7 Masterful Ways of Exchanging Money in Mexico, ATM Tips & More!

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Are you curious about the process of exchanging money in Mexico? Are you wondering how Tipping works here in Mexico? What about ATMs?

These Mexico money tips will demystify everything surrounding handling money in Mexico!

Exchanging money in Mexico is an essential part of your travel experience. Make sure you understand the best ways to exchange money in Mexico before your trip.

Airport currency exchange or bust!”

“Take only USD”

“Everywhere takes credit cards!”

Make sure to know how to spot unacceptable exchange rates while exchanging money in Mexico to avoid losing money.

There is a lot of conflicting advice about managing money in Mexico, and much of it is unhelpful.

When exchanging money in Mexico, you have several options. Knowing how to navigate these options can save you time and money.

There’s a lot to know when it comes to managing money in a foreign country. It can be challenging to figure out how to use a foreign currency. I recommend you bookmark the travel blog section of my website for each and every new article that I write related to my travels.

From determining the best way to exchange money to avoiding ATM fees to figuring out if you’re still on a budget while navigating an exchange rate, there are a lot of mental gymnastics involved.

Wondering how to get the best currency exchange rate in Mexico? Use Wise!

You probably have all kinds of questions about things like how much to tip, whether you should use dollars, how to keep your cash safe (especially if carrying a lot of it), and whether your credit card will work anywhere. 

I put this article together to help you find clarity. Hopefully, these tips will help you plan the best way to manage your money in Mexico and, more importantly, how to exhange money in Mexico, especially if you’re coming from the US or Canada.

It’s important to consider the exchange rates when exchanging money in Mexico so you can make the most of your funds.

What currency does Mexico use?

The official currency of Mexico is the Mexican peso, and it is denoted with the $ sign and abbreviated as MXN. 

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How to exchange money in Mexico is something that 90% of expats and long-term visitors learn by trial and error.

Luckily for you, it doesn’t have to be a costly learning curve like it was for me and many other folks like me when it came to trying to find the best way to exchange money in Mexico.

Prices are displayed in MXN almost everywhere you go in Mexico, so don’t panic if everything seems to cost significantly more than expected.

Beer does not cost $40 a bottle—the prices are in pesos! (It’s actually more like $2 USD.)

Occasionally, in super-touristy destinations like Cancun or Puerto Vallarta, you might notice some prices listed in USD. It’s usually very apparent when this is the case; it’s generally safe to assume prices are listed in pesos.

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Here is a list of Mexico’s different denominations in pesos along with the equivalent USD value for exchanging money in Mexico (as of December 2025):

Mexico’s Pesos in Bills (as of December 2025)

• 1000 pesos ($56 USD)
• 500 pesos ($29 USD)
• 200 pesos ($11 USD)
• 100 pesos ($5.50 USD)
• 50 pesos ($11 USD)
• 20 pesos ($2.80 USD)

Coins (as of 2025): 

• 20 pesos ($2.80 USD)
• 10 pesos ($0.50 USD)
• 5 pesos ($2.80 USD)
• 2 pesos ($0.28 USD)
• 1 peso ($0.14 USD)

Consider the advantages of using a multi-currency card when exchanging money in Mexico.

Conducting thorough research on exchanging money in Mexico is an essential part of planning your trip.

Whether you’re a novice or an experienced traveler, understanding the intricacies of currency exchange in Mexico is essential for reducing costs when you exchange money in Mexico.

Mexican peso to USD exchange rates

The exchange rate between MXN and USD fluctuates regularly. Over the past year, the exchange rate has been approximately 18 Mexican pesos (MXN) for every 1 US dollar (USD), and this is as of December 2025. 

Download a currency conversion app or bookmark Google’s currency conversion page so you can check the rate while you’re out and about in Mexico. This way, you can compare my suggestions for the cheapest way to exchange money in Mexico.

This process is especially important if you’re hoping to change American money in Mexico once you arrive. 

