My 2 college age kids are going there in a week. In Europe we typically hit the ATM in the airport to get a little local currency to start with, put as much as possible on the credit cards to get the best exchange rate, and hit the ATM occasionally as needed. Is this the way to go in Mexico also?

They use debit cards quite a bit, can they use those there too?

Yes, ATM cards at a bank machine. See if your home bank has a Mexican affiliate and you can perhaps avoid the $5 out-of-network or international transaction fee.

Personally I don't use credit cards in Mexico except to pay the hotel bill (as there are reported problems with theft). I go all-cash.

I also take some USD as a back-up and that I could exchange at a cambio along the way.

I've not been to PdC but this is my method for Puerto Vallarta, La Paz, and Cabo which works great.

We've been to that area 9 times. We always take US cash. For a week stay we take about $1,000. I watch it carefully. You need at least $100 in ones for tipping. Don't take anything over a $10.00. When making purchases pay in the exact amount so you don't get change back as it will be in pesos. Everything is marked in US and in Pesos. I take one credit card for emergencies. I pay the hotel before leaving on vacation.

The exchange rate yesterday was 15:1 in PDC. I either exchange money at the bank, the cambio or I use the ATM. I do not use debit cards there nor do I use credit cards in stores. There have been instances of numbers being copied. I always keep a credit card for emergencies. Most places in town on 5th avenue will take US but if they go off the beaten path they will need pesos. There are atm's at Mega, on 5th by the bus station and in Playacar at the little mall there. If they use the ATM they need to know that the amounts displayed on the screen are in pesos now US. That can be confusing if you haven't done it before. Small bills are always good but I would caution not to flash around a lot of money and just use the same care they would use anywhere else. There is also an ATM at the airport.

You will probably be money ahead if you use pesos rather than dollars. When using dollars, the merchants tend to round numbers in their favor.

Besides, it just seems like you should use the currency of the country that you are in.

I agree with that wholeheartedly. We wouldn't expect anyone visiting from any other country to the U.S. to use their own currency.

Beside the issue of peso being the currency of Mexico(!) the exchange rate is around 15/1 right now. When businesses accept USD they'll likely give you 13/1, 12/1 at best, maybe only 10/1. So you are lose, lose, losing on every transaction.

Unless you are staying at an all-inclusive resort and never going into town, that's the only time the pile of $1 US bills *might* be a good suggestion. Peso are ALWAYS welcomed.

Good reminder to know that yes the amount you pick from the ATM machine will be in peso. So if you want ~$100usd-worth, ask for 1,500.

I've found we needed tip money on 5th Avenue for resturants and bars, taxis to get to other areas and all type of hotels for baggage services, tips for resturants, bars and room service. Not just for AI resorts.

Also, once we returned to the US, our local bank would not exhange pesos coins back to US only if it is paper money. We got stuck with alot of coins we couldn't do anything with until our next vacation. Actually, we found that many of the vendors preferred US $1.00 bills over pesos. Probably why everything is also marked in US currency.

The trick with peso is to use them up at the end of your trip (or save them for the next one). I never trade peso back to USD.

I make a point to spend the coins as I go along, so I don't have a lot left &/or leave them as an extra tip for the maid who cleans your room on that last day.

Yes I vendor might prefer US $1.00 if they are giving you a 10/1 or 12/1 exchange and the daily rate is 15/1!

"The trick with peso is to use them up at the end of your trip". Easier said than done.

I'll stick with the $1.00's. Got by with it through 9 vacations to the PD area and one to the PV area. Hasn't failed me yet.