Comprehensive and detailed guide to living and cultivating a lifestyle in Mexico, continually revised and updated. Free—no payment or subscription needed.

Complete and detailed guide to Living & Lifestyles in Mexico that’s continually updated

Our extensive guides and articles offer insights to anyone exploring prospects for living, working, retirement and cultivating your lifestyle in Mexico.

They provide practical insights, incisive local knowledge, and meaningful guidance that helps you to discover opportunities, consider your choices, and make informed decisions.

Discover what lifestyles Mexico offers, identify opportunities of interest to you, weight up the compromises, consider your options, and plot a course based on the things that are important to you.

Guides to lifestyles in Mexico, for all life stages

Our continually-updated guides help you to begin weaving together the key components which create a workable and realistic lifestyle plan in Mexico, whatever planning stage and life stage you are in presently:

• To those considering a move to Mexico, whether you are single, with your partner, or a family with young children, Mexperience helps you to discover the country and evaluate living and lifestyle choices available here.  Our guides also offer thoughtful guidance about setting out your intentions and reshaping your situations.
• To those planning their retirement or seeking a place to retire, Mexperience guides provide specific guidance about matters related to retirement planning and retirement lifestyles, as well as the practicalities of retiring in Mexico.
• When you’re already living in Mexico, our guides and articles provide practical insights that help you to settle-in, adapt, and cultivate your new lifestyle here day-to-day.
• Regardless of your life stage, the information we publish provides meaningful insights about the essential day-to-day practical matters of living in Mexico, adapting to the country, the climates and culture, and more—with extensive cross references and links to further information and helpful contacts who can help you to realize your Mexico plans.

Planning or redefining your lifestyle in Mexico

Obtain practical insights, get incisive local knowledge and meaningful guidance that helps you to consider opportunities, weigh up your choices, and make informed decisions about planning or redefining your lifestyle in Mexico.

Mexico as a place for your retirement

We publish comprehensive information to help you plan a retirement here, whether you’re planning ahead or already retired and considering Mexico as a potential retirement haven.

Exploring locations and finding a place to live in Mexico

Our extensive articles help you to consider key aspects as you explore your options and make choices about your lifestyle and potential location types in Mexico.

Getting your residency permit for Mexico

Mexico’s immigration laws are reasonable and allow non-Mexicans with the financial means or family roots, and/or skills, to live here legally. We publish extensive knowledge to help you, including:

Moving and settling-in to life in Mexico

When you’ve decided to move to Mexico and made key decisions about where and how you’ll live, there’s the move a period of adapting and settling-in.  We publish extensive guides and articles to help you settle.

Learn how to keep in touch when you’re in Mexico

Our guides include detailed information about how to keep in touch when you’re in Mexico: by phone, by internet, as well as using postal and courier services here.  Our local knowledge helps you to choose a mobile phone plan, explore choices for high speed internet in Mexico (even if you live in a remote area) and our cost of living guide includes a section about the cost of communications services.

Detailed insights into the practicalities of living in Mexico day-to-day

Our articles and guides also include comprehensive insights about day to day living in Mexico that help you to plan your lifestyle, settle-in, and make the most of your life and activities in Mexico.

Mexico’s living costs and managing your finances

Financial considerations are an important aspect of any move.  Mexperience helps you to calculate your cost of living in Mexico and offers practical tips for managing your money and finances here.

Mexico as a place for working-age professionals

Working-age professionals, especially those plying a trade in the knowledge economy, are also considering Mexico as a base to live and work.

And more… resources for Living & Lifestyle in Mexico

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Our resources include:

• A regular Mexico Newsletter you can subscribe to for free
• Regularly-updated articles about lifestyle planning  in Mexico
• Insights about day to day living with Mexico Home Life

Signing for card purchases began to get replaced by ‘Chip & PIN’ cards in the early 2000s, but it was not until around 2015 that this technology —entering a PIN number instead of signing a slip of paper— became more commonplace in Mexico.

Contactless payment systems

Around the same time that ‘Chip & PIN’ became commonplace in Mexico and the US, debit and credit cards also began to feature a ‘contactless chip’ inside them, enabling cardholders to make smaller payments (usually less than US$50 worth) without the need to insert the card into a machine and enter the PIN number.

In 2014, Apple launched its Apple Pay service, and Google followed suit a year later with Android Pay.  These smartphone-based payment systems allow users to add one or more of their existing bank card details to an ‘electronic wallet’ on the device and use their smartphone to make and authorize contactless payments—without the small-purchase restrictions imposed by the ‘contactless payment’ system embedded on a physical bank card.