Can you use US dollars in Mexico?

Sometimes restaurants or local vendors in touristy areas (like Cancun or Puerto Vallarta) will offer to accept USD in place of pesos, but they usually offer a terrible exchange rate. 

Before agreeing to use USD instead of pesos, it’s always best to quickly look up the current exchange rate between dollars and pesos in Mexico. 

Please ensure you clearly understand the methods for exchanging money in Mexico so you can maximize the value of your home country’s currency.

Traveling soon? Don’t forget to buy travel insurance for Mexico. Insurance gives you peace of mind, knowing you can get the help you need if anything goes wrong. EKTA Insurance is the provider that I recommend.

Mexican pesos to Canadian dollars

Recently, the exchange rate between Mexican pesos and Canadian dollars (CAD) has been around 13 MXN to 1 CAD, as of December 2025. This has been much more of a steady exchange rate compared to the US Dollar.

Again, exchange rates vary daily, so use a currency conversion app to keep track of the current rate. Additionally, you will notice that fees also vary when exchanging money in Mexico, whether at a bank ATM or a casa de cambio.

Please remember to plan ahead for exchanging money in Mexico so you can maximize your funds.

Exchanging money in Mexico

Ideally, you can exchange a few thousand pesos with your bank at home ahead of your trip. This way, you’ll have cash for incidentals along the way.

You won’t get the best exchange rate (more on this below), but it’s better to have cash when you arrive in Mexico, so get a few thousand pesos before you leave.

Avoid airport currency exchanges because they usually charge fees and offer a terrible rate.

You’ll get a better rate directly from your bank. Pulling cash out of an ATM in Mexico will give you the best exchange rate (more on this below).

Exchanging money at your home bank

You can probably get a decent exchange rate for pesos at your home bank, but keep in mind that there are usually currency exchange fees tacked on top of the exchange rate.

However, it’s advisable to arrive in Mexico with a small amount of local currency, just in case you require it.

Try to get at least 4,000 pesos (around $200 USD) before you go. Make sure you request this cash from your bank at least a couple of weeks before your trip.

Your bank may not have the currency on hand, depending on where you live. 

Again, this isn’t the most cost-effective way to get pesos (you’ll get better rates through local ATMs in Mexico), but having cash in hand is key when you arrive.

The last thing you need is to hit up an ATM at night on the way to your hotel. 

Currency exchange services

You can change money at currency exchanges (casa de cambio, in Spanish) throughout Mexico.

These are very prominent within international airports and tourist-oriented destinations like the Riviera Maya or Puerto Vallarta.

I can’t say that I’ve noticed them in less tourist-centric cities, though I’m sure there are some.

You won’t get a very favorable rate at a money exchange in Mexico. There is usually a flat fee for exchanging money.

Plus, the exchange rate offered can be as much as 15% worse than what you’d receive through your bank. 

Understanding how exchanging money in Mexico works can greatly enhance your travel experience and allow you to budget effectively.

Many travelers are unsure about the best methods for exchanging money in Mexico, and this guide will clarify those options for you.

Always keep in mind the importance of securing the best rates when exchanging money in Mexico.

Exchanging money in Mexico through local banks usually provides a better rate compared to airport exchanges.

Using ATMs in Mexico: Can I withdraw money?

Yes. You can withdraw money from ATM machines in Mexico. In my experience, using local ATMs offers the most competitive exchange rate for pesos. 

You may be required to pay a withdrawal fee to your bank and an additional fee to the Mexican bank in certain situations. This probably isn’t a big deal if you do it a couple of times, but you definitely want to avoid doing it repeatedly.

Review your bank’s policy regarding withdrawing money abroad so you don’t face any surprises when you reach Mexico.

Consider opening a bank account that doesn’t charge foreign ATM withdrawal fees, just for your trip.

It’s a beneficial idea to have your travel fund separate from your primary bank account anyway, just in case your card becomes compromised. 

