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Exchange Rate

The exchange rate has fluctuated around eleven Mexican pesos (MXN $) to one US dollar (USD $) for the past year. If you are wondering why the “$” symbol is the same for both currencies, it is because the US dollar was originally based on Mexican currency (see History & Money).

The following link will provide you with the precise current exchange rate along with a host of other useful tools. For example, you can easily track exchange-rate trends and the exchange fees your bank is charging you on overseas transactions.

WEBSITE: Currency Exchange Rates

Restaurants and many other establishments will often accept US dollars (but not US coins, which are worthless here). This can be handy in a pinch. However, the going rate for such exchanges is 10 pesos to the dollar. At today’s rates, this will cost you about 8% on the exchange.

Credit Cards

Mexico is largely a cash-based economy. While upscale restaurants, hotels, and stores will typically take credit cards, many smaller stores, restaurants, and service establishments do not. By all means, do bring a credit card or two with you; just do not assume that you will be able to use them everywhere. Your best bet is to estimate how much money you will need for your trip and use a debit card at a bank ATM in Mexico to get that much cash in Mexican pesos (MXN $).

Your bank should offer you the official exchange rate on any transaction. It is common to be charged a 2% currency exchange fee by your bank or credit card company. If you are being charged more than this, consider getting a different credit card.

Given that merchants are charged significantly higher fees for credit card transactions than in the US, it is not uncommon to find that stores, auto rental agencies, and service establishments will offer substantial discounts for cash (up to 10%). Occasionally you may find that credit card use involves a service charge to offset the steep fees that the transaction will cost the merchant.

Documenting Your Expenses

If you need to document your expenses for tax purposes, ask for receipts when paying with cash. Most, but not all, establishments will accommodate you. The phrase to use is: Un recibo por favor. You will need the date, location, amount, and purpose for the expenditure, so write anything that is missing on the receipt or in a small pocket calendar or spiral notebook, if you were unable to get a receipt.

ATMs

ATMs are usually your best and simplest method for funding travel expenses. You will get a better exchange rate at bank ATMs. You can expect a bank exchange fee of about 2% of the value of your transaction.

Just as you will find at home, identity theft, internet scams, and credit card fraud are rampant these days, so please remember to take normal precautions:

• Shield your PIN. Do not write it down. Make sure no one can see you entering your PIN into an ATM. Be aware of your surroundings and avoid being distracted by individuals who want to chat. Do not accept offers to help. If people are too close, ask them to back up and give you privacy. If you feel uncomfortable or notice anything out of the ordinary, walk away.
• Check your bank account periodically to ensure that no fraudulent withdrawals have occurred.
• For what it is worth, for every story we have heard about people getting ripped off in Mexico, we have experienced multiple occasions where Mexicans have returned lost items of value to us or our friends, or otherwise gone out of their way to be considerate and look out for us.
• ATMs are generally easy to find in metropolitan areas and hard to find in rural areas. Here are a few helpful locations (see Maps & Directions)
  

Puerto Vallarta

There is an ATM in the airport that offers a fair exchange rate. It is located on the south face of the airport building, just inside the doors that open onto the parking area.

There is a Banamex ATM and a Lloyd Exchange in the Plaza Marina shopping center just south (0.5 km) of the Puerto Vallarta airport on the west side of Highway MEX 200.

Bucerias

There is an HSBC bank ATM on the east side of MEX 200, just south of downtown and Gecko’s Rent a Car.

San Pancho

In San Pancho, there is an ATM at the “Mini Super Mary,” just east of the soccer field at the northeast corner of Tercer Mundo (the main street) and Ceilan.

Bank Transfers For Larger Purchases

To avoid having to carry sufficient cash for larger expenses, such as lodging, ask your host what their preferred method for receiving payment is before you travel. If you are confident that you know where you want to stay, you can often simply make a bank transfer directly from your bank to the provider’s bank before you go. This advice is particularly relevant if you are staying in a smaller place, like a bed and breakfast, a luxury home, or a boutique hotel. When you inquire about this option, ask if you will receive a discount for making a direct transfer.

Direct bank transfers often require a personal trip to your bank and involve a modest fee (usually under USD $10, but check with your bank). Have your innkeeper or merchant e-mail you their receiving bank information before you go to your bank. Obviously, only do this if you have confidence in the merchant. Another option is to set up the transfer before you go, but request that your banker hold the transaction until you contact them from Mexico.

Investment Fund and
Currency Exchange Accounts

Given that most international business done by companies in Mexico is transacted in US dollars or euros, there is a large need for managing currency exchanges quickly and at competitive margins. The firms that handle this business, Casas de Cambio, also manage investment portfolios and provide a variety of other trade and investment services. Modest Mexican capital gains taxes are automatically deducted from your accounts. These companies operate differently than a local branch bank in the US or Canada, but also offer attractive advantages.

Investment fund accounts provide higher returns (with competitive portfolio rates), better exchange rates (even than banks), provide tax benefits, and are the simplest means for transferring funds from Mexico to the US and Canada and back. You generally have to place a transfer order before 1:00 PM for same-day service.

All these institutions have English-speaking representatives and provide online access to your account information. While they do not provide checks (which are not easy to use in Mexico anyway), they do provide debit cards that are widely accepted.

All of the following offices are located in Puerto Vallarta.

Dial 011-52 first for phone access from Canada or the US to Mexico.

Monex

1) You can make transfer requests by e-mail
2) Monex handles fideicomiso accounts (see Land Ownership by Foreigners)
3) If you wish to set up an investment account, mention Emerald Coast and ask for the Manager Cynthia M. Hermosillo Chavez at (322) 221-0293 x3402

HOTEL DISTRICT
In Plaza Peninsula
Boulevard Francisco Medina Ascencio #2485 Ste B-25
(322) 221-1020
(800) 717-7193 x1137 (Mexico toll free)

Lloyd (no relationship to the British institution)

AIRPORT
South of the airport on the west side of MEX 200 in Plaza Marina
Centro Comercial Plaza Marina, Ste A-48
(322) 221-3101

DOWNTOWN
Plaza Santa Maria Local D-13
(322) 224-2490
(322) 224-1689

Intercam

1) You can make transfer requests by e-mail
2) Next day cash-delivery service for businesses

VILLA DE LAS FLORES
Francisco Medina Ascencio, Ste 2902-PB
(322) 209-0838

NOTE: The currency exchange offices found in airports throughout Canada and the US charge high fees to exchange your money. Avoid them if you can. You are better off getting your pesos from an ATM in Mexico.

Local Banks

Local Mexican banks operate much like a local bank in the US or Canada. You can open an account and immediately receive checks and a debit card. You usually have to have an account open for six months to receive a credit card. These banks do provide peso-based mortgages. A local bank account helps establish your credit rating in Mexico. Generally speaking, you only need this if you are taking up residence here.

From San Pancho, Bancomer has offices in La Peñita (27 km north), Mescales (32 km south), and Puerto Vallarta. HSBC has offices in Bucerias (23 km south) and in Sayulita next to Choco Banana (5 km south). Although times may vary, banks are generally open from 9:00 AM to 4:00 PM on weekdays and, at some locations, on Saturday from 10:00 AM to 1:00 PM.

Travelers Checks

Travelers checks can be a hassle to redeem in Mexico. While a larger hotel or other establishment may cash them for you, your best bet is a local bank or currency exchange company (see above).