Comprehensive and detailed guide to living and cultivating a lifestyle in Mexico, continually revised and updated. Free—no payment or subscription needed.

Complete and detailed guide to Living & Lifestyles in Mexico that’s continually updated

Our extensive guides and articles offer insights to anyone exploring prospects for living, working, retirement and cultivating your lifestyle in Mexico.

They provide practical insights, incisive local knowledge, and meaningful guidance that helps you to discover opportunities, consider your choices, and make informed decisions.

Discover what lifestyles Mexico offers, identify opportunities of interest to you, weight up the compromises, consider your options, and plot a course based on the things that are important to you.

Guides to lifestyles in Mexico, for all life stages

Our continually-updated guides help you to begin weaving together the key components which create a workable and realistic lifestyle plan in Mexico, whatever planning stage and life stage you are in presently:

• To those considering a move to Mexico, whether you are single, with your partner, or a family with young children, Mexperience helps you to discover the country and evaluate living and lifestyle choices available here.  Our guides also offer thoughtful guidance about setting out your intentions and reshaping your situations.
• To those planning their retirement or seeking a place to retire, Mexperience guides provide specific guidance about matters related to retirement planning and retirement lifestyles, as well as the practicalities of retiring in Mexico.
• When you’re already living in Mexico, our guides and articles provide practical insights that help you to settle-in, adapt, and cultivate your new lifestyle here day-to-day.
• Regardless of your life stage, the information we publish provides meaningful insights about the essential day-to-day practical matters of living in Mexico, adapting to the country, the climates and culture, and more—with extensive cross references and links to further information and helpful contacts who can help you to realize your Mexico plans.

Planning or redefining your lifestyle in Mexico

Obtain practical insights, get incisive local knowledge and meaningful guidance that helps you to consider opportunities, weigh up your choices, and make informed decisions about planning or redefining your lifestyle in Mexico.

Mexico as a place for your retirement

We publish comprehensive information to help you plan a retirement here, whether you’re planning ahead or already retired and considering Mexico as a potential retirement haven.

Exploring locations and finding a place to live in Mexico

Our extensive articles help you to consider key aspects as you explore your options and make choices about your lifestyle and potential location types in Mexico.

Getting your residency permit for Mexico

Mexico’s immigration laws are reasonable and allow non-Mexicans with the financial means or family roots, and/or skills, to live here legally. We publish extensive knowledge to help you, including:

Moving and settling-in to life in Mexico

When you’ve decided to move to Mexico and made key decisions about where and how you’ll live, there’s the move a period of adapting and settling-in.  We publish extensive guides and articles to help you settle.

Learn how to keep in touch when you’re in Mexico

Our guides include detailed information about how to keep in touch when you’re in Mexico: by phone, by internet, as well as using postal and courier services here.  Our local knowledge helps you to choose a mobile phone plan, explore choices for high speed internet in Mexico (even if you live in a remote area) and our cost of living guide includes a section about the cost of communications services.

Detailed insights into the practicalities of living in Mexico day-to-day

Our articles and guides also include comprehensive insights about day to day living in Mexico that help you to plan your lifestyle, settle-in, and make the most of your life and activities in Mexico.

Mexico’s living costs and managing your finances

Financial considerations are an important aspect of any move.  Mexperience helps you to calculate your cost of living in Mexico and offers practical tips for managing your money and finances here.

Mexico as a place for working-age professionals

Working-age professionals, especially those plying a trade in the knowledge economy, are also considering Mexico as a base to live and work.

And more… resources for Living & Lifestyle in Mexico

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Our resources include:

• A regular Mexico Newsletter you can subscribe to for free
• Regularly-updated articles about lifestyle planning  in Mexico
• Insights about day to day living with Mexico Home Life

Foreigners who intend to buy, build or renovate a residential house in Mexico usually need to sell units of their home currency buying Mexican pesos to fund the project. Most foreign buyers spend between US$150,000 and US$500,000 (or equivalent) for a typical dwelling space in Mexico—depending on the location, size and type of home. Luxury homes in the most desirable locations change hands for significantly more.

Payment might be staged or made all at once. Either way, when you’re selling your foreign currency to buy a home in Mexico, the rate at which you buy Mexican pesos will significantly influence the final price you pay for your home.