Assuming your bank charges minimal fees, using the ATM at a local bank in Mexico is typically the cheapest way to get pesos.  

ATMs with low fees

Knowing where to go for exchanging money in Mexico can save you both time and money.

For frequent travelers, understanding the intricacies of currency exchange in Mexico can be invaluable.

Using ATMs for exchanging money in Mexico can often yield favorable rates if you choose local banks.

The following ATMs are the ones that seem to charge the lowest fees for withdrawing cash. 

My bank accounts are in Canada and the US, so fees may differ in other countries.

Here are the Mexican ATMs I use, with their approximate fees (these seem to vary slightly by location, but not much):

• Santander—usually the fee is around 30 pesos
• CI Banco – usually about 17 pesos
• Ban Bajio – about 21 pesos
• Banamex – about 25 pesos

Please ensure you are aware of the fees associated with exchanging money in Mexico to prevent any unexpected charges.

I avoid HSBC and BBVA Bancomer because the fees tend to be high—around 90 pesos. Also, Bancomer is a popular bank for Mexican nationals, and as such, it often has a long line (I really hate waiting in line).

**Reject the proposed exchange rate when you withdraw money** 

When it comes to exchanging money in Mexico, always compare rates to ensure you’re getting the best deal.

If you don’t remember anything from my article, just remember this one helpful hint.

You are entitled to reject the proposed exchange rate that the ATM machine offers you. It’s always beneficial, and you will get a better default exchange rate.

Don’t feel guilty if you fall victim to this practice a time or two. It still happens to me occasionally, and I’ve been aware of it for years.

When you withdraw money from a Mexican ATM, it might show a screen asking, “Do you accept this exchange rate?” with a summary of the transaction fees.

You will have the option to accept or decline. Hit decline. Declining won’t cancel the transaction. 

When exchanging money in Mexico, keeping an eye on conversion rates is essential for making informed decisions.

​The transaction will proceed, and the exchange rate will be determined by your bank back home instead of by the Mexican bank you’re withdrawing cash from.

You’ll get a much more favorable rate from your home bank. 

ATM Safety Tips

Here are a few safety tips to keep in mind when using ATMs throughout Mexico. 

• Card skimming is an issue in Mexico, and it can happen at ATMs. For the best chance of avoiding it, stick to ATMs located in supermarkets or banks.
  
  These ones are more closely monitored and have a lower likelihood of being compromised.
  
• Avoid ATMs around payday. Most people in Mexico get paid on the 15th and 30th of each month. Since the country is heavily cash-based, everyone immediately withdraws the majority of their paycheck to cover their bills and groceries.
  
  Since thieves know this, they’re on high alert following payday (quincena) because everyone has pockets full of cash. You’ll know it’s payday because every bank will have super long lines.
  
  Be really inconspicuous if you withdraw cash at this time. 
  
• Only use ATMs in well-lit areas. Better yet, avoid withdrawing cash at night altogether!

How to avoid ATM fees & foreign transaction fees

Here are a few ideas for eliminating or reducing ATM and foreign transaction fees. This is especially key if you’re going to be in Mexico long-term. 

Bank with Charles Schwab (US Only)

If you’re from the US, open a Charles Schwab checking account. This ATM card really is the best option for Americans in Mexico.

There are no account fees, and Schwab refunds any ATM fees at the end of the month.

They will also offer you the best exchange rate of the day when you withdraw money. 

Understanding how to exchange money in Mexico will provide you peace of mind during your travels.

You will have to open a brokerage account when you open a checking account, but they are both free, and you can open them with a deposit as small as 20 US dollars.

I used a Schwab account the entire time I lived in Mexico, and it was fantastic.

The company also has excellent customer service if you run into any problems. 

Use a credit card with no foreign transaction fees

You will be able to use your credit card in many places, especially chain stores like Oxxo, Fasti, Chedraui, and MEGA, and in touristy areas like Playa del Carmen or Puerto Vallarta. 