The adoption of the two principal smartphone-based contactless payment systems has been gradual as the technology depends on users having newer phones that can make electronic payments as well as stores adopting new terminals that can interface with the smartphones.

Apple Pay and Android Pay in Mexico

From around 2022, new payment terminals started appearing in stores and restaurants across Mexico that could take payment from physical bank cards with a ‘contactless payment’ chip inside them (for small purchases only), and which are also capable of accepting payment via smartphones using Apple Pay and Android Pay.

Payments using Apple Pay and Android Pay are as or even more secure than using a physical card—people are less likely to misplace their smartphone, and the card details are never revealed to the merchant so cannot be stolen or ‘skimmed’ as may happen when you present a physical bank card. The signal between the smartphone and the payment terminal is secure and you must use your fingerprint or face ID via the smartphone to authorize the payment.

Payments you make are transacted through existing bank card(s) you have that get added to your smartphone’s “wallet.”  Apple and Google do not replace your bank or credit card company; instead their devices act at a payment gateway. You can add credit and debit cards to your smartphone’s wallet, and the process to do this is straightforward.

Payment at stores in Mexico using your smartphone

Lots of stores, supermarkets, and restaurants across Mexico have already upgraded their payment terminals and now actively accept payment via your smartphone set up with Apple Pay or Android Pay (aka Google Pay).  Even some bus companies now accept payment for tickets this way when you buy at the bus terminal.

Getting cash from ATMs using your smartphone

The next likely step for this technology is for smartphones to facilitate cash withdrawals from ATMs instead of using a physical bank card. This is already possible today in some countries, but Mexico’s banks have not launched this service at their ATMs yet. If you intend to withdraw cash from an ATM in Mexico, you must still use your physical debit or credit card to do that.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Mexico’s official currency

Mexico’s official currency is the Mexican peso. There are one hundred Mexican cents (centavos) to every peso.

• The symbol for the Mexican peso is $; its international currency code is MXN.
• To distinguish this from the dollar, you sometimes see it presented as MX$ or the value with the letters “MN” after it, e.g., $100 MN. The MN stands for Moneda Nacional, meaning National Currency.
• The Mexican Peso is a “free floating” currency in foreign exchange markets and like other similar currencies, its value against other world currencies fluctuates daily.

Discover Mexico’s banknotes and coins

In addition to its defined responsibilities for setting monetary policy, the bank of Mexico is responsible for the printing, minting, distribution, and management of Mexico’s physical currency.

Every ten years or so, bank note designs are updated to implement the latest in anti-counterfeit technologies.

Mexico’s banknotes are printed in denominations of 20-, 50-, 100-, 200-, 500- and 1,000-peso bills. The most seen and used are the 50-, 100- and 200-peso bills.

Mexico’s coins are minted in denominations of 50 cents, 1-peso, 2-pesos, 5-pesos, 10-pesos, and there are also some $20-peso coins in circulation.

Mexico’s current series of coins have remained unchanged for decades.  The old 20-cent coins are now out of general circulation and the 50-cent coins although still circulating are not often seen and used.

In addition to the bank’s standard set of current coins, commemorative coins have been introduced over the years which don’t tend to circulate widely as they are kept by consumers or bought by collectors.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

Comprehensive guides to money, finances and banking services in Mexico—continually updated

Money, finances, and banking services in Mexico

Complete guides to money, currency and banking services in Mexico.

Our guides and articles give you a comprehensive overview of Mexico’s money system as well as the banks and banking services available that help to facilitate the commercial interactions you’ll need to engage with while you’re here.

The local knowledge shared here helps you to consider your needs and
formulate a plan to manage your money and any investments you have in Mexico, as well as arrange banking and financial services that provide essential support as you begin to realize your living and lifestyle plans.

Complete guide to money & banking services in Mexico

Our guides to Money & Banking Services in Mexico provides you with a definitive resource about managing your money and making use of banking services in Mexico.  The regularly-updated guides and articles include:

• The Mexican peso – learn about the country’s currency and its banknotes
• Bank cards – using debit, credit cards in Mexico
• Using ATMs in Mexico
• Money exchange – learn about different ways of exchanging foreign currency for Mexican pesos and vice versa
• Money transfers – how to transfer money to, from and within Mexico
• Money essentials – money and banking safety tips and local knowledge
• Opening a Mexican bank account – the requirements and mechanics of opening and running a bank account in Mexico
• Mexican banks and banking services – services and facilities offered by Mexican banks, as well as a profile of the principal banks and financial institutions
• Options for financing real estate in Mexico

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

In this third part of the series we explore the need to develop negotiating and bargaining skills, for use everyday.