How exchange rates affect the price you pay

Suppose you intend to spend $5 million pesos buying, building, or renovating a home in Mexico. The table below illustrates how many US dollars you’ll need depending on the exchange rate:

As the table above illustrates, if the Mexican peso weakens to 21 pesos to the dollar, a five-million-peso home will cost around 240,000 in US-dollar terms. However, if Mexico’s peso strengthens to 17, that exact same purchase will cost around 295,000, which is 55,000 dollars more.

Also, keep in mind that the exchange rate advertised is often the “mid-market” rate, so if today’s price is quoted at 19 pesos, you’re likely to be offered 2% to 4% less than this when you go to a retail bank to sell your foreign currency and buy or wire Mexican pesos.

Payment scenarios when buying or building a house in Mexico

There are typically two scenarios for payments when you buy a home in Mexico:

• Making a one-time payment, with or without an initial deposit.
• Buying or building a house using a staged payment schedule.

One-time payment, with or without a deposit

When purchasing a house outright in Mexico, buyers usually make a single payment, or pay a deposit followed by a final payment at closing. In either case, securing the best possible exchange rate at the time is vital. When the closing date is some months after the deposit date, locking in a guaranteed exchange rate in advance enables you to budget confidently in your home currency.

Buying a house in Mexico using staged payments

Buying a house in Mexico using a staged payments schedule is typical in three scenarios:

• When you buy a house from a developer before it’s built on a pre-sale arrangement—sometimes referred to as buying “Off-plan.” (In Spanish these transaction are known as preventa.)
• When you are building or renovating a house in Mexico and ‘chunks’ of money are needed as stages of the building or renovation unfold.
• Some sellers might also accept staged payments as a form of seller-led credit.

When you are faced with having to pay, for example, five million pesos over the course of a year or more, locking in a set exchange rate can help you to budget for the project in your home currency and mitigate additional costs if the peso happens to get stronger during the course of the payments schedule.

Hedging against currency fluctuations

Foreign exchange rates are not easily predicted, but a financial service exists that enables buyers of Mexican property to hedge their currency risk, mitigating the effect of foreign exchange rate fluctuations during the course of the purchase, or building/renovation period.

The purpose of currency hedging is therefore to help you budget confidently in your home currency and avoid additional costs in the event that the Mexican peso strengthens in value during the course of the purchase cycle.

How MexEdge could help you to manage your house purchase budget

MexEdge offers a service that simplifies currency exchange for property purchases in Mexico. They coordinate with trusted banking partners to help you lock in your exchange rate and assist with transfers between your home country bank and your bank account in Mexico (or the escrow or seller’s account), providing a personalized service and guiding you every step of the way. MexEdge never directly handles your funds.

MexEdge’s currency partners also offer better exchange rates than retail banks typically offer.

When you intend to transfer at least US$100,000 (or equivalent) to buy a house in Mexico, learn about how MexEdge could help. A free personal consultation is available to discuss individual situations.

The information contained in this article is published in good faith and not intended to constitute personal, professional, legal, financial or investment advice, nor replace the services of professional advisors.

Signing for card purchases began to get replaced by ‘Chip & PIN’ cards in the early 2000s, but it was not until around 2015 that this technology —entering a PIN number instead of signing a slip of paper— became more commonplace in Mexico.

Contactless payment systems

Around the same time that ‘Chip & PIN’ became commonplace in Mexico and the US, debit and credit cards also began to feature a ‘contactless chip’ inside them, enabling cardholders to make smaller payments (usually less than US$50 worth) without the need to insert the card into a machine and enter the PIN number.

In 2014, Apple launched its Apple Pay service, and Google followed suit a year later with Android Pay.  These smartphone-based payment systems allow users to add one or more of their existing bank card details to an ‘electronic wallet’ on the device and use their smartphone to make and authorize contactless payments—without the small-purchase restrictions imposed by the ‘contactless payment’ system embedded on a physical bank card.

The adoption of the two principal smartphone-based contactless payment systems has been gradual as the technology depends on users having newer phones that can make electronic payments as well as stores adopting new terminals that can interface with the smartphones.

Apple Pay and Android Pay in Mexico

From around 2022, new payment terminals started appearing in stores and restaurants across Mexico that could take payment from physical bank cards with a ‘contactless payment’ chip inside them (for small purchases only), and which are also capable of accepting payment via smartphones using Apple Pay and Android Pay.

