Pecos In Mexico: A Traveler's Best Friend?

When travelling to Mexico, it is recommended that you exchange your money for pesos. While some tourist areas and businesses may accept US dollars, euros, Canadian dollars, and British pounds, it is better to use the local currency. This is because converting your money to pesos ensures better exchange rates and wider acceptance.

If you are staying in an all-inclusive resort, you may not need to exchange much money beforehand. However, if you are staying in a city or for an extended period, it is recommended to exchange some money before your trip to cover transport, snacks, and other small purchases. You can do this at your home bank, travel agency, or exchange bureau.

During your trip, you can use your debit or credit card at ATMs to withdraw pesos. It is recommended to use ATMs owned by large banks, such as Banamex, Banco Santander, Banorte, and HSBC, as smaller vendors may charge higher fees. Additionally, be sure to notify your bank that you will be travelling to Mexico to avoid any issues with your card.

When using cash, be cautious and only carry what you need for the day to avoid losing large sums of money. Keep your cash and cards secure at all times to prevent theft.

Exchanging currency before your trip

It is a good idea to get some Mexican pesos before your trip, if possible. Although you may not get the best exchange rate, it may save you some hassle when you arrive. Here are some options for exchanging currency before your trip to Mexico:

Use a Multi-Currency Account

A multi-currency account like Wise or Revolut is a great option for exchanging currency before or during your trip. With these accounts, you can exchange and hold multiple currencies, including Mexican pesos, at the mid-market exchange rate with low or no fees. You can then use the associated debit card to make purchases or withdraw cash from local ATMs in Mexico.

Exchange Cash at Your Home Bank

You can exchange cash at your home bank before your trip. However, banks often have weak exchange rates and may charge fees, resulting in a less favourable exchange. If you choose this option, consider ordering the foreign currency in advance to ensure availability.

Use a Credit or Debit Card

Using a credit or debit card is a convenient option, as most vendors in Mexico accept cards such as Mastercard, VISA, and American Express. These card issuers use their own exchange rates, which are typically very close to the mid-market rate. Just make sure your card waives international transaction fees, as these can add up quickly.

Exchange at an Airport Bureau de Change

Using an airport bureau de change is generally not recommended due to high commissions and unfavourable exchange rates. However, if you need to exchange money at the airport, compare rates and fees between different providers to get the best deal.

Withdraw Cash from ATMs in Mexico

Using your debit or credit card at ATMs in Mexico is a convenient way to access cash in the local currency. Most cities and towns in Mexico have an abundance of ATMs, and the exchange rates offered are usually competitive. However, be aware of ATM fees and always use machines located in or near the lobby of a reputable bank to avoid skimming and other scams.

Using ATMs in Mexico

Using an ATM in Mexico is similar to using one in the US. However, there are some key differences and safety precautions to be aware of.

Finding an ATM

Firstly, if you're in a city, you'll likely come across standalone cash machines on street corners. These are best avoided, as they are not associated with any bank and will either dispense US dollars or pesos at a terrible exchange rate. They are also commonly targeted by thieves who place skimmers to gather personal information and clone cards.

Instead, look for an ATM inside the lobby of a bank, preferably one associated with your card. These will often have guards posted outside for your protection and to monitor activity.

Using your card

Before your trip, inform your bank that you'll be travelling to Mexico to avoid any problems with withdrawing money. Also, ensure you have a 4-digit PIN, as most ATMs in Mexico only accept these.

When using the ATM, you may be asked if you want to be charged in your home currency. It is best to decline this offer, as you will be assigned an unfavourable exchange rate. Choose to be charged in pesos instead, to access the fairer rate used by your home bank.

You will also be asked if you want to pay the fee for using the machine. You must answer 'yes' to this, or the ATM will reject your transaction.

Fees

The fees you're charged will depend on the ATM you use and your bank's policy. ATMs in cornershops or other dodgy locations will likely rip you off, so stick to ATMs of major banks like Banamex, Banco Santander, Banorte, and HSBC, which will give you fairer rates.

The good news is that some ATMs in Mexico don't charge any fees, and even those that do tend to have a low fee of around $1 or 1% of the amount withdrawn. However, your home bank may levy their own fees, such as 'international transaction charges' or 'non-bank ATM fees'. These are often 'per transaction' charges to prevent multiple small withdrawals.

Exchange rate

Different cards offer different exchange rates, so it's worth checking this before you travel. Some cards will use the 'real' exchange rate, also known as the mid-market exchange rate, which is the best rate available.

When you're at the ATM, if you're asked whether you accept the exchange rate on offer, choose 'decline'. This will mean the ATM uses your financial institution's rate, which is usually much better.

Withdrawing money

Depending on your card, there may be a limit to how much you can withdraw at one time. For example, with some cards, the limit is 3,000 pesos, while others allow up to 10,000 pesos.

Safety

Safety is always a concern for foreigners in Mexico, and petty theft is a problem in large cities. ATMs are frequently targeted by hijackers, so it's best not to withdraw or carry large amounts of money. Carry only what you plan to spend and keep the rest stored securely.

Backup plans

It's always good to have a backup plan in case something goes wrong. Consider getting a second ATM card from a different bank, and if you're travelling with a partner, get separate cards for each of you. That way, if one card gets lost, stolen, or stops working, you'll still have access to cash.

Using credit and debit cards

While credit and debit cards are widely accepted in Mexico, it's not the case everywhere. In most tourist areas like Playa Del Carmen and Cancun, many stores are used to tourists and will accept card payments. However, for small expenses on the go, such as taxis, bottled water, admission fees, local restaurants, food stands, and tips, you will need to use cash, specifically pesos.