Negotiation, trade, and bargaining are woven into the fabric of Mexican culture. In 1520, Hernán Cortés wrote to Emperor Carlos V of Spain describing Tenochtitlán as a city with “many plazas, where there are continuous markets and dealings in buying and selling”. These and other records show how Mexicans have been avid traders for many centuries.

Five hundred years later, whether you’re buying a piece of land, a home, a car, or a kilo of limes at the local market, you will need to exercise some negotiation skills, lest you may pay more, and possibly a lot more, than you need have.

How you negotiate (or bargain) will depend upon the precise situation you find yourself in. In most circumstances effective negotiation will require the use of Spanish —a notable exception being real estate purchases— so a basic conversational level of the language, as described in the first article of this series, is a prerequisite.

There are some places and situations where bargaining is not practiced in Mexico. These include the local supermarkets, department stores, and gasoline stations. Bargaining is not generally practiced at tienditas (family-run corner stores) and it’s not practiced at pharmacies.

Restaurants and comedores don’t usually bargain, either; although they might agree to a large group discount or special offer if you talk with the manager or owner before your intended arrival.

Situations where bargaining is practiced (and sometimes expected) include shopping in open-air food markets, flea markets, art and craft markets and fairs; and buying from ambulant vendors on the street and on public transport.

If you board a local taxi cab that isn’t metered or doesn’t charge a zonal fee, you should always negotiate your price beforehand. Many people are now using App Cabs which offer fixed pricing for fares in advance of the journey.

More formal situations where price negotiations are often entered into include the purchase of a vehicle (new or used), the purchase of jewelry or very fine clothing from a specialist suppliers, the bulk purchase of almost anything from a trade supplier, hand-made furniture bought locally, as well as land and property—whether for purchase or to rent.

When you have lived in Mexico for a while —and especially when you have lived in one place in Mexico for a while— you’ll notice that the prices asked for many local things you buy every day can be very elastic indeed. There are prices for ‘locals’ and prices for ‘tourists’—whether the tourists are foreign or Mexican.

Traders everywhere are alert to an opportunity. They will always try to make hay while the sun shines. With some experience of living in a place, you’ll learn what prices should be for things like a taxi cab ride, a kilo of meat or fish, a bagful of oranges, a hat or walking stick, a stack of fresh corn tortillas, and so on.

How? You start talking with people locally, you hear and see what others are being offered and gradually you get to know. Eventually, you might become sufficiently experienced and not have to ask the price for something you buy regularly; —for example, the fee for a local cab ride to a regular destination— you know what it should be and hand over that amount of money.

The acid test is to hand over a coin or bank note that requires some change in return and see how much comes back. In fact, this level of local economic intimacy is a gauge for you—the more you buy without the need to ‘negotiate’ the price, the deeper you have become entwined in, and part of, the local community.

Resources for bargaining and negotiating

Learn more about Mexican culture and traditions, including about negotiating, bargaining and shopping in Mexico:

• Guide to social etiquette and local customs
• Latest articles about Mexican culture and local customs
• Learn about tipping culture in Mexico
• Discover Markets & Shopping in Mexico

But on one particular kind of Friday in Mexico —viernes quincena— when pay day coincides with the last day of the week, the congestion is even greater.  Not just the traffic thickens. As the working people have money to spend, this day you can find yourself in long lines for restaurant tables, cinema tickets, or at the supermarket checkout.

People mill around at malls, and finding a parking spot can be like looking for a needle in a haystack. (Navigating the narrow underground parking lots is a particularly useful skill to develop in busy cities.)

The advent of direct deposit for wages did away with much of the lining-up at banks to cash checks, which in years past was about as daunting a prospect as can be imagined. But people in Mexico still often prefer to use cash so lines at ATMs have replaced many of the lines at bank branches.

What the British call a fortnight the Mexicans call the quincena—a 15-day period between pay days. And as most wages are paid bi-weekly, the pay day is also referred to as la quincena.

The noticeable buzz of commercial activity illustrates the fact that much of the working and middle classes, here as elsewhere, live from one paycheck to the next. Sales numbers from the retailers association Antad, and from its biggest member Walmart reflect this. Months that have an extra Saturday —a typical shopping day— tend to see bigger increases in sales, and the effect is even greater when the weekends coincide with payment of la quincena.

