Money + Payments

When visiting Mexico, it's essential to understand the local currency and how to use it effectively during your stay. The currency is the Mexican Peso, abbreviated as MXN or a $ symbol or most often written with a P after the number.

Pesos come in 1000, 500, 200,100, 50 & 20 bills/notes. Coins come in 20, 10, 5, 2 & 1. Here are money guides: Mexperience - Spanish And Go - Off Path Travels - Jane In The World - Focus on Mexico to expand your understanding.

Some coastal resort areas accept USD/CDN/Euro, but it’s best to pay with Pesos for a better exchange rate. Smaller bills and coins are more readily accepted, so always be breaking larger bills when possible. Do not accept ripped bills as change, as many will not accept ripped Pesos from you.

Currency Exchange:

Upon arriving in Mexico by air, you can exchange your currency for Pesos at airport ATMs (cajeros) or Cambios (cash exchanges). I will always travel with a small amount ($50 USD) of Pesos with me from my home bank, so I have an immediate supply. Upon arrival, I will exchange a few hundred USD to Pesos at the airport cambio, or will use an ATM machine on or off airport (see below).

Exchange more if you are heading to remote places where ATMs and cambios are fewer and you can not count on a credit card being accepted. Cash is still by far the most used form of payment in Mexico.

Getting the best exchange rate is a continuous game you will play during your travels. Sometimes (like the Mexico City airport), the cambios offer a great rate. Other times (like resort airports) you will get a better rate at local bank ATMs.

Understand: The current daily exchange rate XE you lookup online will never be the actual rate you receive in your hand. Your home bank is setting the rate. Most all bank to bank exchange rates are very close. Focus on what you can control, ATM access fees and declining offered rates.

ATMs:

  • Airport bank-owned ATM machines are plentiful and offer convenience and a decent exchange rate. Different banks offer different access fees and this is key to understand. CitiBanamex is plentiful and has some of the lower access fees.

  • ATM machines accept all major cards and work with 4 or 6 digit pin #.

  • I choose ATMs where I see other travelers using them. Good security is always important, such as covering your hand over the keys when you enter your PIN. Card skimming scams require a video of your entering your PIN. There is a new type of scam with tap-style chip readers, so I always insert my card as this requires a 2 part PIN to work. I never use tap-style card readers anywhere in Mexico.

  • If there is ever an error with the ATM, I never try again and move on to another ATM or bank. Too many scams have happened where an error occurs, but your money is still debited from your account. Check your banking app asap!

  • ATMs will have a max Peso amount you can withdraw. I typically withdraw the max amount that is shown on the screen. I prefer bank-owned and bank-attached ATM machines vs stand-alone travelers ATM machines (found in hotel lobbies and on the street) for security and a better rate. Supermarkets have a section of bank-owned standalone ATM machines, but I prefer a bank-attached ATMs as these stand-alone machines are easier to skim. Mexico ATM Guide.

  • There is a technique, call it a legal bank scam, being played with travel ATMs worldwide. Here is how this works: enter your card, select your language, enter your PIN # (covering it with your hand!), choose the account.

    Next you need to say YES to accept the ATM withdrawl fee (25-100+ pesos) or you will not get $. Then choose the amount of your withdraw. This amount is in Pesos and so you need to do some math for the exchange rate.

    The final step is the ATM offers you their exchange rate. Select NO / DECLINE to this offer! Their exchange rate is not in your favor. You will still receive your Pesos. More information.

Cambios (money exchanges):

  • Cambios are available and plentiful to exchange your home currency to Pesos. I often use these in the Mexico City airport, but they are found thru most tourist cities. The exchange rates are good at the Mexico City airport. However, resort airports may not have the most favorable rates.

  • Cambios have a compra / buy and venta / sell rate. The compra / buy rate is what you want to look for your currency. This is how many Pesos they will give you for each 1 USD/CDN/Euro. You can compare rates, but they are often close or the same. CIBanco is a trusted Cambio found in most airports.

  • Upper floor or tucked away airport Cambios sometimes offer a slightly better rate. Some will say ‘No Commission’, but none charge a commission anyway. It’s always good to ask and verify.

  • Google - Cambio to find them in cities and tourist destinations. In smaller towns you will not find them.

  • You need clean un-ripped and un-marked bills to exchange. Ripped or marked bills are often not accepted. At my home bank, I request a selection of large and small clean bills to take to Mexico. In Mexico, I exchange the larger bills and keep the $1 and $5 USD bills with me…just in case. $50 USD seems to be the most desirable exchange bill.

Travelers Checks:

  • Travelers Checks / Bank Checks are very difficult to use anymore. Don’t bother.

Arriving to Mexico by land (& traveling within Mexico), you will be looking for Cambios / Casa de Cambios or bank-attached ATM machines.

  • Cambios are found on both sides of the border, the US rates are typically better. Check the compra / buy rate and confirm there are no commissions.

