Which atm to use in mexico?

Mexico’s official currency is the peso.

Although the peso is the main currency, American dollars are accepted in touristy areas. Some high-traffic tourist regions might also accept Euros, Canadian dollars and British pounds. However, it’s almost always more cost-efficient to pay with pesos.

| --- | -- | | Names | pesos & centavos | | How is 100 pesos written? | 100 MXN, MX$100, $100 MN | | 1 MXN | There are one hundred centavos (cents) in one peso. | | MXN coins | You'll find denominations for 1, 2, 5, and 10 pesos. These coins are frequently used for small bills and tips. Mexico also mints centavos in denominations of 5, 10, 20, and 50 pieces - although they’re not widely used since their value is so small. | | MXN banknotes | Mexico prints banknotes in denominations of 20, 50, 100, 200, 500, and 1,000 pesos. You’re likely to see MX$50, MX$100, and MX$200 used. |

The best place to exchange currency in Mexico is at a large bank or select ATMs. Both options will use the ‘real’ exchange rate, also known as the mid-market exchange rate. It’s the midpoint between the buy and sell rate in global currency markets.

However, not all banks and ATMs will be equal, beyond using the interbank rate. Your home bank may partner with some banks abroad to waive fees. Other banks might build in a charge, or take a cut of your withdrawal.

You may find that currency exchange kiosks are more convenient for you. They’ll be located in town, at your hotel, and at the airport. Beware though as these institutions often mark up the exchange rate. They also generally charge service fees and charges. If using an exchange bureau, ensure that your bills aren’t damaged or torn, otherwise merchants won’t accept them.

Some research prior to your trip could save you money. The fairest exchange rates might come from your home bank, and many banks will give you the best Mexican peso exchange rate if given enough notice. In that case, convert to pesos ahead of arriving in Mexico. If you’re traveling to a remote part of Mexico, you’re not likely to find sophisticated financial infrastructure.

Before ATMs were commonly-used, traveller’s checks were a prevalent and safe way to carry currency abroad. These days, more efficient ways of getting cash are replacing the traveller’s check. Traveller’s checks require a manual verification process and they offer poor exchange rates. As a result, they simply aren’t the best way to exchange money.

Also, as fewer people use traveller’s checks, it becomes less cost-effective for banks to process them. You might have a difficult time finding a bank or exchange house that will accept your traveller’s checks.

Instead, opt for a prepaid debit card, or use your debit card at an ATM. These days, traveller’s checks aren’t worth the hassle of using them.

Visa, MasterCard, and American Express are the most commonly accepted credit cards in Mexico. You shouldn’t have a problem using any of these major cards, especially in larger cities or tourist destinations. Fewer vendors will honour cards provided by smaller companies, so do your research ahead of time.

It’s always a good idea to carry some cash on you as well, but don’t carry around more than you plan to spend on any given day. You risk being unsafe, otherwise.

One of the bigger fees you’ll come across will be from your bank or credit card company. Many banks charge foreign transaction fees every time you pay for something. It’s common practice for credit card companies to charge one percent on all foreign transactions. Still, you’re better off using your credit card for large purposes; the fees will be smaller than for cash transactions.

To minimise inconvenience, tell your bank or card issuer that you’re going abroad. This will stop them from freezing your card for potential fraud when you’re using it in Mexico.

ATMs are common in Mexico, since the country attracts many tourists. You can use global ATM locators for Mastercard, American Express,  Maestro, and Visa to find your preferred ATMs in Mexico.

You’re better off using ATMs owned by the large banks: Banamex, Banco Santander (part-owned by Bank of America), Banorte, and HSBC. Otherwise, smaller vendors may charge you liberally for your transaction.

In the worst-case scenario, you'll be charged an ATM fee, an international withdrawal fee, and a currency exchange fee at an ATM. Some ATMs might charge an exchange fee, and waive the withdrawal fee. But expect a lot of variation in your fees and charges if you don’t plan ahead.

Most ATMs in Mexico only accept 4 digit PINs for debit and credit cards. If you don’t have a 4 digit pin number, speak with your bank before traveling.

In Mexico, always choose to be charged in pesos, as opposed to withdrawing in your home currency. Otherwise, the ATM has license to mark up the exchange rate you’re getting. This is known as ‘Dynamic Currency Conversion’, and it usually means extra charges are placed on you, the customer.

Note that safety is always a concern for foreigners in Mexico. Petty theft is a problem in large cities, and ATMs are frequently targeted by hijackers. Don’t withdraw or carry large amounts of money. Carry what you plan to spend, and keep the rest securely stored. Most importantly, be aware of your surroundings.

While it wasn’t always the case, today modern banks are prevalent throughout Mexico. You’ll find a range of financial services for residents, expatriates, and visitors. Banking services have steadily improved over the last decade.

The credit card market in Mexico has taken off over the past 20 years. Yet, interest rates on Mexican credit cards are high by US or European standards. It's common to have a 50% per year interest rate on a card.

If you bank with a global bank, chances are you’ll find a branch or a partner bank in Mexico. Check with your home bank before you go.