Officially, pay days are on the 15th and 30th of each month, or the nearest prior working day. So if the 15th or 30th falls on a weekend, wages should be paid on the Friday before. Pay days that fall on the Monday can be devastating for weekend plans.

And as there are 24 pay day quincenas per year (52 weeks), inevitably there are a number of quincenas largas, or long quincenas. These are usually following months with 31 days, and they can become even longer if the preceding pay was deposited ahead of a weekend.

Social media provides many examples of the anxiety surrounding the timing of deposits and the efficiency of HR and payroll departments. The X account @MundoGodinez addresses with considerable humor the daily life of the typical Mexican office worker, and la quincena looms large as a subject at the front of most minds.

See also: El Aguinaldo

This article explains what these old Mexican bank notes are worth, and how you can exchange them, or sell them to collectors.

Devaluation during the 1980s and 1990s

Mexico encountered two significant economic crises in recent decades: one in the mid-1970s that spilled over into the early 1980s, and another in the mid-1990s.  Both events had different causes although each imposed the same penalty on Mexico’s peso: devaluation.

In the 1980s Mexico’s currency was denominated not in ones and tens, but in hundreds and thousands.  $50,000 peso notes were commonplace and in the early 90s, the Bank of Mexico issued a $100,000 peso bank note; at the time, these were worth about US$16.50 and US$33 respectively.

Mexico’s peso is rebased in 1993

On January 1, 1993 Mexico re-based its currency by removing three zeros from all denominations and launched the New Peso.  A new series of bank notes appeared, looking exactly like the old ones, with two exceptions: the new ones had three zeros missing from the numerals and the words Nuevos Pesos were added for clarity.

In October 1994 a brand-new series of bank notes was released in which the word “Nuevos” was dropped as Mexico’s currency stabilized and people got used to the new currency.

Exchanging old Mexican bank notes

The Bank of Mexico honors all genuine notes it issues, regardless of their date of emission, at present-day values.

Examples of present-day values

Here are some examples of present-day value of old Mexican banknotes, calculated using Bank of Mexico information (see links above):

• a $1,000 peso note dating back to the late 1970s/early 1980s is worth one Mexican peso today;
• a $100,000 peso note dating back to 1991 is exchangeable today for a current-day $100 peso note;
• $1 and $5 peso notes dating back to pre-1975 are worth fractions of a Mexican cent and are now no more than museum pieces and collectors’ items.

Key points about dealing with old bank notes

Here are some practical matters in regard to dealing with old bank notes you might have in your possession.

Exchanging old notes at the banks

Stores and traders won’t accept old bank notes.  If you have old bank notes you want to exchange for present-day notes/coins, you need to take them to any of one Mexico’s retail banks, or to the the Bank of Mexico if the quantity/value exceeds the retail bank ‘exchange limit:’ the exchange limit at a retail bank is 500 individual notes or a present-day value of $3,000 pesos.  You don’t have to be a customer of the bank to request the exchange.

Old bank note collectors’ markets

A trade exists in collectors’ markets for historical bank notes, including old bank notes from Mexico.  Some older notes, and especially those which are in pristine condition, can command a premium over their present-day monetary value when sold to collectors.

If you have old Mexican bank notes and want to know if they may have some value in collectors’ markets, visit a site like eBay to browse old Mexican bank notes that will help you to assess their current value.

Learn about money and banknotes in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Articles about Mexico’s banknotes
• Latest articles about Money and finance in Mexico
• Download our free eBook about Money and Bank Services in Mexico
• Download our free eBook about the Cost of Living in Mexico

We update this article each year when key annual economic data about Mexico get published by key institutions responsible for economic data including the Bank of Mexico and Mexico’s national statistics institute, INEGI.

Last Updated: February 2026
(This article is updated as official annual key data become available between January and March each year.)

Mexico’s geography and demographics

Land area and time zones

Mexico’s territory covers an area of ~1,972,000 square kilometers (~769,000 square miles) and has four time zones.

Geographical location

Mexico borders the United States to the north and Guatemala, in Central America, to the south. Mexico is classed as a member of Latin American nations, and is part of the North American continent (not South or Central America as is sometimes incorrectly  asserted).

Current population

c.134.4 million. (Source: CONAPO estimate for mid-2026)
See also: 2020 Census

Capital city

The capital of Mexico is Mexico City, with an estimated population (including catchment areas) of over 20 million people.

