MONEY MATTERS:

CURRENCY EXCHANGE:

The rate of exchange fluctuates a tiny bit daily, so you probably are better off not exchanging too much of your currency at once. Don't forget, however, to have enough pesos to carry you over a weekend or Mexican holiday, when banks are closed. In general, avoid carrying the U.S. $100 bill, the bill most commonly counterfeited in Mexico, and therefore the most difficult to exchange, especially in smaller towns. Since small bills and coins in pesos are hard to come by in Mexico, the U.S. $1 bill is very useful for tipping.

The bottom line on exchanging money of all kinds: It pays to ask first and shop around. Banks pay the top rates.

Exchange houses (casas de cambio) are generally more convenient than banks since they have more locations and longer hours; the rate of exchange may be the same as a bank or only slightly lower. Note: Before leaving a bank or exchange-house window, always count your change in front of the teller before the next client steps up.

Large airports have currency-exchange counters that often stay open whenever flights are arriving or departing. Though convenient, these generally do not offer the most favorable rates.

A hotel's exchange desk commonly pays less favorable rates than banks; however, when the currency is in a state of flux, higher-priced hotels are known to pay higher than bank rates, in their effort to attract dollars. The bottom line: it pays to shop around, but in almost all cases, you receive a better exchange by changing money first, then paying for goods or services, rather than by paying with dollars directly to an establishment.

ATM’s:

Banks in Mexico are rapidly expanding and improving services. New hours tend to be from 9am until 5 or 6pm, with many open for at least a half day on Saturday, and some even offering limited hours on Sunday. The exchange of dollars, which used to be limited until noon, can now be accommodated anytime during business hours in the larger resorts and cities. Some, but not all, banks charge a service fee of about 1% to exchange traveler's checks. However, most purchases can be paid for directly with traveler’s checks at the stated exchange rate of the establishment. Don't even bother with personal checks drawn on a U.S. bank--although theoretically they may be cashed, it's not without weeks of delay, and the bank will wait for your check to clear before giving you your money.

Travelers to Mexico can also access money from automatic teller machines (ATMs), now available in most major cities and resort areas in Mexico. Universal bank cards (such as the Cirrus and PLUS systems) can be used, and this is a convenient way to withdraw money from your bank and avoid carrying too much with you at any time. There is often a service fee charged by your bank for each transaction, but the exchange rate is generally more favorable than one found at a currency house. Most machines offer Spanish/English menus and dispense pesos, but some offer the option of withdrawing dollars. Be sure to check the daily withdrawal limit before you depart, and ask your bank whether you need a new personal ID number. For Cirrus locations abroad, call tel. (800) 424-7787, or check out MasterCard's Web site (www.mastercard.com/atm/www.mastercard.com). For PLUS usage abroad, call tel. (800) 843-7587, or visit Visa's Web site (www.visa.com/atms).

CREDIT CARDS:

You'll be able to charge most hotel, restaurant, and store purchases, as well as almost all airline tickets, on your credit card. You can get cash advances of several hundred dollars on your card, but there may be a wait of 20 minutes to 2 hours. You generally can't charge gasoline purchases in Mexico; however, with the new franchise system of Pemex stations taking hold, this may change as well. Visa ("Bancomer" in Mexico), MasterCard ("Carnet" in Mexico), and American Express are the most accepted cards.

Credit-card charges will be billed in pesos, then later converted into dollars by the bank issuing the credit card. Generally you receive the favorable bank rate when paying by credit card.

TRAVELER’S CHECKS:

Traveler's checks are readily accepted nearly everywhere, but they can be difficult to cash on a weekend or holiday or in an out-of-the-way place. Their best value is in replacement in case of theft. Frequently in Mexico, a bank or establishment will pay more for traveler's checks than for cash dollars.

THEFT:

Almost every credit card company has an emergency 800-number that you can call if your wallet or purse is stolen. They may be able to wire you a cash advance off your credit card immediately, and in many places, they can deliver an emergency credit card in a day or two. The issuing bank's 800-number is usually on the back of the credit card--though of course that doesn't help you much if the card was stolen. The toll-free information directory will provide the number if you dial tel. (800) 555-1212. Citicorp Visa's U.S. emergency number is tel. (800) 336-8472. American Express cardholders and traveler's check holders should call tel. (800) 221-7282 for all money emergencies. MasterCard holders should call tel. (800) 307-7309.

If you opt to carry traveler's checks, be sure to keep a record of their serial numbers, separately from the checks of course, so you're ensured a refund in just such an emergency.

Odds are that if your wallet is gone, the police won't be able to recover it for you. However, after you realize that it's gone and you cancel your credit cards, it is still worth informing them. Your Credit Card Company or insurer may require a police report number.