Comprehensive guides to money, finances and banking services in Mexico—continually updated

Money, finances, and banking services in Mexico

Complete guides to money, currency and banking services in Mexico.

Our guides and articles give you a comprehensive overview of Mexico’s money system as well as the banks and banking services available that help to facilitate the commercial interactions you’ll need to engage with while you’re here.

The local knowledge shared here helps you to consider your needs and
formulate a plan to manage your money and any investments you have in Mexico, as well as arrange banking and financial services that provide essential support as you begin to realize your living and lifestyle plans.

Complete guide to money & banking services in Mexico

Our guides to Money & Banking Services in Mexico provides you with a definitive resource about managing your money and making use of banking services in Mexico.  The regularly-updated guides and articles include:

• The Mexican peso – learn about the country’s currency and its banknotes
• Bank cards – using debit, credit cards in Mexico
• Using ATMs in Mexico
• Money exchange – learn about different ways of exchanging foreign currency for Mexican pesos and vice versa
• Money transfers – how to transfer money to, from and within Mexico
• Money essentials – money and banking safety tips and local knowledge
• Opening a Mexican bank account – the requirements and mechanics of opening and running a bank account in Mexico
• Mexican banks and banking services – services and facilities offered by Mexican banks, as well as a profile of the principal banks and financial institutions
• Options for financing real estate in Mexico

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

Most stores won’t accept paper checks in payment anymore because debit and credit card machines provide near-instant payment authorization of the amount being transacted, and save time at the checkout.

About using your credit & debit cards in Mexico

All major credit and debit card brands are accepted at millions of retail establishments across Mexico.

Visa, MasterCard, American Express, and Discover are the most commonly seen and used brands in Mexico.  Visa & MasterCard are the most widely accepted networks. Some places also accept Diners Club.

If your debit or credit card is linked to a bank based outside of Mexico, your purchases will usually be charged in Mexican pesos and your bank will convert the amount to the equivalent in the local currency where your account is held and charge that sum to your account in your home currency.

When you use a non-Mexican bank card in Mexico, some payment machines at stores and service providers might offer to charge the amount in other currencies, e.g. US or Canadian dollars, British pounds, Euros, et al. although the exchange rates when doing this might be less favorable than charging Mexican pesos to your account and having your own bank’s exchange rates applied instead.

Charges for use of bank cards in Mexico

How much you pay in charges for using your bank cards in Mexico will depend on:

• what country the card is issued in;
• whether you are making a purchase or withdrawing cash; and
• the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, the transaction amount is charged directly to your account here, in Mexican pesos, and charges will vary depending on the type of account that you have.

There is usually no charge for making purchases (in store or online); there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on whether you are using the card to make a purchase, or withdraw cash from a local ATM in Mexico.

Using your card for purchases and online orders

When you use your card at a store or online, the bank will usually charge a currency exchange fee (see below) and some banks might also add a ‘foreign currency transaction fee’—check with your bank for details.

Using your card for cash withdrawals

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges may be applied to the account, either lumped together or separately, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal may also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank instead of using an ATM.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the transaction (purchase or cash withdrawal) will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Signatures for card purchases in Mexico

The use of signatures for making purchases with a card in Mexico is virtually phased out now, and has been replaced with the use of a PIN (Personal Identification Number).

Some stores in Mexico continue to use the “card swipe” machines to take payment from plastic cards, whereby the machine prints out a slip of paper and the card holder must physically sign the slip to complete the transaction.  However, most stores now use the “chip and PIN” payment authorization method.

“Chip & PIN” card signatures in Mexico

Swipe payment machines print-out a slip of paper that requires your hand signature. However, when you present one of the latest bank cards, stores, restaurants, and other traders enter your card into a special device that reads the encrypted chip now embedded onto the plastic cards.

Instead of signing a voucher, you are asked to enter your card’s PIN number (cover your hand when you do this). In Spanish, the PIN is referred to as firma electrónica —electronic signature— or ‘NIP’ (that is an acronym for Numero de Identificación Personal).

Some establishments also ask you to sign the voucher that the machine prints out, but it’s not necessary; your bank won’t charge you twice if you do.

If you do not know your card’s PIN, the establishment might instead offer to “swipe” the card and take payment using your hand signature and some other form of identification, e.g., residency card or passport.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Exchanging your money for Mexican pesos

There are three main ways that most people exchange their home currency into Mexican pesos:

• Using a local ATM in Mexico to withdraw cash from an account based outside of Mexico; or
• Exchanging foreign currency cash for Mexican pesos; or
• Transferring money from a foreign bank account to a bank account in Mexico.

