Is it better to get pesos in US or Mexico?

If you are planning a trip to Mexico, you may be wondering how you go about exchanging your money.

The most simple way to exchange your money for pesos is by going to your local bank or credit union with the amount you’d like to exchange. They will exchange your cash (for an average fee of $16.00 USD) and give you the current conversion rate in pesos. Or try sending yourself money using Xoom, a Paypal service. The fee is only $3.99 USD for a cash pickup, and is generally available in minutes.

I think we can all agree we work hard for our money. So it’s understandable that we all want the most out of our money. When you exchange your money, you are optimizing its potential and worth.

The Official Currency in Mexico

In most tourist areas of Mexico, shops as well as restaurants will accept USD. But if you want to get the best bang for your buck, make sure you are paying with the proper currency. In Mexico, the peso is the official currency. There are 100 centavos (cents) per one peso. Centavos denominations are found in 1,10, 20, and 50 piece coins. The more common form of pesos you will see are banknotes. Mexico prints banknotes in denominations of 20, 50, 100, 200, 500, and 1000 pesos.

You may not use centavos too often. Centavos are generally used to take a bus, or as a tip when dining out at a restaurant. The banknotes will be your most commonly used currency.

A peso may be displayed multiple ways, regardless of which way it is displayed though, it all means the same thing price wise. 100 MXN, $100 MN, or MX$100 are all different ways to write 100 pesos.

Exchange Rate Fluctuation in Mexico

The exchange rate is in constant fluctuation and is determined by the flow of currencies in and out of Mexico.If pesos are in high demand, the value will increase. Likewise if there is less demand, the value will decrease.

The average low exchange rate in Mexico is 17.00 MXN per $1.00 USD. While the high rarely exceeds 25.00 MXN per $1.00 USD. You can expect the high season (Mid December through March) to generally have higher exchange rates since these are the busier months in Mexico. This means you get more pesos per dollar.

The Best Currency For Mexico

You may think that paying for things in USD in Mexico can get you the best results. But that couldn’t be further from the truth. Exchanging your money for pesos is the best thing to do because it gives you the best buying power. If paying using USD, different places will charge you a different rate. You could end up paying more for something because the seller determines the rate. Paying in USD gives them the determining factor what your money is worth. Pay in pesos however and you are paying the exact cost.

For example, if the average exchange rate is 20.00 MXN per $1.00 USD at the time and you buy something that costs 100.00 MXN. Technically that would be $5.00 USD. They may end up charging you more. So its best to pay exactly 100.00 MXN that way there is no confusion with the conversion rate.

How To Get The Best Exchange Rate

There are many ways to exchange your money for pesos. The best way to exchange your and get the best rate is by going to a bank or local credit union.You may be charged a small fee (usually a few dollars). As well, there may be a minimum amount required to exchange, and a maximum amount allowed.

My wife tried this at a local bank and the bank offered her 3.00 MXN less per dollar than the current rate in addition to paying an exchange fee. She was not satisfied with this offer and decided to try a different way to exchange her money.

Best Place To Exchange Your Money In Mexico

The best place to exchange your money in Mexico will be at a bank. All will offer the most current exchange rate but will still most likely charge a small exchange fee. There are many banks to choose from. Some common banks are Banorte, Bank of America Mexico, and Citibanamex (one of the largest banks in Mexico).

Using An ATM In Mexico

A convenient way to get money in Mexico is by withdrawing pesos at an ATM. Major credit and debit cards are accepted at Mexico ATM’s and your bank will charge a foreign transaction fee of 1% to 3% of any amount withdrawn. The ATM may also have its own fee ranging from $1.00 USD to 1%. You will be required to enter a 4 digit pin. Make sure to set one up with your bank if your card does not have one.

Keep in mind that the ATM amount will always be displayed in pesos not USD. So if you want to withdraw $100.00 USD, you would enter 2,000.00 MXN (considering the exchange rate is 20.00 MXN per $1.00 USD).

Using an ATM doesn’t seem like such a bad idea after all does it? There still is one thing to consider though. ATM safety.

ATM Safety In Mexico

Generally using an ATM in Mexico is considered safe. However there is a possibility of becoming a victim of a scam. The most common ATM scam is called ATM Skimming. Skimming is a device criminals install inside the ATM where you insert your card. This device will read your card information including your PIN.

That is why it is best to go directly to a bank for an exchange, or send yourself the money and pick it up. This way you will avoid having to physically use your bank card and risk being scammed.

The Best Way To Send Yourself Money In Mexico

There are so many different options for sending money to Mexico, all of them have their own pros and cons. The You can send yourself money to Mexico before you even arrive. There are many ways to send money to Mexico such as MoneyGam or Western Union. However, the best way to send your money to Mexico is using Xoom. Xoom’s fee for cash pickup is only $3.99 USD. The maximum cash pickup amount in a 24hr period is $2,999.00 USD. Exceed this amount and you will be required to provide additional information and documents in order to increase your cash pickup allowance to no more than $10,000.00 USD in a 24 hour period, and a limit of $20,000.00 USD in a 30 day period. Generally your money will be ready within minutes if using a bank card. Allow 2 to 3 days if you are transferring money from your bank account.

When you choose the amount you want to send, Xoom automatically converts your money to pesos for the receiving amount. So if you send $300.00 USD with an exchange rate of 20.8693 MXN per $1.00 USD. Your receiving amount would be 6261.00 MXN. Xoom usually has some of the highest exchange rates when compared to other options such as an ATM.

How Long Does It Take For Xoom to Transfer Money To Mexico

In my experience, it is best to send your money 3 to 4 days prior to arriving in Mexico. This guarantees your money will be there waiting for you to pickup. If sending money directly from your bank account, it may take 2 to 3 days before it’s ready for pickup. However, use your bank card and your cash is generally ready in minutes!

When choosing your location to pickup your money such as an Oxxo or Elektra, make sure it is a location near where you are staying. That way you can walk down to the store and pick up your money upon arrival.

How To Pickup Cash Using Xoom

In order to pickup your cash when using Xoom, you will need two things. Your Xoom transaction number, and your photo ID such as your passport or driver’s license. With these two things the teller will be able to pull up your transfer, and give you your cash money.

My first time in Mexico I wasn’t able to communicate very well with the teller due to the language barrier. That being said, it was still such a simple process. I walked up to the counter, presented my phone which displayed my transaction number, then showed my passport, and after that the teller was handing over my converted pesos. You can be confident that picking up your cash will be an easy process no matter the situation when using Xoom.

Best Place To Pickup Your Money When Using Xoom

Elektra is the best location to pickup your cash when using Xoom. Elektra only permits one person at a time when approaching the window. This is much more secure. This allows you to do all your cash transacting in privacy.

Other options to pickup your money would be at Oxxo (convenience store) or Walmart if available. But Elektra will give you the most secure experience.

Canceling Your Xoom Transaction

If you need to cancel your Xoom transaction for any reason it is simple to do via the app or website. If you cancel within 30 minutes of your authorized transaction, you will be issued a refund within 3 business days. Otherwise your refund can take anywhere between 5 to 10 business days. You can be at ease know they offer a money-back guarantee also. Xoom guarantees your money will be received, if not they will refund the full amount to you.

There are so many different ways to exchange money for your trip to Mexico. The best way ultimately depends on your preference, and individual situation. If you need money ASAP, the bank may be your best option. If you plan ahead, then sending yourself the money is an excellent option for convenience and safety. You choose what you feel is best for you and I guarantee you will be satisfied exchanging your money for pesos.

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