Payments using Apple Pay and Android Pay are as or even more secure than using a physical card—people are less likely to misplace their smartphone, and the card details are never revealed to the merchant so cannot be stolen or ‘skimmed’ as may happen when you present a physical bank card. The signal between the smartphone and the payment terminal is secure and you must use your fingerprint or face ID via the smartphone to authorize the payment.

Payments you make are transacted through existing bank card(s) you have that get added to your smartphone’s “wallet.”  Apple and Google do not replace your bank or credit card company; instead their devices act at a payment gateway. You can add credit and debit cards to your smartphone’s wallet, and the process to do this is straightforward.

Payment at stores in Mexico using your smartphone

Lots of stores, supermarkets, and restaurants across Mexico have already upgraded their payment terminals and now actively accept payment via your smartphone set up with Apple Pay or Android Pay (aka Google Pay).  Even some bus companies now accept payment for tickets this way when you buy at the bus terminal.

Getting cash from ATMs using your smartphone

The next likely step for this technology is for smartphones to facilitate cash withdrawals from ATMs instead of using a physical bank card. This is already possible today in some countries, but Mexico’s banks have not launched this service at their ATMs yet. If you intend to withdraw cash from an ATM in Mexico, you must still use your physical debit or credit card to do that.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

In the same year, the bank also issued a limited-edition commemorative $20-peso banknote and coins, and Since then the new $20-peso coins as well as the notes have all been circulating in tandem as legal tender.

$20-peso bills are becoming less common

The old blue-colored $20-peso notes, printed on polymer (a special type of plastic), were already becoming worn by late 2021, and now rarely change hands. (Benito Juárez’s image has been moved over to the latest $500-peso bill.)

The colorful commemorative $20-peso notes, pristine copies of which will likely become collector’s items, have been in circulation since late 2021 but they too are less commonly seen now as the new $20-peso coins are fed into general circulation in ever-greater quantities.

The idea of replacing these notes with $20-peso coins makes sense, because the denomination is versatile and often used for bus fares, and tips. The bills were thus changing hands frequently and the corresponding wear and tear is significant even for a polymer note. A coin is more convenient, and longer lasting.

$20-peso coins carry varying emblems

As is often the case with flagship coins issued by countries’ banks, the shape, size and weight of the coin remains constant but the emblems stamped on them vary over time, and some become sought after and offered at a premium to potential collectors.

This is the case with Mexico’s 12-sided $20-peso coin that has, since its inception, been stamped with a variety of Mexican historical figures including Emiliano Zapata, and key protagonists of the country’s Independence movement.

The latest $20-peso coin features two bald eagles and commemorates 200 years of diplomatic relations between Mexico and the United States of America.

You can expect to see these coins more often as the $20-peso banknotes leave general circulation altogether, and the coins replace them as one of the most versatile denominations for small trades, and tipping in Mexico.

Learn about money and banknotes in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Articles about Mexico’s banknotes
• Latest articles about Money and finance in Mexico
• Learn about Money and Bank Services in Mexico
• Guide to the Cost of Living in Mexico

Comprehensive guides to money, finances and banking services in Mexico—continually updated

Money, finances, and banking services in Mexico

Complete guides to money, currency and banking services in Mexico.

Our guides and articles give you a comprehensive overview of Mexico’s money system as well as the banks and banking services available that help to facilitate the commercial interactions you’ll need to engage with while you’re here.

The local knowledge shared here helps you to consider your needs and
formulate a plan to manage your money and any investments you have in Mexico, as well as arrange banking and financial services that provide essential support as you begin to realize your living and lifestyle plans.

Complete guide to money & banking services in Mexico

Our guides to Money & Banking Services in Mexico provides you with a definitive resource about managing your money and making use of banking services in Mexico.  The regularly-updated guides and articles include:

• The Mexican peso – learn about the country’s currency and its banknotes
• Bank cards – using debit, credit cards in Mexico
• Using ATMs in Mexico
• Money exchange – learn about different ways of exchanging foreign currency for Mexican pesos and vice versa
• Money transfers – how to transfer money to, from and within Mexico
• Money essentials – money and banking safety tips and local knowledge
• Opening a Mexican bank account – the requirements and mechanics of opening and running a bank account in Mexico
• Mexican banks and banking services – services and facilities offered by Mexican banks, as well as a profile of the principal banks and financial institutions
• Options for financing real estate in Mexico

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

About ATMs in Mexico

Mexico’s banks manage an extensive network of Automated Teller Machines (ATMs) that can be used to withdraw Mexican pesos in cash from your local account if your card is issued by a bank in Mexico, or from funds held in an account outside of Mexico if your card was issued by a foreign bank.