Due to high transaction fees, smaller establishments will always prefer cash, and many of them won’t accept credit cards at all.

Credit card companies typically offer a fantastic exchange rate, so it’s smart to use them wherever you can. Just make sure your card doesn’t charge a foreign transaction fee. 

If you are a Canadian traveling abroad, there are many great credit cards in Canada that charge no foreign transaction fees.

Travel tip: It’s not totally uncommon for card processing machines to go down due to connectivity issues (this happened constantly when I lived in Playa del Carmen), so it’s best not to rely solely on cards for everyday purchases.

Always keep in mind that exchanging money in Mexico can vary depending on the location you choose.

Is there sales tax in Mexico?

Yes, there is.

The value-added tax in Mexico is referred to as IVA (impuesto al valor agregado), and the rate is 16%.

Typically this rate is built into prices as they are listed, but some establishments choose to add it to the bill at the end.

Either way, it should be noted on your sales receipt as “IVA.”

Safety tips for handling money in Mexico

Here are some common-sense safety tips for managing your money in Mexico. While the chances that anything will go wrong are low, I always advocate for being prepared for the worst.

Especially if you’re a solo traveler. A little bit of additional preparation and precaution will save you a lot of stress in an emergency.

Keep your trip funds in a separate account

Having a separate bank account for your trip funds provides a buffer in the unlikely event your account becomes compromised.

You could use the Wise account I mentioned above or simply open an additional checking account with your existing bank.

Whatever you do, make sure it’s easy (and fast) to transfer funds in and out if you need to top it up mid-trip.

Being aware of where to exchange money in Mexico can help you make the most of your journey.

Carry an anti-theft purse

The process of exchanging money in Mexico can vary greatly between regions, so stay informed.

While I do think the chances that you’ll actually be pickpocketed are very low, it’s worth taking every precaution, especially if you’re traveling Mexico solo. 

An anti-theft purse incorporates features like locking zippers, slash-proof fabric, and RFID blocking material to protect your valuables. I carry this one, but there are all kinds of different anti-theft purse styles out there!  

Bring a back-up debit card

Carrying a spare ATM card is a lifesaver in the event that your card gets skimmed, swallowed by an ATM, or, more realistically, lost at the bar (just sayin’).

Give yourself peace of mind and pack a spare card for use in emergencies. 

Stash some extra cash somewhere discreet

Since Mexico is so cash-oriented, it’s always beneficial to have some spare bills hidden away somewhere.

This way if your purse gets stolen, you lose your debit card, or whatever else, you’ll have a small stash of funds to get you through until you solve the problem.

I recommend stashing about 1,000 pesos somewhere in your luggage for emergencies.

If you carry large quantities of cash, break it up

In larger cities, you can count on ATM access and the option to use your credit card, so it’s not necessary to carry large amounts of cash.

However, if you’re headed to smaller towns or more rural areas, cash is essential.

Popular destinations like Tulum, Puerto Escondido, Sayulita, and other small coastal towns often only have one or two ATMs, and it’s not unusual for them to run out of cash during the busy season.

If you’re headed to these areas, it’s wise to bring a healthy supply of cash… just don’t keep it all in one place.

​Protect your travel fund from prospective thieves by breaking it up into several smaller stashes. Hide them discreetly in your room, in different areas.

Often thieves are in a hurry, so they’ll snatch a backpack or a purse, so don’t leave your whole travel fund hidden somewhere obvious like that. Get creative. 

General Mexico Money Tips

Always have change on hand

Mexico’s economy is very much cash-based, so it’s essential to keep some coins and small bills on hand when traveling. 

You’ll need them for tipping, visiting public restrooms (often they charge a 5 peso fee), or making small purchases.

Many businesses in Mexico can’t (or won’t) change bills larger than 200 pesos, so always be prepared with smaller denominations. 

