While not the most interesting of topics, knowing how to withdraw cash and spend in Mexico can end up saving your spending money from providers that see your wallet as their ATM. Read on to find out the currency of Mexico, how to withdraw it with the best rates and our tips for avoiding excessive fees on your trip!
Introducing the Mexican Peso
The Mexican Peso, also known as MXN and shown as $, is the official currency of Mexico and is therefore the expected way to pay throughout the country. Some sellers in tourist spots may also accept the the US dollar as a form of payment although Pesos are best as they can have unfavourable exchange rates.
As of the current conversion rates, 1 US Dollar is equivalent to approximately 17 Pesos. It’s worth remembering a rule for your currency before you go so that you can more easily judge value of anything you want to buy in the country. For example, you could remember $3 US being about 50 Pesos.
You can pay for most things in the tourist areas of Mexico using your debit or credit card. Sometimes fees may be added for these card transactions and some services, such as taxis, may only accept cash. Additionally in order to tip in Mexico, you’ll almost always need cash. It’s therefore worth having at least some Pesos while travelling in and to the country.
Get a fee-free card
Many providers, especially more traditional banks, charge additional fees for transactions not made in your home currency. These can quickly add up as they are usually added every time you tap, swipe and spend on your card while away.
Before travelling, research how much your card providers charge for foreign withdrawals. Ideally, you want a card that uses the card network (such as Visa or Mastercard) rate directly, with no added fees. In the UK, modern banks such as Monzo, Starling Bank and Chase offer fee-free spending abroad on payments and generous limits for ATM.
If your current providers do not offer fee-free spending abroad, it may be worth considering opening a new account specifically for travel purposes. By taking the time to find a fee-free card or open a new account, you can not only spend fee-free in Mexico, but with most cards, worldwide.
ATM fees by bank
In locations such as supermarkets and shopping centres, you will usually see multiple ATMs next to each other. When we flew into Cancun airport there were many ATMs in the arrival hall from major Mexican banks such as Santander and Citi Banamex.
How common these ATMs are mean you likely have not much need to bring cash with you. Although its best to bring a small amount in case of any problems before you can find an ATM. Most ATMs also have an English option (as well as Spanish of course) so you should breeze through the menus as you would back home.
If you like in a country such as the UK, you might be used to not paying ATM fees on cash withdrawals. Unfortunately, you should expect to pay a small fee in Mexico. This is usually only a couple of dollars (30 – 80 pesos) if you choose an ATM from a cheaper provider.
The cheapest ATMs in the country are from well-known banks in Mexico with their fees per withdrawal in brackets:
- BanCoppel (29 pesos)
- Banamex/Citibank (30.74 pesos) – This is the one we used mostly in Mexico, we had a Walmart with this ATM in close by
- Banco Azteca (34.80 pesos)
- Santander (36 pesos)
- Banorte (46 pesos)
Other common although slightly more expensive ATMs are:
- Scotiabank (100 pesos)
- BBVA (174 pesos)
Avoid random ATMs in corner stores or on the street that aren’t from a bigger bank such as those above. You’ll end up paying far higher fees then you need to and have less for tacos and tequila!
Avoid dynamic currency conversion
This is one to be aware of when you travel anywhere that doesn’t use your home currency but it is one simple tip that can avoid a very sneaky and common fee:
AVOID dynamic currency conversion (DCC).
When you’re traveling abroad, you might come across this trick at the cash register or withdraw an ATM. They try to lure you in by offering to convert the price into your home currency right then and there. Sounds convenient, right? Well, here’s the catch.
They usually offer a terrible exchange rate, like seriously terrible. And you end up losing a bunch of money likely without even realising it. So, my advice is to always pay in the local currency (Pesos in Mexico) and let your bank handle the conversion. That way, you’ll get a much better rate and save every time you spend.
Often this isn’t easy to avoid as its a way that payment providers can easily make money so they try and encourage you to accept the fee. They may have warnings such as ‘You may pay extra for this transaction in your currency’, if you have a card that is fee-free then this is not the case and the notice can be ignored.
The screen on the ATM often looks similar to below:
Always press ‘without conversion’ or similar when this is offered by ATMs or payment terminals in shops and restaurants to not pay any extra hidden fees via dynamic currency conversion.
FAQs
Still got questions on using in withdrawing cash in Mexico?
Do ATMs in Mexico dispense pesos?
Yes, ATMs in Mexico do dispense pesos. Most major banks have ATMs that provide pesos as the local currency. Some ATMs may also dispense US dollars, especially in popular tourist areas where you can often pay in dollars in restaurants and shops. However, when possible using Pesos is best, as some sellers, such as taxis, can have very poor conversion rates when paying in US dollars.
Are ATMs in Mexico safe?
When considering the safety of ATMs in Mexico, it is important to exercise caution and remain vigilant. As when using any ATM, it is advisable to be mindful of anything that may appear suspicious in the vicinity of the cash machine. Trust your instincts and if anything seems suspicious, it is best to find another ATM.
Do I get charged for using my debit card in Mexico?
Using your debit card in Mexico can be a convenient way to make payments, as they are accepted in most tourist areas. The good news is that there is usually no charge for using your debit card while in Mexico. Occasionally, there is a charge of around 5% added to bills for using a card, however this was very rare in our experience in Cancun.
Do check you have a fee-free card (either credit or debit) for international transactions before you leave as your home country bank may have extra fees.
Got any other tips or questions we haven’t got to that you want to share? Been to Mexico and found an even cheaper ATM? Please do let us know in the comments!
