The Best Places to Exchange Money

[US 41]

Almost everyone on her knows that I plan on going to Mexico at some point. Last summer I exchanged 200 dollars for 2120 Pesos at Travelex in the Indianapolis Int'l Airport. At that time 2120 Pesos was worth $160 (now it is around 144 USD). They charged me a $10 exchange fee and then I got a bad exchange rate. I went back to their website and was calculating and realized I would lose another $40+ if I exchange money there again.

So my question is what places have the best exchange rates? I know that whenever I exchange money, I'm going to get ripped off a little, but I shouldn't lose $40+ on the deal. I have heard Oxxo will exchange money for no charge (you have to buy something though). Does anyone know if that is true?

Based on my calculations, I need 5260 more pesos ($354 US) and I'll be set. If I were to exchange money at Travelex again I would need $407 to get that much. So actually I would be losing $53 if I went back there.

[02 Park Ave]

Try AAA, if you are or know a member.

[NJRoadfan]

Your local bank may have currency services, I know mine does. They usually keep some common currencies on hand, don't know if Mexican Pesos are one of them. The worst places to exchange money are airports and hotels.

[mhh]

I've visited Mexico only once so I don't know much about exchanging dollars for pesos, but I live near the Canadian border and cross it frequently. Based on my own experience, the best exchange rates for changing greenbacks for loonies are offered by Canadian casinos.

[CtrlAltDel]

I can't say anything about Mexico specifically, but when traveling to Europe, it is invariably better to exchange money once you get there (not at the airport). It might be true for Mexico as well.

I've always gotten a decent exchange rate by simply taking money out of a local ATM. Your bank might have some high fees, though.

[hotdogPi]

If you come across a single person (not a company) who has extra of the currency you are looking for, and that person does not need it, he or she will probably ask for the amount of exact exchange rate for the currency, with no fees.

[briantroutman]

The best advice on exchanging currency is: Don't do it.

First, make sure that your credit card company doesn't charge a surcharge for foreign currency transactions, and use it for as many transactions as possible. You'll get the best possible exchange rate, and it's far safer than carrying cash.

I've always gotten a decent exchange rate by simply taking money out of a local ATM. Your bank might have some high fees, though.

Yes, absolutely. Assuming that having cash is an unavoidable need, use an ATM in the country you're visiting to withdraw the local currency. First check with your bank to find out about their foreign currency ATM fees, but with few exceptions, it's a far better deal than currency exchanges will give you, and you'll be getting a far more favorable exchange rate. Your bank may also be part of an ATM alliance that will get you reduced or fee-free access to certain ATMs–it always pays to ask.

Try AAA, if you are or know a member.

I've worked at three different AAA clubs and sold a lot of currency. And despite that, I disagree with this suggestion completely. Local AAA clubs typically deal with Travelex, and with two levels of mark-up on foreign currency transactions, the rates are often even worse than walking into a Travelex office at an airport.

[dfwmapper]

Definitely check with your bank before using an ATM. Bank of America raised their international fee from 1% to 3% in November 2013, so they're probably not anything close to a good deal anymore. They also charge $5 per foreign transaction except at their partners.

[Dr Frankenstein]

I usually get my foreign currency at my credit union, which carries some U.S. and can order the others. The rate isn't too bad.

[kphoger]

When I'm preparing to go to Mexico, I'm often exchanging a couple thousand dollars at a time. I always exchange it well ahead of time at a bank downtown here. I do so because they always have all or almost all I need currently in stock; if they're short, they'll have it within a couple of days. And I don't even have to be an account holder to use their services.

It's a better exchange rate, though, for me to exchange money at the local bank in Mexico. I don't do this, however, as transactions are limited to 100 USD per day, there's always a line, it takes the teller an incredibly long time to enter your passport information (required), and do I really need another reason?

In short, I prefer convenience and reliability over a good exchange rate. FWIW, the bank with the good exchange rate is Banco Azteca; I don't know if it's a chain or if there is one where you're going or if the rules are universal.

[J N Winkler]

I am not a fan of bureaux de change--I can count on the fingers of one hand the number of times I have used them in the last fifteen years.  I simply use my credit card at foreign ATMs.  My card provider applies finance charge of 3% and a fee for out-of-network ATMs, but these extras are on top of the interbank rate, so the spread is more favorable than at moneychangers for amounts in excess of $100 or so.  I don't like to carry a lot of cash when I travel, so I typically start with about $100-$200 in walking-around money and top up at an ATM as needed.