Also:

• Some local banks in Mexico might cash a paper check drawn on a bank in the United States of America; and
• see the important note below about the use of paper Traveler’s Checks.

Using ATMs to get Mexican pesos locally

As we described in a related article, holders of bank cards issued outside of Mexico can withdraw cash in Mexican pesos from local ATMs. That article describes the process and the typical charges involved.

• The number of pesos you withdraw is converted and charged to the account where the money is held in the local currency, e.g., US dollars, Canadian dollars, British pounds, Euros.
• This is a quick and efficient way to buy Mexican pesos using a debit card linked to a checking or savings account abroad.
• All ATMs in Mexico have an upper limit of pesos they will dispense in any one transaction, and the amounts vary by bank.
• Typically, an ATM will allow foreign card holder to withdraw between 5,000 and 10,000 pesos per transaction.  Also, check with your bank about any daily limits it may impose on cash withdrawals.

Exchanging your foreign currency cash for Mexican pesos

Some people bring cash with them from their home country to Mexico and exchange this for Mexican pesos.

Pesos can be bought for foreign currency cash at many retail banks, but the better places to sell your foreign currency for pesos are the exchange houses, Casas de Cambio—see notes below.

Exchange rate fees when buying pesos with cash

Most exchange houses and banks do not charge commissions to exchange currency but make money through the “spread”—that’s the difference between the rate at which they sell pesos and the rate at which they buy them.

Some exchange houses in need of certain units of foreign currency for their operations (for example, if they need US dollars) will offer better rates on certain days than even perhaps the international exchange rate, so it pays to shop around at various exchange houses at the airport or downtown if you plan to buy pesos using foreign currency in cash.—

Currencies traded

Mexican banks and exchange houses will buy and sell all major currencies. US dollars, Canadian dollars, British pounds, euros, Australian dollars, and Japanese yen can be readily bought and sold across the counter at exchange houses and many retail banks.

Exchanging cash at the Casas de Cambio

The best place to exchange your foreign currency cash for Mexican pesos is at one of the local exchange houses, known as Casas de Cambio.

They tend to offer the best rates and their procedures for exchanging money are straightforward.

The ones at the Mexico City airport tend to offer the most competitive exchange rates; exchange houses situated in tourist hotspots offer the least attractive exchange rates.

Exchanging money using a local retail bank

Retail banks will exchange foreign currency cash for Mexican pesos, but their rates may not be as attractive as the local Casas de Cambio (check locally) and they might insist that you have a bank account with them to make the exchange.

Paying foreign currency cash at stores and hotels

Some stores might accept cash in foreign currency in payment of goods (exchange rates might not be favorable, though).

Hotels and resorts in Mexico are no longer allowed to accept cash payment in US dollars to settle stays, due to money laundering rules.

Transferring foreign funds to a Mexican bank account

If you have a bank account in Mexico, you can buy pesos by transferring money from your foreign bank account to your bank account in Mexico.

These funds get converted into Mexican pesos and become available for your use locally, where you can pay others electronically using online banking or a banking app; using your Mexican debit card to withdraw cash from a local ATM; or by making a cash withdrawal in person at the bank itself.

If you’re resident in Mexico this method is an efficient way to transfer funds from overseas accounts (e.g. your retirement income) to a Mexican bank where the pesos are held on account for your day-to-day use.  By transferring larger sums, you avoid ATM fees and save time and money in the longer term.

Cashing a US dollars paper check in Mexico

Some Mexican banks will cash a paper check drawn on a US bank and convert the sum into Mexican pesos. You usually need to hold an account at the bank where the check is cashed.

If you want to cash a US dollar check into Mexican pesos ask your local bank if it offers this service, and if it does, ask about what fees it charges and what exchange rate it applies to the transaction. Compare this against using an ATM to access your money or by making a transfer from your foreign bank account to a Mexican bank account.

The trouble with Travelers Checks

In a bygone era, Travelers Checks were the de-facto means for travelers to carry or transfer their money in a safe way for exchange into a local currency abroad. Paper-issued Travelers Checks have fallen out of favor as the widespread use of bank-issued ATM cards has made them obsolete.

While paper-based Travelers Checks are still accepted at some places in Mexico, they are difficult to exchange: the exchange rates offered are usually unfavorable and it’s often time-consuming to exchange them due to all of the verification steps that need to be undertaken.

“Plastic” Travelers Checks

The modern replacement product for paper-based travelers check is a plastic bank card —like a debit card issued by your bank and linked to your checking account— with a key distinction that they are not tied to a personal bank account.

Instead, you top them up with a cash balance from your bank account (or over the counter) and carry the card with you when you travel. When you need to draw cash from the balance on the card, you visit a local ATM to withdraw money in local currency.

