Jazmin Li
When travelling to a foreign country, it is often a good idea to have some local currency on hand. While credit and debit cards are widely accepted, some places, such as street food vendors, taxis, open-air markets, and vendors selling items on the beach, may only take cash. Exchanging money at the airport is convenient, and many international airports have kiosks or stores where travellers can exchange currency. However, it is important to note that exchanging currency at the airport may not always be the most economical option due to potentially high fees and unfavourable exchange rates.
| Characteristics | Values |
|---|---|
| Buying pesos at the airport | Convenient, but may come with a small commission fee |
| Buying pesos before travelling | May be free at your bank, especially for small amounts |
| Using an ATM at the airport | Often offers a better exchange rate than kiosks, but may charge a foreign transaction fee |
| Using a credit card in Mexico | Call your bank before travelling to avoid issues; check for international fees |
| Using cash in Mexico | Essential for taxis, bottled water, admission fees, local restaurants, and tips |
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What You'll Learn
Currency exchange kiosks at the airport
Firstly, it is important to note that not all international airports have currency exchange kiosks, particularly smaller airports. Therefore, it is worth checking whether the airport you are departing from or arriving at has currency exchange services available.
If you are exchanging money at the airport, it is recommended that you browse the different companies to see which is offering the best exchange rate. Exchange rates at airport kiosks are often less favourable than those offered by banks or ATMs, and there may also be high fees and commissions to consider. In some cases, you may lose a significant amount of money by exchanging currency at an airport kiosk.
However, there are certain benefits to using airport currency exchange kiosks. For travellers who are unable to exchange money before their trip, airport kiosks provide a convenient solution. They also allow travellers to offload any foreign currency they have remaining at the end of their trip, which may otherwise be challenging to exchange.
Overall, while airport currency exchange kiosks offer a practical solution for travellers, they may not be the most economical option. It is generally recommended that travellers plan ahead and exchange their currency before their trip, either through their bank or an online bureau de change, to secure a more favourable rate.
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Using an ATM at the airport
When travelling to Mexico, it is important to have some cash on hand, as many vendors only accept cash payments. While you can exchange your dollars for pesos at the airport, this may not be the most cost-effective option. Currency exchange offices at the airport or downtown will often offer a worse exchange rate than your bank, so it is recommended to only use this option if you have leftover pesos before your return flight.
However, it is important to be aware of potential fees and withdrawal limits when using an ATM. Your home bank may charge foreign transaction fees, and there may also be additional charges from Mexican banks. To avoid these extra fees, check with your bank before travelling to see if they have any partnerships with Mexican banks. For example, Bank of America has a partnership with Scotiabank, allowing customers to avoid ATM usage fees when withdrawing from their machines. Additionally, some banks, like HSBC and Citigroup, offer free ATM withdrawals for their customers at their branches in Mexico.
When using an ATM in Mexico, it is recommended to decline the conversion to pesos offered by the machine. This is known as Dynamic Currency Conversion (DCC), where the ATM provides an unfavourable exchange rate that can cost you significantly more. Instead, choose to have your account charged in pesos, and your bank will use the current market rate for the conversion.
To ensure a smooth experience when using an ATM at the airport, it is important to notify your bank before your trip to Mexico. This will prevent your card from being blocked due to suspicious foreign activity. Additionally, always use Mexican pesos instead of your home currency to avoid scams and save money.
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Exchanging currency at your bank before travelling
Advantages of Exchanging Currency at Your Bank:
- Better exchange rates: Banks often offer more favourable exchange rates than airport currency exchange counters. By exchanging currency at your bank, you can lock in a good rate before your trip and avoid the high fees typically associated with airport exchanges.
- Peace of mind: With local currency in hand, you won't have to worry about finding ATMs or foreign exchange offices upon arrival. This can be especially helpful if you're arriving at your destination late at night, when ATMs and exchange offices may be closed.
- Familiarity with local currency: Having the local currency before you land allows you to familiarise yourself with the denominations and appearance of the bills and coins, making it easier to recognise and use the currency when you start your trip.
- Lower fees: Exchanging currency at your bank can result in lower conversion fees compared to airport exchanges. Banks may also offer discounts or waive certain fees for their customers, such as delivery or shipping charges.
- Convenience: Many banks allow you to order foreign currency online through their website or mobile app, making the process quick and convenient. This way, you can have the currency delivered to your home or pick it up at a nearby branch.
Considerations:
- Risk of unused currency: One potential drawback is the risk of being left with unused foreign currency. Some banks may have restrictions or less favourable rates for exchanging or returning unused funds.
- Reliance on cash: Some travellers prefer to minimise carrying large amounts of cash due to security concerns or the inability to earn rewards, as is the case with credit cards.
- Budgeting: Managing cash expenditures while travelling can be challenging, and you may find yourself spending more to use up extra foreign currency.
- Timing: Ordering foreign currency from your bank may require some lead time. If you're running short on time before your trip, you may need to explore alternative options, such as using ATMs at your destination.
In summary, exchanging currency at your bank before travelling can offer better exchange rates, peace of mind, and cost savings. However, it's important to weigh these benefits against potential drawbacks, such as the risk of unused currency and the reliance on cash during your trip.