[lordsutch]

If you're planning a land crossing, you can usually find places on the US side that will sell you pesos and you won't be subject to a daily limit. Although why you'd want to carry several hundred dollars worth of pesos with you is beyond me... in Nuevo Laredo at least, most merchants gladly take US currency at a reasonable rate.

Usually the local ATM option is best. And whatever you do, have the ATM charge your account in the local currency rather than US dollars if it gives you a choice (this is the "dynamic currency conversion" scam, which usually nails you with a terrible exchange rate and often the foreign transaction fees as well).

If you're really worried about getting scammed or your ATM card being cloned, open a separate checking account with a separate ATM card and transfer money into it as needed.

[kphoger]

Ummmm... Why someone would have more than a few hundred pesos on them? Well, for starters, a few hundred pesos will only buy one tank of gas. You won't get very far past Nuevo Laredo without more money. Especially if you also plan to eat food.

[hotdogPi]

Ummmm... Why someone would have more than a few hundred pesos on them? Well, for starters, a few hundred pesos will only buy one tank of gas. You won't get very far past Nuevo Laredo without more money. Especially if you also plan to eat food.

A few hundred dollars worth of pesos, not a few hundred pesos.

[kphoger]

Touché. Didn't catch that (obviously).

The point remains, though: Hotels, gasoline, highway tolls, restaurants, police officer bribes (yes, I've done that in México), etc., etc. Of those items, only hotels can be safely assumed to take credit cards, although I believe gas stations accepting plastic are more common now than they used to be. But paying cash is almost always easier in México.

Outside the border area and tourist destinations, US dollars are not widely accepted by merchants; by some, perhaps, but you certainly can't count on it.

[Duke87]

My credit card charges a 3% foreign transaction fee but does so based on actual exchange rate with no markup.

This is competitive with getting foreign cash at a marked up exchange rate, and when you consider my bank charges a $5 fee to obtain foreign currency on top of that... I've decided that I'm better off just using credit whenever I can when traveling internationally. It's probably slightly cheaper and it's certainly more convenient.

Of course I'm talking about Canada, where everyone and everything takes credit, even the paystation at the municipal parking lot. I've never been to Mexico but I am sure it is a different animal.

[kphoger]

I have used our debit/credit card there before, but not because that was my preference. This past year, the vehicle following us (our best friend's 1999 pickup) had a wheel bearing go out. It became underivable in the middle of nowhere in the middle of the desert in June. Like, the front passenger's side wheel wobbled quite visibly, and when it was eventually replaced the bearing came off in pieces.

Anyway, we found a mechanic with the help of some hitchhikers we'd picked up earlier. The mechanic was mute due to an apparent tracheotomy and his shop was 15 miles away. BTW, this was an experience not soon to be forgotten. Anyway, we had to drive into Saltillo to get a new wheel bearing, and didn't have the pesos on hand for that. So we used plastic.

I had my wife call the card's customer service line to make sure it wouldn't be rejected because of the international request. That happened once on another trip to someone else. The other vehicle that time was our church's youth pastor's SUV. He had been using his church credit card along the way, in order to make receipts and auditing easier after the trip. As soon as he tried to pay the return guarantee on his vehicle at the border, though, his card was rejected and frozen. He should have called them ahead of time. Good thing he had his personal card as well and it didn't get flagged.

We were charged an international service fee for the wheel bearing, but I didn't bother to look and see how the exchange rate worked out.

[J N Winkler]

It's been 12 years since my last visit, but I do remember Mexico having more of a cash-based economy than the US.  I wouldn't even count on being able to use plastic for overnight accommodation everywhere.  The last time I went there, I think I paid by plastic for my first two and last nights there (in Chihuahua and Hermosillo respectively), but paid cash in La Junta (cost worked out to about $10 US) and Basaseachic.  Restaurant meals, Pemex fillups, museum admission, tolls, and other miscellaneous expenses were all paid in cash.

This said, I would guess (unless prices have changed significantly) that the peso equivalent of $200 US in cash would last a solo traveler at least half a week, barring unplanned expenses such as an emergency auto repair.  Lodging is usually the single biggest expense and the most amenable to credit-card payment.  If you stick to the libres or travel mostly in corridors that do not have good toll road alternatives (such as Mex. 16 across the Sierra Madre Occidental) and also avoid driving at night, you won't have to refuel often because you just won't be racking up that many miles on a daily basis.  Sit-down meals are also highly affordable.  (The cuisine doesn't really fit Tex-Mex stereotypes.  At the restaurants I went to, the fare would probably be described as "American" but with refried beans as an ever-present side dish, and also the availability of cinnamon-flavored hot chocolate which is far superior to anything served on our side of the border.)