They work like regular debit cards. Some electronic debit cards only allow use at ATMs, others also allow you to use them in stores; however, check with the card issuer about the foreign exchange charges they make for using the cards, as well as any other “per transaction” charges.

These ‘plastic card travelers checks’ are helpful if you don’t have a bank account in Mexico and want the convenience of using an ATM to obtain Mexican pesos, or if you don’t want to carry your bank cards in certain situations, for example, if you plan to travel into a remote region of Mexico and/or prefer to leave your bank cards at home or in the hotel when you’re touring.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Making international money transfers to and from Mexico

You can transfer money electronically to and from Mexico between bank accounts, or you can use an over-the counter international money transfer service.

International transfer to and from a Mexican bank account

If you have a bank account abroad and a bank account in Mexico, you can make an international money transfer using the special numbers provided by the banks.  You can make the transfer in one of two ways:

Direct interbank transfer

You instruct the bank abroad to wire the payment to a bank account in Mexico, or you instruct your Mexican bank to make a payment to a bank abroad.

Both the sending and receiving bank will make a charge for the transfer, and they will also make money on the exchange rate. Check with the banks to ask about fees and exchange rates.

Interbank transfer using an intermediary

If you are sending money to Mexico, you can optionally use a money transfer intermediary who will wire the money and usually offer a better exchange rate and/or lower fees than direct interbank transfers.

Wise (formerly Transferwise) and XE.com are examples of intermediary services.  Note that these only work on transfers to Mexico; if you want to wire money out of Mexico you must use a direct interbank transfer through a Mexican bank, you cannot use an intermediary.

Over-the-counter international money transfers

If you are transferring smaller sums and want to use over-the-counter money transfer services, here’s the general process:

• The person sending you money goes to their nearest money transfer agency and makes the payment plus associated charges, telling their local branch what city the money should be sent to
• The money is wired to that city and, to claim it, the recipient goes to an establishment that represents the agency (e.g., Western Union), shows a photo identification and claims the transferred amount using the reference number provided to them by the sender. To send money from Mexico to a destination overseas, it’s the same process in reverse.
• Over-the-counter transfers work for smaller sums of money, e.g., a small few thousand dollars at most; the agencies offering this service impose limits for transfer amounts and the fee structure they have make larger transfers unattractive.
• It’s more expensive to transfer money using an over-the-counter service than using an interbank transfer.
• The main money transfer agencies are Western Union and MoneyGram are two leading over-the-counter money transfer companies operating in Mexico. Some banks and stores are agents for these companies.

Money transfers within Mexico

If you’re in Mexico and need to transfer money domestically, there are two ways to do this without the need to write and post a check. (The writing and posting of paper checks is not a common practice in Mexico, nor is it recommended.)

Interbank electronic transfers

Transferring money electronically between two Mexican bank accounts is straightforward. You can transfer money instantly from your Mexican bank account to any other Mexican bank account using online banking (web browser), the bank’s app (using a smartphone or tablet), or by visiting the bank in person and authorizing the transfer of the money.

Over-the-counter cash transfers and deposits

Convenience stores in Mexico, including OXXO and 7-Eleven, offer cash-transfer and bank deposit services. Ask at your local OXXO or 7-Eleven for details about the services, transfer/deposit limits, and current fees.

Transfers: You pay cash at one of the convenience stores and pass a code to the intended named recipient.  That other person can attend the same brand  convenience store in their locality and, using the code and an official ID, can receive the cash.

Bank deposits: You can also pay money into some (not all) Mexican bank accounts from OXXO and 7-Eleven convenience stores.  There is a small fee for making the deposit, but it can be quicker and easier than going to the bank branch.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
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The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

You need to be a legal resident in Mexico to open an account here, and you need to attend a local Mexican bank branch in person to make an application.

Choosing the type of account you need

When you attend the bank, a representative will talk with you about the types of account offered by the bank.

Most foreign residents opt to open a checking account that enables them to:

• receive deposits from other bank accounts in Mexico and banks overseas; and
• send payments to others using online banking; and
• make payments to traders and service providers (in person and online) using a debit card; and
• some accounts offer a paper check book, although paper checks are rarely seen and used in Mexico now.

Documents required to open a bank account in Mexico

When you attend the bank, the representative will ask you for various documents including:

• your current passport; and
• your Mexico residency card (not your residency visa); and
• proof of address in Mexico—usually a recent electricity bill; and
• banks may also ask for your RFC.

They will also ask you to make a deposit to open the account, equivalent to at least the minimum deposit balance required to maintain the account open.

