Shhhh…Siesta Secrets
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Show Me the Money
November 3, 2020
I see a lot of questions related to money while on your Mexican vacation. Should I bring dollars or pesos? Where can I get pesos? It is customary to tip? Here are some tips to easy your travel worries.
What is a Peso?
Mexico’s national currency is the peso. It comes in colorful, plastic-like bills in denominations of 20, 50, 100, 200 and 500 pesos. There are also coins, called centavos, which are values of 1, 2, 5, and 10 pesos. While the exchange rate varies, one U.S. dollar is typically about 20 Mexican pesos.
Do I need Pesos?
Many tourist areas, like Playa del Carmen, have many establishments that will accept U.S. dollars, making it easy for you to shop. However, it’s likely that you will be charged more than if you paid in pesos. Any business can set an exchange rate that will be a couple of pesos less than the official rate as a “connivence fee” for not exchanging the money yourself. This could make you pay 15-20% higher than you would had you used pesos.
In addition, you should always have some pesos on hand. To buy a bottle of water, a taxi ride, admission at archeological sites and cenotes, or a street food snack, you will need pesos. Some smaller, local shops and restaurants will not accept anything but cash in pesos.
What about using Credit Cards?
Mexico is more of a cash society. Credit cards are accepted in large stores and restaurants. It is recommended that you save your credit card for making larger purchases or for emergencies.
If you do plan to use your credit card in Mexico, call your bank to let them know you are traveling abroad. If you do not, your bank may think your card was stolen and could freeze your account. Also be sure to understand any international fees or service fees that your bank may apply to your credit card transactions.
Where do I get Pesos?
It’s recommended that you buy pesos before you land in Mexico. The most economical way to do this is to buy pesos from your bank in the U.S. Most banks will do this for free, especially if you’re not withdrawing a significant amount of money.
The most convenient place to exchange currency in a casa de cambio (exchange bureau). These businesses offer comparable exchange rates (though banks may offer a slightly better rate). The exchange rate is usually posted prominently outside the bank or casa de cambio and will vary from business to business so be sure to look for the best rate. It is often outside the main tourist district.
You can also receive pesos by using an ATM. For safety, be 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. You will typically get a better exchange rate. Transaction fees may apply.
Is it customary to tip in Mexico?
Tipping is not as necessary in Mexico as it is in the U.S. or Canada, but when eating at a restaurant, you will want to leave a tip after good service. In Mexico, 10% is standard at restaurants but if you had exceptional service you will want to consider 15-20%. Make sure to give the tip directly to the server to avoid it landing in the wrong hands.
Tipping is not required or expected when getting street food, but it is appreciated when you say “quedate con el cambio/keep the change.”
If a taxi or shuttle driver helps with bags, 10-20 pesos per bag is generally appropriate.
It is customary to tip a tour guide between 10-20% if you enjoyed your trip.
Tipping a grocery store bagger is not something you might be accustomed to but it is standard in Mexico. These are often senior volunteers who are unable to find employment elsewhere. A tip can be anywhere from 5 to 20 pesos depending on how many bags you have.
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