Master the Peso: Cash, Cards & ATMs

While major hotels and tourist-centric restaurants in Mexico accept credit cards, cash (Mexican Pesos) remains king for street food, local markets, smaller shops, and many transportation options like colectivos. Always carry a mix of small denominations (20, 50, 100 peso notes) for convenience and to avoid issues with vendors not having change for larger bills.

When using ATMs, exercise extreme caution. Opt for ATMs located inside established banks, major supermarkets, or secure shopping malls, rather than standalone machines on the street. Before inserting your card, quickly check the card slot for any signs of tampering (skimmers). It's also wise to use ATMs during business hours when bank staff are present.

Crucially, when an ATM or point-of-sale machine asks if you want to be charged in Mexican Pesos (MXN) or your home currency (e.g., USD, EUR), ALWAYS choose MXN. This avoids Dynamic Currency Conversion (DCC), where the vendor's bank applies an an unfavorable exchange rate, costing you significantly more. Let your own bank handle the conversion.