Most stores won’t accept paper checks in payment anymore because debit and credit card machines provide near-instant payment authorization of the amount being transacted, and save time at the checkout.

About using your credit & debit cards in Mexico

All major credit and debit card brands are accepted at millions of retail establishments across Mexico.

Visa, MasterCard, American Express, and Discover are the most commonly seen and used brands in Mexico.  Visa & MasterCard are the most widely accepted networks. Some places also accept Diners Club.

If your debit or credit card is linked to a bank based outside of Mexico, your purchases will usually be charged in Mexican pesos and your bank will convert the amount to the equivalent in the local currency where your account is held and charge that sum to your account in your home currency.

Charges for use of bank cards in Mexico

How much you pay in charges for using your bank cards in Mexico will depend on:

• what country the card is issued in;
• whether you are making a purchase or withdrawing cash; and
• the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, the transaction amount is charged directly to your account here, in Mexican pesos, and charges will vary depending on the type of account that you have.

There is usually no charge for making purchases (in store or online); there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on whether you are using the card to make a purchase, or withdraw cash from a local ATM in Mexico.

Using your card for purchases and online orders

When you use your card at a store or online, the bank will usually charge a currency exchange fee (see below) and some banks might also add a ‘foreign currency transaction fee’—check with your bank for details.

Using your card for cash withdrawals

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges may be applied to the account, either lumped together or separately, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal may also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank instead of using an ATM.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the transaction (purchase or cash withdrawal) will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Signatures for card purchases in Mexico

The use of signatures for making purchases with a card in Mexico is virtually phased out now, and has been replaced with the use of a PIN (Personal Identification Number).

Some stores in Mexico continue to use the “card swipe” machines to take payment from plastic cards, whereby the machine prints out a slip of paper and the card holder must physically sign the slip to complete the transaction.  However, most stores now use the “chip and PIN” payment authorization method.

“Chip & PIN” card signatures in Mexico

Swipe payment machines print-out a slip of paper that requires your hand signature. However, when you present one of the latest bank cards, stores, restaurants, and other traders enter your card into a special device that reads the encrypted chip now embedded onto the plastic cards.

Instead of signing a voucher, you are asked to enter your card’s PIN number (cover your hand when you do this). In Spanish, the PIN is referred to as firma electrónica —electronic signature— or ‘NIP’ (that is an acronym for Numero de Identificación Personal).

Some establishments also ask you to sign the voucher that the machine prints out, but it’s not necessary; your bank won’t charge you twice if you do.

If you do not know your card’s PIN, the establishment might instead offer to “swipe” the card and take payment using your hand signature and some other form of identification, e.g., residency card or passport.

Learn about managing your money in Mexico

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

• Learn about making payment in Mexico using your smartphone
• 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.

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

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

Mexico’s tipping culture is impromptu and often spontaneous.  Tipping is always optional although the people serving you will appreciate the small token of your appreciation in exchange for good service.

Frequent tipping is a routine that takes getting used to, especially if you come from a place where tipping is not commonplace, or where tipping is practiced but only in certain, specific circumstances.

Common situations where tipping is practiced

In Mexico, la propina is employed in all kinds of everyday situations. Here are some examples, followed by a link to our guide that gives a more comprehensive list of situations where you should consider tipping:

Eating and drinking out

Waiters working at restaurants and bars should always be tipped for good service; a sum equivalent to 10-15% of the total bill is appropriate.

Taxi drivers

Local cabbies and App Cab drivers (e.g. Uber, Cabify, Didi) appreciate a tip. Consider rounding-up the fare on the meter from a street cab to the nearest $5 or $10 pesos; app-cab apps now allow you to add a tip at the end of your journey, or you can pay the driver a tip in cash.

Hotel stays

When you stay at a hotel in Mexico it’s customary in Mexico to leave a tip for your hotel room chambermaid, a sum between US$1 and US$5 (equivalent in Mexican pesos), for each night’s stay spent at the hotel. If you’re staying more than one night, it’s a good idea to leave the tip daily as chamber maids work on a rota.

Car parking and valets

Car parks in Mexico’s bigger towns and cities are oftentimes kept under vigil by men (and occasionally women) who ‘patrol’ the car park, helping drivers to find a free space, keeping an eye on the cars, and helping drivers to reverse out when they leave.   It’s optional, but customary, to pay $2-$5 pesos as you depart.  If your car is attended by a valet service, a small tip of $10-20 pesos to the valet attendant, commensurate with the class of the establishment, is expected.

