Cash and ATMs in Mexico: fees, limits, exchange, cards

Traveling to Mexico requires more than packing and flying. You must know how to manage your finances while you’re there. 

Despite the rise of card payments in Mexico, most daily transactions still require cash. From street tacos to taxis, 60-70% of your daily expenses in Mexico will require cash¹.

Knowing where to find reliable ATMs, avoid high fees, and find the best exchange rates will make your financial transactions as smooth as your trip.

Our comprehensive overview will help you maximize your financial transactions in Mexico, from bustling cities to quaint rural areas.

Overview of ATMs in Mexico

The Mexican Peso (MXN) is the official currency of Mexico, featuring banknotes in denominations of 20, 50, 100, 200, 500, and 1000 pesos. While digital payments are increasingly common in urban areas and tourist destinations, cash remains essential for about 60-70% of daily transactions across the country.

You'll need pesos for many common situations, including:

• Museum and archaeological site entries
• Tips and gratuities
• Local markets and street food vendors
• Public transportation
• Small shops and restaurants

In major cities, you'll find widespread acceptance of credit cards at hotels, shopping malls, and established restaurants. However, when venturing into rural areas or local markets, cash becomes indispensable. Small businesses, street vendors, local transportation, and many restaurants outside tourist zones operate exclusively with cash.

ATMs are readily available in cities and tourist areas but can be limited in smaller towns. It's advisable to carry both payment methods—using cards for urban areas while keeping cash handy for rural locations and smaller establishments.

ATM fees in Mexico

When withdrawing money from Mexican ATMs, you'll typically encounter two types of fees:

• those charged by Mexican banks
• those imposed by your home bank 

Understanding these fees can help you make smarter withdrawal decisions and save money during your stay in Mexico.

Mexican bank ATM fees

Here's are the major Mexican banks you can expect to find on your trip:

• Inbursa
• BanCoppel
• Banca Mifel
• Banamex

Foreign transaction fees

Your home bank may charge additional fees for international withdrawals. These typically include:

• Foreign transaction fees (usually 1-3%² of the withdrawal amount)
• International ATM usage fees
• Currency conversion fees

So, before you go on vacation, you should always check. You can do this by reading your account fees' terms and conditions or calling your bank.

Some U.S. banks reimburse both the Mexican bank fee and foreign transaction fees, making them excellent choices for international travelers.

Avoiding excessive fees

You can minimize ATM fees in Mexico through several strategies:

Select local currency payment

You may be asked to pay in your home currency at Mexican ATMs. While it may seem convenient, remember that it's a trap. Selecting your home currency lets the ATM's bank choose the exchange rate, which increases fees. To get the better rates from your bank or credit card company, always pay in Mexican Pesos (MXN).

Find partner banks

Use bank ATMs

Use bank branch ATMs. They are safer and tend to charge less than freestanding machines. Avoid ATMs at convenience stores and tourist areas since they charge more.

No-fee card

Consider a card without ATM or foreign transaction fees. Frequent travelers have alternatives from many banks and travel-focused banking services. Choosing the correct card can reduce fees and increase savings.

Avoid cash withdrawals on credit cards

ATM credit card use is rarely advised. Credit card cash withdrawals are expensive and accrue interest immediately. Use a debit card to avoid these fees.

Withdrawal limits and best banks for ATMs in Mexico

When using ATMs in Mexico, you'll encounter certain withdrawal limits: those set by Mexican banks and those set by your home bank. Depending on the bank and ATM location, Mexican ATM withdrawal limits typically range from 4,000 to 11,000 pesos per transaction. However, your home bank's daily withdrawal limit will apply, so check this before traveling.

Best banks for ATM Withdrawals

Many Mexican banks, such as Inbursa, Intercam, Santander, Banorte, and Banco del Bajío, are noted for accommodating international cardholders. Due to card cloning and other scams, ATMs at bank branches or lobbies are safer.

Banks with International Partnerships:

• Banamex (Citigroup): Offers free withdrawals³ for Citigroup customers
• BBVA Bancomer: Partners with Wells Fargo for reduced fees⁴
• Banorte: Provides free withdrawals⁵ up to 3,000 pesos for Capital One debit cardholders
• HSBC: Free ATM withdrawals for HSBC account holders from other countries⁶

Exchange rates and tips for getting the best value

When exchanging money in Mexico, you'll encounter different exchange rates depending on your method and location. Understanding these variations can help you save money and get the best value for your currency.

How ATM exchange rates work in Mexico

Using ATMs in Mexico for currency exchange can be a convenient and cost-effective way to obtain pesos, but understanding how the exchange rates work is crucial to avoid unnecessary fees. 

Here’s a detailed overview of how ATM exchange rates function in Mexico.

