Currency in Mexico

The Official Currency: The Mexican Peso (MXN)

Understanding the Basics

• Symbol: The symbol for the Mexican Peso is `$`, which can cause confusion with the US Dollar. To prevent any misunderstanding, especially in tourist areas, always clarify. Prices listed with just a `$` are almost always pesos. If a price is in US dollars, it will be explicitly marked as `USD`, `US$`, or `Dolls`. When in doubt, it is always wise to ask.

• Denominations: You will encounter the following:

  • Bills (Billetes): The current G-series bills are made of polymer or cotton paper, featuring vibrant colors and advanced security features like transparent windows and tactile elements.
    
    $20 (Polymer), $50 (Polymer), $100 (Polymer), $200, $500, $1000
    
    
    
    
    
    
  • Coins (Monedas): 50 centavos, $1, $2, $5, $10, $20.

• General Exchange Rate: For planning purposes, you can think of the exchange rate as approximately 17-20 MXN to 1 USD. However, please be aware that this is just a guideline. Rates fluctuate daily. We highly recommend checking a reliable source like XE.com for the most current exchange rate just before your departure.

How to Get and Exchange Money

Using ATMs (Cajeros Automáticos)

• Best Method: Withdrawing pesos from a local ATM upon arrival is generally the most convenient method and provides the best exchange rate.
• Where to Find Them: For your security, always use ATMs that are physically located inside a major bank branch (like Santander, Scotiabank, Banamex, BBVA, or HSBC), a large supermarket, or within the airport. Avoid using standalone, unbranded ATMs on the street, especially in heavily touristed areas.
• Fees: Be prepared for two potential fees for each withdrawal: a fee from your home bank for using a foreign ATM, and a fee from the local Mexican bank for the service.

Currency Exchange Houses (Casas de Cambio)

• Convenience vs. Cost: You will find these conveniently located in airports and tourist centers. However, this convenience comes at a cost; they offer less favorable exchange rates and can have higher fees compared to using an ATM.
• When to Use: A casa de cambio can be a good option for exchanging a small amount of cash right when you land, giving you enough for immediate needs like a taxi or a snack before you can get to a bank ATM.
• ID Required: You will be required to present your passport to exchange currency.

Exchanging Money Before You Leave Home

• Pros: The main advantage is arriving in Mexico with local currency already in your pocket, which can provide peace of mind.

– Cons: Your local bank or exchange service at home will almost certainly offer the least favorable exchange rate you will find.

• Recommendation: If you prefer to have cash on hand, we suggest exchanging only a very small amount—perhaps the equivalent of $100 USD—to cover your first few hours. For the remainder of your trip, rely on ATMs in Mexico for better value.

Cash vs. Card: How to Pay for Things

The Power of Pesos (Cash)

• When to Use Cash: Cash is king for many transactions in Mexico. It is essential for smaller purchases, browsing local markets, buying from street food vendors, paying for taxis, and leaving tips. Many smaller, family-run establishments are cash-only.
• Carrying Small Bills: Make an effort to always have a mix of smaller bills, such as $20, $50, and $100 peso notes. Attempting to pay for a small item, like a $30 taco, with a $500 bill can be very difficult for vendors who may not have sufficient change. A helpful tip is to break larger bills at convenience stores like OXXO or 7-Eleven by purchasing a bottle of water or a snack.

Using Credit & Debit Cards

• Where They’re Accepted: Credit and debit cards are widely accepted in hotels, larger restaurants, established tour companies, and major retail stores, particularly in tourist destinations. Visa and Mastercard are the most commonly accepted, while American Express is accepted less frequently.
• Inform Your Bank: This is a crucial step. Before you depart, contact your bank and credit card companies to inform them of your travel dates and that you will be in Mexico. This simple action helps prevent their fraud-detection systems from freezing your cards when they see foreign transactions.
• Always Choose to Pay in Pesos (MXN): Just like at the ATM, if a credit card terminal gives you the option to pay in your home currency (e.g., USD, CAD, EUR) or in MXN, ALWAYS choose to pay in MXN. Choosing your home currency activates a poor exchange rate scheme known as Dynamic Currency Conversion (DCC), which will cost you more.

Tipping in Mexico (Propinas)

General Guidelines

• It’s Customary: Tipping, known as `propina`, is a standard and much-appreciated practice for good service. Wages in the service industry are often modest, so tips form a significant part of an employee’s income.
• Tip in Pesos: Please always tip in Mexican Pesos. While US dollars might be accepted out of politeness, it creates an extra task for the recipient, who must then find a place to exchange the foreign currency, often at a poor rate.

Common Tipping Scenarios

• Restaurants: 10-15% of the total bill is the standard for good service. Before tipping, glance at your bill (`la cuenta`) to see if a service charge (`propina` or `servicio`) has already been included, which sometimes happens in tourist areas.
• Bartenders: $20-40 pesos per round of drinks, or if running a tab, 10-15% of the final bill.
• Hotel Staff:
  • Porters/Bellhops: $50-100 pesos for helping with your luggage.
  • Housekeeping: $50-100 pesos per day. It is best to leave the tip daily (e.g., on the pillow or nightstand) as staff may change during your stay.
• Tour Guides & Drivers: For a guide, 10-20% of the tour cost is a good guideline, depending on the quality, enthusiasm, and length of the tour. For a private driver, a similar percentage is appropriate.
• Grocery Baggers & Gas Station Attendants: At supermarkets, young people or seniors often bag your groceries for tips. A small tip of $5-10 pesos is customary and appreciated. The same applies to gas station attendants who provide service.