established bylaws, but there’s some wording giving the Asociación legal power over the individual lots on the property certificates and in the Acta Constitutiva.)
Tax Identification Number (RFC):
- Obtain a tax identification number for the organization, known as Registro Federal de Contribuyentes (RFC). This is typically obtained through the Servicio de Administración Tributaria (SAT) in Mexico. (Super Prez had to make several appointments to get this.)
Board of Directors:
- Provide a list of the current board of directors, including their names, addresses, and official identification. (This would be la mesa directiva. Since the secretary didn’t have an RFC number, just Super Prez and I were listed on the account.)
Proof of Address:
- Submit proof of the organization’s registered address. This can be a utility bill or other official document. (As there are no utilities in La Yacata, we couldn’t actually use my ‘office.’ Instead, SuperPrez used his home address. The bank did an ‘inspection’ to verify its validity. The bulk of the documentation is in my house, but there were enough items in Super Prez’s possession to pass muster. The accounting spreadsheet is in Google Docs, so he could access that from his computer at home to show the inspector, and it was all good.)
Official Identification:
- Provide official identification documents for the individuals involved in the organization, such as passports or national identification cards. (Of course, my permanent residency card and Mexican driver’s license weren’t enough of identification. I had to go back to show my US passport, too. Fortunately, it hadn’t expired.)
Bank References:
- Some banks may request references from other banks where the organization holds accounts. (Super Prez has a business and personal account at this bank serving as a reference.)
Application Form:
- Complete the bank’s application form for non-profit or non-lucrative organizations. (There must have been 50 pages at least that Super Prez had to sign, digitally sign, and/or submit his fingerprint. I had just a single paper to sign.)
Minimum Deposit:
- Be prepared to make an initial deposit, as required by the bank. (The bank required a $1200 pesos initial deposit. I brought $1500. They then charge 600 pesos for bank insurance, but it seems to come with a yearly allowance for the maintenance of up to $1500 for painting and remodeling of the office. That would be nice to access.)

This process took literally days! The first official appointment was 3 hours of both Super Prez and I sitting there while the banker set up the account. Super Prez had already been in previously to get the logistics and required documentation list. Then, since I didn’t have my passport, I came back the next day, only to find the banker had gone on vacation. I went back a second time, and she was still on vacation. Finally, the third time she was in, and less than 10 minutes later, I was added to the account.

There were some glitches in the matrix confirming for me that banking is one of my least favorite things to do. First, the day of the first official bank appointment, I took a spectacular spill on the road in the centro. What happened was I got off my moto and stepped into a pothole, wobbled across the street and down the block, struggling to regain my balance until I finally fell inches from a parked car. The muchacho washing cars there came over to help this old lady up. At least 20 people saw my fiasco, and I banged my knee pretty good.

Then, when I tried to deposit money into the account, I couldn’t. It seemed I needed a different number than the one on the paperwork. So when I went back with my passport, I asked, and the woman gave me the number I needed. I was able to make several hefty deposits (hefty being a relative term here) after that.

However, I was able to access the account online with the special QR code reader and password. So, it looks like we’re good to go for community banking.

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Get the prequel to our community-building efforts in La Yacata Revolution: How NOT to Buy a Piece of Heaven in Mexico.

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Filed under Economics

Tagged as banking in mexico, La Yacata Revolution, opening a bank account in mexico, setting up a community bank account in mexico

February 7, 2019 · 7:00 am

Online Banking Woes

I’ve been using Capital One 360 for over a year now and have had little complaint. Then it all sort of snowballed and it took me way too much time to get everything back on track. All’s well that ends well, I suppose.

First, I foolishly tried to log on to check my balance using the satellite internet rather than the one I had previously used. The site said that something was “different” about this log-in and I would need to get a code sent to my phone number to log in.

Well, the phone number I set up the online banking account with was no longer in service. My phone had given up the ghost a few months before and I had purchased a new phone. So I tried to update that information only to be informed that there was something wrong with the information and that I should call Capital One.

