Bring Plastic, Not Dollars to Mexico
In an attempt to make things more difficult for money launderers in Mexico, the government has also made things much more difficult for tourists. In a development that I just found out about via this USA Today article, tourists in Cancun and the Riviera Maya must now pay in pesos for any purchase over $100 that is paid in cash.
In addition, there’s a stipulation that you can’t change more than $1,500 from dollars into pesos in any month. Don’t ask me how they would monitor that, especially if you use different banks/exchange booths, but that’s what it says.
Obviously this is going to be a major pain, especially for cruise ship passengers and people staying in off-the-grid locations like Tulum where credit cards aren’t even accepted. Basically, your strategy needs to be to hit the ATM machine upon arrival for your cash and then use a debit or credit card instead of cash when buying jewelry or other souvenirs that are more than $100. Use plastic for big meals with a group.
Don’t forget, all credit cards are not created equal. Here’s a good article on the best ones and worst ones out there. You could pay 0% in extra fees or 3% depending on which one you’re packing. I use my American Express Platinum card in the U.S., but it’s Capital One only when traveling abroad.
Plus I have to say I strongly disagree with this statement from the article: “U.S. travelers should purchase pesos before they arrive in Mexico ‘to minimize any inconvenience the exchange cap at banks may cause.’” I’ve never seen a Mexican airport without an ATM machine (or 5). Just get the cash after arrival; otherwise you’ll get a horrible exchange rate by doing it from home.