We have covered Argentina’s unofficial exchange rate market that allows you to get 80% to 100% more pesos by bringing crisp $100 bills and converting them locally (read more here).
Argentina has tried to stop this practice and started to offer better exchange rates for transactions completed using foreign-issued credit cards. This “credit card” exchange rate is 10% to 15% less than the unofficial blue but allows you to save the VAT on hotel accommodations.
So, I made tests when I stayed in Buenos Aires and Mendoza by paying certain transactions using Visa (US), American Express (Finland), and HSBC (Hong Kong) to see how these payment networks handle this unusual situation.
Visa Currency Conversion Calculator:
Visa’s calculator lets you see the exchange rate used for transactions in foreign-issued credit cards.
Mastercard Currency Conversion Calculator:
Mastercard’s calculator does not. Instead, it gives you the official exchange rate of 228 ARS per USD when the Blue Dollar rate is 470 or so.
American Express Currency Conversion Calculator:
I couldn’t find one!
Visa Charges Argentina
Visa handles the charges coming in ARS correctly. They close at the correct exchange rate (varies daily).
Mastercard Charges Argentina
The charge closes using the official exchange rate, but you will a few days later receive a refund that is dated to the original date.
American Express Charges Argentina
The ARS transactions were first posted using the official exchange rate, and a refund was posted roughly a week later, backdated to the original transaction date.
Blue Rate Versus Credit Card Rate
There is a spread between the Blue Dollar and the credit card rate.
Exchanging Cash In Argentina:
Dollar Blues In Argentina 2023 Version – Remember To Bring Crisp $100 Notes
Conclusion
Paying hotel expenses using a foreign credit card makes sense because you don’t have to pay the 21 VAT on accommodation.
There is a 15% spread between the Blue Rate and the foreign exchange rate, and you can save more IF you bring crisp $100 notes and make the exchange in Buenos Aires at the correct rate. Unfortunately, exchange houses in Mendoza were not competitive, and I ended up just swiping a credit card there and saving the dollar notes elsewhere.
The credit card acceptance is excellent, and I did not have the same issues getting a car (Uber or Cabify) when using the apps and paying using a card as on my previous trip last year.
Not sure what was taking place in Argentina over my two stays there last month, but the Blue Rate moved from 395 ARS to USD to close to 500, and it is now hovering around 470.
You will be positively surprised what will post for your hotel stays in Argentina that are always quoted in USD and then converted using the official exchange rate to ARS that you settle using the pseudo credit card blue rate and save 40% to 45%.