Most new customers make this initial deposit in cash.  The bank might accept an international transfer-in to the account by prior arrangement; ask locally.

When the account is opened and set-up, you will be provided with:

• A bank account reference number associated with your name.
• A debit card (this might be provided on the day, or you might have to return later to pick it up).
• The bank’s system will also send you an email that contains a User ID and password to access your account online and via smartphone app.
• For security, the banks require you to visit a branch in person to complete the online/app set-up process.

Managing your bank account in Mexico

When your account is set-up and active you will be able to bank in Mexico.  As a minimum, customers are usually provided with the following facilities:

Your bank account number

You can quote your account number (CLABE or Card Number) to others so that they can make electronic deposits directly into your Mexican account in-person at the bank or convenience store, or via an online transfer using a smartphone app or internet banking access.

International payments into your Mexican bank account will require you to quote the IBAN number that your bank can furnish you with; this contains the international routing number for the bank in addition to your personal account number.

Debit card

The bank will furnish you with a debit card that you can use at ATMs in Mexico.  You might also be able to use this at ATMs outside of Mexico, depending on the account type; ask your bank representative for details, and about the charges the bank makes for use of your debit card outside of Mexico.

Some debit cards can also be used for purchases in stores and online.  Online purchases usually require you to authorize each purchase via the smartphone app, for security.

Online banking and smartphone apps

The bank will also provide you with the details you’ll need to logon to your account online (using a web browser) and/or via a banking app via your smartphone.

The bank’s smartphone app provides immediate access to a range of helpful banking transactions including. Features include:

• View recent and historical your account activity.
• Transfer money between your accounts.
• Make electronic payments to other Mexican bank accounts
• Top-up pre-pay Mexican mobile telephone numbers.
• Pay for utilties including electricity and phone companies.
• Authorize payments made using your card online.
• Some apps provide a ‘virtual card number’ for online payments. The security code changes with each payment and makes it virtually impossible for your card number to be cloned and misused by others.
• Set-up a ‘cardless’ cash withdrawal: the app gives you a code that anyone can take to an ATM and withdraw a prescribed amount of cash from your account.
• Buy a range of other financial services, like travel insurance.

Paper checkbooks

Some bank accounts in Mexico will furnish you with a checkbook to write paper checks, although this is not common these days.

Most people make and receive payments electronically using a debit card (in stores, online) or using direct electronic transfer to others—to individuals or a company they are trading with.  The smartphone apps (see above) make this easy to do.

If you want a paper checkbook, be sure to talk with the bank’s representative to ensure that the account you open can have a checkbook.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about money and finance in Mexico
• Latest articles about health and safety in Mexico 

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

Mexico’s official currency

Mexico’s official currency is the Mexican peso. There are one hundred Mexican cents (centavos) to every peso.

• The symbol for the Mexican peso is $; its international currency code is MXN.
• To distinguish this from the dollar, you sometimes see it presented as MX$ or the value with the letters “MN” after it, e.g., $100 MN. The MN stands for Moneda Nacional, meaning National Currency.
• The Mexican Peso is a “free floating” currency in foreign exchange markets and like other similar currencies, its value against other world currencies fluctuates daily.

Discover Mexico’s banknotes and coins

In addition to its defined responsibilities for setting monetary policy, the bank of Mexico is responsible for the printing, minting, distribution, and management of Mexico’s physical currency.

Every ten years or so, bank note designs are updated to implement the latest in anti-counterfeit technologies.

Mexico’s banknotes are printed in denominations of 20-, 50-, 100-, 200-, 500- and 1,000-peso bills. The most seen and used are the 50-, 100- and 200-peso bills.

Mexico’s coins are minted in denominations of 50 cents, 1-peso, 2-pesos, 5-pesos, 10-pesos, and there are also some $20-peso coins in circulation.

Mexico’s current series of coins have remained unchanged for decades.  The old 20-cent coins are now out of general circulation and the 50-cent coins although still circulating are not often seen and used.

In addition to the bank’s standard set of current coins, commemorative coins have been introduced over the years which don’t tend to circulate widely as they are kept by consumers or bought by collectors.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
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This article introduces you to all of Mexico’s principal retail banks, and a description of the services and facilities banks in Mexico provide with some comments to guide you when considering use of the service.

Summary profiles of Mexico’s retail banks

This section contains a list of Mexico’s principal retail banks and a brief overview of their history, size, and services.  Connect to their websites for more information.

Services and facilities offered by banks in Mexico

All of Mexico’s principal banks offer a range of bank accounts as well as other financial services including loans, credit cards, mortgages, and insurance. The principal financial services offered by Mexican banks are described here, accompanied by some comments to guide you when considering use of the service.