Home deliveries

When you have goods or services delivered to your home, it’s customary to tip the service providers.  Examples include: gas deliveries, water bottle deliveries, supermarket deliveries, postal and courier services (e.g. Amazon, Mercado Libre). $10-$20 pesos is sufficient.

Other situations

Other ‘informal’ situations where a tip is customary include the porter at the hotel who carried your bags; the concierge for booking a table at a local restaurant or who arranged a taxi for you; the person who washed your windscreen at the stop-light; the attendant at a gasoline station; the person (usually a student or retiree) packing your groceries at the local supermarket; and attendants keeping washrooms/restrooms clean (provided you did not pay to enter the facility.)

Learn more by reading our guide to Tipping and Bargaining in Mexico for guidance about who, where, when, and how much to tip in Mexico.

A footnote about small change

Ironically, despite the constant need to pay tips small change can sometimes be difficult to get hold of in Mexico when you need it most, and appears in abundance when you don’t need any.  It’s good practice to build-up a cache of small change as you shop. If you’re staying at a hotel or resort, the front desk can break larger notes into small bills and coins for you: the $20 peso bill is popular for tipping at hotel resorts.

Tipping in a variety of situations

The practice of tipping goes far beyond the restaurant table here. As our guide to tipping etiquette explains, there are many situations in Mexico where a small tip is appropriate, and keeping change on-hand, in the form of small denomination coins, is essential for this purpose when you are visiting or living in the country.

Key situations where a tip may be appropriate

There are three situations which are worth a particular mention as they are often overlooked by visitors and residents new to Mexican culture:

Chamber maids

The first relates to the unsung heroines (they are invariably women) of the hotel industry: chamber maids.   They will often travel a considerable distance to reach your hotel and spend the day cleaning and keeping guest rooms in good order, so that when you get back to your room, it’s waiting for you clean, fresh, and tidy.

It’s appropriate to leave a small tip and leave it each day because work schedules change, and the maid who cleaned your room initially may not be on duty the day you check-out.

The amount of the tip should vary depending upon the category of hotel: a sum in Mexican pesos, left in cash on the side table (next to the maid’s greeting card if one is present), equivalent to between US$1 (for economy hotels) and US$5 (for luxury hotels) per day is suggested and will be sincerely appreciated.

Supermarket bag packers and car park helpers

The second situation concerns students and retired folks working at supermarkets across the country to pack bags at the checkout counters. For students, the money they earn contributes to the funding of their education; for retired folks, the money they earn supplements their pension.

When you roll your shopping cart of out the store into the car park you might notice some people waiting and offering to help you.  They will take your cart to your car (or hail a local cab, if you need one) and load your shopping bags into the car’s trunk.  A small tip of $5-10 pesos is appropriate.

Bag packers and car park helpers are not salaried and work entirely on tips.

All-inclusive hotels and package tours

The third situation relates to “all inclusive” hotels and travel packages or tours.  A small few packages stipulate that ‘tips are included’ and in this case no further tipping is required.

However in most cases, guides, porters, the concierge, meal table waiting staff, and the chamber maids (see above) will appreciate a tip—even if, for example, the price of your meals (or just breakfast) is included in the room rate.

For local guides and tour leaders: a reasonable tip commensurate with the amount of time and knowledge they shared with you is appropriate.

For hotel and waiting staff: one US dollar (equivalent in Mexican pesos) per bag for porters; a 10% tip of the bill (or what the bill would likely have been if the plan was a-la-carte instead of all inclusive) left on the table after each meal or round of drinks at the bar; and a tip for the chamber maids (see above) will be very much valued.

Further insights on tipping culture

Mexperience offers more advice about local tipping etiquette:

• Latest articles about tipping in Mexico
• Read our guide to tipping in Mexico which contains a comprehensive list of situations and suggested amounts you may consider tipping in specific circumstances
• Learn more about local customs and traditions in Mexico

About ATMs in Mexico

Mexico’s banks manage an extensive network of Automated Teller Machines (ATMs) that can be used to withdraw Mexican pesos in cash from your local account if your card is issued by a bank in Mexico, or from funds held in an account outside of Mexico if your card was issued by a foreign bank.

