Do I need cash in Mexico, or can I use cards?

In cities and resort areas, cards are routine at hotels, established restaurants, chains and shops, with Visa and Mastercard the most accepted and Amex hit or miss. Apple Pay and Google Pay work at many tourist-area terminals.

But cash still rules for street food, taxis, markets, small family shops, local buses and tips, much of everyday spending outside the resort bubble runs on cash. Carry small peso notes (20, 50 and 100), since vendors often cannot break a 500.

This is the one that quietly costs tourists the most. When an ATM or a card terminal asks whether to charge you in US dollars or pesos, always choose pesos. Choosing dollars triggers dynamic currency conversion, where the machine sets a rate that is typically 5 to 8% worse than your own bank's. If a waiter returns a terminal already showing dollars, ask them to redo it in pesos.

And although resorts and border towns often accept US dollars, they give a mediocre rate and hand back change in pesos, so you lose either way. Pay in pesos, and tip in pesos too, it is far easier for staff to use than dollars.

Use bank ATMs, BBVA, Banorte, Santander or HSBC, ideally the machines inside a branch, mall or supermarket and during the day, which are better lit and less prone to card skimming. Avoid airport and hotel exchange kiosks (markups of 5 to 15%) and standalone or damaged-looking machines.

Use a debit card at the ATM, not a credit card (a credit-card withdrawal is a cash advance, with a fee and interest from day one), and bring a card with no foreign-transaction fee plus a backup card on a different network. Withdraw a few days' worth at a time, shield your PIN, and keep cash out of sight.

In restaurants, 10 to 15% is standard for good service if a service charge is not already added, and small tips for hotel staff, guides and drivers are appreciated, all in pesos.

This covers day-to-day money. For the entry side, the tourist card and the Visitax fee for Cancun and the Riviera Maya, see the FMM and Visitax walkthrough, and for the fuller picture, the Mexico money guide.

Common questions

Quick answers.

More on Mexico

The little money things nobody warns you about.

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