Currency Guide: How to Use Pesos in Mexico

Traveling to Mexico means immersing yourself in rich culture, stunning landscapes, and delicious food. But before you dive into your adventure, understanding how to use the local currency, the Mexican peso, will make your trip smoother and more enjoyable. This Currency Guide: How to Use Pesos in Mexico will walk you through everything you need to know about handling money, from exchanging cash to using cards, and avoiding common pitfalls.

Mexican peso banknotes in various denominations on wooden surface

Understanding the Mexican Peso

The Mexican peso (MXN) is the official currency of Mexico. It comes in both coins and banknotes, with coins typically used for smaller transactions and banknotes for larger purchases. The peso is divided into 100 centavos, similar to cents in the US dollar.

Common Banknotes and Coins

• Banknotes: 20, 50, 100, 200, 500, and 1000 pesos.

• Coins: 5, 10, 20 pesos, and smaller centavo coins like 50, 20, 10, 5, 2, and 1 centavo.

  
  

The 500 and 1000 peso notes are less common in everyday transactions but useful for bigger purchases or withdrawing cash from ATMs.

Where to Exchange Money Safely

Many travelers wonder where to exchange their home currency for pesos. Here are the safest and most convenient options:

• ATMs: Widely available in cities and tourist areas. They usually offer the best exchange rates but check with your bank about international fees.

• Banks: Reliable but often slower and with limited hours.

• Currency Exchange Bureaus (Casas de Cambio): Found in airports, malls, and tourist spots. Rates vary, so compare before exchanging.

• Hotels: Convenient but often offer poorer rates.

  
  

Avoid exchanging money on the street or with unofficial vendors to prevent scams or counterfeit bills.

Using Credit and Debit Cards in Mexico

Credit and debit cards are accepted in many places, especially in urban areas, hotels, restaurants, and larger stores. Visa and Mastercard are the most widely accepted cards, while American Express is less common.

Tips for Using Cards

• Always notify your bank before traveling to avoid your card being blocked.

• Use cards with no foreign transaction fees to save money.

• When paying, choose to be charged in pesos rather than your home currency to get a better exchange rate.

• Keep some cash handy for small vendors, markets, or places that don’t accept cards.

  
  

Tips for Handling Cash in Mexico

Cash remains king in many parts of Mexico, especially in smaller towns, markets, and for street food vendors. Here are some practical tips:

• Carry small bills and coins for easier transactions.

• Count your change carefully before leaving the counter.

• Use a money belt or secure wallet to protect your cash.

• Avoid flashing large amounts of money in public.

  
  

Understanding Prices and Bargaining

Prices in Mexico are usually displayed in pesos. When shopping at markets or street stalls, bargaining is common and expected. Here’s how to approach it:

• Start by offering about 20-30% less than the asking price.

• Be polite and friendly; bargaining is part of the experience.

• If the seller refuses, decide if the price is fair or walk away.

  
  

For fixed-price stores and restaurants, prices are non-negotiable.

Using Mobile Payment Apps and Digital Wallets

Mexico is catching up with digital payment options. Apps like Mercado Pago and OXXO Pay are popular for locals. However, as a traveler, you might find limited acceptance outside major cities.

If you plan to stay longer or want to avoid carrying cash, check if your bank or card provider supports contactless payments or mobile wallets like Apple Pay or Google Pay.

Traveler using credit card to pay at a vibrant market stall in Mexico

Avoiding Common Currency Scams

Travelers often fall victim to currency scams. Here are some to watch out for:

• Fake bills: Learn to recognize authentic peso notes by checking security features like watermarks and holograms.

• Shortchanging: Always count your change carefully.

• Unfair exchange rates: Compare rates before exchanging money.

• Card skimming: Use ATMs inside banks or reputable locations to reduce risk.

  
  

How to Budget Your Trip Using Pesos

Planning your budget in pesos helps avoid surprises. Here’s a rough guide for daily expenses in Mexico:

• Budget traveler: 300-500 MXN per day (street food, public transport, budget hostels)

• Mid-range traveler: 700-1500 MXN per day (restaurants, taxis, mid-range hotels)

• Luxury traveler: 2000+ MXN per day (fine dining, private tours, upscale hotels)

  
  

Adjust your budget based on your travel style and destination.

Final Thoughts on Using Pesos in Mexico

Mastering the use of pesos will make your trip to Mexico more enjoyable and stress-free. By understanding the currency, knowing where to exchange money, using cards wisely, and staying alert to scams, you can focus on exploring the vibrant culture and beautiful sights.