**The current exchange rate on the island as of Friday,
May 4, 2007 is $10.7 pesos to $1 USD

Credit Cards on the Island
No one on the island accepts Discover and very few accept AMEX, so do not be surprised. Establishments that DO accept credit cards will usually apply a surcharge because the banks in Mexico charge outrageous merchant fees...this makes accepting credit cards for small businesses almost unrealistic. This is why you will find that many smaller restaurants and businesses just do not accept them.

Dollars vs. Pesos and the best way to convert
DO NOT convert dollars to pesos at the airport in the states before you get here...you will definitely get a lower exchange rate (i.e.: 9 pesos to the dollar vs. 10.44 pesos to the dollar). I do recommend changing some dollars to pesos once on the island however, as you will get a better exchange rate that way. Although everyone will take dollars, the exchange rate in most places is at a set rate, and it will always be higher then the banks and change house rates. For example, they will have a set rate of 10.5, when the real exchange rate is 10.35. On $100 that costs you an extra $1.50. While it may only be a few dollars here and there, that does add up over the week. So, it is always best to pay for your meals in pesos, hotel in pesos, and souvenirs in pesos. Most dive shops I know of, will give you the real exchange rate for whatever it is that day on the island.

There are change houses ALL over the place and they are almost all owned by the same person, so no need to shop around for a change house with the best rate...they are all the same. The banks typically offer a slightly better rate than the change houses, but be prepared to stand in line forever. Still, the exchange rate is usually a point or two lower than the actual market rate on Wall Street.

ATM Cards in Cozumel
There are also ATM machines ALL over the place and that is how you will actually get the best exchange rate, because it is YOUR bank setting the exchange rate, which will be the actual market rate for that day, again savings you a point or two on your dollar.

Most ATM machines have a $3000 pesos (currently $287.25 USD) transaction limit, but there is no limit to how many transactions you can make. Some banks (Banamex ,  Santander Serfin and Banorte) have $5000 pesos (currently $458.71 USD) transaction limits, again no limit on how many transactions you can make. So your maximum daily withdrawal limit is set by your bank, not by the bank machine in Mexico. You can always request that they increase your daily withdrawal limit for your trip and then change it back when you get home if you want.

One more thing about transaction fees for ATM's in Cozumel. Remember that they operate with pesos in mind and the $ sign is also the sign for pesos. So, when they ask you if you agree to the $7.50 transaction fee, that is 7.5 pesos, (78 cents). The most I have seen on any machine in Cozumel is $15 pesos ($1.56). YOUR bank in the US however may charge you an out of network transaction fee...for example Wells Fargo charge me $5.00 USD for every transaction. However, if I use my Bank of American ATM card at the Santander Serfin, I am only charged the $1.00 fee for the machine.