Some ATMs also accept deposits in cash, allow you pay bills, and enable transfers of money between bank accounts based in Mexico.

It’s easy to find an ATM in Mexico. They are usually open, dependable, and will dispense Mexican pesos to anyone with a card connected to one of the global networks, including VISA, MasterCard, and AMEX, as well as those holding debit or credit cards issued by a Mexican bank.  Some ATMs dispense US dollars in addition to Mexican pesos, and will offer card holders the option of either currency if they do, but this is not common.

Typical charges for using an ATM in Mexico

How much you pay in charges for using your bank card at an ATM in Mexico will depend on two key factors: first, what country the card is issued in; second, the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on the bank and the account type you have.

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges might be applied to the account, either lumped together or separately, depending on the bank and account type, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal might also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank or exchange house instead of using an ATM.

Although banks have increased charges for ATM use abroad in recent years, ATMs are by far the quickest and most efficient way to get access to local currency in Mexico from a foreign-based bank account.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the cash withdrawal will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Cash withdrawals using credit cards

Note that currency conversion and transaction fees for cash-advances drawn using a credit card account tend to be higher than those where money is drawn down from savings or current/checking accounts.

Additionally, interest is often charged from the date of the cash withdrawal, and sometimes whether you clear your credit card balance or not.  Check with your credit card company to find out what charges they make for cash withdrawals from Mexico—the charge structure is usually different than that for purchases.

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.

In the same year, the bank also issued a limited-edition commemorative $20-peso banknote and coins, and Since then the new $20-peso coins as well as the notes have all been circulating in tandem as legal tender.

$20-peso bills are becoming less common

The old blue-colored $20-peso notes, printed on polymer (a special type of plastic), were already becoming worn by late 2021, and now rarely change hands. (Benito Juárez’s image has been moved over to the latest $500-peso bill.)

The colorful commemorative $20-peso notes, pristine copies of which will likely become collector’s items, have been in circulation since late 2021 but they too are less commonly seen now as the new $20-peso coins are fed into general circulation.

The idea of replacing these notes with $20-peso coins makes sense, because the denomination is versatile and often used for bus fares, and tips. The bills were thus changing hands frequently and the corresponding wear and tear is significant even for a polymer note. A coin is more convenient, and longer lasting.

$20-peso coins carry varying emblems

As is often the case with flagship coins issued by countries’ banks, the shape, size and weight of the coin remains constant but the emblems stamped on them vary over time, and some become sought after and offered at a premium to potential collectors.

This is the case with Mexico’s 12-sided $20-peso coin that has, since its inception, been stamped with a variety of Mexican historical figures including Emiliano Zapata, and key protagonists of the country’s Independence movement.

Mexico’s central bank publishes details of the  latest $20-peso coin on its website.

You can expect to see these coins more often as the current commemorative $20-peso banknotes eventually leave general circulation altogether, and the coins replace them as one of the most versatile denominations for small trades, and tipping in Mexico.

Learn about money and banknotes in Mexico

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When you’re visiting Mexico, you’ll discover that use of credit and debit cards is widespread here —payments using smartphones remains quite limited— and although Mexicans are increasingly using plastic cards, consumers continue to make extensive use of cash.

At least half of Mexican households still don’t have a bank account and rely entirely on the country’s cash-based economy for their trades.  Online banking is gradually being taken up, but there still remains a cultural preference for cash, underlined by a Bank of Mexico study revealing that a significant majority of Mexicans with debit cards use them simply to withdraw their wages in cash from ATMs.  Cash thus remains a widely employed, and oftentimes preferred, form of payment in Mexico.

To underline the continuing importance of cash in the local economy, major online brands including Amazon, Apple, Google, and Uber offer cash-payment options to customers in Mexico in addition to payment by card, either by direct payment in cash at a bank (or cash payment to the driver if using Uber), or by means of prepaid cards which can be purchased using cash and spent online.

Whether you’re visiting or staying in Mexico longer-term, you’ll soon discover that in practice there is a constant and continuous need for cash as you go about your days, and you might also find that making change is a continual pastime.

CASH & CASHLESS payment situations in Mexico

Here are situations where cash and cashless payments are commonly accepted in trades in Mexico.

