The best exchange rate for changing Mexican pesos is obtained by always paying with a card since it is by far the most cost-effective option. And for carrying some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024 Wise card offers the best exchange rates and the lowest costs in the market) and only withdraw the amount of cash we will need from the ATM.
Certainly, this technique to save the most money possible on your vacation might surprise you because, after all, if you go to any currency exchange or bank, you will see how they advertise prominently that “there are no commissions,” and therefore, one might simply think that it would be logical to exchange pesos at the prevailing exchange rate and that’s it, right? Well, not quite! Everything has a cost, even paying with a card has a cost, although they might not tell you or you might not see it at first glance.
I’m going to tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and honestly, changing cash is by far the worst option. In fact, to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or banking employees have discounts to exchange currencies compared to the exchange rates offered to customers. But even with that, we never exchange cash. At most, depending on the trip, just a small amount for certain payments or in case it’s necessary to enter the country.
So, it’s clear: always pay with a card and only withdraw the necessary amount of cash from an ATM. Now let’s see how to pay the lowest cost possible in both cases:
What is the best card for international payments?
Based on the study we have conducted on all the cards available in the market for this year 2024, for making payments in any foreign country, travel cards have lower costs compared to bank cards. Among travel cards, the one with the lowest costs is the Wise card.
These results apply not only to the costs of international payments in foreign currency at merchants (Wise would offer the best conditions, other travel cards would be about 4 times more expensive on average, and bank cards would be about 10 times more expensive on average) but also to the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again offer the lowest fees, other travel cards would be about 4 times more expensive on average, and bank cards would be about 20 times more expensive on average).
Also, if you want to know the exact cost differences and functionalities among the different cards available in the market in 2024, don’t miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Is it necessary to take cards from our home country abroad?
As we mentioned, it is preferable to use the Wise card rather than a conventional bank card or other travel cards since it will save you a significant amount of money when paying at foreign merchants and when withdrawing money from international ATMs, paying the lowest possible fees.
Therefore, initially, it would not be necessary to carry any other card, but keep in mind that if you are going to make payments such as renting a car, you will need a credit card since most car rental companies will hold an amount as a deposit and will only accept credit cards.
On the other hand, if you are not going to carry out this type of transactions, it is advisable to leave your bank cards with higher balances at home and only for security purposes, it would be advisable to carry an extra debit card with a small balance in case of emergencies (imagine if your other card gets damaged or stolen, and you also lose your mobile phone, so you have nothing to pay with).
Keep in mind that in case of theft, there is a risk that fraudulent transactions may be made with your cards, within the limits they have, while with the Wise card we recommend, your balance will never go negative, so only the deposited balance can be spent.
Additionally, you can instantly block your Wise card from your mobile phone, while with your bank cards, you may need to call your bank to cancel them, running the risk that they may not provide service at that time due to being a holiday or outside customer service hours.
For all these reasons, when traveling, it is always much better to carry a debit card like the Wise card with the amount of money you will need. If you need more, you can always top it up instantly through the mobile application, and if you want to block it due to loss or theft, you can also do it instantly through the application. This way, you will have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card has numerous functionalities through the mobile phone, so it is important to ensure that your phone battery is always well charged. Remember that in many countries, the plugs are different. Therefore, it would be a very good idea to purchase a universal plug adapter for traveling, as it can be useful for any future trip you plan to take. In this link, at a very affordable price, we show you a universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it is important to know that if you are going to take your credit card from your bank to pay deposits for operations such as car rentals, before traveling, it is recommended to inform your bank that you will be traveling abroad and the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you will spend more than usual, so if you have relatively low limits without knowing it, you could reach your limit and find yourself in serious trouble.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance abroad, you can still obtain money in a very simple way:
• If you have a bank card, you should contact a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts within the same bank are processed instantly, so once the transfer is completed, your card can use the new balance in your account. Another option would be to make an “immediate transfer” between accounts in different banks, as this type of transfer is also processed instantly.
• If you have a prepaid card like Wise, you can reload it through the app (or someone else can do it for you) and receive the money instantly.
What should I do if all my cards are stolen abroad?
If all your cards are stolen abroad, here are some alternatives to help you get by:
- Use the cash you have withdrawn from an ATM: You can pay with the cash in foreign currency if you have made a withdrawal from an international ATM.
- Exchange your home currency for cash: It is always recommended to carry some cash in your home currency in case of emergencies, as you can exchange it for pesos at currency exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, you can link your mobile phone to your card, and even if the card is canceled or blocked due to theft, you can continue making payments with your phone without any issues.
- Have someone from your home country pay for what you need: If you simply need to purchase a plane, train, or boat ticket, anyone you know in your home country can pay for it online and send you the mobile boarding pass (or you can download it through the airline’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many agencies that provide money transfer services. Through these agencies, anyone you know can send you money from your home country, and you can receive it abroad.
- Sell your jewelry at a gold-buying store: In most major cities around the world, there are numerous gold-buying establishments where they will gladly purchase any gold jewelry from you.
- Sell your higher-value assets at a second-hand pawn shop: The most sought-after and easily sellable items would be technological products like mobile phones or laptops, as well as quality clothing and watches.
- Ask for money: The easiest way to obtain what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask is next to vending machines, as everyone receives change from them, and when asking, it’s very likely that people will give you something.
- Contact your Embassy or Consulate: As a last resort, the representatives of your country can provide you with assistance.
Where to find the best cash exchange rate for Mexican pesos?
As mentioned earlier, the cheapest way to obtain cash pesos is by withdrawing money from ATMs.
However, if you want to exchange cash pesos at a currency exchange office or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin of 5%-10% would be acceptable, 10%-15% would be a poor exchange rate, and anything beyond 15% would be usurious.
You can easily find the official exchange rate between the Mexican peso and your currency on Google. By subtracting the rate offered to you and dividing the difference by the official exchange rate, you can determine the percentage margin that is being applied.
Usually, highly trafficked areas in tourist destinations are the worst places to exchange currencies as they apply higher margins on the exchange rates. Therefore, it is best to search online for a reputable exchange establishment rather than going to the first one you see.
In any case, if you need to exchange a small amount of money, it wouldn’t matter much where you exchange it in case of urgency or necessity, as you would be accepting a small extra cost in the worst-case scenario.
How much cash is sufficient for traveling?
Exchanging cash only serves two purposes:
• It serves as an emergency fund in case your cards and mobile phone are stolen, allowing you to at least manage basic needs such as buying food, making phone calls, traveling to the embassy if you need to request a duplicate passport, and reaching the airport to leave the country.
• It serves for cash payments: at some street vendors, certain vending machines, and for paying for certain services such as laundromats, phone booths, shopping carts that require coins, etc.
Depending on the number of days you will be traveling and your estimated cash expenses, you can roughly calculate the amount you will need, which, in any case, should not be a large sum.
Is it possible to know if the exchange rate for pesos will improve or worsen in the future?
Official currency exchange rates function like any other financial market, such as the stock market. While there are analysts and financial gurus who make predictions, similar to stock predictions, there is no conclusive evidence that anyone can consistently predict future prices based on available data.
In general, exchange rates in the foreign exchange market tend to be quite stable, and over the course of a month, they don’t vary much more than 5%, unless there is an unexpected economic or political event, such as the unforeseen victory of an opposition party with a disruptive economic agenda.