If you’re planning a trip to Cabo San Lucas, one of the questions that often comes up is: do I need Mexican pesos or can I use U.S. dollars in Cabo? The answer depends on where you plan to spend, the types of businesses you visit, and how you prefer to handle money while traveling. From beach bars and restaurants to taxis and yacht charters like Booze Cruise Cabo, understanding the currency situation can help you budget and plan your vacation more efficiently.

In this guide, we’ll cover everything U.S. and Canadian travelers need to know about using Mexican pesos and U.S. dollars in Cabo, including where dollars are accepted, how to get the best exchange rates, and tips for safely managing your cash while enjoying your trip.

Understanding Cabo’s Currency Situation

Cabo San Lucas is located in the state of Baja California Sur, Mexico, and its official currency is the Mexican peso (MXN). While pesos are the official legal tender, the region is extremely popular with U.S. and Canadian travelers. As a result, many businesses—especially those catering to tourists accept U.S. dollars, but the rate may not always be favorable.

Tourist-focused areas like downtown Cabo, the marina, and popular beaches often list prices in both pesos and dollars. However, small local shops, markets, and some taxis may prefer pesos. Understanding when to use pesos versus dollars can save you money and make transactions smoother.

Do I Need Mexican Pesos or Can I Use U.S. Dollars in Cabo?

The short answer is: You can use U.S. dollars in many tourist areas, but having pesos is recommended.

When U.S. Dollars Work Well

• Hotels and Resorts: Most hotels, including luxury properties, accept U.S. dollars for payments.
• Restaurants in Tourist Areas: Popular restaurants along the marina often accept dollars, though they may round prices up.
• Yacht Charters and Tours: Operators like Booze Cruise Cabo can accept U.S. dollars for booking transfers, excursions, or private charters.
• Souvenir Shops: Many shops in the marina and downtown Cabo accept dollars but may offer a slightly worse exchange rate.

When Mexican Pesos Are Better

• Taxis: Local taxis often prefer pesos and may charge higher rates if paying in dollars.
• Small Markets and Street Vendors: Food stalls, fruit vendors, and small shops usually require pesos.
• Tip Payments: Tipping staff, especially in smaller establishments, is easier and more accurate in pesos.
• Local Services: Spa services, small excursions, and off-the-beaten-path restaurants often operate exclusively in pesos.

Having a mix of both currencies ensures flexibility and avoids situations where a business cannot provide change in dollars.

How to Get Mexican Pesos in Cabo

If you decide to carry pesos, there are several convenient options:

1. ATMs

• Availability: ATMs are widely available at Los Cabos International Airport (SJD), downtown Cabo, and at major hotels.
• Advantages: Convenient and provide competitive exchange rates.
• Tips: Use ATMs affiliated with major banks to avoid extra fees, and notify your bank of international travel to prevent card blocks.

2. Currency Exchange Offices

• Locations: Found at the airport, shopping centers, and near the marina.
• Rates: May vary; compare rates before exchanging large amounts.
• Security: Always exchange money at authorized locations for safety.

3. Banks

• Service: Many banks exchange foreign currency.
• Hours: Typically open Monday–Friday, with limited hours on weekends.
• Documentation: Some banks may ask for a passport or ID when exchanging cash.

Using Credit Cards in Cabo

Credit and debit cards are widely accepted in tourist areas. Visa, Mastercard, and American Express are commonly used for payments at hotels, restaurants, and yacht charters like Booze Cruise Cabo.

Benefits of Using Cards

• Convenience: Avoid carrying large amounts of cash.
• Security: Protects against theft and loss.
• Tracking: Easy to track expenses.

Tips for Using Cards

• Notify your bank of international travel.
• Use a card with no foreign transaction fees if possible.
• Have a small amount of cash available for places that only accept pesos.

Tips for Handling Cash in Cabo

1. Mix of Pesos and Dollars: Carry small denominations of both for flexibility.
2. Keep Cash Safe: Use a money belt or hotel safe to protect your funds.
3. Check Exchange Rates: Compare rates at ATMs, banks, and exchange offices before withdrawing or converting money.
4. Plan for Tips: Keep pesos on hand for tipping staff, taxi drivers, and tour guides.

Paying for Excursions and Yacht Charters

Tourist activities like private yacht rentals and day cruises often accept U.S. dollars, making payment simple for American travelers. Booze Cruise Cabo, for example, allows guests to book charters and pay in dollars, which is especially convenient for groups and first-time visitors.

