Bradesco Tip & Exchange Rates

[Xclay]

Since late March 2020 (when the Brazilian government lowered interest rates and added lots of pandemic measures), we've been lucky to get good exchange rates. Currently, the rate is not at its recent peak of nearly 6 reals for one dollar, but nearly 5:1 is still quite good (for visitors).

Years ago, I tested exchange rates at ATMs vs. credit cards and found that both were very good and they were comparable. I had also been warned to be careful in using my credit card in Brazil because hacking was not uncommon.

For many years, my practice has been to use my credit card to pay my hotels and any large purchases — but pay cash (drawn from ATMs) for coffee, most meals, saunas, and GP tips.

A few days ago, I quickly used a Bradesco ATM to grab some reals on the way to a sauna. I was shocked to see it defaulted to a terrible exchange rate with an 11% "mark-up." So I decided it was time to run a comparison test again.

I was ready to denounce Bradesco until I discovered that you can reject the Bradesco default (designed to rip off other dumb tourists!?) and get an excellent exchange rate. Down in its screen's lower left corner is the crucial option "Decline Conversion"! Clicking that option does not deny baptism, but it yields an outstanding result.

My test results:

*For the "official" rate, I used XE.com's widely used "mid-market" rate on the day I made the transaction. Not included above is the R$20 transaction fee (US$4) that Santander adds. My Schwab card reimburses all local bank transaction fees, but otherwise that extra $4 each time starts to add up!

Bottom line:
✔ Bradesco ATMs are great IF you "decline conversion."
✔ Santander ATMs are good if your bank reimburses Santander's transaction fees.
✔ The basic Visa card exchange rate is great (as long as you keep the charge in reals and decline the conversion to USD or EUR).

Miscellaneous:
● I know that for some posters here getting 4.4 instead of 4.9 is pocket change. Good for you. But for those of us who stay longer and keep an eye on our budget, it matters.
● I did not check Itaú or Banco do Brasil. Getting into a Banco do Brasil here in Porto Alegre is worse than TSA airport security. Plus, I've never forgiven Banco do Brasil for its ATM giving me zero cash after accepting my transaction 20 years ago in Recife. Nightmare getting reimbursed.
● Just noticed that Gap1972 briefly noted the Bradesco trick in passing back in September, and others complained about the Bradesco "robbery" back in January. This site is amazing.

[scott456]

It is a travel common sense to always decline automatic conversion by ATM or credit card machine.   BTW, anyone who is not familiar with an ATM machine in a foreign land should withdraw a small amount to check the accuracy first.

[BlkSuperman]

Great advice, but why convert at all? I go to my American Bamk and withdraw the money I will need in increments of $20's, $10's, and about $50 in singles for tips.

In another hetro group this was suggested as you save about a dollar or two (which isn't much) when paying for your garatos.

Example, $250R Is equivalent to $51US. Almost all the guys in the saunas will agree to $40US - $50US. If you pay in US DOLLARS you will only pay $50 instead of the $51US if you paid in Brazalian Reals ($250R = $51US).

Like I said, it's not a HUGE SAVINGS, but if you screw 20 times or more on your trip then you've wasted $20 that you could have saved. Mama always said "A penny saved is a penny earmed."

Getting my cash before i take my trips also takes the hassle out of finding a safe atm in a foreign country and going through the guess work of trying to understand what the verbiage on the atm machines are instructing you to do in order to complete the transaction. 

Additionally, If you have them, use those credit cards that give you rewards and cash back. The only reason we can afford to travel to SDQ so often is because the Spirit CC is amazing with their points system. 

The flights we pay are damn near free because of the points we accumulate daily with our everyday spending.  Those kevin hart and Jennifer garner commercials are 100 percent accurate with regard to using those CC for cash back and other perks. Use those cards, get points and watch the benefits come in. I just looked at my spirit account a few days ago and we have over 53K points for travel.

Every bill in our house gas, phones, cable, water, insurance, food, etc. are linked to that credit card. And the points add up quickly. If you have social media join the nerd wallet page and also the points guy. 

The way they break down how to get free travel and all kinds of other perks helps us tremendously. 

[scott456]

What's Spirit credit card? Is it Spirit airlines co-branded credit card? 

[BlkSuperman]

20 minutes ago, scott456 said:

What's Spirit credit card? Is it Spirit airlines co-branded credit card? 

Yes, it is. We fly that airline a lot so I just made sense to get the card to accumalte points for flights. I think almost all airlines have one because my cousin has one for Amercian and I've seen one advertised for southwest airlines.

[scott456]

8 hours ago, BlkSuperman said:

Yes, it is. We fly that airline a lot so I just made sense to get the card to accumalte points for flights. I think almost all airlines have one because my cousin has one for Amercian and I've seen one advertised for southwest airlines.

I never fly Spirit, it's reputation is not so good.

[floridarob]

2 hours ago, scott456 said:

I never fly Spirit, it's reputation is not so good.

I flew them from Mia-Bos recently in protest to UA's stupid high fares on that route.

On-time, clean plane, friendly flight attendants...only complaint, rock hard seats. But for $60 usd with a checked bag and seat selection, open seat next to me, more than acceptable.

[BlkSuperman]

@floridarob did you say, "Rock-Hard?" Do you happen to remember the seat number for that flight? I'd like to try it out. Lol!

[Zackbr1952]

Nice summary XClay.

If I may add to it for other Canadian members. Since our banks / credit card companies are essentially bandits due to the lack of competition I recommend the Koho prepaid Mastercard, with zero exchange mark up, to avoid the 2.5 to 3.5% mark up on foreign exchange banks credit cards charge.  It's a prepaid so you have to load it but it will give you pennies within the XE mid-range rate saving a lot of money. That is, with the decline conversion trick, that has been explained. I used to use the Stack card but they charge 2.5% now.

It also has the advantage of only having the funds you put on it so if your card is cloned you will lose as little or as much you put on until you discover the cloning. (Card is insured, however).

In 16 years of coming here I have cards cloned 5 times but not in recent years, not sure if cyber security is better here now or what.

[buttercawan]

Or more popular Wise or Revolut? The conversion is mid-market exchange rate. No issues when I used it in Brazil last May - can also add as Apple Pay