Have you traveled to Mexico for any amount of time? If so, you’ve probably quickly realized something: Paying cash in Mexico is an absolute must at (almost) all times.
If you want to buy something at the market, you need cash. If you want to tip one of the many tippable people, you need cash. If you want to buy something from an artisan, you need cash. If you want to pop into a local “tiendita” (neighborhood corner store) for something, you need cash.
When I think of my trips back to the U.S., on the other hand, I realize I haven’t taken U.S. dollars out of an ATM there for at least the past 10 years. Every interaction, it seems, is done through cards, or even “Apple Pay,” which is still foreign to me.
Like, another new technology whose only purpose is to make parting with my money easier? We were supposed to have flying cars by now, people, and magic machines that sucked any disease right out of you. Seriously, what is this silliness?
The bills: the ones you want, and the ones you don’t
But I digress. In Mexico, it’s all about the Juanas. And the Miguels, and the José Marías, and the Benitos. And if you’re especially unlucky at the ATM, the Carmens, Hermilas, and Franciscos, the three who currently grace the 1000 peso note.
On the one hand, Mexico’s money is really, really pretty and has won lots of awards. The 50 peso note has an axolotl on it! When they first came into circulation, people would save them as if they were fine works of art to be conserved. And really, they are.
If you’ve got coins, 20s, 50s, and even 100s, you’re probably okay in most places. 200s are iffy, but typically okay in bigger establishments (though generally fine in major cities). 500s and 1000s are only for decidedly more expensive or at least established places, likely national or international chains.
¿No tendrá cambio?
Why? Because so, so many places simply do not have a lot of extra money on hand.
Most Mexican small businesses operate with an incredibly small cash cushion, if any. Many operate on debt. Even if they are “official” places, like restaurants and cafés, there’s no guarantee that they’re starting the day off with money in the register. They are counting on earning money as the day goes on, and hoping that the first chunk of customers will pay them in small bills.
If you think this seems like a precarious plan, it’s because it is. But most businesses do not earn enough to simply keep a pile of cash in small bills on hand just for change-making. The money that goes into the business gets used for the business, often to pay the workers at the end of the day. Also, most people do try to pay pretty close to what they owe so that minimal change will need to be made.
Try to pay for a 50 peso item with a 200 or 500, and you might get a slightly-embarrassed, ¿No tiene cambio? (You don’t have change?) response. If you say no, one of two things will happen: they will go off, or send someone else off, to try to make change with a neighboring vendor or store. Other times they’ll simply say, “Es que no tenemos cambio” (We just don’t have change) and stare at you.
That’s your cue to either magically produce the exact change, or, if you’re me on a bad day, scowl and say, “Oh well!” and leave. I mean, really. Do you want my business or not? I’m not going to run around looking for change so you can sell me something. Sheesh.
What to do
As I mentioned a couple of weeks ago, it’s important to be strategic about your cash. When you’re able to break a larger bill, do not – I repeat, do not – miss the opportunity. If you have to, you or anyone else can do it at any bank, though you might have to stand in line for a while.
First strategy: at the ATM, try to not ask for a multiple of 500 exactly. For example, you might ask for 5,300 pesos, which would at least give you a 200 and a 100 note.
You can also almost always get change at large, established chains. When I’ve got a 500 to break, for example, I’ll walk down to the Fasti and buy maybe a little over 100 worth of goods. Don’t be “abusive,” about it, though, as Mexicans would say. If you try buying a 15 peso item with a 500, they might very well tell you to go to hell – or at least tell you that there’s a higher minimum if you’re going to pay with that much.
Anyway, once I get that change, it goes into a separate coin purse that I pretty much guard with my life. This is the change you use in all the places that don’t have change, and I don’t use it unless I have to. And if you’re the type to give tips or money to people asking, put a bunch of change in one of your pockets for easy access!
So before you go out, think about the places you’re going, if you’ll need to give tips, or if you’ll be able to use debit or credit cards. It takes some planning, but it can save you a lot of headaches! Trust me.
Sarah DeVries is a writer and translator based in Xalapa, Veracruz. She can be reached through her website, sarahedevries.substack.com.
Really on the spot! We have a small family business, one of 5 in our small rancho. We get a lot of ‘customers’ who come in and want to buy a piece of bubble gum with a 500 peso note, obviously just for the change! Had a street vendor of carnitas come in the other day for change. We had an excess of 20s so I changed a 200 for 10 20s…. Half hour later he came back asking if we would change back 5 20s for a 100 note…. Talk about abusive! 🤑🤣
It is not uncommon to receive a piece of candy or gum if the vendor doesn’t have exact change and is short a peso or two.
