Should you use Pesos or Dollars in Mexico?
People coming on vacation to Mexico ask what type of currency is best to have for spending. Can you use US Dollars in Mexico? Do I need to exchange money? Is it better to use Pesos or Dollars in Mexico? We will break it down for you here so you can travel like a pro and get the most for your money.
Are US Dollars accepted in Mexico?
The answer is yes but not everywhere. In most tourist areas like Playa Del Carmen and Cancun many stores are used to tourist coming in and they make it easy for you to pay. For most tourist that are in Mexico for a week and will be in tourist areas, you will find most places accept US Dollars. But there is the rate at what they will accept them. See our section below on this.
Tip: Mexican law says that all prices must be marked in Pesos. It is optional to also list prices in other currencies. All taxes and fees are listed in the price. Nothing can be added to the ticket or menu price.
We take US Dollars but at a cost
One very important thing you need to be alert to the rate at what people accept Dollars. You might think, “Great, they take Dollars!” but only to figure out that it is at a lower rate than what the exchange is. Any business can decide to accept a non official currency and they can set the rate at what they will exchange it at. Most of the time their rate will be a couple of pesos less than the official rate and you will actually be paying 15-20% more for things. If you are going to be shopping around, it can add up. This is a “convenience fee” for not exchanging your money yourself at a Casa de Cambio.
For this reason we do recommend people exchange money and use Pesos. You will get the best prices. It might be a little confusing handling a new currency, but just take your time and figure it out when making a purchase.
When using Pesos in Mexico you control at what rate you exchange them at rather than each store.
What areas must you have Mexican Pesos?
Outside of tourist areas you will need to have the national currency, Pesos. Here are some examples:
- Most Mayan ruin sites will only take Pesos.
- Toll roads. This is important to remember if driving around. There are often no banks or ATM machines on the toll and after you get to a tollbooth you must pay. We often see tourist that have no Pesos or think they can pay with credit card. They have to pull over and ask people to borrow money or exchange money.Be prepared and avoid this.
- Outside of tourist areas it is hard for people to exchange money or even keep up with the current exchange rate. So small stores and restaurants usually will not accept Dollars.
- Most services like water and electric do not take Dollars.
Are other currencies accepted in Mexico?
The most common non Mexican national currency is the US Dollar. This is due to the proximity to Mexico, it is a commonly used currency internationally and the bulk of tourist that come from the United States. We have not see stores or businesses accepting Pounds, Euros, Canadian Dollars or other currency. If you are coming to Mexico and have one of these currencies or others, it is best to exchange them at a Casa de Cambio.
We do recommend not brining too much non US Dollar currency to Mexico and instead using your ATM card to take out what you need. If you do this, make sure you use bank ATM and not a stand alone ATM on the street. You have a much better chance of getting your card cloned at an ATM on the street.
If you are coming to Mexico with a currency from a country that is not that commonly used in international markets, it is best to exchange this before coming to Mexico or exchanging as soon as you enter the country, like at the Cancun Airport. At many exchange houses in Mexico there are only about 10 different currencies available for exchange.
What about credit cards in Mexico?
Mexico is more of a cash society. Credit cards are accepted in large stores and restaurants. However in many tourist areas, like most places in the world, you can have your card number copied. We recommend using your card when you need to perhaps for larger purchases. For all other things we suggest having cash.
Tip: We currently do not recommend using a credit card for paying for gas in Mexico. There are many reports of scams with running cards and saying it is not working. See our article on avoiding scams at Pemex gas stations.
Tip: Be sure to ask or look for the signs that say a business of restaurant accept credit cards. Even some large ones do not and you don’t want to be stuck looking for cash after your meal.
Using US Dollars at the grocery store
In the Riviera Maya you are able to use US Dollars at most grocery stores. The reason for this is the fact many people make tips in Dollars and are encouraged to spend them in the stores. Stores will exchange them at a better rate than the exchange houses.
There are exceptions though. You are limited to $250 Dollars at a time and you cannot get more than 10% back in change. The change is in Pesos.
For people coming here to do a little shopping for vacation supplies or as a resident, using US Dollars at the supermarket is a little trick to get more for your exchange. See our article here n exchanging money in Playa Del Carmen.
The bottom line for how to pay in Mexico
The bottom line is, Pesos are accepted everywhere in Mexico! We know it can be a hassle to figure out new money and do the calculations in your head. This is just part of traveling and it is also more respectful to countries to use the national currency. Many Mexicans make it easy to use Dollars and this certainly makes it easier for many tourist that come to Mexico. You will however make the best use of your money if you exchange it and use Pesos.
