There is no such word in the various flavors of Castilian Spanish language spoken around the world, including in Mexico; it's a negatively stereotypical slang term most likely derived from grade B movies that serves no purpose.

The card you mention is available in the Delegación of Cancún and surrounding area, iirc, and it was instituted as a measure to head off propensity to solicit, or pressure to give, "mordidas" or small bribes.

In my experience (driving in Mexico over fifty years), road police trolling tourists with visitor or rental plates has decreased considerably over the years.