If you are temporarily living in Mexico or are living as an expat in Mexico, you might want to get a local credit card to avoid foreign transaction fees. At the very least, even when visiting for a short time, you will want to find out the fees and rules involved in using your U.S. credit card in Mexico.
Which U.S. Credit Cards Work In Mexico?
The major credit cards—Visa, MasterCard and American Express are accepted in most large cities and tourist areas across Mexico. Discover is accepted in some locations too. But more rural areas and many small businesses in Mexico may only accept one kind of card or may require cash.
Before you pack your bags, find out if your credit cards charge foreign or international transaction fees and how much these fees are. Foreign transaction fees are typically an extra 2-5% on each transaction and can add up quickly.
If you book travel or accommodations with one card ahead of time, you should feel confident using that card in Mexico without being temporarily frozen out of your account. You may want to give other credit card issuers notice that you will be visiting Mexico, though, if you plan to use them. As a means of fraud protection, many banks will temporarily freeze your account if they see an unusual charge or a charge from an out-of-the-ordinary location. You can likely avoid this if you let them know ahead of time you will be traveling.
Is It Worth Getting a Credit Card from a Bank in Mexico?
If you want to avoid foreign transaction fees and will be in Mexico long enough or frequently enough where having a local card makes sense, you will first need to build credit in Mexico, which can take time. If you are a resident expat, you can get a debit card more quickly by opening a local bank account. Opening a bank account would be the first step toward getting a debit or credit card from that bank.
You may also be able to open a digital account from a Mexican fintech company whether you are an expat or just a temporary resident. Be aware though, these options usually come with low credit limits while you work to build credit in country. Before you commit to one, look up all transaction limits (monthly and daily) and fees that come with the account, just like you should with any account you open.
Why You Still Need Cash In Mexico
Whether you have a credit or debit card from U.S. or other issuers, you should check on their site to see what locations near where you’re staying have ATMs where you can get cash. You will also want to be aware of how different stores and services in Mexico prefer to do business. For example, many taxicabs will only accept cash as payment, especially independent taxis and cabs in small towns and villages. U.S. credit cards and dollars are also not accepted on many toll roads, except in some tourist-heavy areas. If you are going to be traveling a lot on toll roads, it may make sense to get an IAVE pass ahead of time. This is an electronic payment card that gets you through toll areas quicker, gives you a discount on tolls and allows you to prepay or automatically charge your Visa or MasterCard credit or debit card.
Mexico is still very much a cash-focused culture, even though use of credit/debit cards and cashless payment options are growing. Open-air markets, convenience stores, some museums and even some gas stations may require payment in pesos. You will want to tip in pesos too.
When You Are Back in the U.S.
If you’re someone who splits time in Mexico and the U.S., you can stay connected to people you love no matter which country you or they are in. Western Union makes cross-border money transfers and bill payments easy through our mobile app.
Send money with the Western Union mobile app
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