Using credit cards in Mexico: What to know

Quick insights

• Credit cards and debit cards are widely accepted throughout Mexico, especially in large cities and tourist-friendly areas.
• Having cash on hand can come in handy when making small purchases, tipping or shopping at local merchants.
• Some credit cards may charge fees on international purchases, which could increase your travel expenses.

Soaking up the sun on the Mexican Rivera. Hiking the pyramids of Tulum. Touring the Villa de Guadalupe in Mexico City. Fishing off the coast of the Baja California Peninsula. You can pick your own adventure when traveling in Mexico. Regardless of what you choose, though, you’ll need a way to pay for food, activities, souvenirs and more.

Read on to learn how you can use credit cards—and other payment options—when traveling in and around Mexico.

Credit card acceptance and use in Mexico

Paying with credit cards is common in Mexico. Merchants typically accept most major credit cards—Visa, Mastercard and American Express—especially in large cities and tourist-friendly areas. Debit cards are also a common form of payment.

Mexico tends to be a cash-focused culture, so paying with pesos is not unusual, but you may also find electronic payment options as well. You may encounter digital payments, contactless payments and mobile wallet payment options while traveling in Mexico.

Note that you do not need to notify Chase when you use your credit card while traveling. Due to advancements in fraud detection technology, this practice is outdated. You may want to check that your contact information is up to date with your card issuer before you travel should they need to reach you.

Card notification when traveling

While it used to be customary to notify your bank and credit card issuer when traveling abroad, this practice is generally no longer necessary. Fraud detection has become more sophisticated, so many banks and card companies—including Chase—do not require or even recommend notification before you travel.

Should I use cash or credit cards?

Credit cards are useful, but they may not always be the best payment option. You may encounter merchants that don’t accept credit cards—or the type of card you have.

Cash can be a great backup in these scenarios. Plus, there are times when paying with cash may be preferred, including:

• Tipping: Having cash on hand for tips when dining out can be useful. Some tourist-friendly areas allow tipping in both U.S. dollars and pesos.
• Shopping: Some smaller or local vendors prefer cash over credit cards—and in some cases may only accept cash.
• Transportation: Many taxi drivers only accept cash, especially independent taxis and those in small towns and villages. U.S. credit cards and dollars may also not be accepted on toll roads, except in some tourist-heavy areas.

Using a mix of cash for small purchases and credit cards for larger purchases may provide the most seamless buying experience.

Benefits of using credit cards in Mexico

There are some benefits to using credit cards while traveling, including:

• Ease of use: It is often quicker to swipe a card than it is to count cash at a register, especially in a currency you’re not used to.
• Safety: Cash can get lost or stolen. Whereas if your card is lost or stolen, you can lock your credit card and monitor its usage.
• Rewards: Using your card abroad may earn points or miles, depending on the card. If using a travel credit card, you may even earn rewards at a higher rate for travel-related purchases.  
• Card benefits: Using your card to make purchases may provide additional benefits, such as reimbursements for trip interruptions or lost luggage.

Payment acceptance is up to the merchant. For this reason, you may want to consider having cash to fall back on even if you plan to use your credit card while abroad.

Understanding credit card fees while traveling

Exchanging for local currency or electronically converting your U.S. dollars to pesos may incur fees. Common fees include foreign transaction fees, currency conversion fees, dynamic currency conversion (DCC) fees and ATM fees:

Foreign transaction fees

You may be charged foreign transaction fees when using your credit or debit card to make purchases in a foreign currency. These fees can vary depending on your credit issuer, bank and the purchase amount. The rate for foreign transaction fees is typically 1-3% of the entire purchase, which might include shipping costs and taxes.

However, some credit cards do not charge foreign transaction fees. Check your cardmember agreement for details about international purchases. If you travel often, it may be worth looking into a travel rewards credit card that doesn’t charge foreign transaction fees. 

Currency conversion fees

When you exchange one currency for another, you may be charged a currency conversion fee. They can occur when you make purchases abroad using a credit or debit card, withdraw cash from an ATM or exchange currency. The amount can vary, but these fees are typically 1-3% of the transaction amount.

Dynamic currency conversion (DCC) fees

Merchants may provide the option to use a DCC service that allows a transaction to be processed in the cardmember’s home currency. The customer pays fees for this service when making a purchase and often receives an unfavorable exchange rate.

You may be able to avoid DCC fees when using a credit card. Paying in the local currency means you won’t be charged DCC fees. When you pay in pesos, you’ll still be subject to the fees and exchange rates associated with your credit card, but often, those terms are more favorable than what DCC services charge. 

ATM fees

You may be charged fees when withdrawing cash from ATMs. The ATM operator will likely charge a flat fee as well as your local bank. In addition, you may be charged a foreign transaction fee or currency conversion fee that is a percentage of the amount you withdraw.

When exchanging dollars for pesos, you may find better exchange rates if you plan ahead. Often, using a currency exchange at the airport or in a hotel will not provide the lowest rates. You may find better rates when getting pesos at your local bank or credit union.

In summary

Having a mix of cash and credit cards may provide the most flexibility when paying for your Mexican adventures. Credit cards are widely accepted, but you may find that cash in some instances is the preferred form of payment. When exchanging dollars for pesos or paying abroad, you may be charged fees.

Some travel credit cards do not charge foreign transaction fees so you may be able to avoid paying some fees associated with making international payments. Refer to your credit card’s account terms for specific information.