Dollars to Pesos

[Starter]

Headed to Playa in Mexico and was curious as to the best way to get pesos in Mexico. It's my understanding that I should pay with Pesos whenever possible but didn't know whether withdrawing via ATM, travelers checks etc. is the most cost efficient way. Any help is greatly appreciated. Thanks. I bank with Chase fyi

 

[mcbrett]

Easy- don't do anything.

Pay with your credit card everywhere. You don't need to change any money unless you like handing out tips in local currencies- as you could still use dollars for that too.

Your CC will give you a better rate. Change stores clearly have a wide spread and fees that hurt you. And- everywhere you go should likely accept a CC these days.

 

[Pogo]

While that is true, be especially careful of your credit card leaving your hands, such as at a restaurant. The last time I returned from Peurto Penasco, I started to notice small fraudulent charges (a few dollars on iTunes). I was able to cancel the card before any big damage was done. However, I'm 99% certain my card was cloned or the number stolen at a restaurant down there.

 

[dahorns]

last august, I got the best rate when I used a grocery store's ATM. The banks seemed to have the worst. The hole in the wall "cambio" shops were typically better.
IMHO, you will get a better "exchange" rate if you pay with pesos.

I used CC just a few times, mainly at the larger curios shops and liquor stores

But that was just my experience. I'm pretty anal retentive with my money.

 

[utmck]

After you go through security at Cancun airport there is a ATM machine on the other side of the double doors. Get as many pesos there as possible. I would not trust restaurants with my credit card # and also the ATM at the airport is the least likely to have some kind of tracking device that can get your ATM # as well.

 

[accuratehorn]

I'll admit that it has been a long time since I traveled in Mexico, but when I did, it wasn't recommended to use a credit card, because they really screwed you on the exchange rates. Maybe they are fairer now, but check into this. Find the accepted exchange rate, and try to do a little better at the exchange places, some are better than others.

 

[Gone To Texas]

I live in Mexico City and can offer the following advice.

If you use a credit card you will likely be charged a "foreign transacation fee" of about 3%, maybe more, on every transacation. It's BS but there's nothing you can do about it unless you have a Capital One card. Capital One gives me spot exchange rates and no fees.

As for getting paper pesos, I would avoid any kiosks and get all money from an ATM. Like the credit card you are likely to get the spot exchange rate, but you will have to pay a fee. The Mexican ATMs typically charge me in the range of 25-30 pesos per withdrawal (about $2.50). Your home bank might charge you an additional fee. Luckily my bank does not, and they even reimburse me for the fees I incur from the Mexican ATMs. I would check the fine print on your checking account to find out beforehand so you are not surprised.

All that said, I would recommend sticking with a credit card only if you have Capital One. Otherwise, if my bank were generous and didn't charge ATM fees I would withdraw cash as necessary. If my bank sucked and charged me fees and/or didn't reimburse Mexican ATM fees, I would get as much cash as I thought I would need in a single withdrawal in order to minimize my fees--and keep the credit card in my hotel safe. Withdrawing everything on the first day also has the added very miniscule benefit of protecting you against further devaluation of the dollar. Since I moved here, it has gone from 13.25 to 11.5. Sucks for me since I get paid in dollars--it's like getting a 15% pay cut. My ire is directed at Ben Bernanke. But for a few days' visit you shouldn't worry about that.

Have a great trip!

 

[NickDanger]

I thought it was supposed to be dollars to doughnuts.

 

[dalhorn1]

I'm honeymooning to Maui this Friday, and I've heard that for every dollar I bring, it's only worth about $.50 over there....I think it's some strange "last state invited to the Union" exchange rate or something.