It's recommended to inform your bank or card issuer that you'll be travelling abroad to Mexico. This will prevent your card from being frozen due to potential fraud when making transactions in Mexico. Visa, MasterCard, and American Express are the most commonly accepted credit cards in Mexico, and you shouldn't have a problem using these major cards, especially in larger cities or tourist destinations.

Some banks have partnerships with other banks worldwide, allowing you to withdraw cash from ATMs without incurring fees. It's worth asking your bank if they have any connections with banks in Mexico. Additionally, some banks may only accept 4-digit PINs for debit and credit cards, so ensure your PIN meets this requirement before travelling.

When using an ATM in Mexico, it's best to use those owned by large banks such as Banamex, Banco Santander, Banorte, and HSBC. Smaller vendors may charge you a higher fee for your transaction. Using an ATM is generally safe, but it's important to be aware of your surroundings, as petty theft and ATM targeting by hijackers can occur.

When given the option to choose the currency for your withdrawal, always select pesos. If you choose to withdraw in your home currency, the ATM can apply Dynamic Currency Conversion, resulting in extra charges.

Although it's convenient to use your card for purchases, be mindful of foreign transaction fees. Many banks and credit card companies charge a fee for each foreign transaction, typically around 1%. To avoid unnecessary costs, consider finding a credit card that doesn't charge these fees.

It's also worth noting that credit cards are not widely used in Mexico. It's a more cash-based society, so carrying some cash is essential, especially in smaller towns and villages, markets, and street stalls.

Overall, using your credit and debit cards in Mexico can be a safe and efficient way to access funds, but it's important to be mindful of potential fees, inform your bank of your travel plans, and carry some cash for smaller expenses.

Carrying cash

If you are staying in an all-inclusive resort, you may not need to exchange much money, but if you are staying in a city such as Guadalajara or Puerto Vallarta, it is recommended to exchange $100 for about $2000 Mexican pesos to cover transport, snacks, and other small expenses.

If you are staying for an extended period, you will need to decide how to get more cash. You can do this by visiting an ATM or a Mexican bank.

Using an ATM in Mexico

Using an ATM in Mexico is similar to using one in the US. However, it is recommended to use an ATM that is located in or near the lobby of an actual bank, as these often have guards posted outside for your protection. It is also important to decline the conversion when using an ATM in Mexico. Although you will be asked if you want to pay the fee for using the machine (which you must answer yes to), you should answer "No" when asked if you accept the conversion from dollars to pesos. Your bank will calculate a rate for you, and it will almost always be better than the one offered by the ATM.

Exchanging Cash at a Bank

You can also exchange US dollars for pesos at a bank, but this can be more complicated and time-consuming. Since September 14, 2010, the Mexican government has capped the amount of dollars foreigners can exchange for pesos in banks and money exchange establishments to no more than $1,500 per month to regulate the quantity of dollars entering the Mexican banking system. You will need to bring your passport with you when you change money, and ensure your bills are crisp and new, as banks often reject bills with even the slightest tear or crease.

Safety Tips

It is recommended to carry only as much cash as you plan to spend on any given day, as petty theft is a problem in large cities, and ATMs are frequently targeted by hijackers. Keep your cash secure, and be aware of your surroundings. It is also a good idea to make photocopies of the front and back of your credit and debit cards, as well as your passport, and keep these in a safe place in case your wallet is lost or stolen.

Tipping

It's best to tip in Mexican pesos or US dollars, although euros and Canadian dollars are also accepted in some places. If you're paying in US dollars, make sure to give bills, not coins.

The amount you tip is at your discretion and should be based on the quality of service you received. However, there are some standard amounts that are usually tipped.

• Hotels: It's standard to tip bellhops between 25 and 50 pesos, and housekeeping staff between 20 and 50 pesos per night. If your room is particularly messy, tip more. It's also good to tip on a daily basis, rather than at the end of your stay, as the staff may change daily.
• Restaurants and Bars: In most restaurants, it's customary to leave a tip of 10 to 20% of the total cost of the bill. At food stalls and low-cost eateries, most people don't leave a tip, but if you do, it's greatly appreciated. When drinking at a bar, it's appropriate to tip 20 pesos per drink, or the equivalent of $1 USD.
• Taxis: It's not customary to tip taxi drivers, unless they help with your luggage, in which case 10 pesos per suitcase is a good amount.
• Gas Stations: Gas station attendants are not usually tipped unless they provide an extra service, such as cleaning your windshield, in which case 5 to 10 pesos is sufficient. If they also check your oil or tyre air pressure, you should tip more.
• Tours: For a day tour or one lasting a few hours, it's appropriate to tip your guide 10 to 20% of the total cost of the tour. For multi-day group tours, tip the tour leader a minimum of 60 to 100 pesos per day, and for a private tour, 200 pesos per day. If you also have a driver, you should tip them 40 pesos per day.
• Spas: It's customary to tip spa service providers 15 to 20% of the cost of the treatment.
• Grocery Stores: In Mexican grocery stores, there may be teens or seniors who will bag your purchases for tips. You can tip them 1 to 2 pesos per shopping trip, and if they help you take the bags to your car, tip at least 10 to 20 pesos.
• Other Services: Other services that may expect tips include hair stylists/barbers (10% tip), bathroom attendants (10-20 pesos, or $0.50-$1), and musicians/mariachi bands playing in restaurants (10-20 pesos for general restaurant playing, or 60-100 pesos for a Mariachi band playing at your table).

Frequently asked questions