Before moving to Mexico, the amount of cash I liked having in my wallet was exactly zero dollars. As someone born and raised in the US, daily expenses were covered with the swipe of a card, while things like rent and car payments were made by automatic withdrawals.
But in Mexico, that quickly changed. Most of our everyday payments during our first few months living there were made in cash!
🏡 Rent? Cash.
🛵 Our weekly meal delivery? Cash.
🌮 A casual bite to eat? Cash.
Okay, that’s not an exhaustive list, but if you do the math, that’s about 75% of our monthly expenses! So, like clockwork, we’d hit the ATM every week, braving the scorching Mérida heat to withdraw pesos and stuff our wallets like we were prepping for Y2K.
At first, we assumed this was just the way things worked. Until we kept hearing, “También aceptamos transferencia.” (We also accept bank transfers.)
We brushed it off, thinking that’s only for people with Mexican bank accounts. But after one too many ATM runs, we decided to dig deeper, and we realized we could ditch the constant ATM trips and pay for things in a more convenient way without having to open a Mexican bank account.
And the best part is: you can, too!
With the right money tools, you can manage your finances easily, avoid unnecessary fees, and simplify everyday transactions. In this guide, I’ll share the four essential money tools we use to make everyday payments. These tools I’m about to share will help you avoid ever having to deal with the headache and potential tax implications of opening a Mexican bank account.
Table of contents
1. The Best Way to Get Cash Without Fees
Even though digital payments are becoming more common, cash is still king in Mexico. From street vendors to small family-run businesses, many places south of the border only accept cash.
This means you need a reliable way to withdraw pesos without getting slammed with high fees.
Enter the Charles Schwab International Debit Card
This debit card is an absolute game-changer for expats and travelers because of these features:
✅ No international withdrawal or currency conversion fees
✅ ATM fees are reimbursed
✅ Great exchange rates compared to standard bank rates
What this means is that you get don’t get charged a thing for taking out money abroad. And since you don’t get charged per withdrawal, you can take out cash as needed instead of pulling large sums just to avoid extra fees.
Pro Tip: When withdrawing money from an ATM in Mexico, you’ll often see an option where the ATM offers to convert the currency for you. Always decline this option! ATM exchange rates are usually much worse than what your bank provides.
To get the Charles Schwab debit card, you’ll need to open a Schwab Brokerage account, but there’s no funding or minimum balance requirement. The process is completely online, making it super easy.
We’ve had the Schwab International debit card for nearly four years, and we simply couldn’t endorse it more.
👉 Alternative Option: Capital One 360 also reimburses international ATM fees, though we haven’t personally used it and can’t vouch for it.
Best ATMs to Use: I’ve had the best luck withdrawing larger amounts of cash (+ $400) at Banorte, with BBVA as a solid backup option.
2. The Best Way to Send Money from the U.S. to Mexico
When it comes to bigger payments in Mexico, like rent, using cash can be a hassle. ATMs can limit how much you are allowed to withdraw daily, and sometimes they simply don’t have a large amount of cash available. Also, carrying a month’s worth of rent in cash isn’t ideal.
To make matters worse, bank transfers from your U.S. bank account to a Mexican one can also be expensive due to high fees and poor exchange rates.
That’s where Wise comes in!
Wise is a low-cost, fast, and transparent way to transfer money from your U.S. bank account to any Mexican bank account.
Why Wise is the best option for big transfers:
✅ Very competitive exchange rates (way better than banks)
✅ Low, transparent fees (I paid just $12 for a $1,400 transfer!)
✅ Fast transfers (my latest transfer arrived in 11 seconds!)
Using Wise is super simple:
- Set up a free account online.
- Select the amount and currency.
- Enter the recipient’s details (bank name, CLABE number, etc.).
- Choose which U.S. account you want to send from.
- Hit send!
Wise makes it easy to send money when you need it, without needing to keep funds stored in the app. It’s way cheaper than traditional bank transfers, and the speed is unbeatable, making this one of the best ways to make everyday payments in Mexico!
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3. Paying Utilities and Mid-sized Expenses Without Cash
While Wise is great for large payments, and cash covers small expenses, there’s a middle ground—utility bills, phone recharges, and mid-sized purchases.
That’s where Mercado Pago comes in handy! ✅
Mercado Pago is a digital payment app by Mercado Libre (the Amazon of Latin America).
This wonderful payment too allows you to:
- Pay for utilities (electricity, water, etc.)
- Reload a prepaid mobile phone plan
- Send money to others instantly. All you need is their phone, bank or debit card number.
💡 Why It’s Useful: If you’re a homeowner or in charge of paying your own utilities, you may run into issues with international credit cards being rejected for online payments. Instead of making a trip to OXXO to pay utilities in cash, you can use Mercado Pago right from your phone.
However, in addition to those more formal services, many small businesses also accept money transfer. Along with cash, these simply app based transfers are often the only payment methods they accept. Making Mercado Pago yet another money tool to help you reduce the amount of cash you need to carry.
How to Set Up Mercado Pago:
- You’ll need a Mexican phone number (easy to get with a prepaid SIM card).
- You must have a CURP number (if you’re a resident, it’s on your residency card).
- A passport photo is required for verification.
Once set up, you can fund your account with a U.S. credit card, and the exchange rate is great! It’s one of the easiest ways to make payments in Mexico for a variety of products and services.
4. Using a Credit Card in Mexico Without Getting Hit by Fees
For bigger everyday purchases like groceries, pharmacy runs, and dining at mid-to-upscale restaurants, a credit card is your best friend. It keeps you from carrying large amounts of cash and offers better fraud protection.
BUT – not all credit cards are created equal!
To avoid unnecessary charges, always use a credit card with no foreign transaction fees.
Our Go-To Credit Cards:
- Chase Ink Business (great for travel & dining)
- Capital One Venture X (perfect for everything else, especially groceries)
Important: While many businesses in Mexico accept Visa & MasterCard, AMEX is less widely accepted.
💡 Support Local Businesses: Many small businesses in Mexico pay high processing fees on card transactions. If you can, pay in cash at family-run places to support them directly!
Here’s the Video About Making Everyday Payments in Mexico 🤑
Quick Payments in Mexico Recap!
Managing money in Mexico doesn’t have to be complicated. With these four tools, you can avoid high fees, keep your finances flexible, and skip the need for a Mexican bank account (unless you want one!).
Here’s a quick recap:
✅ For daily cash expenses: The Charles Schwab debit card is the best way to withdraw pesos with zero fees.
✅ For large transactions: Wise is the easiest and cheapest way to send money from the U.S. to Mexico.
✅ For paying bills & small transfers: Mercado Pago helps with utilities, phone top-ups, and on-the-go payments.
✅ For everyday purchases: A no-foreign-transaction-fee credit card is a must-have.
With these four tools in your wallet, handling money in Mexico is simple, cost-effective, and stress-free.
Feel free to leave your questions in the comments!
We’re always happy to help.
Aimara & Gordon