So I did. I explained my situation. Customer service was very understanding however they needed to verify that I was me. Could I please send them a picture of some official identification? A passport would do. Well, I had to search out my passport and that took some time. Then I followed the instructions and took a picture and uploaded it to the site. It was rejected. I did it again. Another rejection. A third time locked me out of the system and I had to call Capital One again.

This time the customer service representative could see my photos as I uploaded them. The system rejected them again. I think what the system wanted was a scanned version rather than a photo of my passport. Only I didn’t have a scanner on hand.

Anyway, I got transferred around to supervisor then manager then whoever was over them. Finally, this person opted to verify my identity by having me input my PIN number. So now, they could confirm that I was me.

I wanted to change my phone number to my new cell phone number in order to receive the text messages and codes and whatnot. However, the company did not allow phones that were registered outside of the US. How long would it take me to get a phone registered in the US? I told them I would call back.

I then set about looking at options. I finally decided on Skype online phone number setup which rents me a phone number registered to any place in the US for $6.50 USD per month. I choose Tennessee. I paid the first month, got my new number, and called Capital One again.

After being verified as me, I was able to update the phone number contact information. Whew! So I signed on to my account online again. When I received the prompt for the secret, secret code to be entered, I choose the option to have the automated system call the number rather than sending a text. The call rang through via Skype on my computer and I got the code.

I thought I was in the clear until I went to HBSC to withdraw my pay from their ATM machine. Unaccountably, the machine didn’t give me any money but deducted it from my account. I totally freaked out! I marched my fanny into the bank and stood in line to see a teller who told me to see someone there in the desk section. So I waited there. The internet was down, which is probably what caused the glitch at the ATM machine, so I waited again.

Finally, the clerk asked for my identification which she entered into the computer. Of course, I’m not an HBSC client, I was just using the ATM machine, so she said she could do nothing for me. What!!!! She implied I had a hold on my account which is why the money wasn’t dispersed because of course, the ATM machine was just fine.

I came back home and called Capital One again to ask about this “hold” on my account. I explained that I had attempted to withdraw money but hadn’t received it. Again, customer service was very helpful. There was no hold on my account. The system showed the ATM transaction. I would be credited these funds temporarily while they investigated the matter. I should have access to these funds in 24 hours.

I did. I went to Santander to withdraw the funds, vowing never to return to HBSC. About 6 weeks later, I received a notification that the temporarily deposited funds were now released permanently since the investigation had been concluded satisfactorily. Thank goodness!

So despite the hassle of the US phone number requirement that I had to creatively work around, I still am pleased with my Capital One 360 account.

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Filed under Economics

Tagged as banking in mexico, capital one 360, online banking, withdrawing funds in mexico

August 6, 2018 · 12:03 pm

Banking in Mexico

Banking has been one of my least favorite activities. That hasn’t changed since moving to Mexico. In fact, I believe I enjoy it even less. All the banks in Moroleon are within a two-block area smack dab in the center of town. Seriously. There is a Bancomer now at the shopping center, but that’s technically in Uriangato, so it doesn’t count.

At many banks, you can open an account provided you are residing in Mexico legally (and can prove that with proper documentation) and have a proof of address like internet, electric, water, or cable bill called a comprobante de domicilio. If you rent or live in an area where are are no utilities, it’s much, much more difficult to open an account but not impossible. Since La Yacata has no such modernizations, my employer at the school opened an account for me to receive my paychecks using the school address and her own good name to vouch for me. However, since she is the daughter of the owner of Corona, she’s got a bit of clout at the bank that the average person might not have.

Opening an account isn’t easy. There’s a lot of waiting and signing and more waiting and signing. Then there’s going out to get copies because one set is just not enough. Of course, it’s just your luck that the printer has just run out of ink, so you’ll have to wait while someone heads to the store to get more ink. Or perhaps the person needed to verify your information is out sick today, so you’ll have to come back tomorrow. Read about Dos Tortas banking experience here. Make sure to read the fine print before opening your account. Some banks have minimal initial deposits or none at all. Others charge a hefty fee each month if you drop below the minimum amount required. Some banks only allow you 3 withdrawals per month before charging fees. Others charge for every withdrawal.

