Planning a trip south of the border? Preparing your travel money options beforehand is the key to a stress-free vacation. Credit cards, debit cards, prepaid travel cards and cash are all accepted in Mexico.
Outside of a few purchases like transportation fare or local shops, a credit card will be your best bet for everyday purchases. A card that waives foreign transaction fees like most travel credit cards can help you save on extraneous fees. Here are all of your spending options during your travel.
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Prepaid travel card, debit card or credit card?
The local currency in Mexico is the Mexican peso and there are a few ways you spend it. A combination of a travel credit card, travel debit card and a prepaid travel card that allows you to preload the Mexican peso may be your ideal option for your next trip to Mexico. And remember to have some cash too, as it can always come in handy if want to shop at a street market or if a business doesn’t accept credit cards.
ATM’s are widely available in Mexico and are compatible with debit cards, credit cards and prepaid travel cards.
There’s no single best travel money strategy, as the right one will ultimately depend on how and where you’re traveling. If you’re going to be making a lot of cash withdrawals, consider a debit card with an ATM alliance or a prepaid card with low withdrawal fees over a credit card. A credit card will make the most sense for larger purchases and you’ll likely need one for hotels.
You’ll always need cash to make everyday purchases. Withdrawing a substantial amount of cash for when you arrive can be an ideal option to ensure a smooth transition into your destination country.
5 options for spending money in Mexico
Whether you’re splurging on tacos, margaritas or are sticking strictly to business, here’s how you can pay for things in Mexico:
Use your credit card almost everywhere, but they aren’t accepted for buses, most taxis, tour guides, corner stores and taquerías. To beat foreign transaction fees, use a card like the Capital One VentureOne Rewards Credit Card (Terms apply, see rates & fees).
Travel cards also often come with a variety of travel perks and the ability to earn rewards. If you pick the right travel card for your travel needs, you can rack up some miles toward your next trip.
Note that chip cards are the standard in Mexico. You can still use a magstripe card at many locations, but you may run into merchants who will only accept chip cards. As such, you may want to upgrade your card before you travel.
Tip: Most major lenders can arrange emergency cash or card replacement quickly if you lose your card.
Pros
Protected by PIN and chip
Accepted worldwide
No currency conversion or transaction fees
Perks including reward points, 0% purchases and frequent flyer program
Emergency card replacement
Cons
Can charge high withdrawal and cash advance fees
Higher spending limit (depends on your approved credit limit)
Merchant acceptance
ATM acceptance
Visa
High
High
Mastercard
High
High
American Express
High
High
Discover
Medium
Low
Compare cards for international travel
Explore top debit cards with no foreign transaction fees and travel credit cards by using the tabs to narrow down your options. Select Compare for up to four products to see their benefits side by side.
Consider cards that have no foreign transaction and ATM fees when looking at cards. Some debit cards, like the one offered by
Betterment Checking, are designed for use overseas, so they don’t charge foreign transaction fees on purchases abroad.
Tip: Use your card to make a cash withdrawal from an ATM in Mexico, but be aware that you may need a card with a chip.
Travel cards are generally a good way to take your funds overseas and spend in multiple currencies. Merchants in major tourist destinations like Tijuana, Cancun and Acapulco will accept US dollar as well as pesos preload onto a card.
Tip: If you don’t have a card that can load pesos, you should know that travel card currency conversion fees are among the highest in the market.
Pros
Protected by PIN and chip
Preload and secure your exchange rate in multiple foreign currencies
Accepted worldwide
Emergency card replacement and backup cards
Ideal for managing your travel budget
Cons
Local ATM fee
Reloading time
No fee if you spend in currency loaded onto the card
You can use USD in Mexico, especially in the major tourist spots. Some merchants give you the option of paying in pesos or dollars and the vendor can give you an “over the counter exchange rate” between the two.
The price of the goods can be inflated by as much as 30% if you pay with US dollars in Mexico, as vendors generally use an exchange rate of 10 pesos to $1. Use Mexican pesos to make your money go further.
There are a number of places to exchange cash in Mexico, including Banco de Mexico (the national bank) and at casa de cambios (exchange bureaus). Bank during regular business hours between Monday and Friday.
Your other option is to get money changed at bureaux de change and casa de cambio outlets. These exchange offices are common and they can offer the same rate, if not better, than banks.
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Buying Mexican pesos in the US
Mexican Pesos are widely available at most currency exchange offices including Travelex and major banks. Exchanging at your bank can be a good idea to avoid extra fees and charges.
Banknotes
Dating back to Spanish colonization, Mexican pesos come in denominations of 10c, 20c, 50c, $2, $5, $10, $20, $50, $100, $200, $500 and $1000. $20 is the lowest value banknote. MXN is the currency code for Mexican peso and Mexico uses the dollar sign ($) as the currency symbol.
The main banks in Mexico are:
Afirme
Citi-Banamex
Banco del Bajio
Bancomext
Banorte
BBVA Mexico
HSBC Mexico
Inbursa
Santander Mexico
Scotiabank Mexico
ATMs in Mexico
You should have no problem finding an ATM for withdrawing cash in Mexico. You’ll find the lowest fees at established national banks like BBVA Bancomer and Santander. And a travel-friendly debit card from a bank like Betterment Checking can help you avoid international ATM charges.
How much should I budget to travel in Mexico?
Depending on how much you’ll be traveling around Mexico — and your appetite for expensive cuisine — you could need anywhere from $20 to $150 a day in Mexico — not including accommodations. While it tends to be cheaper than the US, you should still plan on spending about $10 for every meal (at least) and more for activities and transportation.
Here’s a cheat sheet to help while you budget your trip:
Kyle Morgan is SEO manager at Forbes Advisor and a former editor and content strategist at Finder. He has written for the USA Today network and Relix magazine, among other publications. He holds a BA in journalism and media from Rutgers University.
I would agree that exchange rates are so volatile, making it hard to predict future changes. If you are preparing a cheat sheet or budget for your future visit to Mexico, there are various ways on how you can lock in rates so you can effectively manage your finances.
One option is by opening a prepaid travel card that allows you to load Mexican pesos before your trip. The exchange rate will be locked in at the time you load currency into your card. You may also consider exchanging your USD for Mexican pesos at most major banks and currency exchange offices prior to your travel. This way, you can pay like the locals do without worrying about fees and charges.
Our guide above also discusses other travel money options for Mexico. It would be good to review the pros and cons of each option so you’ll know which one is suitable for your situation.
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With the rate changing daily , how do I create a quick cheat sheet to use during my one week stay?
Hi Valerie,
Thanks for your question.
I would agree that exchange rates are so volatile, making it hard to predict future changes. If you are preparing a cheat sheet or budget for your future visit to Mexico, there are various ways on how you can lock in rates so you can effectively manage your finances.
One option is by opening a prepaid travel card that allows you to load Mexican pesos before your trip. The exchange rate will be locked in at the time you load currency into your card. You may also consider exchanging your USD for Mexican pesos at most major banks and currency exchange offices prior to your travel. This way, you can pay like the locals do without worrying about fees and charges.
Our guide above also discusses other travel money options for Mexico. It would be good to review the pros and cons of each option so you’ll know which one is suitable for your situation.
I hope this helps.
Cheers,
Anndy