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Using a prepaid card to withdraw pesos at the airport
If you're travelling to Mexico and want to withdraw pesos at the airport, a prepaid card can be a convenient option. Here's a guide to help you through the process:
Before Your Trip
Firstly, it's important to notify your bank that you'll be travelling abroad and using your card in Mexico. This will prevent your card from being blocked due to suspicious activity. It's also a good idea to check with your bank about any international fees associated with using your prepaid card overseas. Some banks may offer cards with no international transaction fees, so it's worth enquiring about this. Additionally, ensure that your card has a four-digit PIN, as most ATMs in Mexico only accept four-digit PINs.
At the Airport
When you arrive at the airport in Mexico, look for ATMs or "cajeros" in Spanish. These are usually readily available near the customs exit. Using your prepaid card at an airport ATM can be a convenient and relatively economical way to obtain pesos. The prompts at the ATM will typically be available in English and Spanish, making it easy to follow the transaction process.
Fees and Exchange Rates
When using your prepaid card at an airport ATM, be mindful of any fees and exchange rates. While airport ATMs may charge a small commission fee, it is generally not significant. However, your bank may charge a foreign transaction fee for each withdrawal, so consider taking out a larger sum at once to avoid multiple fees. Additionally, when given the option, always choose to be charged in pesos instead of your home currency. This will prevent the ATM from applying unfavourable exchange rates through dynamic currency conversion.
Safety Considerations
It is important to prioritise safety when using ATMs in Mexico. Keep these tips in mind when withdrawing pesos at the airport:
- Be cautious of your surroundings, and if anything appears suspicious, find another ATM.
- Avoid carrying large amounts of cash with you.
- Use common sense and stay vigilant, just as you would at home.
Other Options
While using a prepaid card at an airport ATM can be convenient, there are other options to consider:
- Currency exchange kiosks at the airport can provide pesos, but they may offer less favourable exchange rates and charge additional fees.
- Using your prepaid card at ATMs outside the airport, such as those at banks or in town, may offer lower fees and better exchange rates.
- Carrying a small amount of US dollars or other foreign currency is an option, as some tourist areas and street vendors may accept them. However, it is generally more cost-efficient to use pesos.
By following these guidelines, you can effectively use a prepaid card to withdraw pesos at the airport when travelling to Mexico. Remember to plan ahead, stay vigilant, and consider the associated fees and exchange rates to make the most of your trip.
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Using a credit card to pay in pesos
When travelling to Mexico, it is important to understand the Mexican peso and how to get the best exchange rates. While it is possible to exchange your cash for pesos at the airport, this is not recommended due to the high commissions and poor exchange rates. Instead, consider the following options to use your credit card to pay in pesos:
Order Currency from Your Bank
Ordering currency from your bank before you travel is often a better option than using airport currency exchange. Major banks usually allow you to order currency online, through their website or mobile app, or by phone. Check your bank's exchange rate in advance to ensure you get a fair deal. While you may have to pay fees for this service, the exchange rate is typically favourable.
Use a Credit Card-Friendly ATM
ATMs are a convenient way to obtain pesos in Mexico. Many ATMs at international airports offer English and Spanish language options, making transactions easy for travellers. Using your credit card at an ATM will allow you to withdraw pesos directly, and you may be able to take advantage of favourable exchange rates from your bank. However, remember to notify your bank of your travel plans to avoid any issues with your card being blocked. Also, be cautious when using ATMs on the street, as they may charge higher service fees.
Decline Dynamic Currency Conversion (DCC)
When using your credit card in Mexico, you may encounter Dynamic Currency Conversion (DCC). This is when a merchant or ATM offers to convert the cost of your purchase from pesos to your home currency. While this may seem convenient, the exchange rate used in DCC is often unfavourable and can result in higher fees. Instead, it is recommended to decline DCC and let your credit card company handle the conversion, as they may offer better rates.
Choose Reputable Exchange Services
If you need to exchange currency, look for reputable exchange services such as licensed banks, exchange bureaus, or reliable online platforms. These providers utilize fraud protection technologies to secure your transactions. Avoid exchanging money at the airport, hotels, or tourist areas, as they often charge higher fees and offer poor exchange rates.
Be Aware of Credit Card Limitations
While credit cards are widely accepted in Mexico, some smaller street vendors may only accept cash. Additionally, not all businesses in Mexico accept credit cards, so it is always good to ask beforehand. Carrying some cash, preferably exchanged at a reputable source in your home country or at a trusted location in Mexico, can be helpful in such situations.
By following these suggestions, you can effectively use your credit card to pay in pesos and avoid unnecessary fees when travelling to Mexico.
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Frequently asked questions
Yes, you can get pesos at the airport. Some international airports have currency exchange kiosks, though not all, especially smaller airports. You can also get pesos from an ATM at the airport.
Exchanging money at the airport is convenient and easy. Airport kiosks are usually located before or after baggage claim.
Airport kiosks generally charge some of the highest fees and have the worst exchange rates. It is recommended to plan ahead and exchange currency before travelling.
