How To Use An ATM In Mexico
Give me 5 minutes, and I'll save you money for the rest of your life
When you are in Mexico - or any country whose currency is different from the currency in your bank account - you will run into the problem of taking your bank currency and converting it to the currency of the country you're in. In many parts of the world, having local currency on hand is less of an issue: in places like the U.S., Canada, Western Europe - going cashless is more-or-less doable - most places where you need to make purchases will take credit and debit cards.
But Mexico by-and-large is still a cash economy. Yes, you can pay with credit and debit cards in supermarkets, large stores, movie theaters, many restaurants, and plenty of other places - especially in tourist areas and larger cities. But in general, buying with cash in Mexico is preferred by merchants since they won't have to incur the fees credit card companies charge, and many merchants don't even have the option to accept credit cards. It is also safer for you, the buyer, to purchase in cash (just don't carry suitcases full of cash around with you).
There are a number of options and strategies for converting your local currency to Mexican pesos - and I will cover some of those options in an upcoming article. For today, I will focus on using ATMs, which is the easiest and most readily available option for getting pesos to spend in Mexico.
A Quick Note on ATM Safety
ATMs all over the world are attractive targets for thieves. First, it is guaranteed that the person they are robbing has - or will soon have - cash to steal. Second, people are distracted when using an ATM - they are interacting with a screen, and not paying attention to what is going on around them. Third, ATMs themselves can be altered by a thief such that your card information can be stolen by skimming devices that a thief installs on the ATM.
Here are some guidelines that you can follow in order to minimize the risk of being the victim of theft at an ATM:
Only use ATMs at a bank branch or large supermarket. Avoid ATMs on the street, in small stores and pharmacies, etc.
Try to use ATMs during bank business hours.
Be aware of your surroundings. Are there people loitering around the ATM? If so, move on.
Remain aware of your surroundings while using the ATM. Don't allow people to come up and distract you, or offer unsolicited assistance. If this happens, cancel your transaction and move on.
Trust your instincts. If you feel at all uncomfortable using an ATM or with the environment, move on and look for an alternative.
Travel partners - use 'em if you've got 'em! Have your travel partner be your extra pair of eyes while you conduct your transaction.
These guidelines apply everywhere, not just in Mexico. And they aren't intended to scare you away from ATMs - just know that ATM theft does happen occasionally, especially in heavily touristed areas.
Using an ATM in Mexico
If you don't know where to find an ATM, ask an employee at the supermarket or airport where to find one. If you are at a bank, they are pretty visible.
Note that ATMs in Mexico are not called ATMs. Even if you pronounce those letters using the correct Spanish pronunciation, most Mexicans will give you a bewildered look because A.T.M. isn't an acronym with any kind of meaning in Mexico. Instead, an ATM is called a cajero automático or simply cajero. So asking "where is an ATM, please" would be "donde hay un cajero automático, por favor".
Just as ATMs in the U.S. typically have a Spanish language option, so too do cajeros in Mexico almost always have an English language option. So select English if you are more comfortable with that, and insert your card as normal (or insert card, then select English - depends on the individual ATM's menu system). Actually, before using the ATM, be familiar with the US or Canadian dollar to Mexican peso conversion rate. You can google it, or install an app on your smartphone such as Xe which will keep you updated on the latest conversion rates. This way you'll have an idea of how much money you'll be asking the ATM for, since your transaction will be in pesos.
OK, now that you're at an ATM, you've selected your language of choice, and you know how many pesos you'll be withdrawing, you can go through all the normal ATM motions of telling it the amount you want and which of your accounts to take the money from. Once you've done this, the ATM will ask you if you accept the ATM fee - that is, the fee the ATM owner is charging you to use the ATM. You've probably seen this in off-brand ATMs in the US and Canada. You cannot continue the transaction if you decline the fee. So, accept the fee unless you feel it is exorbitant (you may have a bank account or service provider that credits any ATM fees that you incur - check with your bank about that).
Now comes the part you've been waiting for! You've read all this way just for this golden nugget of information that represents a financial windfall that will follow you for the rest of your life! After asking you to accept the fee the ATM's usage fee, the ATM will ask you if you accept the conversion rate it is offering you. It will be worded in such a way as to guide you to say: "Heck yes I accept it! I welcome your conversion rate with open arms, now please give me some pesos!!" But STOP!!! It's a trick! The ATM's conversion rate is not good. The ATM operator just wants to take a cut from the US or Canadian dollars you are converting and stick that cut in its ATM pocket. It is offering a sub-par conversion rate to help fund its next vacation to the Four Seasons resort in Punta de Mita.
Now at this point you may be asking yourself "how can I get my pesos out of that hustler of a machine if I decline the conversion rate it is so enticingly offering me?" Well, fear not. You will still get your pesos even if you decline the conversion rate it is offering you. While the ATM will make it sound like you need to accept it's rate, you now have the power and the knowledge to know that you do not need to accept it. You have turned your back on it. Forever. You will tap the "No" button and decline the conversion rate, and - guess what? Your transaction will still go through! The difference is that instead of using the ATM operator's conversion rate, the ATM will use your bank's conversion rate. And your bank's conversion rate will pretty much always be better than the ATM operator's conversion rate. The ATM operator will need to fund its next vacation through someone else, not you.
So there you have it. You're getting pesos out of an ATM, and you're doing so using the conversion rate that your bank back home is offering. If you're curious, you can check with your bank to see what its conversion rate is on any given day.
But wait! We're not finished yet. There is one more bonus here for you, a "thank you" gift for reading this far. And here it is: this whole conversion rate declining song-and-dance isn't unique to Mexico, and it doesn't only apply to ATMs. You can decline the offered conversion rate when you make any credit or debit card purchase in a foreign country. And it is the same all over the great big world. So no matter if you are in Puerto Vallarta, Paris or Peking - when asked if you will accept the conversion rate - whether using an ATM or buying your fancy dinner with your credit card - you now know that you can and should say "no".
I have been to many countries and didn't know this. Thank you for the tip that applies in Mexico, and all over the world!
I've been living in Mexico for 12 years or so, a fact I mentioned on buses post, which is neither here nor there, the fact that I mentioned it before I mean. To the point, now! All this time, I didn't know that about the conversion rate ATM thing. Wow... thank you... I'll pass that on next time an amigo comes to visit.
As for me, I don't deal with that on an ATM basis. I use a service that moves money form the states to my Mexican bank account, with a pretty decent exchange rate, and then grab me some pesos directly from the machine when I need.
But yes, beware. Last year, my card got skimmed or something and I had to cancel / get a new one. I know where it happened because of the timing of the unauthorized use, and learned my lesson. Now I withdraw only at a bank branch.... Good article, thanks!!