Taxi cab fares

Some taxi firms in Mexico City will open an account for you and accept payment using a debit or credit card, although with the advent of App-Cab services like Uber and Didi, fares are billed to your credit or debit card anyway. App Cab companies in Mexico also offer the option to pay drivers using cash. Independent street taxis in the capital and local cabs operating in smaller towns and villages across the country will only accept cash.

Buying fuel for your vehicle

Not too long ago, gasoline and diesel purchases were a cash-only trade in Mexico; however, with recent modernization and the opening-up of Mexico’s oil and gas markets, most gasoline stations now take card payments. (Non-Mexican bank cards might be problematic, we have mixed reports, but the situation appears to be improving.)

Even with card payment options available, substantial numbers of people still pay with cash to fill the tank in their automobiles.  It’s wise to make sure you have some cash with you on a road trip across Mexico in case the service station you stop to refuel at doesn’t accept cards, or (more likely) their card payment system is off-line.

We also recommend that if you use plastic to pay for gasoline in Mexico, use a credit card instead of a debit card and don’t let the card out of your sight as gasoline stations are one of the places where ‘bank card skimmers’ are known to operate.

Tolled interstate highways

Since January 2019, payment booths on tolled highways across Mexico only accept cash or electronic toll-booth tags in the windscreen; debit and credit cards are no longer accepted.  Drivers who often use tolled roads will buy an electronic “tag” to place in their windshield which can be prepaid using cash, or linked to a credit card.

Mexico City’s tolled elevated beltway

If you plan to use Mexico City’s elevated beltway road (know as the Segundo Piso), you’ll need to purchase a windshield tag to access this road system.

You can prepay a balance to your tag, or link the tag to your credit card so that each time you access the elevated beltway your card is charged. The windshield tag can be prepaid using cash at participating stores, but cash and credit cards are not accepted at any of the gateway access points.

Situations in Mexico where CASHLESS payments are readily accepted

Payment by debit and credit card is becoming increasingly common across Mexico, and even some smaller (and market) traders are using portable card-payment devices to accept trade from people who don’t have any cash to pay with.

Modern shopping places

All major supermarkets and department stores, shopping mall stores, car dealerships, furniture and electrical goods stores, as well as eating out at most restaurants in bigger towns and cities.

Transport companies

Airlines, bus companies, and local travel agencies accept electronic payment.  If you have a Uber or Didi account in your home country, you can use those services here in Mexico: your fare will be calculated in Mexican pesos and converted/billed in your local currency and charged to the card you have linked to your App Cab account.

Smaller independent traders, and some market stalls

Some smaller independent traders, and even some market stall traders, especially those in tourist towns, are accepting card payments using smartphone apps which linked to their bank.  Some of these smaller traders charge a modest premium (3-5%) to cover the bank charges they have to pay to accept card payment.

Local mobile phone plans

Mobile phone companies in Mexico will allow you to top-up your prepay phone balance using a credit or debit card—online, or directly using your phone. You can also top-up your mobile phone using cash at convenience stores.

Professional services

Almost all professional service providers —e.g., hospitals, clinics, doctors, dentists, and lawyers— will accept electronic payment by card, but check in smaller towns where some professionals might only accept cash.  Those who don’t accept payment cards might accept an electronic bank transfer, instead.

Situations in Mexico where CASH is still required

There are still plenty of instances where you will need cash in Mexico, and these include:

Local stores, stalls, and markets

Most local independent (often family-run) convenience stores run on cash; some will accept payment by card with a minimum purchase amount and/or with the addition of a modest percentage to cover the payment card fees. Open-air markets; buying anything from ambulant vendors; shoe-shine stalls; street food; confectionery, newspapers or tobacco purveyed by street stalls; and buying anything in small shops and stalls in rural towns and villages will require the use of cash.

Independent street cabs

The majority of independent street cabs only accept cash. Some might have an app to take payment but card, but if they do, they will make surcharge to cover the bank fees.

Tipping for services

Cash is also essential for tipping in Mexico.  You should always tip in cash and only in Mexican pesos—our guide to tipping explains why.  If you visit Mexico on a tour package and spend your entire stay at a resort, then you may not have a call to use much cash (although take note above about tips); but most visitors discover that at least a few occasions arise where the use of physical cash is an absolute necessity.

