ATMs and Credit Cards

Posted on March 19, 2007
Filed Under Services, Expat Tips | 4 Comments

Tarjeta RedBROUWhen traveling abroad one of the first items on my worry list is whether I’ll have direct access to my money via an ATM or if I will need to rely on credit cards and cash. This topic is of particular relevance in Uruguay because a number of businesses do not accept credit cards. Like most people, I prefer not to carry oodles of cash if I don’t have to. And I am not a big fan of travelers checks and the hassles associated with them. The good news is that if you plan right, you will be able to withdraw in pesos or in dollars from your account back home from most ATMs in Uruguay.

The majority of ATMs (cajeros automáticos) in Uruguay belong to of one of three main networks: Banred, Red Cabal or RedBROU. These three networks combined cover a large part of the ATMs in the country. For users coming from North America or Europe it is very important to know which global networks each is affiliated with. Banred is part of the Cirrus and Maestro networks. Red Cabal and RedBrou are only affiliated with the Cirrus network. I think ATMs on the VISANet network, may accept cards affiliated with PLUS as well, but I have not checked it. Make sure your ATM or debit card belongs to the correct network before you go to Uruguay. Choose Cirrus if at all possible.

If your ATM card does not work, you may need to take cash advances from your credit card, using the VisaNet and MasterCard networks. In that case, make sure you call your credit card company and have a pin set up before traveling. Even if you plan to use your ATM card, it may be prudent to know your credit card pin anyway. For example, I had problems in Brazil, where PLUS seems to be the dominant network. It took me several days until I found an ATM connected to the Cirrus network. Obvious tip: if you are going to Brazil, bring a PLUS ATM card if you can.

When withdrawing money at an ATM, depending on the machine, in one of the many screen menus you may be asked to select the network. I have always selected Banred and it worked fine. I assume that if you are taking a cash advance on your credit card you should select the Visa or MasterCard network. Banelco sometimes appears on the list and is an Argentinean network.

For security reasons, before going to South America, I go to my bank and set the limits of my ATM card to zero for point of sale purchases (i.e. like a debit card), 500 dollars per day or lower at an ATM and an extra 500 at a bank teller. This way, if my card is stolen, cloned or if I am robbed at an ATM, I will not loose much money.

If you wish to withdraw dollars from an ATM, you need to find the right one. Not all machines carry dollars and this ability or lack thereof is not readily advertised. Some machines also have a limit of 100 dollars while others max out at 500. Most of the time, you will need to go through the whole process until you get the failure message at the end. So it is a good idea to start by withdrawing 100 dollars. In Montevideo, I know the ATM at the entrance of the Disco supermarket in the Punta Carretas Mall carries dollars. If you know of other locations, please let me know. In Punta del Este I was able to withdraw dollars at several ATMs.

Unfortunately credit cards are not as universally accepted in Uruguay as in other countries. Three of the hotels I stayed in would either not accept them or would charge extra for using the card. Many, many restaurants do not accept credit cards. So it is a good idea to ask before sitting down. And the places that do accept credit cards may only accept Visa or MasterCard so bring one of each if you can. Keep in mind that many card issuers charge an additional fee of 2 to 3% for international transactions on top of the 1% that VISA/MasterCard charge.

I was told the reason so many restaurants and hotels do not accept credit cards is that they can avoid paying the 23% IVA tax more easily when they are paid with cash.

If you feel you must bring cash, you’ll be happy to know that there is no limit as to how much you can bring into the country. Although anyone from the US will still need to declare any transfers greater than 10,000 dollars out of the country.

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4 Responses to “ATMs and Credit Cards”

  1. Shirley on March 20th, 2007 10:41 pm

    I have been able to withdraw US dollars at all of the RedBROU ATMs where I have tried it. (I tend to stick to the ATMs that are in lockable booths.)

  2. Brazzie on March 21st, 2007 6:08 pm

    Thanks Shirley, this info is quite helpful.

  3. swissaussi on May 21st, 2007 6:28 pm

    Punta del Este: lockable booth & all RedBROU max.US$1000 with BROU card, received 1st day of arrival with Swiss Passport with min. us$500 deposit to avoid any charges for the account, great service & low fees.

  4. Brazzie on May 21st, 2007 7:13 pm

    swissaussi, thanks for the info. When you said lockable booth, did you mean safety deposit box? Cheers