Banco Azteca requires you to have your fingerprint digitally read to withdraw money from your account. This was always a problem for my husband because he has calluses on his fingers from work and the digital reader could never read his fingerprint. So the whole taking out of money from the bank teller process was much longer than it needed to be.

You can find a list of all banks found in Mexico here.

Bank lines are out of this world on the 15th and 30th of every month, when the majority of Mexicans receive their pay. It may be tempting to use the ATM but there are some things to keep in mind before you do.

Always use ATMs that are part of a bank rather than stand-alone ATMs to reduce the chance of your card being cloned. Even then, there’s a possibility your information can be compromised.

All banks charge fees when you use the ATM. If you request a receipt from the ATM, there’s another charge associated with that. Some banks charge even if you are just checking your balance and you don’t request a receipt. As of 2017, the highest ATM fees belonged to Santander, Banorte, Banamex, Banco Multiva and Scotiabank. To reduce fees, try to take out larger sums. However, each bank has its own withdrawal limit and some are quite low in order to force you to pay the withdrawal charge several times. As you muddle your way through the screens on the ATM, be careful to read each section before hitting accept. In order to withdraw money, you need to accept the charge but you are under no obligation to donate to the charity of the month to get access to the money in your account. We’ve had accounts at Banamex, Bancomer, and Banco Azteca and were not really happy with any of them. The next best thing for a foreigner to do is open a virtual account.

Charles Schwab Bank and Capital One 360 both have very good reviews. I opened an account with Capital One 360 and have been quite pleased. I was able to apply online from Mexico. Then I was able to go through the verification interview using Skype. I had my card sent to my friend’s house in the US who then shipped it via DHL to me here in Mexico. The only problem I had initially was the $20 deposit to activate my account. I could not deposit it via my computer from Mexico, so had my mom write me a check and deposit it via my sister’s computer in the US. It took about 2 weeks for the check to clear. So if you were in the mind to set up a Capital One 360 account, it might be easier to do it before you leave the US.

I was able to associate my Capital One 360 account with my Paypal via a phone call. I can send and receive money with no additional charges to accounts in the US via Zelle. I can have checks direct deposited to my account and withdraw it from any ATM here in Mexico. Right now I have been using the HSBC ATM because it only charges about $33 pesos per transaction. The last time I tried Bancomer, the fee was $80 pesos!

I can use my Capital One 360 account to make purchases at Amazon.com and Amazon.com.mx. Online shopping has never been so easy!

I only use my card at Amazon. I NEVER use my card to buy things in Mexico. We had very negative experiences with our Banco Azteca card. We used it to buy groceries at Soriana and there were several large unexplained purchases made before we caught it. We got a different card and used it to buy gas. Lots more charges were made and we again canceled the card. Even after we had no card, there were charges made to the account at Elektra which we refused to pay. As a result, all our local transactions are cash on the barrel as Charles Ingalls would say.

I’ve never written a check here in Mexico either. People here are suspicious of checks and with good reason. Once, I received a tax refund which was a check. Instead of going to the bank to cash it, I endorsed it over to my husband who took it to a liquor store that changed it for cash for a small fee. I think it was $50 pesos or so. He took the check, my passport, and his ID and voila! Trato hecho!If you happen to have some US currency, you can take it to the bank to exchange it for pesos or to a Casa de Cambio. You might just get a better exchange rate at the Casa de Cambio, so ask around first. It seems like banks are not required to give you up to the moment exchange rates. Neither the banks nor the Casas de Cambio accepts coins in our area, only bills. If you find you have a lot of change, you might want to find someone that is visiting relatives here in Mexico and ask if you can swap your change for some bills. If you are looking to remodel your house, start a small business, or need a small infusion of moolah, you might want to check out places like the Financiera Popular En Comunidad for microloans with affordable repayments. Each agency has its own list of requisitos (requirements) but often gives better rates than a bank.