Getting Mexican Pesos for Your Trip
Mexico is a fantastic destination with a well-developed tourist infrastructure, but navigating money can be confusing due to the widespread acceptance of US Dollars. Here's the key insight: while USD is accepted in tourist areas, you'll almost always get better value paying in Mexican Pesos.
When businesses quote prices in USD or accept USD payment, they typically use exchange rates 10-15% worse than the market rate. This "gringo tax" adds up quickly over a two-week holiday.
Key insight for 2026: Always pay in Mexican Pesos. When given the choice between USD and MXN, choose Pesos. When cards ask "charge in GBP or MXN?", always choose MXN. This simple rule will save you hundreds of pounds over your trip.
The Mexican Peso uses the $ symbol (same as USD), which can be confusing. Prices in tourist areas may show "USD" or "US$" for dollars. When you see just "$", assume it's Pesos unless clearly marked otherwise. Notes come in $20, $50, $100, $200, $500, and $1,000 denominations.
Best Ways to Get Pesos
- Withdraw from bank ATMs with a fee-free card (Best option) - Use ATMs inside banks during banking hours. Santander, Banamex (Citibank), HSBC, and Scotiabank are most reliable for foreign cards. Use Wise or Revolut to avoid fees.
- Exchange GBP at specialist bureaux in Mexico - Currency exchange houses (casas de cambio) in cities offer good rates. Compare a few and negotiate on larger amounts.
- Use your card directly - Cards are widely accepted in hotels, restaurants, and shops in tourist areas. Use a fee-free card like Wise or Revolut.
- Exchange at the airport on arrival - Airport rates are poor, but getting MX$1,000-2,000 for initial expenses is reasonable. Don't exchange everything here.
Avoid: Paying in USD (poor rates), exchanging at hotels (worst rates), using standalone ATMs (scam and skimming risk), accepting DCC on card transactions (choose Pesos, not GBP).
USD vs Pesos: The Real Cost
Let's be clear about why paying in Pesos matters:
Example: Restaurant Bill
Your bill shows $500 MXN (about £23). The restaurant offers to charge you in USD "for convenience" at their rate of 18:1, making it $27.78 USD.
- Pay in Pesos: £23.26 (at real exchange rate)
- Pay in their USD conversion: £25.50 (at typical tourist rate)
- Your loss: £2.24 on a single meal
Over a two-week trip with 50+ transactions, these losses compound significantly.
When USD is Acceptable
- Emergency only - If you run out of Pesos and can't find an ATM
- Tips at all-inclusive resorts - Staff may prefer USD; check local customs
- Never as your primary currency - Always aim to pay in Pesos
Using Cards in Mexico
Card acceptance is good in tourist areas and cities, but Mexico remains a cash-heavy country in many respects.
Where Cards Work Well
- Hotels and resorts - All accept Visa/Mastercard
- Restaurants - Most sit-down restaurants in tourist areas
- Shopping malls - Universal acceptance
- Supermarkets - Walmart, Chedraui, Soriana all accept cards
- Gas stations - Most accept cards (keep cash backup)
- Tourist attractions - Entry tickets usually payable by card
- Uber/DiDi - Ride-hailing apps accept card payment
Where You'll Need Cash
- Street food - Tacos, tortas, and market food are cash-only
- Markets - Local and artisan markets throughout Mexico
- Small restaurants - Local comedores and family restaurants
- Taxis - Regular taxis are cash-only; use Uber for card payment
- Buses - Local buses require cash; ADO and long-distance can be booked online
- Beach vendors - Souvenirs, drinks, and services on beaches
- Tips - Always in Pesos (or occasionally USD at all-inclusives)
Card tip: Some establishments add 3-5% surcharge for card payments. This is technically against card network rules but common in Mexico. Sometimes it's worth paying to avoid poor cash exchange rates.