  • Once in Mexico, you will find Cambios in most larger towns and cities. Google - Cambio to find them. I always have an extra stash of USD I can exchange anywhere in the country. Sometimes ATMs are hard to find or don’t work. Remember cash is still by far the most used form of payment in Mexico.

  • Now on to ATMs. You will be looking for a bank-attached ATM, when possible. These ATMs are safer than stand-alone ATMs. A bank-attached ATM is most always in an enclosed bank area with very good security. Once again, I will search out CitiBanamex ATMs or others with lower access fees. Watch out for BBVA.

  • ATM machines accept all major cards and work with 4 or 6 digit pin #.

  • Always be aware of your surroundings when getting money from ATMs (see below).

  • If there is ever an error with the ATM, I never try again and move on to another ATM or bank. Too many scams have happened where an error occurs, but your money is still debited from your account. Check your banking app asap!

  • Travelers Checks / Bank Checks are very difficult to use anymore. Don’t bother.

Making change with your Pesos:

So you just went to the ATM and now you have a stack of 500p bills. Many vendors do not have adequate change for large bill. This is a continual process to break larger bills into smaller ones.

  • Some ATM machines are dispensing a mixture of bills.

  • Make change at OXXO / 7-11 (convenience stores), gas stations, and nicer restaurants. Some hotels may help. Going inside a bank to make change is often a long process and you need to show your passport. In resort towns, you can often pay with USD/CDN/Euro at OXXO / 7-11 and receive Peso change.

  • Constantly be working to make change!

Bank Card Tips and Procedures:

This is what has worked for me.

  • I use a travel-dedicated debit card for ATMs and purchases. I never use my main banking cards when traveling because of the potential for fraud/skimming/scams. I will have another credit card with me, just in case.

  • My debit card has access to a few days of travel money. This technique assures minimal looses if something happens. I monitor my bank account (but NOT on public wifi, only on private cell service) and will transfer more money as needed.

  • My wife and I each have the same debit card, in case we loose one to an ATM machine.

  • Visa and Mastercard cards are accepted everywhere cards are accepted.

  • I follow the security tips mentioned above. If I use my card and it is declined, I most always pay with cash. Asap, I check to verify it was not actually charged (with my Telcel connected phone and banking app). I never have them run the card again, because of card network problems or scam issues that occur. If the charge went thru and you payed cash, don’t leave the business and talk to the manager. Show them the card transaction.

  • Different banks offer different rates and fees when traveling abroad, so check with your bank.

  • Charles Schwab offers a favorable travel card.

  • HSBC has branches around the world and reduces your ATM fees when using Mexican HSBC ATMs.

  • Notify your bank / credit cards you are traveling to Mexico. Some require this, some do not.

  • PROFECO is where you report any sort of scam or shortage. It’s the consumer protection agency. Contact your debit/credit card company asap to dispute the claim. Bank phone apps have this built in to dispute charges.

Cash vs. Card:

While major credit and debit cards are widely accepted in tourist areas, it's recommended to carry cash for smaller purchases, street vendors, and in more rural areas where card acceptance may be limited. More and more places are accepting credit cards these days. I often pay hotels with my travel card and nicer restaurant too. Gas stations and supermarkets accept cards. Smaller restaurants, markets and vendors all will require Pesos. The rule is if a business accepts a credit card, the business is charging more than cash only establishment.

Tipping / Gratuity and Etiquette:

  • Tipping is customary in Mexico, especially in restaurants and for services such as bag porters and tour guides. It's customary to tip 10-15% in restaurants.

  • Some restaurant bills/checks/tally (la cuenta) may include a tip / service-charge / propina / servicio to your bill, so look for that! You can adjust the amount of $ as needed. From the law, a tip / service charge / propina / servicio can NOT be added automatically to your bill.

  • IVA is the national 16% tax (VAT, sales tax) and you may see this at times. More expensive establishments add this. Cash only establishments often do not.

  • When tipping, it's polite to do so in cash directly to the person providing the service.

  • I’ve been told that Mexicans often tip 10%, while many Americans and Canadians will tip 20%. I’ve settled on 15% at restaurants, if the service is good. The choice is always yours.

  • Tour guide tipping - 10-20% of the tour price is customary with 10% as the industry standard. Above that is for exceptional guides.

  • Tip your gas station attendant 10-20 peso. 10p if they just fill your gas and 20p if they clean your window.

  • Tip your bagging & shopping cart person at the supermarket, they work for tips only.

  • Tipping taxi drivers is not customary in Mexico, but appreciated. Tip your Uber driver if they provide useful travel help beyond a ride.

  • Additional tipping guides: Discover Baja - Mexperience - Spanish And Go - Get Stamped - Fearless Female Travels - Janine In The World

Money transfers and payments:
You may need to make digital payments or larger money transfers. Most vendors do not support Apple Pay nor Google Pay.

Safety and Security:

Just like in any destination, it's important to be mindful of your belongings and be cautious when handling cash in public. Consider using a money belt, secure travel wallet or crossbody travel bag to safeguard your money and valuables. Leave expensive jewelry at home, so you are not a target. Scams can and do happen, so be aware. Safety guides.