Language in Mexico

Spanish is the official language, and around 50 different languages are also spoken by the indigenous peoples of Mexico; the most prominent of which include: Náhuatl, Zapotec, Purépecha, Otomí and (in the Yucatán region) various Maya languages.

Religion in Mexico

~80% Roman Catholic. Mexico is a politically liberal country that welcomes people of all faiths and religions, as well as those who practice none. Mexican law makes it illegal to discriminate against others here on the grounds of religion, race, socio-economic status, gender, and sexual orientation.

Government structure

Federal Republic, democratically elected President, bicameral Congress.
See Also: Mexico’s government structure

Current president

Claudia Sheinbaum of the MORENA party. Sworn-in October 1, 2024 for a non-renewable six-year term. The next presidential elections are scheduled to take place in June 2030, and the next change of administration will happen on Oct. 1, 2030.

Mexico’s economic data and key indicators

Mexico’s currency

Mexican Peso (100 centavos = 1 Peso). For exchange rates and other useful information see Money in Mexico here on Mexperience.

Mexico’s Gross Domestic Product (GDP)

Here are some key economic indicators from recent official data published by INEGI and the Bank of Mexico.

• Mexico’s nominal Gross Domestic Product is around $35 trillion pesos (US$2.0 trillion).
• GDP growth in 2025 was 0.6%; compared with a 1.4% expansion in 2024.
• Last year’s growth was limited by a drop in fixed investment, particularly by the government, which isn’t unusual in the first year of a new administration. Employment grew but at a slower pace.
• Remittances, which tend to support household consumption,  were down 4.6% from 2024 at US$61.8 billion in what was the first drop since 2013.
• Industrial production fell 1.3% with lower oil and gas production, lower construction activity, and output declines in the auto and textile industries, among others.
• The central bank projects growth of 1.6% in 2026, although private estimates are a little higher than that.

Inflation in Mexico

Official inflation at the end of 2025 was 3.7%, down from 4.2% in 2024. Core inflation, which strips out volatile prices like energy and fruits and vegetables, rose last year to 4.3% from 3.7% the year before. The Bank of Mexico expects inflation to end this year at about 3.5%, while private economists see it closer to 4%.

Mexico’s sales tax rates

Sales tax in Mexico is known as IVA Impuesto al Valor Agregado, or Value Added Tax (VAT). The rate is 16% for most of the country with a lower 8% rate in the 25 km (16 mile) deep ‘economic free zone’ corridor along the US-Mexico border, that includes the state of Baja California (but not Baja California Sur).

Most goods and services, including financial service charges and commissions (and also includes interest on unsecured debts) have the IVA rate applied to them. Notable items exempt from the IVA include staple foods, and medicines.

Minimum Daily Wage and UMAs in Mexico

Mexico’s minimum daily wage was raised on Jan 1, 2026 to $315.04 pesos from $278.80 pesos per day, a 13% increase.

The minimum wage along the Northern Border Zone was raised to $440.87 pesos a day from $419.88 in 2025, a 5% rise.

UMAs rose in line with official inflation, from $113.14 in 2025, to $117.31 for 2026.

See also: Mexico’s minimum wage

Mexico’s principal economic activities

Mexico’s principal economic activities include exports of manufactured goods, oil and gas, tourism, mining, chemicals, iron and steel, motor vehicles, agriculture (coffee, sugar, tomatoes, avocados, tobacco), food and beverages, consumer durables.

Major trading partners

USA, Canada, UK, China, and Japan.

USMCA

Mexico is a member of USMCA, the U.S. Mexico Canada Agreement which is a renegotiated version of the North American Free Trade Agreement, NAFTA. The USMCA is scheduled to be reviewed and renegotiated in June 2026.

Other free trade agreements

Besides USMCA, Mexico has other Free Trade Agreements (FTAs) with over 40 countries worldwide, including the European Union and Japan.

Learn more about money and currency in Mexico

Read our latest articles and guides related to money and finances.

• Guide to Money, Finance and Banking Services in Mexico
• Latest articles about money and finances in Mexico
• Discover Mexico’s banknotes
• Guide to the Cost of Living in Mexico

Exchanging your money for Mexican pesos

There are three main ways that most people exchange their home currency into Mexican pesos:

• Using a local ATM in Mexico to withdraw cash from an account based outside of Mexico; or
• Exchanging foreign currency cash for Mexican pesos; or
• Transferring money from a foreign bank account to a bank account in Mexico.