Some ATMs also accept deposits in cash, allow you pay bills, and enable transfers of money between bank accounts based in Mexico.

It’s easy to find an ATM in Mexico. They are usually open, dependable, and will dispense Mexican pesos to anyone with a card connected to one of the global networks, including VISA, MasterCard, and AMEX, as well as those holding debit or credit cards issued by a Mexican bank.  Some ATMs dispense US dollars in addition to Mexican pesos, and will offer card holders the option of either currency if they do, but this is not common.

Typical charges for using an ATM in Mexico

How much you pay in charges for using your bank card at an ATM in Mexico will depend on two key factors: first, what country the card is issued in; second, the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on the bank and the account type you have.

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges might be applied to the account, either lumped together or separately, depending on the bank and account type, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal might also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank or exchange house instead of using an ATM.

Although banks have increased charges for ATM use abroad in recent years, ATMs are by far the quickest and most efficient way to get access to local currency in Mexico from a foreign-based bank account.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the cash withdrawal will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Cash withdrawals using credit cards

Note that currency conversion and transaction fees for cash-advances drawn using a credit card account tend to be higher than those where money is drawn down from savings or current/checking accounts.

Additionally, interest is often charged from the date of the cash withdrawal, and sometimes whether you clear your credit card balance or not.  Check with your credit card company to find out what charges they make for cash withdrawals from Mexico—the charge structure is usually different than that for purchases.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Mexico’s official currency

Mexico’s official currency is the Mexican peso. There are one hundred Mexican cents (centavos) to every peso.

• The symbol for the Mexican peso is $; its international currency code is MXN.
• To distinguish this from the dollar, you sometimes see it presented as MX$ or the value with the letters “MN” after it, e.g., $100 MN. The MN stands for Moneda Nacional, meaning National Currency.
• The Mexican Peso is a “free floating” currency in foreign exchange markets and like other similar currencies, its value against other world currencies fluctuates daily.

Discover Mexico’s banknotes and coins

In addition to its defined responsibilities for setting monetary policy, the bank of Mexico is responsible for the printing, minting, distribution, and management of Mexico’s physical currency.

Every ten years or so, bank note designs are updated to implement the latest in anti-counterfeit technologies.

Mexico’s banknotes are printed in denominations of 20-, 50-, 100-, 200-, 500- and 1,000-peso bills. The most seen and used are the 50-, 100- and 200-peso bills.

Mexico’s coins are minted in denominations of 50 cents, 1-peso, 2-pesos, 5-pesos, 10-pesos, and there are also some $20-peso coins in circulation.

Mexico’s current series of coins have remained unchanged for decades.  The old 20-cent coins are now out of general circulation and the 50-cent coins although still circulating are not often seen and used.

In addition to the bank’s standard set of current coins, commemorative coins have been introduced over the years which don’t tend to circulate widely as they are kept by consumers or bought by collectors.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

Making international money transfers to and from Mexico

You can transfer money electronically to and from Mexico between bank accounts, or you can use an over-the counter international money transfer service.

International transfer to and from a Mexican bank account

If you have a bank account abroad and a bank account in Mexico, you can make an international money transfer using the special numbers provided by the banks.  You can make the transfer in one of two ways:

Direct interbank transfer

You instruct the bank abroad to wire the payment to a bank account in Mexico, or you instruct your Mexican bank to make a payment to a bank abroad.

Both the sending and receiving bank will make a charge for the transfer, and they will also make money on the exchange rate. Check with the banks to ask about fees and exchange rates.

Interbank transfer using an intermediary

If you are sending money to Mexico, you can optionally use a money transfer intermediary who will wire the money and usually offer a better exchange rate and/or lower fees than direct interbank transfers.

Wise (formerly Transferwise) and XE.com are examples of intermediary services.  Note that these only work on transfers to Mexico; if you want to wire money out of Mexico you must use a direct interbank transfer through a Mexican bank, you cannot use an intermediary.