ATMs in Mexico: Staying Safe
ATM safety is important in Mexico. Follow these guidelines:
Safe ATM Practices
- Use bank ATMs only - Inside banks during banking hours is safest
- Avoid standalone ATMs - Street ATMs, convenience store ATMs have higher skimming risk
- Check for skimmers - Wiggle the card slot; if it moves, don't use it
- Cover your PIN - Hidden cameras are a real threat
- Withdraw during the day - Avoid night-time ATM visits
- Airport ATMs are okay - Convenient on arrival, well-monitored
Best Banks for Foreign Cards
- Santander - Most reliable, English interface, reasonable fees
- Banamex (Citibank) - Good for international cards
- HSBC Mexico - Familiar to visitors, good acceptance
- Scotiabank - Reliable with good English interface
ATM Fees
Mexican ATMs typically charge MX$30-60 (£1.40-2.80) per withdrawal. Your bank may add 1-3% on top. Using fee-free cards like Wise or Revolut means you only pay the local ATM fee.
Decline DCC
ATMs often offer to convert to GBP - always decline and choose "Mexican Pesos" or "local currency". DCC (Dynamic Currency Conversion) uses terrible rates.
Money Safety Tips for Mexico
- Don't flash cash - Be discreet when paying and withdrawing
- Use hotel safes - Store backup cards, passport, and extra cash securely
- Split your money - Keep some in your wallet, some hidden, some in hotel safe
- Carry a decoy wallet - Some travellers keep a small amount in a secondary wallet
- Beware of fake notes - Check $500 and $200 notes carefully; they're commonly counterfeited
- Count your change - Short-changing can happen, especially in busy tourist areas
- Keep small bills - $20, $50, $100 notes are essential for tipping and small purchases
Best Exchange Options for MXN
Top providers by category:
Intercam Banco
Best forex rates in Mexico. Branches in major cities.
BBVA México
Largest ATM network. Low fees for partner bank cards.
Santander México
Good coverage, accepts most foreign cards.
Casas de Cambio
Street exchange houses. Compare rates, avoid tourist areas.
Cancún Tourist Zones
Very poor rates in hotel zones. Use bank ATM.
Compare MXN Exchange Rates
See what you'd receive from providers local to you
Frequently Asked Questions
The guide's top pick is a cash machine inside a bank branch, and it names Santander, Banamex, HSBC and Scotiabank as the most reliable with foreign cards. With a fee-free card, only the local machine charge is left to pay. Casas de cambio in the cities are another good source: compare a few and haggle over larger sums.
Pay in Pesos. US Dollars are taken in tourist areas, but businesses that quote or accept them generally apply a rate 10-15% worse than the market, and the losses mount over a fortnight of meals and purchases. Keep USD for emergencies when no ATM is to hand, or for tips at all-inclusive resorts where staff may prefer it.
Cards are widely accepted in hotels, resorts, malls, supermarkets, most sit-down restaurants in tourist areas and ride-hailing apps, though Mexico is still cash-heavy. You will need Pesos for street food, markets, small family restaurants, regular taxis, local buses, beach vendors and tips. Some places add a 3-5% surcharge for paying by card.
Stick to ATMs inside bank branches during banking hours and withdraw in daylight. Standalone machines on streets and in convenience stores carry a higher skimming risk, so check the card slot and cover your PIN. Expect a local fee of MX$30-60 per withdrawal, possibly plus 1-3% from your own bank, and always decline any offer to convert to GBP.
Airport rates are poor, so change only enough for your first expenses, around MX$1,000-2,000, rather than everything. Airport ATMs are a reasonable alternative, as they are convenient and well monitored. Hotels give the worst rates of all, and rates in Cancún's hotel zones are also very poor, so use a bank ATM there instead.
It depends on how often you will use cash-only places such as street food stalls, markets, small restaurants, regular taxis and local buses. Keep small notes ($20, $50 and $100) for tips and minor purchases, split your money between your wallet, a hidden spot and the hotel safe, and check $200 and $500 notes carefully as they are commonly counterfeited.
Nearby Destinations
Planning to visit multiple countries? Check out exchange guides for nearby destinations:
United States
Canada
Colombia
Brazil