I kind of love it when that happens 😀
I agree with the author. They never have change and they stare at you hoping you’ll give them what you have I use to, not anymore. I had my car washed while i was in shopping. Came out and the gentleman had no change and was running around trying to make change. Then it hit me. This is the afternoon and im your first customer No I wasn’t. How did you not have change.
Great article and so true! In my Mexican travels, I so often find myself with a wad of big bills that no one can change, then somehow, mysteriously, I have so many coins in my pocket they’re nearly dragging my jeans off my hips. I have yet to figure out that happens!
Wonderful article and So very true!! I carry 3 change purses – One for Us dollars (just a few in case), one for big bills from the ATM, and one for any denomination of $100 pesos or less and change. It always catches me off guard when I go to the USA and no one wants cash.
No estoy de acuerdo con este artículo por mi experiencia en que nunca he tenido problemas para cambiarme ocasionalmente con un billete de mil pesos, pero generalmente los uso para pagar a los trabajadores o algo más o para un gasto grande en una tienda de comestibles. Pero llevo conmigo una amplia variedad de billetes de veinte, cientos de $ 200 y 500 en todo momento, pero nunca llevo las monedas, son demasiado pesadas para jugar con ellas, excepto cuando voy a tomar el autobús, entonces necesito monedas de cinco pesos porque soy mayor. Tal vez este artículo se refiere a pueblos muy pequeños en el campo en algún lugar, pero vivo en Puerto Vallarta, incluso mi pequeña tienda de comestibles a mi lado en mi apartamento en el que vivo mientras remodelo mi casa ha cambiado en las tiendas no más grandes que mi sala de estar. La tienda cerca de mi casa en realidad aceptan tarjetas de crédito y tarjetas de débito y es una típica tienda de comestibles mexicana, las familias la han tenido durante generaciones, viven arriba. Tres hermanas la dirigen y uno de los maridos ayuda, pero yo iba allí durante varios años antes de que me dijeran que sí, aceptamos tarjetas de crédito. y si tienes necesidades extremas, ve a un oxo o un kiosko, no les importa si gastas 10 pesos en una tarjeta de crédito, te la aceptan y no les importa, siempre que sea una Visa o una tarjeta mexicana, realmente no les importa una MasterCard. La gente necesitada realmente va a estar en problemas pronto, el gobierno mexicano va a eliminar el billete de 20 pesos y solo las monedas, tus bolsos van a pesar cien libras.
I don’t agree with this article from my experiences in I’ve never had a problem getting changed occasionally once with a thousand peso bill , but I usually use those to pay workers or something else or for a large expense at a grocery store. but I do carry around wide variety of twenties hundreds $200 and 500s with me at all times but I never carry the coins they’re just too heavy to mess with except for when I’m going to take the bus then I need five pesos coins because I’m old. maybe this article refers to very small towns are out in the country somewhere but I live in Puerto Vallarta even my little grocery store next to me at my apartment that I’m living in while I remodel my house has changed in the stores no bigger than my living room. the store close to my house they actually take credit cards and debit cards and it’s a typical Mexican grocery store families owned it for generations they live upstairs Three sisters run it and one of the husbands help out but I was going there for several years before they told me yes we take credit cards. and if you’re in dire needs just go to an oxo or a Kiosko they don’t care if you spend 10 pesos on a credit card they’ll take it and they don’t bat an eye, as long as it’s a Visa or a Mexican card they don’t really care for a mastercard. need people are really going to be in trouble soon the Mexican government’s getting rid of the 20 peso bill and just coins your purses are going to weigh a hundred pounds.
Bien dicho
Just yesterday I went to pay my CFE bill at their machine and found it would not accept my 20 peso coin. I ended up going to their desk where they kindly canvassed the staff and I ended up with a handful of 1,2 and 5 peso coins. God bless the staff!
Thankfully, Mexico is going to be, I hope, a tough sell for Central Bank Digital Currency, which is hugely on the agenda of globalist parasites everywhere so they can monitor and control our spending. Viva Mexico and don’t fall for CBDC, Mexicanos.
Maybe I just live in the “provincia” 😀
“It’s never happened to me therefore it doesn’t exist.”
Good point
Puerto Vallarta is now actually a city with hundreds of thousands of inhabitants, big box stores, multiple docking for cruise ships, and entire communities populated by expats and tourists. I live in Zihuatanejo, a town quite a bit smaller, but still heavily touristed, but in a typical colonia where fewer expats and tourists live an stay. í live in this neighborhood specifically to avoid the kind of “problems” described in this article for people who have difficulty accommodating the overall kindness and simplicity of the life I came to Mexico to embrace. Why small businesses don’t have large “banks” to open with each day should be self evident. The necessity to carry small bills, including some coins, is simply part of life in Mexico. We are grateful that many people who provide services, electricians, abaniles, mechanics etc.. now can use their bank card / accounts to receive payment for their services. I try to get half of my cash withdrawals changed into notes of 200, 100, 50 and 20 peso notes leaving 500’s for larger expenses. It’s simple and easy and, yes, old fashioned, if you’re a foreigner. But living with the habits of my neighbors is a pleasure, and frankly an honor, and even if my wallet is a bit more bulky, I consider myself fortunate indeed.