Payroll accounts

Legislation requires that all Mexican banks offer a “basic” bank account, known as a Cuenta de Nómina (payroll account).

These accounts are intended for receipt of wages or salaries; they must not charge fees or commissions and provide the account holder with an ATM / electronic payment card so that funds from the account can be accessed in cash or spent at stores.  Banks require a regular amount of money to be paid into these accounts (payroll) to keep them open.

Checking accounts

Every retail bank offers checking accounts. In Mexico, these often require a minimum deposit to be made each month, or a minimum balance to be held on account, to prevent charges from accruing. Banks usually give a set number of free ATM withdrawals per month; thereafter fees are applied to withdrawals.

Deposit accounts (instant access)

Deposit accounts where the money may be withdrawn ‘on sight’ (no notice required) are usually accompanied by a plastic debit card for use in ATMs and stores.

These accounts usually carry an aperture fee and require a minimum balance to be held on account (usually around $1,000 pesos) and pay a paltry rate of interest. If the balance goes below the minimum, a fee is applied each month until the account balance is restored to the minimum balance required.

Deposit accounts (term accounts)

The second type of deposit account in Mexico are ‘notice accounts’ sometimes called ‘term deposit accounts.’

With this type of account, you agree to deposit your money for a pre-defined period: usually 30, 60, 90, 180 or 360 days.  Longer term accounts might also be available (3-5 years), but these are usually ‘investment’ or ‘unit trust’ accounts.

Interest rates on these accounts are better than ‘sight’ accounts.  Some of these types of accounts will charge a penalty fee for early withdrawal of your money, and others will simply not allow you access to the funds until the end of the term.

Mortgages

All major banks in Mexico offer mortgage products. The mortgage market is varied in Mexico but note that interest rates are higher than the US and Europe.

Borrowers need to place a deposits of at least 5%-15% to obtain a mortgage and there are set-up fees to pay when you apply for the mortgage loan.

Some mortgage products offer discount or “teaser” interest rates that switch to charging higher rates after an initial period; some offer lower aperture fees in return for higher interest payments and vice-versa.

See also: Financing real estate in Mexico

Automobile loans

Banks in Mexico offer specific products for the financing of personal automobiles and commercial vehicles in Mexico.

These loans are some of the most competitive in Mexico and are sold through dealerships or direct by the bank.

Car loan agreements often package-in the car insurance policy as well as other ‘extras’ you may purchase, but it might be less expensive to pay these separately if you can afford to do so—and if the terms of loan allow it.

Note that most banks (and car dealerships) will not offer car loans to foreign nationals who do not have permanent residency (Residente Permanente) status in Mexico.

Credit cards

The credit card market in Mexico began to take off significantly from around the year 2000. Mexicans and foreigners living in Mexico have willingly taken up the offers of widespread and abundant credit.

Note that most banks will not issue a credit card to foreign nationals who do not have permanent residency (Residente Permanente) status in Mexico.  Banks will issued a debit card to foreign nationals with Residente Temporal status.

Many stores offer 6- or 12-month interest-free credit deals through credit card companies on certain goods and services. In these cases, the good or service is charged to your Mexican credit card by means of six- or twelve-monthly charges, equal to the purchase price with no interest added. Beware that missed payments may incur penalty charges and may void any interest-free arrangements you have in place.

Interest rates on credit cards in Mexico are high by US, Canadian and European standards. Rates of 50% or higher (per year) are common. Credit cards (and store cards) are the most expensive means of borrowing money from banks in Mexico.

Personal loans

Personal loans for a specific or non-specific purpose are also available in Mexico.

These loans are termed as “Prestamos de Nómina.” The word Nómina refers to salary payments made by your employer to your bank account every 15 days, thus the loan refers to the ‘security’ of your regular paycheck arriving at the bank as a form of collateral for the loan.

Note that most banks will not offer personal loans to foreign nationals who do not have permanent residency (Residente Permanente) status in Mexico.

Foreign currency exchange services

Retail banks offer foreign currency exchange services, but exchange rates might not be as attractive as those offered by the Casas de Cambio.  Most retail banks will offer these foreign currency exchange services:

• Buying foreign cash currency and converting it to Mexican pesos (major currencies)
• Converting your Mexican pesos into a foreign cash currency (major currencies currencies)
• Wire money to foreign banks
• Receive money from a foreign bank and convert it into Mexican pesos in your account.