These are just some tips for coming to Mexico on vacation. For other tips for your trip see our article here. We also have dozens of guides for your trip to Mexico here.
About The Author
duh of course pesos and never use the ATM’s on the streets~
You would not believe how many people ask this question. Of course there are people that come on cruises to Cozumel and come to Playa Del Carmen for the day. Some people wonder if they can us USD. Some stay at resorts and most everything is paid for so they wonder if they need to exchange a little money or what is the lowdown.
We found out the hard way about the toll roads this January, when we were on our way to Chichen Itza. Luckily the car behind us exchanged dollars for pesos.
That might of been us behind you at the toll booth. We are always prepared to help out tourist in need. On multiple occasions we have offed help. At least you know for next time.
We have always used Pesos because it seems more polite to use the currency of the country that host of. Mexico is very accepting of the Dollar and that makes it easier for many tourist.
These are some good points here. I like the fact that locals can use their dollar tips in stores.
We asked our waiter at the hotel what he prefered. He did say either way works because stores in Playa del Carmen took dollars at a good rate. However pesos are always best to tip so they dont have to convert them and loose money.
With Pesos at nearly 20 to the dollar today (it was 12/1 in 2008) pesos are definately the way to go right now. You will get SO much more for your money.
I truly appreciate this article. I will be sure to exchange my dollars for pesos upon arrival.
do you have a money exchange at the los cabos airport , its there is any fee for american tourist or it the same for everybody
Hello
Your comments go to us here at the website, so we dont have anything to do with the Los Cabos Airport. We can however answer your questions. There is an exchange place there and there is not extra charge for Americans. Usually there is no commmision charge, just the rate of exchange is about 1.0 lower then the official rate. This way they make money on the exchange and you get your pesos. This is pretty much standard practice for casa de cambios in Mexico.
is it better to use dollars to book excurtions and pesos for everything else i was advised by my travel agent to take mainly pesos but also have some dollars for excurtions?
Most tours are priced in USD so it is a set price. So you often can pay with USD and there is no difference.
I seem to remember when I first visited Ensenada in about 1969 that peso prices were shown as a “P” which had a couple of lines through it rather like the Yen (¥) symbol. Is my memory correct and why would it be changed as it is very confusing for new tourists.
This might have been something that the area did not to confuse tourists. The $ sign has been used by several currencies in the world. even the term “dollar” is used in several countries as well. Since the exchange rate is about 1 to 20, it is pretty easy to tell what price is pesos. Plus the law in Mexico says that every menu and price must be presented in pesos, if you want, you can list other prices in other currencies.
Please people, use pesos and respect the country you are visiting.
I am looking forward to coming and now with the exchange rate, this trip will cost about 15% less. I will follow your advice and exchange my dollars when in Playa. All the best!!|
what is charge to exchange US dollars to pesos when in Playa ?
It changes daily with the official exchange rate. In general it is always about 1.0 below what Bloomberg currencies post. So for example it it is 22.1 pesos to the dollar you would get 21.1 in Playa at a casa de cambio.
We always try to use the currency of the country. Most places take dollars in Playa but you get a better overall rate if you exchange them.
It makes sense to use pesos to get best prices. When we stay at a normal hotel we exchange at a casa de cambio.
This advice is very much outdated. Have some cash in your wallet, for small purchases (a bottle of water or a streetside snack). Pay as much as you can with your credit card, your bank will give you the best exchange rate. Just never loose sight of it! All commerce, restaurants and gas stations must pull out their wireless electronic payment terminal and generally you swipe or tap it yourself.
No it is not outdated, you are just not as informed about how things work in Mexico. Using your debit or credit card often will raise the chances of getting it skimmed. This is one of the main scams at the gas station, so we do NOT recommend it for travelers. Cash is king in Mexico. It is best to use cards for large purchases only and in a secure location.
It’s my first time going to Mexico, going in October, we are going to riveria maya, I am trying to work out how much I should take, we are all inclusive but want to do a few excusions.. can anyone give me a rough idea. I am from the UK so it would be pounds into pesos/dollars
Hello Kerry
Most tours are about 100-140 USD per person. We prefer to use credit cards for these large purchases. Most tours include lunch and transportation, so you only need something for souvenirs, if you want to buy official photo and tip. Tips for guides is about $5-10 USD per person. We don’t know how many people are traveling with you, but since you have paid for most things, you will only need money for tips at your hotel and little things. So, if you’re a family of four you might bring 400-500 USD. This can pay for all extras for your week and maybe one person’s tour.