VIDEO – Believe it or not, there are many destinations in Mexico where you can pay with U.S. dollars. Want to know if you can use U.S. dollars in Mérida? Unfortunately, the answer is no. Learn why on this video where I’m answering all your questions from beautiful locations in and around Mérida Mexico.
Paying in U.S. dollars in destinations like Mérida can put a strain on local service providers.
Why? U.S. dollars are not used at all here.
Therefore, the service provider would need to have the money exchanged to pesos. After the exchange rate and a service fee, there may be a loss for the service provider.
In other destinations such as Riviera Maya, Puerto Vallarta and Cabo San Lucas, the dollar is widely accepted. In these locations, it is MORE beneficial for the service provider to receive dollars. The dollar increases the buying power allowing them to purchase more than they could if using pesos. In these locations, tipping in dollars is preferred.
Let me explain . . .
Sometimes, the only wage an employee earns is from tips. Grocery store baggers are in this category. Most of these service providers participate in tip sharing or take turns bagging groceries.
When you tip your bagger at the grocery store, they may combine the tips the received then split them up between all the baggers at the end of the day. Alternatively, they will take turns bagging groceries so that everyone that day gets a turn for tips.
Other helpers at the grocery store include men who will help you to your car and load your groceries for you or parking lot attendants.
Imagine trying to split up American money for grocery store baggers – it just isn’t respectful…