Should I Exchange Money Before I travel to Mexico? (2024)

To exchange your money for Mexican Pesos before you travel, you may be tempted to use traditional banks or airport bureaux de change. Be aware that they always charge high commissions and apply very weak exchange rates.

Alternatively, you can use Wise's currency exchange feature to buy Mexican Pesos at the real exchange rate with no hidden fees charged by Wise. You can then exchange money to Mexican Pesos before or during your trip to Mexico, making Wise a reliable and cheap travel card.

Let's dive in to see if you should exchange money before you travel to Mexico, along with our top 3 travel tips for foreign exchange:

Top Tips on Money Exchange Before Travel to Mexico

• 01. Should I exchange before travel to Mexico? scroll down
• 02. Can I use US Dollars in Mexico? scroll down
• 03. Is it cheaper to exchange currency in Mexico? scroll down
• 04. How can I exchange Mexican Pesos? scroll down
• 05. Top Option: Open a Wise multi-currency account scroll down
• 06. Second Option: Use a traditional bank scroll down
• 07. Last Resort: Airport bureaux de change scroll down
• 08. Our recommendation before traveling to Mexico scroll down
• 09. FAQ about foreign exchange before travel scroll down

Should I Exchange Money Before Traveling to Mexico?

These days, using a credit card is convenient and hassle-free since most vendors in Mexico accept credit cards such as Mastercard, VISA, American Express, and other credit card issuers. These issuers 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). Check Mastercard's exchange rates here and check VISA here.

Therefore, you do not necessarily need to exchange money before traveling to Mexico if you plan on using your card for most transactions. Just make sure that your credit card waives international card transaction fees, otherwise, those fees will add on very quickly.

Get Great Exchange Rates With Wise

If you need Mexican Pesos in cash, there are a few options to consider. The best option is to use Wise's multi-currency account, which allows you to exchange currency digitally and instantly at the mid-market exchange rate. You can then use the Wise debit card to withdraw cash from local ATMs.

Another similar option is to use your home bank's debit card to withdraw cash from local ATMs (again, the card issuer, like Mastercard, will apply their exchange rates to your transactions). Just note that using credit cards for cash advances should be avoided, as it often results in high-interest payments imposed by credit card companies.

PayPal, Banks, and Bureau de Change Charge Hidden Fees

You can use your bank at home to exchange for cash before your travel but this will likely cost you due to their weak exchange rate margins. The worst options are using PayPal or bureaux de change at the airport, as their exchange rates and fixed fees can equate to up to 7% to 15% of the total exchanged amount.

When exchanging foreign currency, expect to encounter two fees:

• fixed fees, and
• exchange rate margins.

Fixed fees are charged by providers for their service, either as a flat fee or percentage of the transaction amount. Meanwhile, exchange rate margins refer to the weaker rate applied by currency exchange services compared to the mid-market exchange rate. Companies often neglect to disclose this margin, allowing them to pocket the difference as profit. Some providers may advertise their services as "fee-free," but still profit through the exchange rate margin.

What Currency Is Used in Mexico?

The official currency used in Mexico is the Mexican peso, which you might see being referred to as its currency code MXN. The Bank of Mexico is the central bank that issues MXN as legal tender, which is accepted by businesses and citizens in the country. Mexican Pesos comes in various denominations, including 10, 20, and 50 centavos (cents), as well as 1, 2, 5, and 10 peso coins, as well as banknotes in values of 20, 50, 100, 200, 500, and 1000 MXN.

As of 2023, the Mexican peso is a partially pegged currency to the USD, allowing the peso to appreciate or depreciate against the dollar within a narrow band. The MXN exchange rate is allowed to fluctuate depending on supply and demand, as well as economic and political factors.

Can I Use US Dollars in Mexico?

While the Mexican peso is the official currency in Mexico, there are rare cases where vendors may accept US Dollars (USD) in addition to MXN.

For instance, some hotels and other vendors that frequently have non-Mexican customers may accept USD. However, they will set their exchange rates on purchases, which can be unfavorable for travelers. It's typically better to pay in the local currency (MXN) to avoid any additional fees or unfavorable exchange rates.

Is It Cheaper to Exchange Currency at Home or in Mexico?

