Yeah, I used mine back in 2001 at a restaurant called Zandunga and the waiters had a cloning machine (I saw them doing something to my card but didn't think much of it at the time). Thankfully, I wasn't responsible for any of the charges.
It is hard though not using card - we use card for everything these days. Tough to break the habit, and having to calculate for every eventuality that you need cash for on vacation is a headache. For our trip, we've already been to the bureau de change twice, and need to again because I forgot about something else we need to pay for - if it was safe (and no charge) to use your card anywhere my headache would be a lot easier! Hopefully within next 10 years they'll realise that we're a global world and scrap these stupid charges!
Ive seen stores ding you 20 % on their idea of an exchange rate, so 4% seems like a good deal and you don't have to carry cash. I didn't know the credit card fraud was so wide spread in Cancun. I always travel with two cards in case one gets compromised. I heard of someones card being cancelled on them by their own company just because they used their card at a place that was being investigated for fraud, Not good when your on vacation.
From here, I've also heard of people's cards being blocked because they used them abroad because it is classed as 'unusual activity', when they haven't told the bank they're going abroad.
The bank I work for will do that and anymore, most credit card issuing banks from the U.S. has that as part of their security screening measures.
Anytime you travel out of country let your credit/debit card companies know the dates and the country and that will help avoid your actual charges in country from shutting down your card. Also, avoid unmarked ATM's that are randomly around town. If you need cash the safest bet is to go into a real bank there and use the ATM. Sometimes in the big stores like walmart they will have a whole row of them. If you go that route check them all out and check the fees, they can vary greatly. Also, some banks have agreements with some mexican banks that allow for no fee atm withdrawls. Pays to check that out beforehand to see if your bank has that agreement and you can just pull out peso's when you arrive that way. Also, AVOID the atm in the Temptations gift shop, not only does it only give out dollars it's like $20 bucks in fees or something crazy!
Compared to having a shop owner do the conversion for you (at 20% markup), yes, using your credit card is a much better idea...even at 4%! But planning ahead and getting a markup of less than 2% is better still...