Some banks might also

• Cash paper checks drawn on banks in the United States into Mexican pesos
• Function as agents for over-the-counter wire transfer services
• Cash paper-based travelers checks

Some banks may require that you hold a bank account to transact some types of foreign business with them e.g., cashing traveler’s checks; in other cases, you do not need to be the bank’s own customer to transact foreign exchange services, e.g., over-the-counter wire services.

See also: Money Exchange in Mexico

Property trusts (Fideicomiso)

If you buy property in Mexico that is within 50km of the coast or 100km of a land border, you need to place the property into special trust known in Spanish as a fideicomiso.  Mexican banks set-up and manage these trusts.

The trusts carry a set-up fee, an annual management fee, and also carry a closure fee if you sell the property and close the trust down.

Insurance services

Banks are agents for a wide range of insurance products including auto, home, health, travel insurances, as well as sellers of life assurance policies.  Insurance services are offered on a stand-alone basis, or sometimes ‘bundled’ with other services, for example, the bank might sell an auto insurance policy as part of a car loan agreement.

AFOREs – Mexico’s retirement savings accounts

All Mexican banks are agents for government-approved pension products known as AFOREs.

AFOREs (similar to the 401k accounts in the USA) provide a tax-efficient savings vehicle whereby an employer, an employee, and the government each contribute into a tax-efficient savings pot which is then invested into equities and investment funds which are approved by the financial authorities.

Private banking services in Mexico

For individuals with high salaries, or people who have a significant amount of money to invest in financial products (people known by the banks as “high net worth individuals”), Mexico’s banks offer a range of private banking services that include preferential rates for banking and credit services as well as asset and investment portfolio management services.

If you are living in Mexico and are earning a significant salary, or plan to move or retire to Mexico with significant assets you want to invest in Mexico, banks here have an entire infrastructure of staff and services ready to service your individual requirements. Check individual web sites for details under the sections entitled Banca Privada.

Banking services for businesses and the self-employed

If you plan to run a business or work as self-employed in Mexico, Mexican banks offer a range of services specifically tailored to small businesses.

Services include corporate credit cards, corporate payment cards, payroll services, and loans for commercial vehicles and property. Business charges and rates are higher than charges for personal customers.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about the Mexican peso
• Latest articles about money and finance in Mexico
• Latest articles about health and safety in Mexico 

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

About ATMs in Mexico

Mexico’s banks manage an extensive network of Automated Teller Machines (ATMs) that can be used to withdraw Mexican pesos in cash from your local account if your card is issued by a bank in Mexico, or from funds held in an account outside of Mexico if your card was issued by a foreign bank.

Some ATMs also accept deposits in cash, allow you pay bills, and enable transfers of money between bank accounts based in Mexico.

It’s easy to find an ATM in Mexico. They are usually open, dependable, and will dispense Mexican pesos to anyone with a card connected to one of the global networks, including VISA, MasterCard, and AMEX, as well as those holding debit or credit cards issued by a Mexican bank.  Some ATMs dispense US dollars in addition to Mexican pesos, and will offer card holders the option of either currency if they do, but this is not common.

Typical charges for using an ATM in Mexico

How much you pay in charges for using your bank card at an ATM in Mexico will depend on two key factors: first, what country the card is issued in; second, the fee charging structure your bank applies to the account.

Mexican bank card charges

When you use a debit or credit card issued in Mexico, there are usually no charges for ATM use if you use your own bank’s ATMs (of that of its affiliated network), and within the limits set out by your bank’s terms for that account. (Some banks offer a set number of free cash withdrawals per month, and charge you if you go over that.)

Foreign bank card charges

When you use a debit or credit card issued by a bank based outside of Mexico, charges will vary depending on the bank and the account type you have.

When you use your foreign-issued card to withdraw cash in Mexican pesos several charges might be applied to the account, either lumped together or separately, depending on the bank and account type, thus:

• a fixed-fee charge made by the Mexican bank ATM. This fee is displayed before you agree to proceed with the withdrawal, and added to the withdrawal amount charged to your account; and
• a “foreign exchange charge” made by the card-issuing bank; and
• a currency exchange rate charge (see below); and
• if you use a credit card, additional charges including interest from the date of the cash withdrawal might also apply; furthermore
• additional charges might apply if you withdraw cash over the counter at a bank or exchange house instead of using an ATM.

Although banks have increased charges for ATM use abroad in recent years, ATMs are by far the quickest and most efficient way to get access to local currency in Mexico from a foreign-based bank account.

Currency exchange rate charges

When you’re using a foreign-issued bank card in Mexico, the exchange rates the bank applies to convert the Mexican pesos into your local currency are usually the same whether you spend at a store, or withdraw cash from an ATM.  The rate applied will be based on the foreign exchange rate that day.

