If you are prepping for your Mexican getaway, you may be wondering what kind of currency you will need. Exchanging US dollars for pesos (Mexican currency) is not something most Americans do on a regular basis. Will Cabo, Cancun, Cozumel and other Mexican Resorts accept US dollars?
Yes, you will be able to use US dollars for most all of your purchases at your resort. However, if you plan to venture outside of the tourism area, you will need pesos.
Even though getting pesos before your trip is not a must, due to exchange rates it may be worth it. In this article we will discuss this in detail (including current exchange rates) and provide some tips/warnings about handling your money in Mexico.
Can You Use US Dollars at Mexican Resorts?
Yes, you can use US dollars at Mexican resorts, but even though US dollars are widely accepted in Mexico by various merchants, you may get bad exchange rates when you use them to directly buy goods (expecially outside of the tourism areas).
For reference, at the time of this article, the current fair exchange rate between pesos and US dollars is:
- 19 pesos = 1 USD
You can check the current exchange rate by clicking on this link which will take you to a currency calculator. This is a good way to make sure you know the true value of the dollar so that you will know if you are getting a fair deal.
In Cabo, local merchants may charge 10 pesos to one USD versus a more typical rate of 17-19 pesos to one USD (which means you are getting only about half the value of the dollar). In Playa del Carmen, exchange rates can be in the 12-13 pesos per dollar range.
This type of low exchange is common in many major resort areas, including Cozumel, Cancun, Acapulco and Ixtapa. In Puerto Vallarta, most shops accept US dollar bills, but not coins.
Is it Smart to Use US Dollars in Mexico?
It depends on what you’re planning to do. As previously mentioned, many tourist places and resorts do accept US dollars, but they will usually give you bad exchange rates for them. If you stay within resort areas, you can typically get away with only having USD if you don’t mind the bad exchange rates.
However, if you’re planning to drive around, visit Mayan ruin sites or go outside of the tourist areas, you may find it difficult to use only dollars. For example, toll roads generally only accept pesos, and they do not accept credit cards.
Tourists caught on toll roads without pesos often find themselves having to ask other drivers to exchange money with them. If you’re staying in a vacation house for a length of time and have to pay utility services, be aware that most do not accept USD.
How Do You Get Pesos?
You will usually get the best exchange rate if you buy pesos before you get to Mexico. You can often easily get pesos from your bank for minimal or no charge, especially if you’re not taking out a lot of money.
Another option is to get pesos in Mexico from ATMs (yes, your card will work there too). These will have better exchange rates versus hotels or merchants. It would be wise to contact your resort and see if they have other ways to exchange US Dollars.
Just like in the US, you will have to pay a service fee to withdraw money, but if you take what you need in one transaction, you won’t have to pay multiple times. Airport kiosks can also help you exchange USD for pesos. However, they do usually charge a commission.
Does it Make Sense to Take All Cash to Mexico?
Yes and no. Mexico is more of a cash society than the USA. For example, it is fairly well-known that there are places where your credit card number can be stolen.
Gas stations are a prime example of scams with credit card running. On the other hand, you can get the best exchange rates when using your credit card at large businesses like restaurants and hotels.
Before you start swiping though, make sure that your credit card company knows that you’re traveling abroad and make sure that they don’t charge any international exchange fees. Also, it might alert and alarm your credit card company if a lot of foreign purchases start popping up at the same time.
Another reason not to take all cash is not making yourself a theft target. If you plan on spending a lot of money in Mexico, you might not want to have it all in piles of cash.
Can You Use Credit Cards in Mexico?
Yes, you can use credit cards in Mexico, but it’s important to remember, as we said in the previous section, that Mexico largely prefers cash transactions. Larger businesses like hotels and restaurants are more likely to take credit cards than small shops and other venues.
Visa and Mastercard are the most widely accepted with few places accepting American Express or Discover. It’s still a good idea to carry cash in USD or pesos as a backup.
If you plan to use a credit card in Mexico, you should check with your bank to find out if they charge any fees for currency conversion or international use. You should also alert your bank that you’re going to be traveling abroad, or they may freeze your card when you try to use it.
Tips on Money Use in Mexico
The following are some general tips for using money in Mexico:
- Buy pesos before landing in Mexico for the best exchange rate
- If changing money in Mexico, use ATMs
- Avoid using credit cards at gas stations in Mexico
- Always carry cash as a backup, especially if driving around or visiting smaller towns
- Carry pesos if you plan to leave large resort areas
- Don’t carry large amounts of cash on your person