Also:

• Some local banks in Mexico might cash a paper check drawn on a bank in the United States of America; and
• see the important note below about the use of paper Traveler’s Checks.

Using ATMs to get Mexican pesos locally

As we described in a related article, holders of bank cards issued outside of Mexico can withdraw cash in Mexican pesos from local ATMs. That article describes the process and the typical charges involved.

• The number of pesos you withdraw is converted and charged to the account where the money is held in the local currency, e.g., US dollars, Canadian dollars, British pounds, Euros.
• This is a quick and efficient way to buy Mexican pesos using a debit card linked to a checking or savings account abroad.
• All ATMs in Mexico have an upper limit of pesos they will dispense in any one transaction, and the amounts vary by bank.
• Typically, an ATM will allow foreign card holder to withdraw between 5,000 and 10,000 pesos per transaction.  Also, check with your bank about any daily limits it may impose on cash withdrawals.

Exchanging your foreign currency cash for Mexican pesos

Some people bring cash with them from their home country to Mexico and exchange this for Mexican pesos.

Pesos can be bought for foreign currency cash at many retail banks, but the better places to sell your foreign currency for pesos are the exchange houses, Casas de Cambio—see notes below.

Exchange rate fees when buying pesos with cash

Most exchange houses and banks do not charge commissions to exchange currency but make money through the “spread”—that’s the difference between the rate at which they sell pesos and the rate at which they buy them.

Some exchange houses in need of certain units of foreign currency for their operations (for example, if they need US dollars) will offer better rates on certain days than even perhaps the international exchange rate, so it pays to shop around at various exchange houses at the airport or downtown if you plan to buy pesos using foreign currency in cash.—

Currencies traded

Mexican banks and exchange houses will buy and sell all major currencies. US dollars, Canadian dollars, British pounds, euros, Australian dollars, and Japanese yen can be readily bought and sold across the counter at exchange houses and many retail banks.

Exchanging cash at the Casas de Cambio

The best place to exchange your foreign currency cash for Mexican pesos is at one of the local exchange houses, known as Casas de Cambio.

They tend to offer the best rates and their procedures for exchanging money are straightforward.

The ones at the Mexico City airport tend to offer the most competitive exchange rates; exchange houses situated in tourist hotspots offer the least attractive exchange rates.

Exchanging money using a local retail bank

Retail banks will exchange foreign currency cash for Mexican pesos, but their rates may not be as attractive as the local Casas de Cambio (check locally) and they might insist that you have a bank account with them to make the exchange.

Paying foreign currency cash at stores and hotels

Some stores might accept cash in foreign currency in payment of goods (exchange rates might not be favorable, though).

Hotels and resorts in Mexico are no longer allowed to accept cash payment in US dollars to settle stays, due to money laundering rules.

Transferring foreign funds to a Mexican bank account

If you have a bank account in Mexico, you can buy pesos by transferring money from your foreign bank account to your bank account in Mexico.

These funds get converted into Mexican pesos and become available for your use locally, where you can pay others electronically using online banking or a banking app; using your Mexican debit card to withdraw cash from a local ATM; or by making a cash withdrawal in person at the bank itself.

If you’re resident in Mexico this method is an efficient way to transfer funds from overseas accounts (e.g. your retirement income) to a Mexican bank where the pesos are held on account for your day-to-day use.  By transferring larger sums, you avoid ATM fees and save time and money in the longer term.

Cashing a US dollars paper check in Mexico

Some Mexican banks will cash a paper check drawn on a US bank and convert the sum into Mexican pesos. You usually need to hold an account at the bank where the check is cashed.

If you want to cash a US dollar check into Mexican pesos ask your local bank if it offers this service, and if it does, ask about what fees it charges and what exchange rate it applies to the transaction. Compare this against using an ATM to access your money or by making a transfer from your foreign bank account to a Mexican bank account.

The trouble with Travelers Checks

In a bygone era, Travelers Checks were the de-facto means for travelers to carry or transfer their money in a safe way for exchange into a local currency abroad. Paper-issued Travelers Checks have fallen out of favor as the widespread use of bank-issued ATM cards has made them obsolete.

While paper-based Travelers Checks are still accepted at some places in Mexico, they are difficult to exchange: the exchange rates offered are usually unfavorable and it’s often time-consuming to exchange them due to all of the verification steps that need to be undertaken.