You will not be given the ‘wholesale’ exchange rate you see quoted on websites and on the news.  The bank earns an additional ‘hidden’ fee because the foreign exchange rate the bank applies to the cash withdrawal will be different to the wholesale exchange rate that day.  This is called the ‘exchange rate spread’ and typically works out to between 2% and 5% of the transaction value.

Cash withdrawals using credit cards

Note that currency conversion and transaction fees for cash-advances drawn using a credit card account tend to be higher than those where money is drawn down from savings or current/checking accounts.

Additionally, interest is often charged from the date of the cash withdrawal, and sometimes whether you clear your credit card balance or not.  Check with your credit card company to find out what charges they make for cash withdrawals from Mexico—the charge structure is usually different than that for purchases.

Learn about managing your money in Mexico

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• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
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The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

The precautions highlighted in this article can help you to mitigate the inconvenience and hassle of falling prey to a thief or scam.

Carrying and storing cash

Whether you’re visiting Mexico or living here, you’ll discover that there’s a constant need for the use of cash in day-to-day routines.

Cash when you’re traveling or touring in Mexico

When you’re touring Mexico for leisure, it’s sensible to carry some cash with you wherever you go, but don’t carry substantial amounts, even when you’re out on shopping trip in a tourist area.

If you see something you want to buy and you don’t have all the cash, a small deposit at the store will always secure the item. Leave excess cash and all but one credit/debit cards at your accommodations.  When you store cash at a hotel or at home, consider using a safe, or find someplace out of sight where burglars, if they break in, won’t find it easily.

Cash when you’re living in Mexico

Day-to-day living in Mexico will call for a constant stream of cash in everyday interactions.  There are many situations where bank cards are not feasible and our article about the use of cash in Mexico describes them.

It’s also sensible to make change, as you’ll need it especially for tips and small trades where vendors don’t have a large cash float.

As with traveling and touring, it’s sensible to always carry some cash with you in addition to any bank card you might need for your errands. If you store cash at home for use over time, keep it in a locked safe or other hidden place that would be difficult to find in the event of a burglary as insurance companies place strict limits on the amount of cash they will cover when you make a claim.

Bank card cloning and skimming

Debit and credit card cloning (sometimes called ‘skimming’) is an issue in Mexico, as it is in many other countries around the world.

The fraud happens when your bank card’s magnetic strip is ‘read’ by a skimming device that stores the card’s number and other key information (e.g., expiry date) and the person perpetrating the fraud also records the CVV (security) number associated with the card.

Fraudsters pay the ‘skimmers’ a small fee and the card details are used to make fraudulent purchases on your account.

You can usually get compensated if it’s a credit card (harder if it’s a debit card) but it’s a headache and a hassle to deal with, nonetheless.

Tips to prevent your bank card being skimmed or cloned

Here are some tips to help you mitigate the risks involved with card skimming and cloning:

• Never allow bank cards to be taken out of your sight when using them for payment.
• If your card has a “chip and pin” ask waiters at bars and restaurants to bring the payment terminal to your table and cover your hand as you enter your PIN.
• If the payment terminal is not portable, take your card personally to the cashier to pay—do not allow the store or restaurant attendants to take it out of your sight.
• If you are paying for fuel at gas stations with a card, we recommend you only use a credit card (not a debit card) and be extra vigilant as gasoline stations are rife with skimmers.

Care when using ATM lobbies in Mexico

Automatic Teller Machines (ATMs) offer a quick, efficient, and convenient way to access your cash.  Here are some tips about using ATMs while you’re in Mexico:

Wait to enter the lobby

It’s a local custom to wait outside until the lobby is free, or if there are two or more ATMs available inside, to wait until the next one becomes available for use.  Some lobbies at banks and shopping malls have half a dozen or more machines; in these cases if the lobby is busy, it’s customary to stand back and wait in line for the next available machine to become available.

Beware of fake ‘lobby access’ skimmers

Most ATMs in Mexico are situated in small lobbies. In days past, you had to swipe your bank card to enter; however, due to con-artists using this feature to clone cards, the banks have removed the need to swipe your card to enter any ATM lobby.

If you see a card swipe/reader at the lobby door of an ATM in Mexico, do not swipe your card through it. Doing so may cause your card’s details to be copied and compromised by fraudsters.

Beware of card skimmers on ATMs

Some fraudsters try to steal bank card details by installing a ‘skimmer’ to the card access slot on the ATM itself.  The gateway on the ATM that accepts your card should not have any unusual protrusions and should display a flashing light near the slot that receives the card. If anything looks unusual about the ATM you approach for use, don’t use your card there, and report it to the bank.