Multi-currency accounts like Revolut and Wise are the most ideal because they are digital apps, meaning you can add MXN balances at any time you need — either before or during your trip.

If you are exchanging at a brick-and-mortar bank, costs will be high regardless of if it is at home or in Mexico due to poor exchange rates and high fees. Instead, we generally recommend you use your debit card or multi-currency account debit card at a local ATM in Mexico to withdraw the local currency.

How and Where Can I Exchange Money For Travel to Mexico?

Instead of airport kiosks that offer exchange services, the top option is to open a Wise multi-currency account for free, allowing you to exchange money at the mid-market rate at local ATMs with no additional commission fees.

The second option is to use a legacy service like a traditional bank, although this will come with higher exchange rate margins and fees.

1. Open a Wise Multi-Currency Account For Free

When you get foreign currency witha Wise travel debit card, you'll never face any fixed fees for your first $100 per month transacted with your Wise account.

You can exchange and hold up to 50 different currencies, including Mexican Pesos, at the real mid-market rate (aka zero exchange rate mark-up).

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Wise's fixed fees usually hover at 0.4%, which is among the most competitive on the market. For less common currency pairs, Wise may charge around 1%, and in rare cases, up to 2% of the exchanged amount.

For these reasons and thanks to the app's ease of use, we recommendWiseand it's virtual card without hesitation.

• Multi-currency runner-up: Revolut Account
• Learn more: readour Wise Review.

2. Use a Legacy Service Like a Traditional Bank

One of the cheapest ways to get cash while abroad is to use an ATM with your debit card. It's best to use either your multi-currency account's debit card or your bank's debit card that charges zero international card transaction fees.

Keep in mind that some ATM operators may charge fees for foreign cardholders to use their machines. Check to see if your bank waives or covers these foreign ATM withdrawal fees for you. Try to find a Global ATM Alliance ATM machine in Mexico for cheap withdrawals.

Traveler's Checks

Traveler's checks are available for purchase at most banks and are usually offered in denominations of $20, $50, $100, $500, and occasionally $1,000. In addition to the exchange rate markup, a service fee of 1% to 4% is typically applied.

Exchanging Banknotes Before Your Travels

Although ordering foreign currency directly from major banks before your trip may give you a sense of security and peace of mind, their exchange rates may not always be the best available.

Some banks will have certain common currencies like the Mexican Pesos on hand, but anything above a certain threshold will require a pre-order. Consider ordering cash a few weeks ahead of time to make sure it arrives in time for your trip, as some banks require up to 10 business days of notice.

One option to consider is ChangeGroupif you need physical Mexican Pesos in cash in hand before your flight abroad to Mexico. ChangeGroup services are currently available in the UK and Finland.

When it comes to popular currency pairs likeGBP to EUR, ChangeGroup maintains a low FX markup of approximately 2.2%. For less common currency pairs like GBP to Turkish lira, however, their rates may be comparable to those offered by traditional services, hovering around 15%. This is why we tend to recommend Revolut and Wise for less common currencies.

3. Exchange Currency At an Airport Bureaux de Change or PayPal

Airport bureaux de change are widely known to be tourist traps with high markups. In fact, we've seen that their exchange rates can be as high as 10% or more above the mid-market rate. For example, if you want to exchange 100 USD to 1,800 MXN, you may receive only 1,600 MXN back, as the rest of the value goes to the bureaux de change.

It's safe to say that buying foreign currency at banks, airport kiosks, and money changers should be avoided unless you're stuck with non-local currency in cash and want to get rid of it. In that case, it's better to exchange just enough money to get by until you can find a more reasonable option, like an ATM or a bank.

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Our Mexican Pesos Travel Tips In Conclusion

In conclusion, a multi-currency account is the best way to exchange currency before or during your trip. If you prefer cash, your next best option is to withdraw Mexican Pesos in cash using a debit card from a local ATM.

Keep in mind the following points as you enjoy your travels to Mexico:

• Be aware of the difference between the mid-market rate and the provider's weaker rate;
• Comparefixed fees charged as commission for exchange service;
• Avoid airport kiosks because they charge the highest commissions and weakest exchange rates;
• ConsiderRevolut,orWiseto hold over 50 foreign currencies.