Should you use US dollars or Mexican Pesos while visiting Mexico in 2025?

Is it better to use pesos or US dollars in Mexico?

If you’re traveling to Mexico, using pesos is the best option. While some businesses in touristy areas may accept US dollars, it’s not a reliable or cost-effective way to pay. You’ll either get a bad exchange rate or simply won’t be able to use them at all.

Why You Should Use Pesos

• Better Exchange Rates: Businesses that accept US dollars often round down the exchange rate in their favor, meaning you’ll pay more than necessary.
• Wider Acceptance: Many local markets, small businesses, and transportation services only accept pesos.
• Convenience: Prices are in pesos, and paying with another currency can lead to confusion or extra fees.
• Avoid Scams: Some vendors may take advantage of tourists paying in dollars by inflating prices or using misleading conversion rates.

How to Get Pesos

The best way to get pesos is through ATMs in Mexico. ATMs connected to major banks typically offer the best exchange rates. Here’s what you should do:

1. Bring Some Pesos in Advance – Exchange a small amount before your trip (around $200-300 USD) to cover immediate expenses like airport transportation, food, or drinks.
2. Use Bank ATMs – Once in Mexico, withdraw pesos from an ATM rather than using currency exchange booths (Casas de Cambio), which often have worse rates.
3. Check for Bank Partnerships – Some US and Canadian banks have partnerships with Mexican banks, reducing ATM fees.
4. Withdraw Larger Amounts – ATM fees can add up, so it’s better to withdraw larger amounts at once rather than multiple small transactions.
5. Notify Your Bank – Let your bank know you’ll be in Mexico to avoid your card being blocked for suspected fraud.

Tipping in Mexico

• Tipping is common and appreciated in restaurants, hotels, and for services like taxis or tours.
• It’s best to tip in pesos to ensure the recipient gets the full amount without needing to exchange it.
• Standard tipping rates: 10-15% in restaurants and bars, $10-50 MXN pesos for bag handlers, $50-100 MXN per day for housekeeping at your hotel, and $50-100 MXN per person to a tour guide, per day.

Tipping in Mexico. When and how much?

What About Credit Cards?

• Credit cards are widely accepted in hotels, larger restaurants, and stores, but not in smaller mom-and-pop shops or restaurants, and not in smaller villages or towns.
• Always choose to be charged in pesos when given the option at checkout—if you select USD, the store/bank sets the exchange rate, and it’s usually worse.
• Some smaller businesses and rural areas may only accept cash, so keep some pesos on hand.

Traveling to Remote Areas? Bring Pesos

If you’re heading to smaller towns or less touristy areas, always carry pesos, as ATMs may be scarce or unreliable.

The Bottom Line

Use pesos in Mexico. It’s the best way to get fair prices, avoid scams, and ensure your money is accepted everywhere. While US dollars may be accepted in some places, they come with drawbacks—so withdraw pesos from ATMs and use them for most of your transactions.

Before you travel to Mexico

These are my favorite companies to use when I travel. They consistently have the best deals, offer world-class customer service and great value, and overall, are better than their competitors. They are the companies I use the most and are always the starting point in my search for travel deals.

Best Flight Deals: Trip.com – Trip is my favorite flight search engine. It is a flight aggregator that provides travelers with the best rates on airline tickets. Its innovative search finds the best option for specific travel dates by comparing airfares offered by all major airlines and agencies. The aggregator displays final prices, without any hidden fees. They are hands down the number one place to start.

Best Hotel Deals: Trip.com – Trip is also the best all-around hotel booking site that constantly provides the cheapest and lowest rates because it compares all the other major hotel booking sites. They have the widest selection of comfortable accommodations. In all my tests, they’ve always had the cheapest rates out of all the booking websites.

Best Tour Deals: Where Sidewalks End (of course) – WSE Travel is a boutique tour operator with specially curated tours, events, and workshops. We have many tour options available in cities in Mexico and worldwide, including everything from cooking classes, walking tours, art workshops, and more!

Best Car Rental Deals: Discover Cars – If you want to have the freedom of mobility, renting a car is an incredible option – but finding the best deal can be a nightmare! Discover Cars scans all the major car rental sites and includes all mandatory fees, taxes, and extras in the quoted price so there won’t be any unpleasant surprises when you arrive at the rental desk.

Best Travel Insurance Deals: SafetyWing – SafetyWing offers convenient and affordable plans tailored to all your travel needs. They have cheap plans, great customer service, and an easy-to-use claims process that makes it perfect for those on the road. They even have subscriptions if you are planning long-term, without having to re-apply for each segment of your trip.

Best E-Sim Provider: Airalo – Airalo is one of the most versatile e-sim providers I’ve ever found, offering e-sim in almost every country on earth! No need to take your home phone provider’s sim card out and risk losing it on your trip! As long as your phone has e-sim capabilities, Airalo has you covered at really good rates too, meaning you can be connected at all times on your trip!

Best 100% Pick-pocket Proof Clothing Deals: Clever Companion – They make clothing specifically for travel, with hidden pockets to hide your valuables. From hoodies to briefs, they cover all your clothing needs – each with hidden pockets to hide your money, wallet, and anything else you want to keep safe!

Best Eco-Safe Travel Products: TreeTribe – This company is just awesome! From water bottles to yoga pants, wallets to bikinis, and everything in between – all their products are great quality, and eco-friendly AND they plant a tree for every purchase!

Best Outdoor Travel Product: LifeStraw – My go-to company for reusable water bottles with built-in filters so you can ensure your drinking water is always clean and safe.

JOIN US! WSE Travel Packages

This sounds like quite the adventure, right? We thought so too! Though we realize it can be pretty intimidating to get out there into the world on your own, especially when traveling to some of these off-the-beaten-path locations. We love it when our readers give it a shot and try it for themselves! In fact, please leave us feedback if you do!! If trying something ‘this’ adventurous on your own is just a bit outside of your comfort zone, WSE Travel is here to help!

Follow this link for our ‘Choose Your Own Adventure’ Tours – packages that are highly personalized and tailored at your request.