I actually worry slightly about driving down to Mexico in my current car because of parts availability.  The second-generation Nissan Maxima, which I took on my last two trips, was also sold in Mexico, so in principle parts are available for it south of the border.  It is questionable whether the same is true for the Saturn SL2, which as far as I know was never exported to Mexico.

[US 41]

In Mexico my cash expenses will be $210 in toll roads and $150 in gas.  I plan on paying for the import permit and tourist card on my credit card. I plan on taking $500 worth of pesos into Mexico so I'll have extra money for food and whatever else I might purchase.

The only way I could reduce the amount of pesos I take into Mexico is if I were to enter Mexico in Piedras Negras and drive 57 south to Monclova, then west on 30 to Torreon. From Torreon to El Salto I could take the 40 Libre and I wouldn't miss any of the tunnels between Durango and Mazatlan. That would get rid of the need for $160 USD of pesos. I would only need 50 dollars worth of pesos for the toll roads.

If I did the above I'd only need about $300 dollars worth of pesos (I have $145 worth now).

[kphoger]

As for routing, I personally plan to start crossing at Ciudad Acuña (near Piedras Negras).  Most people online seem to prefer crossing at Piedras Negras to any other point nearby (Acuña or Laredo), but I have had no problems with crossing at Colombia; I'm only changing my route because I hate Fort Worth traffic.  If you do decided to go that route instead, then be advised that you get your FMM and your windshield sticker at the interior checkpoint near Allende; there's not actually a need to stop in Piedras at all.  Also, everybody says not to take the free road from Allende to Rosita; be sure to take the toll road.  If I were you, I would not go with that routing:  I would stick with crossing at or near Laredo.  The toll road from Monterrey to Saltillo has amazing scenery, and you would have zero stoplights between Nuevo Laredo and, well, how far west are you going?  The free bypass around Monterrey is now 100% stoplight-free (still clogged with traffic, but my preference nonetheless), the new toll road around Torreón is done now...

As for travelling with plastic, I do know that the toll booth between Laredo and Monterrey takes plastic; my friend had to use his debit card once because he thought someone had stolen his cash (turns out it was in his glove box).  The website for the Monterrey—Saltillo toll road says they accept Visa and MasterCard (as well as up to 20 USD ??? not sure if I trust that), and I have no idea about tolls from that point on.  Just to give you a heads up on the vehicle return guarantee:  if you pay by plastic, then you have to wait several business days for your money to be refunded from the Mexican customs agency; if you pay by cash, you receive your full amount on the spot when you turn in your paperwork at the border.  The first time I paid by card, I started to freak out because the money wasn't hitting our account.  I tried calling the Mexican agency and got nowhere; fortunately, I received my refund shortly thereafter.  I now choose to pay with cash and save myself the anxiety.  This doesn't cost me any extra, as I then use that cash to pay for my expenses heading back north from the border.

Also, please be advised that calling your credit card company is different from México than it is from the USA.  You'll want to look into that and make notes before you leave.  If your card is lost or stolen, or if you need to discuss a charge while you're there, then you need to make sure you know how to reach them from south of the border.

[SP Cook]

I have always just used an ATM operated by a real bank (not some rip-off deal in the back of a store or something) and withdrawn what money I need.  All you have to do is dope out enough of the local language.  My bank does not charge for using ATMs out of the country. 

Failing that, your bank is the best bet, although not all banks offer that service.

[NJRoadfan]

For those traveling to Mexico, remember to buy car insurance for your vehicle on the US side! Your US policy doesn't cover you and its illegal to drive without it there!

[kphoger]

Oh, geez, I should hope @US 41 would have researched that by this point in the game.  Yes, be sure to buy at least liability insurance.  Your own full coverage policy (if you have one) may or may not cover you south of the border, but México does not consider US liability insurance policies to satisfy the requirement for financial responsibility.  I personally use, trust, and recommend Sanborn's for that purpose; you can purchase a policy online and immediately print off your copy of it.  Full coverage is only available up to a certain vehicle age (probably around model year 2000 right now), but if you have a vehicle newer than that, then I also recommend signing up for roadside assistance and legal assistance.

[Scott5114]

Technically everywhere in Mexico accepts plastic, since that's what their banknotes are printed on.

[US 41]

Haha, yes I know about the Mexican Insurance.

I plan on going all the way to Mazatlan. I'll probably take your advice and go via Monterrey, rather than going through Monclova. I might also pay for my import permit with cash, so I don't have to stress about making sure I get my refund.