A Common but Crucial Travel Question
Picture this: you arrive with your family in a Mexican plaza. The kids are eager to try traditional snacks like elotes or homemade ice cream, and you suddenly realize—you only brought U.S. dollars. Will vendors accept them? Is it better to exchange money beforehand? What about credit cards?
In this comprehensive guide, we’ll walk you through everything you need to know from a travel perspective. We’ll explore when and where it’s best to use Mexican pesos, US dollars or any other currency, how to exchange currency safely, and how to manage money while traveling through Mexico.
1. Understanding Mexico’s Currency: The Peso Explained
Before you pack your bags, it’s important to get familiar with Mexico’s official currency: the Mexican peso (MXN).
What do Mexican pesos look like?
- Bills come in denominations of 20, 50, 100, 200, 500, and 1,000 pesos.
- Coins are available in 1, 2, 5, 10 pesos, and centavo coins (50, 20, 10 cents).
Why pesos are important?
While you may be tempted to use U.S. dollars (especially in touristy areas), many local businesses—especially small vendors, food stalls, taxis, and markets in almost all the cities—only accept pesos.
Even if they accept dollars or even euros, you’ll often get a poor exchange rate or your change in pesos at an unfavorable rate.
2. Can You Use U.S. Dollars in Mexico?
The short answer is yes, but with important limitations.
Where dollars are accepted:
- Hotels and large resorts (especially in places like Cancun, Los Cabos, and Playa del Carmen)
- Some restaurants and shops in tourist areas
- Certain airport vendors
- Tour guides or excursions
Where dollars are normally NOT accepted:
- Street food stands
- Local transportation (like colectivos or buses)
- Public markets (mercados)
- Museums, archaeological sites, or cultural attractions
Using dollars or euros in Mexico is a bit like using foreign coins at home—it might work in some places, but it’s not ideal.
3. When and Where to Exchange Your Money
If you’ve decided that pesos are the way to go (and they usually are), then the next step is figuring out how to get them.
Best places to exchange dollars for pesos:
- Banks: Reliable but may have long lines and limited hours (typically 9 a.m. to 4 p.m., weekdays only).
- Casas de cambio (Currency exchange offices):
- Available in airports and tourist zones.
- Rates vary, so check around before exchanging large amounts (normally in the airports have worse exchange rates).
- ATMs (cajeros automáticos): Often the most convenient but you need to be aware of your bank commissions and search for reliable ATMs.
- Widely available in cities, airports, and shopping areas.
- Use ATMs located inside banks or malls for extra security.
- Avoid sketchy-looking standalone machines.
Places to avoid:
- Hotel front desks: convenient, but usually offer poor exchange rates.
- Street exchangers: not safe or reliable.
4. Credit Cards, Debit Cards, and Digital Wallets: Should You Use Them?
Many travelers today prefer the ease of using cards or apps. Here’s what to know:
Credit cards:
- Widely accepted in restaurants, hotels, and larger stores.
- Always choose to pay in pesos, not USD, to avoid hidden fees.
- Inform your bank of your travel plans to avoid transaction blocks.
Debit cards:
- Great for withdrawing pesos from ATMs.
- Be aware of international ATM and bank fees.
- If you have a credit card better use it to pay in shops for extra security.
Mobile payment apps:
- Gaining popularity in big cities and touristy areas.
- Apps like Apple Pay and Google Pay are accepted in some restaurants and stores.
Tip: Smaller towns and off-the-beaten-path family attractions often don’t accept cards, so always have some cash available.
5. How Much Cash Should You Carry? Practical Advice for Families
This depends on your itinerary, but here’s a general guide:
- For families traveling light or on short trips (3–5 days):
- Around $2,500 to $4,000 MXN per day (about $120 to $200 USD), especially if you plan to eat at local restaurants, shop in markets, or take taxis.
- For longer trips or day tours:
- Bring extra for entrance fees, guides, and transportation. Many natural parks, cenotes, or archaeological sites charge in cash only.
- Emergency fund: Always keep a backup reserve hidden in a secure place (or in a parent’s travel belt or hotel safe).
Suggested daily cash breakdown (for a family of 4):
- Breakfast/snacks (per person): $200 – $300 MXN
- Lunch (per person): $400 – $600 MXN
- Activities/entrance fees (per person): $500 – $800 MXN
- Transportation: $200 – $300 MXN
- Souvenirs/other: $200 – $300 MXN
6. Cultural Insight: Money Etiquette in Mexico
Understanding local customs around money can make your trip smoother and more respectful.
Tipping:
- Restaurants: 10 – 15% is standard.
- Hotel staff (bellboys, housekeeping): $20 – $50 MXN per service.
- Tour guides: $100 – $200 MXN depending on length and quality.
Change issues:
Many small vendors and taxis don’t carry change for large bills (500 or 1,000 MXN), so carry smaller denominations.
Memories Over Money Worries
So, should you bring pesos or US dollars to Mexico? For most of the people, the answer is clear: pesos are the way to go. They’ll open more doors, make daily purchases easier, and help you dive deeper into the rich, warm, and colorful life of Mexico.
If you travel from other country you should check if you can change some money directly from your currency and compare if it’s cheaper than change your money to US Dollars and then to Mexican pesos, in case of Euros is better to change directly Euros to MXN because in Mexico is also a common currency but it depends on each one.
By preparing ahead, understanding how to exchange and use your money wisely before traveling to Mexico.