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Here are seven solid reasons why you should pay or tip in Pesos instead of US Dollars while on Vacation in Mexico.

  1. Banks may not exchange USD
    Very few people in Mexico have a USD account to deposit money into. In fact, many have no bank account at all. Mexican banks do not exchange currency unless you have an account with them. 
  2. Identification 
    Many Mexicans do not hold a passport or the identification required to exchange currency in a “Casa de Cambio” (currency exchange).
  3. Favorable exchange rates
    The most favorable rates for USD are usually found in large chain stores like Chedraui, Walmart, or Home depot. Many locals will have to travel some distance to reach these stores costing them both time and money. 
  4. If you must use US dollars 
    Make sure you do not use coins and that the bills yo use are absolutely pristine. To be legal, currency in Mexico must not be torn, marked or marred in any way. 
  5. More time at the swim-up bar
    Like Canadian dollars, Pesos are plastic so no more getting out of the pool to get tip money or anxiety over how to keep your tip money from getting soggy. 
  6. Support Local
    Most local mom & pop shops (where locals are most likely to do their shopping) would rather not accept USD (see above). By tipping in Pesos, it allows the locals to support small business owners, spreading pesos into the community. 

Just remember – any tip, no matter the currency, will be happily received. 

What to know how much to tip in Mexico? See my post titled: How much to tip in Mexico