ATM Troubles

Well, this is a nightmare .. especially if it happened repeatedly.

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Thanks for the warning, Jade River.

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There are several reasons for Expats who get USA Social Security or other pension income to have it sent direct-deposit monthly to a bank in Quito or wherever you are living in South America.  Avoiding going to a so-called foreign ATM frequently .. is foremost among those reasons.

The Embassy in Quito  will assist Expats who have a bank account in Ecuador .. in getting SSA benefits transferred directly to your bank.  Then you can go to the bank daily, weekly or at your convenience to get money from a teller.

No ATM fees if you get money from local tellers, but SSA may skim about three dollars a month.

This method is what I've been using for years .. and I like it.

When I travel, I can use the Quito banco ATM card for purchases and as a backup to my Visa card(s).  Using the banco card with frequency at merchants and 'hospedajes' outside Ecuador also keeps my banco balance low enough when I'm on the road that I've never been FATCA'd.

(Google FATCA if you are not up-to-date on foreign bank-balance reporting to the U.S. government.)

cccmedia

Thanks for the tip CCCMedia.  Banking has been a continual challenge since moving here.  Wells Fargo will not transfer funds to a Banco Pichincha account for some reason.  So every couple of months I stand in line at Pichincha to deposit just enough to cover cable, cell phone, electric etc. for the next couple of months.  I do not use credit cards and have not since the US banking fiasco in 2007 so my debit card is my life line.
I will check out the SSA direct deposit option.  That would definitely make the process part of my life less intense.

I am curious as to others experiences with Ecuadorian banks. I am considering Banco Guayaquil for no good reason besides one of my clients recommends them because he is their auditor.

I only had one minor screwup at an Ecuadorian ATM where I got an insufficient funds message. Caused my heart to race until I found another ATM and verified all was safe.

I am going to be using Schwab primarily and USBank secondarily as my US accounts. I also do workaround transfers with PayPal, Square, and Western Union.

JadeRiver wrote:

It might just be my card, although I am still having the problem with a replacement, or my US bank Wells Fargo, but twice now in as many weeks when making a cash withdrawal at a Banco Pichincha ATM the process sounds as if it is dispensing the cash but no cash is dispensed and the requested amount has been debited to my account.  Both times the transactions were completed at trusted Banco Pichincha ATMs.
I have disputed the debits and they are currently in a claim status.  I am not sure of the resolution but thought i would put a warning out there.  I have since used a non-Banco Pichincha ATM without any problem.

Another member had a similar problem and the money was returned in 5 months or so. This was also the case with a friend who also had the same problem.

You'll just have to wait.

Hey, I am interested in the PayPal process of transfer you mentioned.  You can send funds via PayPal to an Ecuadorian bank?  Sorry all - a bit off topic.

I have no idea if PayPal can be directly linked to an Ecuadorian bank or debit card at this time.

The workaround was a favor for my Ecuadorian girlfriend who had PayPal but at that time had no debit card or credit card for her Ecuadorian bank.

She decided to go to Montañita for a holiday at the last minute and couldn't get any cash. I think the banks were closed. I was back in the USA.

She transferred her $500 from her PayPal to my PayPal. I sent her money to my bank account. Then I sent her the cash via Western Union, which is linked to one of my USBank debit cards. She picked her cash up 20 minutes later at the bus terminal and then hit the road.

I don't remember the exact fees but it was under $15. I may have had sufficient funds in my account to cover the WU transfer, as I think there's a 48 hour delay with PayPal.

Thanks for info.  I have been getting frustrated with PayPal, which is now Xoom, trying to set up a transfer process for the last several hours, since reading your post.  They seem somewhat incompetent.  And I think I will give up.  "Send money in minute" as it says on their web site is definitely a false statement.

Hello all,

You mentioned keeping the bank account lower than a certain level (I think it's $10K) to avoid reporting it.  Is this per account or a total of both checking and savings?  Also, my visa is a investment visa that uses a CD, so I don't actually have access to the money.  Does this count as reportable?

Thanks.

Michael-2018 wrote:

You mentioned keeping the bank account lower than a certain level (I think it's $10K) to avoid reporting it.  Is this per account or a total of both checking and savings?

Dear Michael,

The USA FATCA statute (foreign accounts) requires that overseas banks report holdings in accounts of USA citizens.  Some banks in some countries refuse to accept new USA clients to avoid the reporting requirement.

USA Taxpayers are also supposed to report when the FATCA requirement is triggered.

Google it to find out if holding $10,000 total in foreign bank accounts .. triggers the necessity for such reports in the case of your accounts.  Make sure your USA accountant is aware of any bank accounts for which your worldwide bank balances outside the USA have totaled $10,000 or more.

For more information Google:  FATCA wiki or FATCA requirements.

cccmedia

Michael-2018 wrote:

You mentioned keeping the bank account lower than a certain level (I think it's $10K) to avoid reporting it.  Is this per account or a total of both checking and savings?  Also, my visa is a investment visa that uses a CD, so I don't actually have access to the money.  Does this count as reportable?

If your CD is held in a non-USA account and totaled over $10,000 on any day or days, the FATCA requirement is triggered.

if any or all bank accounts outside the USA totaled $10,000 or more on any date, FATCA-compliant banks will report it to Uncle Sam and you should too.

Checking or savings -- it doesn't matter.  They're bank accounts.

Also see Summary of FATCA Reporting For USA Taxpayers, an IRS page (www.irs.gov) for the relevant iRS and FinCEN form numbers.

cccmedia

Thanks for the good information.  I definitely want to stay on the up and up with the IRS.  I've always overpaid my quarterly estimated tax - its better for the government to owe me at the end of the year than the other way around.

On another topic - Are there ever any get-togethers in Quito?