Local vs. dynamic currency conversion

When withdrawing cash from an ATM in Mexico, you may encounter two types of exchange rates:

Tips for avoiding exchange rate losses

To maximize your exchange value:

1. Always decline Dynamic Currency Conversion (DCC) when prompted at ATMs or card terminals. This service claims to let you see the transaction in your home currency, but it typically includes a hidden markup of 3-5%.
2. Use exchange rate comparison tools:
   - Check Visa's exchange rate calculator⁷ before your trip to understand current rates.
   - Download currency apps to track real-time exchange rates.
   - Compare rates between different exchange houses before committing to a transaction.
3. Choose your exchange location strategically:
   - Avoid exchanging money at tourist-area kiosks or hotels.
   - Look for exchange houses in city centers, particularly around Avenida Benito Juarez in tourist cities.
   - Use bank ATMs for withdrawals rather than standalone machines.
4. Time your exchanges:
   - Exchange rates can fluctuate throughout the day.
   - Consider exchanging larger amounts when rates are favorable.
   - Monitor rates for a few days before your trip to understand typical ranges.

Using debit and credit cards in Mexico

While Mexico is still largely a cash-based society, card acceptance has become increasingly common, especially in tourist areas and larger cities. However, you'll need to understand where and when you can rely on your cards versus when you'll need cash.

Can I use my debit card in Mexico?

Your cards will be readily accepted at:

• Hotels and resorts
• Major tourist attractions
• Shopping malls and chain stores
• Upscale restaurants
• Car rental agencies
• Ride-hailing services like Uber
• Large supermarkets

However, you'll likely need cash for:

• Local markets and street vendors
• Small family-owned restaurants
• Public transportation
• Taxis
• Museum admissions
• Archaeological sites
• Tips and gratuities

Preparing your cards for Mexico

Before traveling to Mexico with your cards, take these essential steps:

1. Notify your bank and credit card companies about your travel plans to prevent automatic fraud blocks on your cards.
2. Check your cards' foreign transaction fees, as some cards charge up to 3% extra on each purchase, while others offer zero foreign transaction fees.
3. Get your card's international contact number and store it separately from your cards in case you need to report any issues.
4. Ensure you have a PIN for your credit cards, as some payment terminals may require it.

Using cards safely in Mexico

When using your cards in Mexico, follow these security practices:

• Only use payment terminals at established businesses
• Keep your card in sight during transactions when possible
• Review your statements regularly for unauthorized charges
• Use chip readers instead of swiping when available
• Avoid using cards at standalone payment terminals in small shops or markets
• Have a backup card stored separately from your primary card

Best credit cards for travelling in Mexico

Let's explore which credit card is the most suitable for use in Mexico. Every card on our list is issued in the US and tailored for travel, featuring no foreign transaction fees on purchases. Be mindful of any fees associated with ATM withdrawals.

Bank of America® Travel Rewards Credit Card

The Bank of America Travel Rewards Credit Card is simple and valuable. Spend $1,000 in 90 days to get 25,000 online bonus points (worth $250) with no yearly fee. Earn limitless 1.5 points per dollar on all transactions and 25%-75% more for Preferred Rewards members. The card features an 18-month interest-free purchasing period and a 17.99%-27.99% variable APR. No foreign transaction fees make it great for international travel and saving money.

Citi Premier® Card

With a $95 annual fee, the Citi Premier® Card rewards everyday and vacation spending. Earn 60,000 bonus points (worth $600 in gift cards) after spending $4,000 in 3 months. Get points at restaurants, supermarkets, petrol stations, airlines, and hotels. Annual hotel savings and no international transaction costs are benefits. The APR is 20.99%–28.99%. This card's benefits and affordability make it a good travel companion.

Chase Sapphire Preferred® Card

For $95 annually, the Chase Sapphire Preferred® Card offers great travel rewards. Spend $4,000 in 3 months to get 60,000 Chase Ultimate Rewards points worth $750. Chase Ultimate Rewards maximizes points with 5x travel, 3x dining, and 2x other travel. No international transaction costs and $50 annual hotel credit are other benefits. Travelers looking for rewards without breaking the bank would love its 21.24%-28.24% variable APR.

Chase United Gateway Credit Card 7

Chase United Gateway Credit Card offers United Airlines-only benefits. Spend $1,000 in 3 months for 30,000 bonus miles. Get 2x miles on United, transportation, and gas, with 25% back on inflight purchases. Enjoy a 12-month 0% introductory APR (21.49%-28.49% variable APR following) and no annual fee. No foreign transaction fees make this card ideal for United and frequent travelers.