Protecting your card’s PIN

As we mentioned in a related article, most stores use ‘Chip & PIN’ machines for bank card payments now. There is no need to sign the receipt by hand and the trader will ask you to enter your card’s PIN number instead.

Whether you’re at an ATM or a store, cover the hand you use to enter your PIN with the other hand.  This will prevent anyone eavesdropping to see what PIN number you entered.  Some thieves try to see what PIN number a card user enters before pick-pocketing their target.

Don’t wait around for the ATM refill

When ATMs are being re-filled, you will see armed guards surrounding it. We recommend you find another ATM instead of waiting around for it to be filled: it can take 30-60 minutes for a machine to be re-filled, tested, and re-opened for public use.

Use ATMs during daylight hours

We recommend you use ATMs in daylight hours, at times when there are other people around.  Be mindful of anything that may look suspicious near the vicinity of the ATM and if you are in doubt, wait, or find another ATM.

Withdrawing money from cash machines at night, at hours when there are few or no people around is not recommended. Use common sense and your intuition and you should have no problems using ATMs in Mexico.

Learn about managing your money in Mexico

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• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
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• Latest articles about health and safety in Mexico 

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.

It may also seem natural to wonder whether Mexico, with its history of currency devaluations, financial blowouts, bank nationalizations, and periods of runaway inflation, might not be a risky place to keep savings.

It may come as a surprise, therefore, to learn that Mexico’s banks are well capitalized and were among the first in the world to fully implement the new stricter capital standards set by international financial regulators, known as Basel III.

Lessons learned from past crises

Mexico’s stable banking system, which even allowed it to weather the 2008-2009 crisis without too much problem beyond a non-critical increase in past-due loans, is the result of tough lessons learned during the so-called Tequila Crisis of 1994 and 1995.

Poor lending practices of times past were painfully brought to light by a series of political crises that led to massive capital flight, a peso devaluation, soaring interest rates, and the failure of a number of significant banks as they were unable to recover loans.

People lost jobs, cars, homes and businesses, and it took at least another decade for the country’s banks to start any significant lending again to consumers. The government bailed out the banks to the tune of US$100 billion.

IPAB: Mexico’s limited depositor insurance scheme

Mexico established limited deposit insurance in the wake of the 1994 financial crisis, replacing the blanket coverage under the previous system, which caused not only a major economic headache but also a political stink. The original bank deposit protection fund, Fobaproa, was replaced by the current bank savings protection institute known as IPAB.

What does IPAB cover?

IPAB insures bank deposits in qualifying institutions for up to 400,000 UDIs, which are inflation indexed currency units.

One UDI is currently worth about 7.90 pesos, so the total amount of money insured by IPAB is just over 3.1 million pesos (view current amount in US dollars).

The value of the UDI is updated and published daily on the Bank of Mexico’s web site, and is also quoted on some exchange sites under the code MXV

IPAB protects money up to the value of 400,000 UDIs in savings accounts, checking accounts, debit cards, payroll accounts, and certain investment accounts such as term deposits and certificates of deposit.

Detailed information on the qualifying institutions and the kind of deposits that are insured by IPAB, and on the limitations of the cover, is available in on the institute’s website at www.gob.mx/ipab; an A-Z list of covered institutions can be found here.

Who is covered by the IPAB deposit insurance?

A variety of financial institutions operate in Mexico offering deposit accounts and investment vehicles that, while perfectly legal, are not covered by the IPAB public insurance scheme. In the event of any problems that may arise, depositors may lose part or all of their deposits or investments as happened in this case with Monex.

Care should be taken to ensure that the organization where your deposits are held, and/or types of investments held, are protected under the scheme. Don’t take the institute’s word for it, cross-check directly with IPAB or your independent financial adviser, which provides a list of banks, financial institutions and types of investment that are covered.

Rule of thumb: Higher interest, higher risk

Clearly the safest place to keep savings in Mexico is at one of the larger banks, or one of those regulated by the government.

Interest rates have been rising recently but offers of higher yields from non-regulated investment firms also carry significant risk of losing your money to fraud, or if the firm gets into operational difficulties.

Another safe place to consider for parking your money in Mexico is in government bills and bonds. Several regulated banks offer different funds that invest in such instruments, and the government also has a program where individuals can buy those securities directly; you can find information online at www.cetesdirecto.com.

Learn about managing your money in Mexico

Mexperience offers you a wealth of information about Mexico’s money, banking services, and banknotes.

• Learn more about managing your money in Mexico
• Articles about Mexico’s banknotes
• Latest articles about Money and finance in Mexico

The information published in this article is provided for general information in good faith and is not intended as personal, legal, financial or investment advice.