Great story and much needed and should be read by all expats, visitors and tourist visiting or living in Mexico. it’s a cash society…and in many places –especially 17 years ago when we more here–the credit card machines used internet or phone lines and connections often failed.
Even today some card readers difficult.
I’ve found that health care facilities have good staff and card readers.
But cash rules…
Great story
Bill Wilson,
Deputy Editor
Insiders News
and former business editor in Philadelphia and NYC
Have you used the Billetesmx app with augmented reality?
“First strategy: at the ATM, try to not ask for a multiple of 500 exactly”
I mean, yes, do that.
But then walk into the bank with your money and ask them for change. Every bank does this, you don’t need to be a customer.
If the bank is busy then go to a different bank. They don’t ask for anything, you just walk in and ask for change. You barely even need Spanish for that, if you can show them a 100 or 200 note and then your wad of 500’s.
I have scoured the depths of Mexico City to find the ATMs that give small bills, information I’ll only share in exchange for a 5,000 peso fee comprised of 100 peso notes.
hahahahaha SOLD
I can tell that most of the people who read this magazine are liberals mostly probably from Canada got help them and some from the US.
I can easily walk into my bank and ask for 50,000 pesos in twenties, fifty’s , hundreds, and 200s, no problems they just hand it to me it’s not an issue.
But like I said I’ve never had any problem getting change at the smallest tienda. Summer only one room big you had them a 500 and they graciously hand your change back to you.
I’ve been coming to Mexico for over 18 years bought a house 10 years ago and I’ve been a permanent resident for 5 years so I have some experience.
But like I said maybe if you’re in a teeny weeny little town that doesn’t have a bank and it only got one store you better take your change with you.
Sorry to all you Canadians but it’s our election so stay out of it. I’ve never met a Canadian that didn’t want to complain about America even the fighter jets we give them and I work for the department of defense for 36 years it gets old.
Living in Ensenada one hour south of the border there is no difference of paying for goods in cash or credit cards.All the utility companies accept U.S. credit cards,any market will gladly give you change for a 500 peso bill. Must be because we are so close tothe States! I have been told that Tijuana in the past would only accept dollars,no pesos for everything.
Until this year, I never even thought of using my credit card and find it much more available as an option now. Just this morning, I did a quick review, and an additional advantage of doing so, is a slightly better exchange rate, and of course, not having to make as many trip to the bank for the cash still needed in many other places. I also get my cash out of the ATM, and on weekdays, immediately go inside to get change. One Scotiabank in centro (Oaxaca) will only make change for $3,000, the other one is not a problem. And, like the author, know the places where we can use the bigger bills to get change for the others. It kinda becomes a game, si!!?!
We traveled throughout Baja and mainland Mexico by motorcycle for months years ago and in our tank bag were two compartments.
One was filled with small bills and the other with coins. It was IMPERATIVE that we did this in that even a small purchase, say of three avocados at the tienda would produce a polite but worried look from the cashier.
The quicker you break big bills down to small ones, the better. One place that always worked to do that was at the toll roads. We’d always pay with a large bill rather than a small one.
The second one was a the really big mall stores like Aramburro. When with our kids we would fill three separate shopping carts, sometimes four and roll
through the checkout paying individually so we then had tons of small bills and coins.
Propinas are always welcome in Mexico and coins are particularly appreciated.
Our favorites are the fat ten peso coins, the tank bag was full of them.
So much more fun traveling in that delightful country when you eventually figure out a few things. And rarely is paying with American money appreciated since most Mexican folks don’t have bank accounts.
Mr and Mrs Magoo
Great piece Sarah, as always. Who knew that it would bring out the worst of your readers. I’m just about ready to blow my brains out with the comments of whiny pee-pants Northerners who somehow think the world revolves around their concept of what is “correct.”
Of course you need change in a cash economy. I love shopping at a tianguis and seeing the cooperation among vendors to get change if they don’t have it. We keep a little purse of monedas in the car to give the amputees working the semaforo.
To this day in Puerto Vallarta, a significant number of restaurants won’t take plastic. Most likely to avoid monitoring from SAT.
My favorite Cajero Automatico is BanBajio. It gives a wide assortment of bills.
I lament the decision by el Banco de Mexico to phase out the 20 peso bill and replace it with a coin. As another reader previously noted, it’s a lot of metal to carry.
It will probably go over as well as the dollar coins in the states did!