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I arrived to Mexico from Belize yesterday. We travelled overland and arrived at the immigration area (subteniente López I believe).

After a long queue to the migration official, he insisted we had to pay an entry fee of $500mx each! (Nearly $28)

We had never heard of this, there was no signage regarding it anywhere and he wasn't being reasoned with. He made several other pay as well.

He gave us a ticket and made us go across the room to a bank which accepted the ticket and let us pay with credit card. He insisted it was because we arrived by car and are here for more than 7 days.

I can't find anything about this tax on the internet so I'm wondering if it's a scam and if I could cancel the credit card payment.

Link to receipt is here:

https://i.imgur.com/hWthQsl.jpg

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This is quite normal, and is not a tax. Tourists entering Mexico are required to get an FMM tourist/visitor permit. The fee for this is $500 MX, and is payable if your stay is between 7 and 180 days. Less than 7 days there is no fee.

If you plan to leave and re-enter Mexico several times (in 180 days) you can ask for the FMM to be valid up to 180 days, you don't need to repay each time you enter, as long as you have your valid FMM card with you passport. After 180 days you need to get another FMM. (This multiple-entry option might only be available in Baja though)

See Mexican Tourist Cards (FMM) for more info.
See also the FMM Online Application on the INM (Mexico Immigration) website - this page is the application form to buy one online, but also gives information about it in English.

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