“Plastic” Travelers Checks

The modern replacement product for paper-based travelers check is a plastic bank card —like a debit card issued by your bank and linked to your checking account— with a key distinction that they are not tied to a personal bank account.

Instead, you top them up with a cash balance from your bank account (or over the counter) and carry the card with you when you travel. When you need to draw cash from the balance on the card, you visit a local ATM to withdraw money in local currency.

They work like regular debit cards. Some electronic debit cards only allow use at ATMs, others also allow you to use them in stores; however, check with the card issuer about the foreign exchange charges they make for using the cards, as well as any other “per transaction” charges.

These ‘plastic card travelers checks’ are helpful if you don’t have a bank account in Mexico and want the convenience of using an ATM to obtain Mexican pesos, or if you don’t want to carry your bank cards in certain situations, for example, if you plan to travel into a remote region of Mexico and/or prefer to leave your bank cards at home or in the hotel when you’re touring.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

You need to be a legal resident in Mexico to open an account here, and you need to attend a local Mexican bank branch in person to make an application.

Choosing the type of account you need

When you attend the bank, a representative will talk with you about the types of account offered by the bank.

Most foreign residents opt to open a checking account that enables them to:

• receive deposits from other bank accounts in Mexico and banks overseas; and
• send payments to others using online banking; and
• make payments to traders and service providers (in person and online) using a debit card; and
• some accounts offer a paper check book, although paper checks are rarely seen and used in Mexico now.

Documents required to open a bank account in Mexico

When you attend the bank, the representative will ask you for various documents including:

• your current passport; and
• your Mexico residency card (not your residency visa); and
• proof of address in Mexico—usually a recent electricity bill; and
• banks may also ask for your RFC.

They will also ask you to make a deposit to open the account, equivalent to at least the minimum deposit balance required to maintain the account open.

Most new customers make this initial deposit in cash.  The bank might accept an international transfer-in to the account by prior arrangement; ask locally.

When the account is opened and set-up, you will be provided with:

• A bank account reference number associated with your name.
• A debit card (this might be provided on the day, or you might have to return later to pick it up).
• The bank’s system will also send you an email that contains a User ID and password to access your account online and via smartphone app.
• For security, the banks require you to visit a branch in person to complete the online/app set-up process.

Managing your bank account in Mexico

When your account is set-up and active you will be able to bank in Mexico.  As a minimum, customers are usually provided with the following facilities:

Your bank account number

You can quote your account number (CLABE or Card Number) to others so that they can make electronic deposits directly into your Mexican account in-person at the bank or convenience store, or via an online transfer using a smartphone app or internet banking access.

International payments into your Mexican bank account will require you to quote the IBAN number that your bank can furnish you with; this contains the international routing number for the bank in addition to your personal account number.

Debit card

The bank will furnish you with a debit card that you can use at ATMs in Mexico.  You might also be able to use this at ATMs outside of Mexico, depending on the account type; ask your bank representative for details, and about the charges the bank makes for use of your debit card outside of Mexico.

Some debit cards can also be used for purchases in stores and online.  Online purchases usually require you to authorize each purchase via the smartphone app, for security.

Online banking and smartphone apps

The bank will also provide you with the details you’ll need to logon to your account online (using a web browser) and/or via a banking app via your smartphone.

The bank’s smartphone app provides immediate access to a range of helpful banking transactions including. Features include:

• View recent and historical your account activity.
• Transfer money between your accounts.
• Make electronic payments to other Mexican bank accounts
• Top-up pre-pay Mexican mobile telephone numbers.
• Pay for utilties including electricity and phone companies.
• Authorize payments made using your card online.
• Some apps provide a ‘virtual card number’ for online payments. The security code changes with each payment and makes it virtually impossible for your card number to be cloned and misused by others.
• Set-up a ‘cardless’ cash withdrawal: the app gives you a code that anyone can take to an ATM and withdraw a prescribed amount of cash from your account.
• Buy a range of other financial services, like travel insurance.

Paper checkbooks

Some bank accounts in Mexico will furnish you with a checkbook to write paper checks, although this is not common these days.

Most people make and receive payments electronically using a debit card (in stores, online) or using direct electronic transfer to others—to individuals or a company they are trading with.  The smartphone apps (see above) make this easy to do.

If you want a paper checkbook, be sure to talk with the bank’s representative to ensure that the account you open can have a checkbook.

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Making international money transfers to and from Mexico

You can transfer money electronically to and from Mexico between bank accounts, or you can use an over-the counter international money transfer service.

