PESOS AND BANK ATMS

 If you have been following my blog, you have probably read my M-O-N-E-Y post about the importance of using pesos while vacationing and/or living in Mexico.  Although that post was written in 2013, and exchange rate information have waxed and waned over the years, the basic premise of using pesos is the same.


In this post, I have created a checklist that may be helpful when obtaining and using pesos.  This list is by no means the be-all, do-all list on pesos.  After all, depending on what country you are from, the processes described below may be different.  What I hope to achieve with this list is provide a place to start…something to think about while you are making your travel plans for your well-earned trip.  Without further ado, below is my checklist.  

CHECK LIST 

1) Check with your financial institution to determine whether you need to provide any travel alerts with dates of departure, how long you plan on staying and what countries you will be visiting (some banks want this, others don’t).  

2) Determine if you can obtain your pesos from your bank at home before your Mexico arrival, and inquire into the cost (my experience has been that if you obtain your pesos from your local bank in the USA, they may cost more due to exchange rates and service fees). In addition, ask your bank if you do buy your pesos from them before you leave, can you exchange your unspent pesos for USD upon your return.  

3) Ask your bank if there are daily ATM withdrawal limits (if you have a large expenditure, you may have to visit the Mexican ATM over multiple days to ensure you have enough money for whatever expense you are dealing with). In addition, depending on your current daily limit (if there is one), you may be able to increase your daily limit, so you don’t have to visit an ATM as much.  Check with your bank at home about this.

4) If you decide to acquire pesos from the local ATM in Mexico, find out how much your USA bank will charge for ATM fees and/or international transaction fees.  Depending on the type of account (s) you have with your USA bank, you may not be charged any international transaction fees.

5) As mentioned in my original post in 2013, exchange rates may change minute-by-minute.  I encourage you NOT to obsess about the fluctuations in exchange rate (you could drive yourself crazy trying to wait for the best rate), just withdraw money as you need it.

6) If you are traveling with a smart phone, make sure you download a currency exchange app like XE Currency and OANDA Currency Converter before you travel.  Having this quick reference app will help you manage your pesos.

7) Make sure to check your withdrawn pesos (bills) for any rips or tears before leaving.  If you notice any and it’s still business hours for the bank, go into the bank and exchange the ripped pesos for healthy ones.  Stores, markets, restaurants, etc., will not accept any damaged pesos.

If you decide you prefer to use USD while in Mexico, please be beware that although you will be paying with USD, most stores, markets, restaurants, etc., will make change in pesos. 

Now the challenge comes in by making sure you receive the correct change back since they are giving your change in pesos and not USD. The way I do this is by taking the amount of the bill (in USD), subtract that from the amount of USD you gave them, then multiple that by the current exchange rate, and that should be the correct amount of pesos you should receive for your change.

For example:  If you go into Chedraui shopping center and purchase a pair of swim trunks and give the cashier $50 USD, but the trunks are only $380 pesos (which is $20 USD with a 19-1 exchange rate that Chedraui was using at the time), your change would be $30 USD x 19 = $570 pesos in change.   You can go through this process every time by using your USD or, not worry about receiving the correct change back (which is a HUGE mistake), or you can just use PESOS!!!

Now that I have convinced you to use pesos, the BIG question is “where do I get my pesos in Mexico?”  There are ATMs all over the place, every street corner, grocery store, shopping center, etc.  However, and here is my two pesos worth of advice, I strongly encourage you to only get your pesos from an ATM that is physically within or attached to a bank location and during the banks normal business hours (if at all possible).  

These ATMs have cameras (think skimmer machines) and are much more secure than a free-standing ATM. The additional bonus is that most of the machines in banks are in both English and Spanish. But don’t just stop there.  It’s important to know that each bank ATM has different fees for exchange rates, service fees, and international transactions fees.   Most of these banks are near each other, so you won’t have to go far to find one. You may have to try different ones to determine which one has the lowest fees for you.

Here are the names and photos of a few bank ATMs  I use:  

INTERCAM BANK

CI BANCO BANK

 CITI BANAMEX BANK

BBVA BANK

HSBC BANK

Here are photos of pesos bills and coins.  

PESO BILLS - FRONT AND BACK

PESO COINS - FRONT AND BACK 

Here is the perfect example about why it’s better to use an ATM that is physically within a bank or attached to one.  Although this type of thing does not happen every day, it does happen quite often, and not just in Mexico. 

FINAL NOTE: Do your due diligence when using ATMs while traveling, use the local currency (it will make your life easier); shop, eat, enjoy the local culture and have fun!