Money in Mexico: currency, ATMs, cards and tipping

Mexico prices everything in pesos, and the peso moves against the dollar, so treat any converted figure as a rough band. The table below shows what a mid-range day costs and how far your cash goes in each season.

Start with a small amount of pesos before you land. Airport exchange desks and arrival-hall ATMs are the worst rates you will see on the trip, so change only enough for a taxi or a bus into town, then use bank ATMs in the city for the rest. Withdraw in larger amounts less often: a fixed fee of MXN 30–90 per withdrawal makes four small withdrawals cost more than one big one.

Cards are widely accepted in Mexico City, Guadalajara, Mérida and the resort corridors, and contactless works in most supermarkets and chain cafés. Outside those places, assume cash: markets, street food stalls, small family shops, colectivos, many taxis and almost all tips. Carry MXN 500–1,000 in small notes and coins; a MXN 500 note for a MXN 45 taco bill is a problem for the vendor, not for you.

At the ATM, the machine will offer to charge you in your home currency. Decline it and choose pesos: the conversion is done at a rate set by the ATM operator, not your bank. If a machine refuses your card, try another bank rather than the same one twice. Keep the receipt, and use ATMs attached to a bank branch or inside a mall during the day rather than a free-standing machine on the street at night.

Tipping is expected in sit-down restaurants: about 10–15%, added to the card bill or left in cash. For bars, cafés and food stalls, MXN 10–20 or rounding up is enough. Hotel housekeeping, porters and tour guides take MXN 20–50 or 10% of a tour price. Taxi drivers are not usually tipped unless they help with luggage. If a service charge is already on the bill, you can leave less or nothing extra.

Budget in pesos, not dollars. The parent guide puts a backpacker day at MXN 900–1,400 and a mid-range day at MXN 2,200–4,000, and the Caribbean coast at two to three times Mexico City or Oaxaca prices. Check the current rate before you travel and again mid-trip if you are staying a month; the peso has moved sharply in both directions in recent years.

Counterfeit notes exist, mostly in tourist areas and at night. Bank ATMs and bank branches are the safest source of cash; if a vendor hands you change and you are unsure, ask for a different note or pay with smaller bills. Torn or heavily marked notes are often refused, so check what you are given.

Card skimming happens in Mexico as anywhere. Use ATMs inside bank branches or malls, cover the keypad, and check the card slot for anything loose or added on. Keep one card in a different bag from the other, and save your bank's international number offline.

Some resorts and border towns quote prices in US dollars. You can pay in dollars, but the rate is usually worse than the ATM rate, and change comes back in pesos. Pay in pesos where you can.

Mexico has no general cash limit for travellers, but declare amounts above the customs threshold on arrival (check current rules). Keep receipts for large exchanges. If you run short, Western Union and similar transfer offices are common in cities and larger towns.