Over-the-counter international money transfers

If you are transferring smaller sums and want to use over-the-counter money transfer services, here’s the general process:

• The person sending you money goes to their nearest money transfer agency and makes the payment plus associated charges, telling their local branch what city the money should be sent to
• The money is wired to that city and, to claim it, the recipient goes to an establishment that represents the agency (e.g., Western Union), shows a photo identification and claims the transferred amount using the reference number provided to them by the sender. To send money from Mexico to a destination overseas, it’s the same process in reverse.
• Over-the-counter transfers work for smaller sums of money, e.g., a small few thousand dollars at most; the agencies offering this service impose limits for transfer amounts and the fee structure they have make larger transfers unattractive.
• It’s more expensive to transfer money using an over-the-counter service than using an interbank transfer.
• The main money transfer agencies are Western Union and MoneyGram are two leading over-the-counter money transfer companies operating in Mexico. Some banks and stores are agents for these companies.

Money transfers within Mexico

If you’re in Mexico and need to transfer money domestically, there are two ways to do this without the need to write and post a check. (The writing and posting of paper checks is not a common practice in Mexico, nor is it recommended.)

Interbank electronic transfers

Transferring money electronically between two Mexican bank accounts is straightforward. You can transfer money instantly from your Mexican bank account to any other Mexican bank account using online banking (web browser), the bank’s app (using a smartphone or tablet), or by visiting the bank in person and authorizing the transfer of the money.

Over-the-counter cash transfers and deposits

Convenience stores in Mexico, including OXXO and 7-Eleven, offer cash-transfer and bank deposit services. Ask at your local OXXO or 7-Eleven for details about the services, transfer/deposit limits, and current fees.

Transfers: You pay cash at one of the convenience stores and pass a code to the intended named recipient.  That other person can attend the same brand  convenience store in their locality and, using the code and an official ID, can receive the cash.

Bank deposits: You can also pay money into some (not all) Mexican bank accounts from OXXO and 7-Eleven convenience stores.  There is a small fee for making the deposit, but it can be quicker and easier than going to the bank branch.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Exchanging your money for Mexican pesos

There are three main ways that most people exchange their home currency into Mexican pesos:

• Using a local ATM in Mexico to withdraw cash from an account based outside of Mexico; or
• Exchanging foreign currency cash for Mexican pesos; or
• Transferring money from a foreign bank account to a bank account in Mexico.

Also:

• Some local banks in Mexico might cash a paper check drawn on a bank in the United States of America; and
• see the important note below about the use of paper Traveler’s Checks.

Using ATMs to get Mexican pesos locally

As we described in a related article, holders of bank cards issued outside of Mexico can withdraw cash in Mexican pesos from local ATMs. That article describes the process and the typical charges involved.

• The number of pesos you withdraw is converted and charged to the account where the money is held in the local currency, e.g., US dollars, Canadian dollars, British pounds, Euros.
• This is a quick and efficient way to buy Mexican pesos using a debit card linked to a checking or savings account abroad.
• All ATMs in Mexico have an upper limit of pesos they will dispense in any one transaction, and the amounts vary by bank.
• Typically, an ATM will allow foreign card holder to withdraw between 5,000 and 10,000 pesos per transaction.  Also, check with your bank about any daily limits it may impose on cash withdrawals.

Exchanging your foreign currency cash for Mexican pesos

Some people bring cash with them from their home country to Mexico and exchange this for Mexican pesos.

Pesos can be bought for foreign currency cash at many retail banks, but the better places to sell your foreign currency for pesos are the exchange houses, Casas de Cambio—see notes below.

Exchange rate fees when buying pesos with cash

Most exchange houses and banks do not charge commissions to exchange currency but make money through the “spread”—that’s the difference between the rate at which they sell pesos and the rate at which they buy them.

Some exchange houses in need of certain units of foreign currency for their operations (for example, if they need US dollars) will offer better rates on certain days than even perhaps the international exchange rate, so it pays to shop around at various exchange houses at the airport or downtown if you plan to buy pesos using foreign currency in cash.—

Currencies traded

Mexican banks and exchange houses will buy and sell all major currencies. US dollars, Canadian dollars, British pounds, euros, Australian dollars, and Japanese yen can be readily bought and sold across the counter at exchange houses and many retail banks.

