Local Currency in Mexico: Can You Use US Dollars in Mexico?

If you're visiting Mexico for the first time, you may be curious about the accepted currency and what currency you should bring along on your travels. In Mexico, the official currency is the Mexican peso (MXN), which we recommend obtaining by using Wise's travel debit card to withdraw cash from local ATMs.

Using the local currency for your transactions is best when paying for goods and services. At the same time, some establishments in Mexico (like hotels) may accept US dollars, be aware that they will set their own exchange rates between the Mexican peso and the US dollar. This will result in unfavorable prices for you as a US patron.

In this guide, we walk through using US dollars in Mexico, how to get Mexican pesos cheaply with Wise, and why it's more beneficial for you to use the local currency for your transactions to ensure fair and accurate pricing. Let's get started!

Does Mexico Accept U.S. Dollars?

While it is possible to use US dollars to pay for tours, tips, and even accommodation, you will need Mexican currency for cash transactions in Mexico. In places that do accept physical U.S. dollars, such as hotels, using them may result in very unfavorable exchange rates or additional fees.

Which Currency Is Best to Take to Mexico?

If you have a debit or credit card that does not charge international card transaction fees, then your best option is to simply pay by card throughout your trip. Credit card processors (such as Mastercard, VISA, and American Express) use their own exchange rates, but they are typically very close to the mid-market exchange rate (usually around 0.5% to 0.9% weaker). You can check Mastercard's exchange rates here and check VISA here.

If you want to avoid losing out to those small exchange rate margins, then the best currency to take to Mexico is Mexican pesos (MXN), as it is the official currency and fully accepted throughout the country. Having Mexican currency ensures smooth transactions and eliminates the need for frequent currency conversions.

What Currency Does Mexico Use?

Mexico uses the Mexican peso as its official currency. It is the primary medium of exchange in Mexico, accepted for all types of transactions. The Bank of Mexico is the central bank that issues the local currency.

What Is the Mexican Currency Symbol?

The Mexican currency symbol is the sign, $. It is used to represent the Mexican peso (MXN).

Some write the symbol (Mex), with the symbol and value written as follows: Mex$ 10.99.

Using and Exchanging Currency in Mexico

The most expensive currency exchange services occur at banks, currency exchange kiosks, and some hotels or airports. We have seen exchange rate margins as high as 10% at airports and with PayPal.

This is why we recommend travel cards like Wise, which give you access to multi-currency accounts. Exchange USD to MXN at or near the real mid-market exchange rate, and get access to those Mexican pesos in your digital wallet instantly. Then, use your debit card to withdraw from a Mexican ATM. Best of all, Wise is completely free to sign up.

Where Can I Buy Mexican Currency?

With Wise, you can exchange foreign currency, including USD to MXN with currency conversion costs of 0.5% or lower.

Wise's multi-currency account makes converting your US dollar balances to Mexican peso balances instantaneous — and at industry-low rates. The free ATM withdrawal allowance with Wise is $100 USD.

Read our full Wise review to learn more.

Potential Bank Fees

You may experience expensive and un-transparent Mexican currency exchange at banks, currency exchange kiosks, and other foreign exchange dealers in touristic or downtown areas. We highly discourage you from using these options, if possible.

Banks and currency exchange services often charge higher fees than Wise. Furthermore, these companies often apply very weak exchange rates on your conversions and pocket the difference as profit. Some providers may advertise their services as "fee-free," but very often fail to disclose the hidden exchange rate margin fee (which averages at 4% to 7+%).

Is It Better to Exchange Money in Mexico?

Rates at brick-and-mortar establishments will often be high, regardless of whether you're in Mexico or the US. To minimize costs, consider ordering currency from your US bank days in advance and compare their rates to the mid-market exchange rate (You can find the real mid-market exchange rate on Google, XE.com, or Monito). Pay attention to the margin they charge, aiming for a rate that is well below 4%.

On the other hand, using a digital platform like Wise gives you the flexibility to exchange currency at any time, benefiting from transparent and industry-low rates that are consistently displayed before the transaction. This allows you to make informed decisions based on the current exchange rate.

ATMs and Local Payment Methods in Mexico

Using ATMs abroad is often the most cost-effective way to obtain cash while traveling, especially when utilising cards like Wise. One of the reasons is that the withdrawal fees associated with ATMs are typically minimal, around $1 or $2, or even waived entirely if you choose the right ATM or bank.

Additionally, ATMs treat you like a local if you use a travel card like Wise (they don't apply currency exchange altogether). Otherwise, ATMs will use the exchange rate used by your card issuer (MasterCard, Visa, etc). In contrast, airport kiosks tend to have significantly weaker exchange rates, sometimes up to 10% weaker.

Are the ATMs in Mexico Safe to Use?

ATMs in Mexico are generally safe to use. However, it's best to use ATMs that are attached to a bank rather than a machine standing on its own. Some stand-alone ATMs, especially those in touristic areas, have been known to apply weak exchange rates on your US dollars before withdrawing. This is called a dynamic currency conversion.

Dynamic currency conversion is a process where you're given the option to pay for a purchase or transaction in your home currency instead of the local currency. It may sound convenient, but it often comes with additional fees and unfavorable exchange rates. It's like a middleman converting the currency for you, but they charge you more for the service.

Where Are the Best Places to Find ATMs in Mexico?

Here is a list of the best places to find reliable ATMs in Mexico:

• Local bank ATMs: Go for ATMs operated by local banks for lower fees and better exchange rates compared to standalone or third-party ATMs.
• Global ATM Alliance: Scotiabank, one of the major banks operating in Mexico, is a member of the Global ATM Alliance. If you hold an account with an Alliance member, you can access Scotiabank's ATMs without incurring any ATM fees.
• Allpoint: With a network of 55,000 ATMs across Canada, the United States, the United Kingdom, Australia, and Mexico, Allpoint offers fee-free withdrawals. You can verify if your card is compatible with Allpoint ATMs by using their online card checker.

Places You'll Need Mexican Currency

While credit and debit cards are widely accepted, you may be in need of cash at small businesses, markets, street vendors, public transportation fares, and some rural areas in Mexico.

Do the Restaurants in Mexico Accept Debit or Credit Cards?

Most restaurants in Mexico accept debit and credit cards for payment. It's common for establishments to display logos indicating the types of cards they accept, such as Visa and Mastercard. However, it's always a good idea to carry some cash, as smaller or independent establishments may have cash-only policies.

As a travel tip, know that it is customary to tip around 10-15% on the total bill at restaurants in Mexico.