Can I use my credit card in Mexico?

If you’re heading to Mexico for the first time, you might wonder how you’ll pay for things like excursions, meals and souvenirs. A credit card can help simplify your spending and might even earn you rewards throughout your trip. 

Depending on your card and issuer, there may be additional benefits to using a credit card while traveling through Mexico. 

What you’ll learn:

• Credit cards are accepted throughout Mexico at many major retail and dining establishments.
• Depending on your card, there may be extra benefits to using it in Mexico, including perks like airport lounge access and protections like lost luggage reimbursement.
• Some fees may apply when using your credit card in Mexico. Capital One doesn’t charge foreign transaction or currency conversion fees. View important rates and disclosures.
• It can be a good idea to bring some cash as well as your card to Mexico.

The way to use a U.S.-issued credit card in Mexico is the same as it is at home. But when you buy something in Mexican pesos, the card issuer typically automatically converts the price into U.S. dollars and incorporates the exchange rate.

You can use your credit card at any store in Mexico that accepts your card’s payment network, such as Visa® or Mastercard®.

With some credit cards, fees may be added when you make transactions abroad with foreign merchants: 

• A foreign transaction fee is a surcharge on credit card purchases made outside of the U.S.
• A currency conversion fee is charged by the credit or debit card payment network or ATM network for converting the foreign currency to your home currency. This has to happen so that the card issuer can process it and charge it to your account.

Capital One doesn’t charge foreign transaction or currency conversion fees. View important rates and disclosures. Other issuers might.

Something else to watch out for is vendors offering dynamic currency conversion. This optional service converts the price in pesos to your home currency right at the point of purchase. It’s convenient, but it typically costs more than any standard exchange rate your credit card issuer might charge.

Debit cards are widely accepted throughout Mexico. As with a credit card, the issuer converts purchases made in pesos into U.S. dollars. 

Depending on your checking account and the ATM you use, you could incur fees when using your debit card to withdraw cash from an ATM in Mexico. Those fees can include:

• Foreign transaction fees
• Currency conversion fees
• Dynamic currency conversion fees
• International ATM withdrawal fees
• ATM-operator fees

Capital One doesn’t charge foreign transaction or currency conversion fees for debit card transactions. Some ATM operators charge a fee for using an out-of-network ATM.

It could be useful to have some pesos on you while you’re in Mexico. But taking only cash on any trip, whether it’s to Mexico or elsewhere, can have disadvantages. Handling unfamiliar bills and coins can be confusing and unwieldy. And if cash is lost or stolen, there’s no getting it back. 

Using a credit card in Mexico could offer these benefits:

• Convenience: With a credit card, you can avoid exchanging cash for pesos during your trip and potentially paying a higher exchange rate. 
• Security features: You may have access to security features and card management tools that can benefit travelers. For example, Capital One offers $0 liability for unauthorized charges and an emergency replacement card and cash advance if your card is lost or stolen. 
• Credit card rewards: With a rewards credit card, you can keep earning rewards on qualifying purchases when you’re south of the border.
• Travel-related perks: Some credit cards come with benefits that are particularly useful for travelers. Eligible Capital One cardholders get travel protections like lost luggage reimbursement and perks like complimentary access to airport lounges and a statement credit for TSA PreCheck® or Global Entry enrollment, up to $120 once every four years.

If you’re planning a trip to Mexico, there are a few things to keep in mind when using your credit card.

Credit cards are widely accepted in Mexico. But if you need more reassurance, you could contact your hotel and ask whether there’s anything in particular you should know about the area you’re staying in. You could also consult with a travel agent or look online for other travelers’ experiences.

Using cash alone may not be the best idea. But it could still be beneficial to have some pesos in Mexico. Small businesses and those outside of major metropolitan areas might not have the technology to process credit card transactions or might just prefer to take cash. And it’s always useful for tipping.

Before you leave, check if your credit card issuer charges foreign transaction fees. Where they apply, fees typically range from 1% to 3% of each transaction. 

Not all cards charge foreign transaction fees. That includes any card from Capital One. View important rates and disclosures.

Bringing an additional card as a backup can be useful, especially if you keep it separate from your primary one. If you’re a Capital One cardholder and report your card lost or stolen, you can lock it to prevent others from using it. With a backup, you won’t have to be without funds.

Some credit card issuers might request that you set up a travel notice when you’re leaving the country. That’s so they know you’re abroad and don’t flag your card for potential fraud. You can typically inform your issuer of your travel plans on its website or through its mobile app. 

Capital One no longer requires that you share your international travel plans. But it still recommends updating your contact information in case it needs to reach you about suspected fraud.

Check out these answers to some frequently asked questions about using your credit card in Mexico:

Using a credit card in Mexico is easy and convenient. You can plan to use it throughout the country for most of your purchases and avoid worrying about conversion rates. Plus, a credit card is more secure than cash and may even come with some useful travel perks and protections.

If you want to get rewarded for planning your next big trip, consider a travel rewards credit card from Capital One. And before you leave, check out these tips for using a credit card internationally to help you get the most out of your card.