Exchanging cash at the Casas de Cambio

The best place to exchange your foreign currency cash for Mexican pesos is at one of the local exchange houses, known as Casas de Cambio.

They tend to offer the best rates and their procedures for exchanging money are straightforward.

The ones at the Mexico City airport tend to offer the most competitive exchange rates; exchange houses situated in tourist hotspots offer the least attractive exchange rates.

Exchanging money using a local retail bank

Retail banks will exchange foreign currency cash for Mexican pesos, but their rates may not be as attractive as the local Casas de Cambio (check locally) and they might insist that you have a bank account with them to make the exchange.

Paying foreign currency cash at stores and hotels

Some stores might accept cash in foreign currency in payment of goods (exchange rates might not be favorable, though).

Hotels and resorts in Mexico are no longer allowed to accept cash payment in US dollars to settle stays, due to money laundering rules.

Transferring foreign funds to a Mexican bank account

If you have a bank account in Mexico, you can buy pesos by transferring money from your foreign bank account to your bank account in Mexico.

These funds get converted into Mexican pesos and become available for your use locally, where you can pay others electronically using online banking or a banking app; using your Mexican debit card to withdraw cash from a local ATM; or by making a cash withdrawal in person at the bank itself.

If you’re resident in Mexico this method is an efficient way to transfer funds from overseas accounts (e.g. your retirement income) to a Mexican bank where the pesos are held on account for your day-to-day use.  By transferring larger sums, you avoid ATM fees and save time and money in the longer term.

Cashing a US dollars paper check in Mexico

Some Mexican banks will cash a paper check drawn on a US bank and convert the sum into Mexican pesos. You usually need to hold an account at the bank where the check is cashed.

If you want to cash a US dollar check into Mexican pesos ask your local bank if it offers this service, and if it does, ask about what fees it charges and what exchange rate it applies to the transaction. Compare this against using an ATM to access your money or by making a transfer from your foreign bank account to a Mexican bank account.

The trouble with Travelers Checks

In a bygone era, Travelers Checks were the de-facto means for travelers to carry or transfer their money in a safe way for exchange into a local currency abroad. Paper-issued Travelers Checks have fallen out of favor as the widespread use of bank-issued ATM cards has made them obsolete.

While paper-based Travelers Checks are still accepted at some places in Mexico, they are difficult to exchange: the exchange rates offered are usually unfavorable and it’s often time-consuming to exchange them due to all of the verification steps that need to be undertaken.

“Plastic” Travelers Checks

The modern replacement product for paper-based travelers check is a plastic bank card —like a debit card issued by your bank and linked to your checking account— with a key distinction that they are not tied to a personal bank account.

Instead, you top them up with a cash balance from your bank account (or over the counter) and carry the card with you when you travel. When you need to draw cash from the balance on the card, you visit a local ATM to withdraw money in local currency.

They work like regular debit cards. Some electronic debit cards only allow use at ATMs, others also allow you to use them in stores; however, check with the card issuer about the foreign exchange charges they make for using the cards, as well as any other “per transaction” charges.

These ‘plastic card travelers checks’ are helpful if you don’t have a bank account in Mexico and want the convenience of using an ATM to obtain Mexican pesos, or if you don’t want to carry your bank cards in certain situations, for example, if you plan to travel into a remote region of Mexico and/or prefer to leave your bank cards at home or in the hotel when you’re touring.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

You need to be a legal resident in Mexico to open an account here, and you need to attend a local Mexican bank branch in person to make an application.

Choosing the type of account you need

When you attend the bank, a representative will talk with you about the types of account offered by the bank.

Most foreign residents opt to open a checking account that enables them to:

• receive deposits from other bank accounts in Mexico and banks overseas; and
• send payments to others using online banking; and
• make payments to traders and service providers (in person and online) using a debit card; and
• some accounts offer a paper check book, although paper checks are rarely seen and used in Mexico now.

Documents required to open a bank account in Mexico

When you attend the bank, the representative will ask you for various documents including:

• your current passport; and
• your Mexico residency card (not your residency visa); and
• proof of address in Mexico—usually a recent electricity bill; and
• banks may also ask for your RFC.

They will also ask you to make a deposit to open the account, equivalent to at least the minimum deposit balance required to maintain the account open.