The following are the principal banks with retail operations in Mexico:

| --- | --- | | BBVA Bancomer Mexico | Mexico’s largest bank. U.S. based bank Wells-Fargo has ties with the entity. | | Banamex (owned by Citigroup) | Mexico’s second-largest banking group, Banamex, is a Citigroup subsidiary. If you bank with Citigroup, you can withdraw from Banamex ATMs for free. | | Banorte (merged with IXE) | Banorte is among the most populous in terms of ATMs and local branches in Mexico. Capital One’s debit card allows free withdrawals at Banorte ATMs of up to 3,000 pesos a day. | | Santander Mexico | Use the branch locator to find Santander branches and atm's. Be aware that fees maybe apply. To avoid your card getting blocked you should notify your bank that you'll be traveling. | | HSBC Mexico | HSBC Mexico operates 1,400 branches and 5,200 ATMs across Mexico. If you bank with HSBC at home, expect free ATM withdrawals at HSBC ATMs. | Banco Inbursa | Banco Inbursa is a local Mexican bank owned by Mexico’s famous billionaire Carlos Slim. |

The following foreign banks maintain branches in Mexico:

Have you ever been surprised by high ATM fees? Well, you are not alone. Many expats in Mexico have local bank accounts, which usually allow free ATM withdrawals. But local ATMs are also a convenient way to withdraw funds from banks in your home country, especially during emergencies. Unfortunately, these transactions can sometimes result in excessive fees. To help you manage your money, we have put together some tips to show you how to minimize ATM fees in Mexico.

First, let us look at some fees you may face at an ATM in Mexico. The exact fees will depend on several factors, including the ATM, your card and the bank you are withdrawing from.

Local ATM Fees in Mexico

Generally, you will not be charged a fee when using your Mexican bank’s ATMs and their partner-ATMs. Any fees, if at all, will be nominal.

ATMs outside that network will charge you a usage fee. The fees can vary, but as a rough guide, expect to pay around 30 pesos, or about US$1.50, depending upon the exchange rate at the time. Non-bank ATMs can have higher fees than banks.

Your bank may also charge an out-of-network fee for withdrawing money through another bank’s ATM network. It is unclear if this happens within Mexico.

Foreign ATM Fee and Foreign Transaction Fees

You may face these fees when withdrawing money from your home country accounts.

Your home country bank may have a flat foreign ATM fee like US$5 when withdrawing from an ATM outside an international partner network. The exact fee will depend on the bank.

You may also face foreign transaction fees, which generally include fees by your home country bank and the payment network (VISA/ Mastercard). The total foreign transaction fees can be around 3 percent.

Dynamic Currency Conversion

This is a potentially high cost that you need to be aware of.

When making a local ATM withdrawal in Mexican pesos from your home country bank account, the local ATM may offer you a guaranteed exchange rate. If you look at the ATM screen carefully, there will be a mark-up percentage, which is their charge incorporated into the exchange rate.

This mark-up can be high, for example, more than 5 percent and possibly even a double-digit percentage, which means you can get an unfavorable exchange rate.

The screen will give you the option to accept the ATM’s conversion offer or reject it. We’ll discuss this further, below.

A Side Note

Using credit cards at ATMs to take cash advances will typically result in a cash advance fee. The amount can be a flat rate per transaction or a percentage of the transaction.

How to Minimize ATM fees in Mexico

Let us look at some ways to avoid or minimize your ATM costs.

1.   Check if your home country bank has partnered with banks in Mexico to remove ATM fees. By using a partner ATM of your home country bank, you may avoid some fees like the ATM usage fees of both banks. Check this ahead, so you know which ATMs to use. Remember, you may still be charged some fees like the percentage foreign transaction fees.

2.   Understand your bank’s fees. Review your bank’s fee structure because fees can vary. For example, some banks do not have foreign ATM fees, and certain banks reimburse ATM fees. Some expats may consider getting an account with a bank that has partner ATMs in Mexico or one with minimal fees.

3.   Consider declining the ATM’s dynamic currency conversion rate. As discussed, when withdrawing money in Mexican pesos from your home country bank through a local ATM, it may offer you an exchange rate and a possibly high mark-up percentage.

Many users might simply accept it without further thought. But you can reject it, and declining the ATM’s currency conversion offer does not cancel the transaction.

If you decline the currency conversion offer, you will then be charged at your bank’s exchange rate and the usual foreign transaction fees.

Unfortunately, you will not know the exchange rate your bank is using until later, unlike the ATM’s guaranteed rate. Here is where knowing your bank’s foreign transaction fees and an approximate exchange rate will be useful. So, you can decide if you should decline the ATM’s conversion offer.

The dynamic currency conversion is also what happens when a store gives you the option to pay in a foreign currency and you accept it.

4.   Avoid using ATMs not operated by banks. ATMs not operated by banks can usually have higher fees. So, try to use ATMs of main banks, which are widely available.

5.   Avoid multiple withdrawals. Multiple withdrawals equal multiple per-transaction costs. For example, if your bank abroad has a flat foreign ATM fee of US$5, and you make multiple withdrawals, they can add up.

Mexican ATMs’ withdrawal limits (in USD equivalents) might be less than what you are used to in your home country. And to get a larger amount from your overseas bank, you may need to make multiple withdrawals over a short period.

This is where using an international partner ATM of your home country bank or using a bank account/card with lower fees can come in handy.

6.   Use the ATM network of your Mexican bank. An option to avoid ATM fees is to open a bank account in Mexico. Many expats use local accounts to make hassle-free domestic transactions and withdrawals, and transfer money from overseas to Mexico.

For more information on opening a bank account in Mexico, read our article, “How to Open a Bank Account in Mexico.”

Safety Tips for Using ATMs and Bank Cards

And, of course, continue to use general precautions with your financial and personal information as you would in your home country.

• BBVA Bancomer.
• Santander.
• Scotiabank (partnered with Bank of America)
• Intercam.
• Banorte.
• Inbursa.
• CIBanco.
• Banco del Bajío.