Travel Tip: Carry coins and small bills to pay for taxis with exact change. It cuts down on price disputes and makes it quicker and easier to exit the vehicle at the end of the ride.

Tipping in Mexico

It’s customary to tip in restaurants in Mexico. Most Mexicans tip 10–20%, depending on the quality of service.

I generally tip 15 or 20% unless the service is horrible.

Just like in Canada and the US, waitstaff in Mexico don’t earn high wages, as employers assume tips will make up the rest of their wages.

On top of that, the minimum wage in Mexico is around $208 MXN per day.

I don’t think it’s necessary to tip over 20%, but remember that a few pesos could make a big difference to your server.

Other people you’ll encounter who expect a tip:

• Individuals who help you with your luggage (a few pesos is customary)
• Cleaning staff in hotels ($50–100 MXN per day)
• Baggers in grocery stores ($5–$10 MXN)
• Shuttle drivers, but only if they help with your luggage ($20–$50 MXN)
• Bathroom attendants ($5-$10 MXN)
• Tour guides ($50 MXN or more, depending on the cost of your tour)

For more on the ins and outs of tipping, check out my guide to tipping in Mexico. 

Tip in pesos

Don’t tip in dollars in Mexico. There is a common misconception floating around, particularly in resort communities, that Mexican workers prefer tips in US dollars.

I can’t speak for everyone, but I have yet to encounter a local who prefers US dollars to pesos. 

When you tip in a foreign currency, workers must then visit a money exchange or exchange the currency through their bank, where they will surely have to pay a conversion fee. 

Not to mention, they’ll have to spend their precious spare time waiting in line at the bank when they’d surely rather be spending time with their family and friends.

A typical workweek in Mexico is six days on and one day off. Don’t burden people with chores on their days off: tip in pesos!

Pay in pesos

The local currency (Mexican pesos) is always the best to use in Mexico.

When you pay with dollars, you are usually given a poor exchange rate in Mexico.

Currently, $1 USD is worth about $18 MXN, but when you use American dollars in shops and restaurants, you’re often given an exchange rate of 15 or 16 pesos to the dollar, and sometimes less!

Don’t hesitate to verify the rates when exchanging money in Mexico to ensure you’re not getting ripped off.

Your travel experience will be more enjoyable with a solid plan for exchanging money in Mexico.

Yes, it may cost a bit to exchange your native currency for pesos, but it will likely save you money in the long run.

When the time comes for exchanging money in Mexico, being informed can make a significant difference.

Many travelers overlook the importance of understanding how to properly go about exchanging money in Mexico.

Haggling isn’t as common as you might think

Many travelers seem to believe that haggling is the name of the game when it comes to shopping in Mexico, but in my experience, this just isn’t the case.

More often than not, prices are as marked, and there’s not much you can do about it. 

Occasionally vendors or taxi drivers may invite you to haggle, particularly in very touristy zones where they’re accustomed to doing it, but it’s not a big part of the culture. 

On top of that, some locals even find it offensive (myself included).

I understand the desire to pay a fair price for whatever you’re buying, but I’ve witnessed many tourists simply trying to drive the price down as low as possible. 

Always remember, the person selling to you probably has a family to feed. In my experience, prices in Mexico are low enough already.

If you’re not content with what something costs, you’re better off seeking a different option. 

On that note, avoid doing your souvenir shopping in the heart of the tourist zones where rent is high. If you venture a couple of blocks away, you’ll often discover the same items at a fraction of the cost.

FAQ (Frequently Asked Questions)

I hope you found these tips for managing money in Mexico helpful! For more Mexico travel advice, check out my post on essential Mexico travel tips.

If you have any questions or additional tips to share, please let me know in the comments! 

Having a strategy for exchanging money in Mexico can enhance your overall travel experience and save you time, increase your safety, and lower your anxiety. The outcome is you’ll enjoy your vacation in Mexico that much more!