Most new customers make this initial deposit in cash.  The bank might accept an international transfer-in to the account by prior arrangement; ask locally.

When the account is opened and set-up, you will be provided with:

• A bank account reference number associated with your name.
• A debit card (this might be provided on the day, or you might have to return later to pick it up).
• The bank’s system will also send you an email that contains a User ID and password to access your account online and via smartphone app.
• For security, the banks require you to visit a branch in person to complete the online/app set-up process.

Managing your bank account in Mexico

When your account is set-up and active you will be able to bank in Mexico.  As a minimum, customers are usually provided with the following facilities:

Your bank account number

You can quote your account number (CLABE or Card Number) to others so that they can make electronic deposits directly into your Mexican account in-person at the bank or convenience store, or via an online transfer using a smartphone app or internet banking access.

International payments into your Mexican bank account will require you to quote the IBAN number that your bank can furnish you with; this contains the international routing number for the bank in addition to your personal account number.

Debit card

The bank will furnish you with a debit card that you can use at ATMs in Mexico.  You might also be able to use this at ATMs outside of Mexico, depending on the account type; ask your bank representative for details, and about the charges the bank makes for use of your debit card outside of Mexico.

Some debit cards can also be used for purchases in stores and online.  Online purchases usually require you to authorize each purchase via the smartphone app, for security.

Online banking and smartphone apps

The bank will also provide you with the details you’ll need to logon to your account online (using a web browser) and/or via a banking app via your smartphone.

The bank’s smartphone app provides immediate access to a range of helpful banking transactions including. Features include:

• View recent and historical your account activity.
• Transfer money between your accounts.
• Make electronic payments to other Mexican bank accounts
• Top-up pre-pay Mexican mobile telephone numbers.
• Pay for utilties including electricity and phone companies.
• Authorize payments made using your card online.
• Some apps provide a ‘virtual card number’ for online payments. The security code changes with each payment and makes it virtually impossible for your card number to be cloned and misused by others.
• Set-up a ‘cardless’ cash withdrawal: the app gives you a code that anyone can take to an ATM and withdraw a prescribed amount of cash from your account.
• Buy a range of other financial services, like travel insurance.

Paper checkbooks

Some bank accounts in Mexico will furnish you with a checkbook to write paper checks, although this is not common these days.

Most people make and receive payments electronically using a debit card (in stores, online) or using direct electronic transfer to others—to individuals or a company they are trading with.  The smartphone apps (see above) make this easy to do.

If you want a paper checkbook, be sure to talk with the bank’s representative to ensure that the account you open can have a checkbook.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about money and finance in Mexico
• Latest articles about health and safety in Mexico 

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

In this third part of the series we explore the need to develop negotiating and bargaining skills, for use everyday.

Negotiation, trade, and bargaining are woven into the fabric of Mexican culture. In 1520, Hernán Cortés wrote to Emperor Carlos V of Spain describing Tenochtitlán as a city with “many plazas, where there are continuous markets and dealings in buying and selling”. These and other records show how Mexicans have been avid traders for many centuries.

Five hundred years later, whether you’re buying a piece of land, a home, a car, or a kilo of limes at the local market, you will need to exercise some negotiation skills, lest you may pay more, and possibly a lot more, than you need have.

How you negotiate (or bargain) will depend upon the precise situation you find yourself in. In most circumstances effective negotiation will require the use of Spanish —a notable exception being real estate purchases— so a basic conversational level of the language, as described in the first article of this series, is a prerequisite.

There are some places and situations where bargaining is not practiced in Mexico. These include the local supermarkets, department stores, and gasoline stations. Bargaining is not generally practiced at tienditas (family-run corner stores) and it’s not practiced at pharmacies.

Restaurants and comedores don’t usually bargain, either; although they might agree to a large group discount or special offer if you talk with the manager or owner before your intended arrival.

Situations where bargaining is practiced (and sometimes expected) include shopping in open-air food markets, flea markets, art and craft markets and fairs; and buying from ambulant vendors on the street and on public transport.

If you board a local taxi cab that isn’t metered or doesn’t charge a zonal fee, you should always negotiate your price beforehand. Many people are now using App Cabs which offer fixed pricing for fares in advance of the journey.

