I know the U.S. Dollar is stronger then mexican pesos and I know i'd get alot more money back at the bank if I exchanged mine for pesos.
But wouldn't it be simpler for me to just use my debit when I shop there, thinking only so much would be taken off ?
Wouldn't it automatically convert electronically ?
Plastic has now far overtaken the old days of Travellers' Cheques or pockets full of cash.
Use your credit card for any substantial purchases; restaurants, hotels, major souvenirs etc
Use ATM's to get local currency cash. A word of caution here, you may be charged a fee per withdrawal, so make fewer larger ones.
A big word of advice here - make sure to notify your bank of your itinerary or they will block your card after the first transaction as a a "security precaution", i.e. it might have been stolen.
Also, verify with your bank that your card will be accepted as both a credit card and at ATM's. Check whether your bank has any special arrangements with any particular foreign bank regarding lower ATM fees.
To answer your specific question, yes, it would convert automatically from a local purchase to a home currency charge on your account. I find that the rates from credit card conversion are often better that from money changers or the banks.
you might want to confirm with your bank whether there are additional ATM fees or currency conversion fees when using your debit card. And whether your debit card will be accepted most places in Mexico. I know that using a credit card for foreign purchases include a conversion fee.
Call you bank & ask if they CHARGE a FEE for the transaction. Otherwise, something as simple as buying a beer can get expesnsive if each beer has an exchange charge added to the price.
US cash is popular in Mexico and you can negotiate prices on most things with it. Charge what you need to because the exchange rate on your credit card will be better than at an airport kiosk. Pay cash for your goods.
You can, but the card may charge a fee for each transaction.