International transfer to and from a Mexican bank account

If you have a bank account abroad and a bank account in Mexico, you can make an international money transfer using the special numbers provided by the banks.  You can make the transfer in one of two ways:

Direct interbank transfer

You instruct the bank abroad to wire the payment to a bank account in Mexico, or you instruct your Mexican bank to make a payment to a bank abroad.

Both the sending and receiving bank will make a charge for the transfer, and they will also make money on the exchange rate. Check with the banks to ask about fees and exchange rates.

Interbank transfer using an intermediary

If you are sending money to Mexico, you can optionally use a money transfer intermediary who will wire the money and usually offer a better exchange rate and/or lower fees than direct interbank transfers.

Wise (formerly Transferwise) and XE.com are examples of intermediary services.  Note that these only work on transfers to Mexico; if you want to wire money out of Mexico you must use a direct interbank transfer through a Mexican bank, you cannot use an intermediary.

Over-the-counter international money transfers

If you are transferring smaller sums and want to use over-the-counter money transfer services, here’s the general process:

• The person sending you money goes to their nearest money transfer agency and makes the payment plus associated charges, telling their local branch what city the money should be sent to
• The money is wired to that city and, to claim it, the recipient goes to an establishment that represents the agency (e.g., Western Union), shows a photo identification and claims the transferred amount using the reference number provided to them by the sender. To send money from Mexico to a destination overseas, it’s the same process in reverse.
• Over-the-counter transfers work for smaller sums of money, e.g., a small few thousand dollars at most; the agencies offering this service impose limits for transfer amounts and the fee structure they have make larger transfers unattractive.
• It’s more expensive to transfer money using an over-the-counter service than using an interbank transfer.
• The main money transfer agencies are Western Union and MoneyGram are two leading over-the-counter money transfer companies operating in Mexico. Some banks and stores are agents for these companies.

Money transfers within Mexico

If you’re in Mexico and need to transfer money domestically, there are two ways to do this without the need to write and post a check. (The writing and posting of paper checks is not a common practice in Mexico, nor is it recommended.)

Interbank electronic transfers

Transferring money electronically between two Mexican bank accounts is straightforward. You can transfer money instantly from your Mexican bank account to any other Mexican bank account using online banking (web browser), the bank’s app (using a smartphone or tablet), or by visiting the bank in person and authorizing the transfer of the money.

Over-the-counter cash transfers and deposits

Convenience stores in Mexico, including OXXO and 7-Eleven, offer cash-transfer and bank deposit services. Ask at your local OXXO or 7-Eleven for details about the services, transfer/deposit limits, and current fees.

Transfers: You pay cash at one of the convenience stores and pass a code to the intended named recipient.  That other person can attend the same brand  convenience store in their locality and, using the code and an official ID, can receive the cash.

Bank deposits: You can also pay money into some (not all) Mexican bank accounts from OXXO and 7-Eleven convenience stores.  There is a small fee for making the deposit, but it can be quicker and easier than going to the bank branch.

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That doesn’t mean that damaged notes become worthless.  The central bank will take them back and replace them, and any retail bank will exchange them.

But for one reason or another —possibly a history of doing hand-to-hand combat with the bureaucracy— people in Mexico would rather avoid having to go through any of that.

As a result, a damaged banknote becomes like the joker in the card game where the object is to avoid taking the joker from another player, and if you do get it, surreptitiously hand it off to another. The loser is the one who’s left with the joker when all the pairs have been removed from play.

There are a number of tricks for this when the joker is a banknote. One is to fold the torn corner over and hand in the note —nonchalantly, of course— with the good side up. This doesn’t work at supermarkets where cashiers will often hold bills up to the light to check for watermarks.

Another way is to pack it in with several bills, all handed in together, but this only works for relatively large purchases or small bills. Another is to use the torn note to pay for something you have already consumed —food, or a taxi ride— arguing that it’s all the money you have.

And all this to avoid dealing with the bank.

The fussiest of all in receiving bills in poor condition are the cashiers staffing the top-up kiosks Mexico City’s Metro. They will refuse banknotes even if they just look a bit shabby. No one has more change than the Metro ticket office cashiers, and yet they will often either refuse large bills, or pay out the change in the most deliberately annoying combination of small coins, sliding them into the gully under the window where they are difficult to collect, particularly if there’s an impatient line of people behind you. So if you’re playing joker with a torn banknote, don’t even think about the Metro.

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