Money Tips for Mexico: A Practical Guide for Visitors

Use Mexican pesos for best exchange rates in Mexico, while US dollars are accepted in tourist areas, you'll pay 10-15% more due to unfavorable merchant rates. Withdraw pesos from bank ATMs (Santander, HSBC, Banamex) with 35-70 peso transaction fees, taking larger amounts less frequently. Always decline "dynamic currency conversion" at ATMs and card terminals, let your bank handle conversion for better rates. Notify your bank before traveling to avoid card blocks. Carry cash for small vendors, taxis, and tips; use cards at hotels and restaurants. Charles Schwab and some credit unions reimburse ATM fees.

The Mexican Peso

The official currency of Mexico is the Mexican peso, abbreviated as MXN or sometimes shown with a $ symbol (which can cause confusion with US dollars). At the time of writing, the exchange rate hovers around 17-18 pesos to 1 US dollar, though this fluctuates.

Peso coins come in denominations of 1, 2, 5, 10, and 20 pesos. Bills come in 20, 50, 100, 200, 500, and 1000 peso denominations. The 500 and 1000 peso bills can be difficult to break at small vendors, so try to keep smaller denominations on hand.

Cash vs. Cards

In tourist areas like Isla Mujeres, you'll find that many establishments accept both pesos and US dollars. However, there are important considerations:

When to Use Pesos

• You'll generally get a better exchange rate paying in pesos
• Many places that accept dollars offer an unfavorable exchange rate
• Smaller vendors, taxis, and street food stalls prefer or require pesos
• Tips are best given in pesos

When Cards Work Well

• Hotels, upscale restaurants, and larger shops readily accept credit cards
• Visa and Mastercard are most widely accepted
• American Express is accepted less frequently
• Always carry some cash as backup, as card readers occasionally go down

ATM Tips and Tricks

ATMs (called cajeros automaticos) are the easiest way to get pesos. On Isla Mujeres, you'll find ATMs downtown near the ferry terminal and main square. Here are some tips:

Choosing an ATM

• Use ATMs attached to banks when possible (safer than standalone machines)
• Santander, HSBC, Banorte, and Banamex are common Mexican banks
• Avoid ATMs in convenience stores or on the street if alternatives exist

Avoiding Fees

• Mexican banks typically charge 35-70 pesos per transaction
• Your home bank may charge additional international fees
• Withdraw larger amounts less frequently to minimize transaction fees
• Check if your bank reimburses international ATM fees (Charles Schwab, some credit unions)

The Dynamic Currency Conversion Trap

When using an ATM or paying by card, you may be asked if you want to pay in pesos or your home currency. Always choose pesos. If you accept the conversion to dollars (or euros, etc.), the bank or merchant sets the exchange rate, and it's almost always worse than what your bank would offer.

Exchange Houses

Casas de cambio (exchange houses) are another option for getting pesos. Compare rates before exchanging, as they can vary significantly. The airport typically offers the worst rates, so only exchange enough to get you to the island. Downtown Isla Mujeres and Cancun have several exchange houses with more competitive rates.

Notifying Your Bank

Before traveling, inform your bank and credit card companies of your travel dates and destinations. This prevents your cards from being frozen for suspicious international activity. Most banks allow you to set travel notices online or through their mobile app.

Emergency Cash Solutions

If you find yourself without cash and unable to use ATMs:

• Credit card cash advance: Expensive (high fees and interest) but available at most banks
• Western Union or MoneyGram: Available in Cancun if someone can send you money
• Hotel front desk: Some hotels will exchange small amounts for guests
• Other travelers: In a pinch, ask fellow tourists if they'd exchange dollars for pesos

Budgeting for Isla Mujeres

Isla Mujeres is generally more affordable than Cancun, but prices have risen in recent years. Here's a rough daily budget:

Budget Traveler (500-800 pesos/day)

• Hostel or basic hotel
• Street food and simple restaurants
• Free beach activities
• Walking or biking

Mid-Range (1,500-2,500 pesos/day)

• Nice hotel or vacation rental
• Sit-down restaurant meals
• One tour or activity
• Golf cart rental

Comfort (3,000+ pesos/day)

• Boutique hotel or beachfront property
• Fine dining
• Multiple tours and activities
• Spa treatments

Tipping Culture

Tipping is customary and expected in Mexico. Service workers often depend on tips as a significant portion of their income. Tip in pesos when possible:

• Restaurants: 15-20% (check if service charge is already included)
• Bars: 10-15%
• Porters: 20-30 pesos per bag
• Housekeeping: 30-50 pesos per day
• Tour guides: 50-100 pesos per person
• Taxis: Not required, but rounding up is appreciated

Safety Considerations

Use common sense with your money:

• Don't flash large amounts of cash in public
• Use hotel safes for valuables and extra cash
• Carry only what you need for the day
• Keep a backup card separate from your main wallet
• Cover the keypad when entering your PIN at ATMs
• Be aware of your surroundings when withdrawing money

With a bit of planning, managing your money in Mexico is straightforward. Keep some pesos on hand, use cards wisely, and you'll be free to focus on what really matters: enjoying your time on beautiful Isla Mujeres.

Related Mexico Money and Travel Guides

• Explore Isla Mujeres services and resources
• Discover Cancun practical travel tips
• Browse Mexico City expat financial services
• Read more Mexico travel guides

Financial or currency exchange service in Mexico? List your services on ExpatsList to help travelers.