Vacation souvenirs and trinkets

When touring, cash is essential to get around on local transport, and to buy local souvenirs or anything from street traders or stores ‘off the beaten track’.  Some market traders are beginning to accept card payments using a smartphone app but most only accept cash, and those that accept cards prefer cash to avoid the fees the bank charges them to take an electronic payment.  Some small traders make a surcharge (usually 3-5%) if you pay using a card, to cover their bank fees; alternatively, they may offer a discount if you pay using cash.

Archaeology sites and museums

Except for the country’s more popular archaeology sites and museums, payment for entry is only accepted in cash.  INAH, the institute that manages the country’s archaeology centers and museums, has been rolling-out electronic payment options at the larger and most visited centers and museums and in due course all centers are likely to take electronic payment for entry; but for now, be sure to carry some cash with you in case the center you visit doesn’t take payment by debit or credit card.  If you hire a local guide at the center, they will require payment in cash, even if the site or museum accepts payment by credit/debit card.

Home services and trades

Paying your domestic help (e.g. maid, gardener, pool maintenance) is mostly a cash business; some accept bank transfers, most don’t. Some home trades people —for example, plumbers, electricians, and carpenters— will accept cashless payments for larger jobs in the form of a money transfer to a local bank account, but the majority of routine or smaller jobs, especially ad-hoc work like fixing a leaking tap, are strictly on cash terms.

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 Banking Services in Mexico
• Download our free eBook about the Cost of Living in Mexico

The constant pursuit to make change

¿No tiene cambio? —haven’t you got change?— is an expression you will soon get used to hearing whether it’s in offering up a 50-peso note for a 30-peso cab ride, or a 100-peso note for a 20-peso coffee.  And it’s not only at street stalls, outdoor markets, or in taxis.  The “no change” response is as frequent at convenience stores and other local shops, restaurants—and even occasionally at the supermarket checkout.

With a large informal economy, most of the country’s daily transactions are paid for in cash.  But even in the formal economy, cash is the preferred method of payment.  Bankers estimate that of all the transactions conducted with debit cards, nearly 90% are to withdraw cash from ATMs.

Although debit card use is becoming increasingly more common, many people here still prefer using cash, even at gasoline filling stations—which, by the way, are among the best places to get change if you’re stuck with nothing but a 500-peso note (that can be as frustrating as having no cash at all).

You’ll come to find that small change is essential in Mexico: for tipping, for small purchases from local independent traders (even when they have change they will not be pleased if you pay for a 10-peso purchase with a 100-peso banknote), and even to break larger notes for others (friends, family) who may need change at any given moment.

The game of ‘change tug’ between buyers and sellers

With so much currency around, it’s a wonder people can be so reluctant to give change.  Some have change, but don’t want to break a large bill for fear it will leave them without change.  One infuriating twist: people with notes in the cash register will, at times, hand you all your change in coins.

One of the reasons why change is hard to come by with small local stores and local markets early in the day is that these traders often don’t begin with a ‘cash float’—they are relying on their customers to furnish them with their float as their trading day progresses.  Ambulant street traders work in similar fashion.

Random bill combinations at ATMs

ATMs sometimes dispense a range of smaller notes, and sometimes they dispense only large bills.  It can be inconvenient when you withdraw $2,000 pesos and the machine dispenses it all to you in $500-peso bills. (Some machines dispense $1,000 peso bills.)

The distribution of banknote values that are dispensed to you will depend on how the machine is programmed, how much you request, and what denominations are available in its bill cartridges at the moment when you make your withdrawal.

Ideal places to make change

You can take large bills to any retail bank and ask for change, and by law you don’t have to be a customer of the bank to request change from them.  If you use an ATM during banking hours, you can walk from the lobby where the ATMs are into the bank and ask the teller for change.  You can ask for smaller bills and coins.

Other good places to “make change” if you find yourself with a wallet full of large bills include gasoline stations, ticket kiosks at bus terminals (especially during busy weekends), and busy central markets in larger towns and cities.

When you’re traveling on tolled interstate highways, note that the toll booths only accept payment via windshield ‘tag’ devices and cash—and thus toll booth cashiers are good places to make change from those 500- or 1,000-peso bills the ATM dispensed to you.

If you’re staying at a large hotel resort, the front desk will usually break a larger note for you to use as tips; $20 peso bills are a popular choice.  Indeed, the $20 peso bill (and coin) is possibly the most versatile banknote for use in small trades, and for tips.

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 Banking Services in Mexico
• Download our free eBook about the Cost of Living in Mexico