Booking tours in advance using dollars also eliminates the stress of finding pesos immediately after arrival. However, smaller excursions, local fishing trips, or artisanal boat rentals may prefer pesos.

Avoiding Overpaying in Dollars

One common challenge in Cabo is paying in dollars at tourist shops or restaurants without realizing the exchange rate is less favorable. A few strategies can help you avoid overpaying:

• Ask for the Rate: When paying in dollars, confirm the exchange rate being applied.
• Use Pesos for Small Purchases: Even if dollars are accepted, paying in pesos usually gives a better rate.
• Check Receipts: Make sure the conversion is correct when charged in dollars.

Safety Considerations for Currency Use

Cabo San Lucas is generally safe for tourists, but it’s wise to follow some best practices:

• Use Reputable ATMs: Prefer machines located inside banks or hotels.
• Limit Cash on Hand: Only carry what you need for the day.
• Avoid Public Counting: Don’t count money openly on the street.
• Combine with Secure Payments: Use credit cards or pre-booked tours with trusted operators like Booze Cruise Cabo.

Following these simple precautions ensures your money is safe while allowing you to enjoy your vacation.

How to Budget for a Cabo Trip

Understanding currency options helps with budgeting. Here’s a rough guide for daily expenses:

• Breakfast or Coffee: $5–10 USD or 100–200 MXN
• Lunch: $15–25 USD or 300–500 MXN
• Dinner at a Restaurant: $25–50 USD or 500–1,000 MXN
• Yacht Charter or Day Cruise: $100–200 USD per person, often payable in dollars through Booze Cruise Cabo
• Taxis: $5–15 USD or 100–300 MXN depending on distance

Carrying a mix of pesos for smaller purchases and dollars for larger expenses keeps your spending flexible.

Tips for Canadian Travelers

Canadian visitors should also consider their currency strategy:

• Pay in Pesos for Small Purchases: Avoid unfavorable conversion rates.
• Use Credit Cards in Tourist Areas: Many establishments accept CAD or USD.
• Check with Your Bank: Ask about foreign transaction fees and international ATM charges.

This approach ensures Canadians enjoy the same convenience and cost-efficiency as American travelers.

First-Day Money Tips

After arriving at Los Cabos International Airport (SJD):

1. Withdraw Some Pesos: Use the airport ATM for small purchases, taxis, or tips.
2. Use Dollars for Larger Payments: Pay hotel deposits or pre-booked tours in USD.
3. Plan Yacht Excursions: Reserve your Booze Cruise Cabo experience in dollars to simplify budgeting.
4. Keep Some Backup Cash: Store extra pesos in a safe at your hotel.

This strategy ensures your first day is smooth and stress-free, allowing you to focus on the beaches, activities, and relaxation Cabo is known for.

Frequently Asked Questions

• Q: Do I need Mexican pesos or can I use U.S. dollars in Cabo?
  A: You can use U.S. dollars in many tourist areas, but carrying pesos is recommended for taxis, small markets, and tips.
• Q: Can I pay for a yacht charter in U.S. dollars?
  A: Yes, operators like Booze Cruise Cabo accept dollars for bookings.
• Q: Are ATMs safe in Cabo?
  A: Yes, especially those located inside banks, airports, or hotels.
• Q: Should I exchange money at the airport?
  A: You can, but airport rates may be slightly lower than ATMs or banks in town.
• Q: Can I use credit cards everywhere?
  A: Credit cards work at most hotels, restaurants, and tours, but small vendors often require cash.

Final Thoughts

Understanding the answer to do I need Mexican pesos or can I use U.S. dollars in Cabo? is essential for travelers from the United States and Canada. While many tourist-focused areas accept dollars, having pesos on hand is convenient and cost-effective for small purchases, tips, and local services.

Combining cash, cards, and pre-booked tours or transfers through trusted operators like Booze Cruise Cabo allows visitors to enjoy a seamless and stress-free experience. From taxis and small vendors to luxury yacht charters, knowing your options makes your vacation planning much easier.

For a smooth first day in Cabo, visit Booze Cruise Cabo or call 619.842.0001 to arrange transfers, private yacht charters, and guided experiences that can be paid in U.S. dollars for maximum convenience.