More formal situations where price negotiations are often entered into include the purchase of a vehicle (new or used), the purchase of jewelry or very fine clothing from a specialist suppliers, the bulk purchase of almost anything from a trade supplier, hand-made furniture bought locally, as well as land and property—whether for purchase or to rent.

When you have lived in Mexico for a while —and especially when you have lived in one place in Mexico for a while— you’ll notice that the prices asked for many local things you buy every day can be very elastic indeed. There are prices for ‘locals’ and prices for ‘tourists’—whether the tourists are foreign or Mexican.

Traders everywhere are alert to an opportunity. They will always try to make hay while the sun shines. With some experience of living in a place, you’ll learn what prices should be for things like a taxi cab ride, a kilo of meat or fish, a bagful of oranges, a hat or walking stick, a stack of fresh corn tortillas, and so on.

How? You start talking with people locally, you hear and see what others are being offered and gradually you get to know. Eventually, you might become sufficiently experienced and not have to ask the price for something you buy regularly; —for example, the fee for a local cab ride to a regular destination— you know what it should be and hand over that amount of money.

The acid test is to hand over a coin or bank note that requires some change in return and see how much comes back. In fact, this level of local economic intimacy is a gauge for you—the more you buy without the need to ‘negotiate’ the price, the deeper you have become entwined in, and part of, the local community.

Resources for bargaining and negotiating

Learn more about Mexican culture and traditions, including about negotiating, bargaining and shopping in Mexico:

• Guide to social etiquette and local customs
• Latest articles about Mexican culture and local customs
• Learn about tipping culture in Mexico
• Discover Markets & Shopping in Mexico

Most stores won’t accept paper checks in payment anymore because debit and credit card machines provide near-instant payment authorization of the amount being transacted, and save time at the checkout.

About using your credit & debit cards in Mexico

All major credit and debit card brands are accepted at millions of retail establishments across Mexico.

Visa, MasterCard, American Express, and Discover are the most commonly seen and used brands in Mexico.  Visa & MasterCard are the most widely accepted networks. Some places also accept Diners Club.

If your debit or credit card is linked to a bank based outside of Mexico, your purchases will usually be charged in Mexican pesos and your bank will convert the amount to the equivalent in the local currency where your account is held and charge that sum to your account in your home currency.

Charges for use of bank cards in Mexico

How much you pay in charges for using your bank cards in Mexico will depend on:

• what country the card is issued in;
• whether you are making a purchase or withdrawing cash; and
• the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, the transaction amount is charged directly to your account here, in Mexican pesos, and charges will vary depending on the type of account that you have.

There is usually no charge for making purchases (in store or online); there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on whether you are using the card to make a purchase, or withdraw cash from a local ATM in Mexico.

Using your card for purchases and online orders

When you use your card at a store or online, the bank will usually charge a currency exchange fee (see below) and some banks might also add a ‘foreign currency transaction fee’—check with your bank for details.

Using your card for cash withdrawals

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges may be applied to the account, either lumped together or separately, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal may also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank instead of using an ATM.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the transaction (purchase or cash withdrawal) will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Signatures for card purchases in Mexico

The use of signatures for making purchases with a card in Mexico is virtually phased out now, and has been replaced with the use of a PIN (Personal Identification Number).

Some stores in Mexico continue to use the “card swipe” machines to take payment from plastic cards, whereby the machine prints out a slip of paper and the card holder must physically sign the slip to complete the transaction.  However, most stores now use the “chip and PIN” payment authorization method.

“Chip & PIN” card signatures in Mexico

Swipe payment machines print-out a slip of paper that requires your hand signature. However, when you present one of the latest bank cards, stores, restaurants, and other traders enter your card into a special device that reads the encrypted chip now embedded onto the plastic cards.

Instead of signing a voucher, you are asked to enter your card’s PIN number (cover your hand when you do this). In Spanish, the PIN is referred to as firma electrónica —electronic signature— or ‘NIP’ (that is an acronym for Numero de Identificación Personal).

Some establishments also ask you to sign the voucher that the machine prints out, but it’s not necessary; your bank won’t charge you twice if you do.

If you do not know your card’s PIN, the establishment might instead offer to “swipe” the card and take payment using your hand signature and some other form of identification, e.g., residency card or passport.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn about making payment in Mexico using your smartphone
• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.