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

1. 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.
2. 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.
3. 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.
4. 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 UK travellers, 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