Your Guide to Using Dollars, Pesos, and ATMs in Loreto

Planning a trip to Loreto or considering making it your home? One of the most common questions we hear from visitors and future residents is about money - should I bring dollars or pesos? Where can I exchange currency? Can I use my credit card everywhere?

Let's clear up the confusion so you can focus on enjoying everything Loreto has to offer.

Understanding Exchange Rates

Before we dive into the practical details, it's worth checking current exchange rates. The US Dollar to Mexican Peso rate fluctuates, and if you're coming from Canada, you'll want to monitor the Canadian Dollar to Peso rate as well. A quick Google search before your trip gives you a baseline for what to expect.

Dollars vs. Pesos: What Should You Bring?

While some tourist-heavy areas of Mexico operate primarily in US Dollars, Loreto isn't one of them. Nearly everything here is priced in pesos.

Yes, many businesses will accept US Dollars - especially hotels, larger restaurants, and tour operators. But you're going to get a poor exchange rate, often two to three pesos lower than the official rate. That might not sound like much, but it adds up quickly over a week-long stay or if you're furnishing a new home here.

A handful of places will even accept Canadian Dollars, but again, expect an unfavorable exchange rate.

The bottom line? Pesos are your friend in Loreto. You'll get better value, avoid confusion, and some smaller local spots only accept pesos anyway.

Where to Exchange Currency

If you're arriving with US or Canadian Dollars and need to exchange them, you have several options:

Banks: Most banks in Loreto will exchange currency, but be prepared to show your passport. There may also be limits on how much you can exchange in a single transaction. Banking hours are typically limited, so plan accordingly.

Casa de Cambio: These are currency exchange businesses, and Loreto has a few. Same rules apply - bring your passport and expect possible transaction limits.

Some retail stores: A handful of larger retail establishments will exchange currency, though this isn't as common, and rates may not be as competitive.

Our honest advice? Don't rely heavily on exchanging physical currency. It's time-consuming, limits can be frustrating, and you're often not getting the best rate. There's a better way.

Using Credit Cards in Loreto

Credit cards (tarjeta) are accepted at many places in Loreto, but not everywhere. Larger hotels, established restaurants, major grocery stores, and tour companies typically take cards. Smaller local restaurants, markets, food stands, and some shops are cash-only (efectivo).

If you're an American Express loyalist, we have bad news - only a handful of places in Loreto accept Amex. Visa and Mastercard are your best bets here.

Some places may add a small surcharge for credit card payments, typically around 3-4%. Always ask before you pay if you want to avoid surprises.

Our recommendation: assume you'll need cash for most daily transactions. Ask about credit cards if that's your preference, but don't count on it being an option everywhere.

The Best Option: ATM Machines

This is hands-down the easiest and most cost-effective way to get pesos in Loreto.

ATMs are available at all major banks in town, and you'll also find them at some restaurants, hotels, and retail locations. Most ATMs offer an English language option, so navigation is straightforward even if your Spanish is limited.

Your standard ATM card should work at these machines. Yes, you'll likely pay fees - both from the ATM operator and potentially from your home bank for out-of-network withdrawals. But even with fees, you're typically getting a better exchange rate than you would if you were exchanging physical currency.

Pro tip for frequent visitors or new residents: Consider opening a Charles Schwab investment account. You don't need to actually invest anything - just keep some cash in the account. They issue an ATM card that reimburses all ATM fees worldwide. This can save you significant money if you're withdrawing cash regularly in Loreto.

Critical ATM Tip: Always Choose Pesos

When you use an ATM in Mexico, it will dispense pesos. But here's where it gets tricky: the machine will often ask if you want the transaction processed in dollars or pesos.

Always, always, always choose pesos.

If you select dollars, the ATM operator sets the exchange rate, and it will be terrible. You'll pay significantly more than you should.

If you select pesos, your home bank converts the transaction at the official exchange rate, which is almost always better - sometimes dramatically better.

This single choice can mean the difference between losing 5-10% of your money or getting

the fair rate. Always choose pesos.

How Much Cash Should You Carry?

This depends on your plans, but here's a general guide:

For a day of casual exploring: 1,000-2,000 pesos covers meals at local spots, tips, small purchases, and transportation. That's roughly $50-100 USD.

For a dinner at a nicer restaurant: 1,500-3,000 pesos, depending on drinks and number of people.

For activities and tours: Most tour operators accept credit cards, but having 2,000-3,000 pesos as backup is smart.

For shopping at the local market: Cash only. Bring what you plan to spend plus a little extra.

You don't need to carry massive amounts of cash. ATMs are accessible, so you can withdraw as needed rather than walking around with thousands of pesos.

Safety Considerations

Loreto is a safe town, but common sense applies anywhere:

• Don't flash large amounts of cash in public

• Use ATMs during daylight hours in well-trafficked areas

• Keep larger bills secured and carry smaller denominations for daily transactions

• Split your cash and cards between different locations (wallet, hotel safe, travel bag)

Setting Up for Success

If you're planning to spend significant time in Loreto - whether you're here for an extended stay or you've purchased property - consider these steps:

Notify your bank: Let your credit card companies and bank know you'll be in Mexico. This prevents your cards from being frozen for suspicious activity.

Know your PIN: You'll need it for ATMs, and some credit card transactions require a PIN in Mexico even if you don't use one at home.

Have backup payment methods: Don't rely on a single card. Bring at least two different cards in case one doesn't work or gets lost.

Download your bank's app: Many banks let you check balances, transfer money, and even temporarily lock/unlock cards through their mobile apps. This is incredibly useful when traveling.

The Bottom Line

The money situation in Loreto is straightforward once you know the basics:

✅ Use pesos, not dollars, for the best value 

✅ ATMs are your best source for pesos at good exchange rates 

✅ Always choose "pesos" when the ATM asks 

✅ Carry enough cash for daily needs 

✅ Credit cards work many places, but don't count on them everywhere 

✅ Charles Schwab account = no ATM fees if you're a frequent visitor

Understanding the currency situation is just one small piece of experiencing life in Loreto.

Once you've got the money sorted, you can focus on what really matters - the stunning Sea of Cortez, the incredible food, the warm community, and the lifestyle that makes Loreto so special.

Whether you're here for a week or planning to make Loreto your home, knowing how to handle money efficiently means more time enjoying paradise and less time stressed about logistics.

Thinking about making Loreto more than just a vacation destination? We'd love to show you the properties and lifestyle opportunities that make this town so irresistible. Contact us to learn more about living in Loreto.