American Express Gold

Dining and travel fans get great benefits with the American Express Gold Card. Spend $4,000 in 6 months to get 60,000 MRPs. Rewards include 4x eating and grocery points, 3x flight points, and $120 Uber Cash yearly. Dining credits, luggage insurance, and exclusive events are all included. The $250 annual charge and restricted Mexico acceptance are negatives, but U.S. tourists will like the benefits and 20.99%-28.99% variable APR.

American Express Platinum Card

For $695 annually, the American Express Platinum Card delivers unequaled luxury travel benefits. Spend $6,000 in 6 months to get 80,000 MRPs. Get over $1,500 in hotel, Uber Cash, and airline credits. Access 1,400+ airport lounges globally and earn 5x Amex Travel points on flights and accommodations. The no international transaction fees and 20.99%-28.99% variable APR make it ideal for frequent travelers who optimize premium perks.

Alternatives to ATMs for getting cash in Mexico

While ATMs are popular, several other options exist for obtaining Mexican pesos. Here's a comprehensive look at your alternatives:

Sending money internationally

For longer stays or larger amounts, digital money transfer services can be an effective option. These services typically offer:

• Competitive exchange rates
• Lower fees than traditional bank transfers
• The ability to transfer directly to a Mexican bank account

Services such as BOSS Revolution enable individuals to transfer money across borders, allowing for cash pickup in Mexico. BOSS Revolution provides a simple and affordable way to send money internationally, with a focus on reliability and security. This is consistent with the service's aim to make money transfers safe and straightforward.

Currency exchange offices (Casas de Cambio)

Exchange houses are one of the most reliable alternatives to ATMs in Mexico. These official currency exchange offices typically offer better rates than banks and don't charge explicit commission fees. However, they make their profit through the spread between buying and selling rates.

The location of the exchange house significantly impacts the rates you'll receive:

• Mexico City airport exchange houses often offer competitive rates
• Tourist area exchanges typically provide less favorable rates
• City center locations usually offer better rates than those in tourist zones

BOSS Revolution offers a robust alternative for sending money internationally, particularly to Mexico, while currency exchange offices provide a different set of advantages and disadvantages that travelers should consider.

ATM safety tips in Mexico

Location and personal security are crucial to ATM safety in Mexico. ATMs are generally safe, but taking precautions will help keep your transactions safe.

Choose safe ATM locations

Choose the right ATM location as your first defense. Always choose ATMs in banks or shopping centers, where security is higher. Standalone ATMs on street corners or in isolated areas are more likely to be tampered with or stolen.

ATMs from established banks like Banamex and Santander are often more secure and monitored. Plan your cash withdrawals during daylight hours and avoid ATMs after dark, even in safe locations.

Personal safety practices

Watch your surroundings when using an ATM. Check for people watching the ATM before approaching it. Be careful on paydays (the 15th and 30th of each month) when ATMs are busier and more targeted.

Follow these essential practices:

• Cover the keypad when entering your PIN
• Keep your transaction quick and focused
• Don't accept help from strangers, even if they seem friendly
• Vary your routine and use different ATM locations
• Put your cash away immediately before leaving the ATM

Security checks

Before inserting your card, inspect the ATM for any signs of tampering. Look for:

• Loose or damaged card readers
• Suspicious devices attached to the machine
• Unusual keyboard overlay or resistance
• Any cameras beyond the ATM's official security camera

Final thoughts on managing cash in Mexico

Smart cash management is essential for a smooth trip to Mexico. Always keep smaller denominations (20, 50, and 100 peso notes) handy for local vendors, taxis, and tips, as many small businesses struggle with change for 500 peso bills. Split your cash between different secure locations – perhaps some in your wallet, some in your hotel safe, and some in a hidden money belt.

While about 60-70% of daily expenses require cash, balance this with card usage for larger purchases at established businesses. Inform your bank about your travel plans and keep their international contact number accessible. Have at least one backup card from a different bank in case of issues.

Consider downloading bank apps with ATM locators and currency conversion tools to help you find cash points and track real-time exchange rates. This combination of careful cash handling and digital tools will help you manage your money efficiently during your Mexican adventure.

Sources: all third party information obtained from applicable website as of December 23, 2024

1. https://www.mexperience.com/cash-please/

2. https://www.investopedia.com/terms/f/foreign-transaction-fee.asp

3. https://citigold.citi.com/experiences/travel.html

4. https://thepaypers.com/payments-general/wells-fargo-partners-bancomer-transfer-services-to-expand-expresssend-remittance-network--746757

5. https://villaexperience.com/currency-atms-alternative-payment-options-mexico/

6. https://www.hsbc.com.hk/help/travel/atm-withdrawal/

7. https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html

8. https://www.nomadicbackpacker.com/lowest-atm-withdrawal-fees-mexico.html

This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.