Payment options by which you can pay:

1.  Cash in Mexican pesos
2.  Cash in American dollars
3.  Cash in Euros
4.  Credit card

Consider all of these payment options.

Cash in Mexican pesos

A great option for payment, I recommend you always have the equivalent of 200-300 US dollars in pesos.

Not all places will allow you to pay with a credit card, and some things can only be bought with cash. Paying with currency (US dollars) is possible, but you won’t always like the seller’s exchange rate.

For example, at the time of my trip, the US dollar to peso exchange rate was 16 pesos to 1 US dollar, or 17 pesos to 1 euro.

Cash in US dollars

Not always the best option for payment, but sometimes even very excellent.

1.   Dollars will gladly accept dollars from you in 90% of places and will even give you change in dollars or pesos (as a last resort)
2.  Sometimes (less often) it can be more profitable to pay in US dollars than in Mexican pesos.

At the time of my arrival in Mexico, the U.S. dollar changed at 15.5 – 16 pesos per 1 U.S. dollar, and euros at a rate of 16.5-17 pesos per 1 euro.

An example of when it is more favorable to pay in US dollars:

1.  Entrance to a park with a sculpture for a photo costs 4 dollars or 80 pesos. Agree that it is more profitable to give 4 dollars, because at the exchange rate it comes out to 64 pesos. Or better yet, give 100 dollars and ask for change in pesos. Do not thank them.
2. To pay for the purchase in 7eleven – they accepted dollars to pay (not to exchange) at a price of 16.6 dollars, while on the beach at the restaurant you took them at 15 pesos per 1 dollar, and in the currency exchange at 15.5 pesos per 1 dollar.

Cash in Euros

Payment is accepted, but you may be refused at some places. Still, I was able to pay in euros at touristy places.

Credit Card

Paying by credit card is possible in most places, but not all are willing to accept it.

1.  Supermarkets and stores, even big ones, often wanted a physical card as their terminals are not adapted for contactless payment with your phone, but still cards are welcome there
2.  You will 100% not have your card accepted at parking lots (because they are spontaneous), at boat fees, at most cenotes
3.  Some places will ask you for +5% to your bill because of credit card charges.
It is very expensive to charge your credit card, of course check with your bank, but there have been cases up to 15% commission.

Nevertheless, in my case, I paid a lot of places by credit card and did it in 90% of cases of payment, and it was more favorable than changing cash at the exchange rate.

From the last unpleasant situation, was that when going to the airport on the highway, I could not pay for gas at 2 gas stations, because they did not work terminals((( I did not have pesos, I had to pay with US dollars.

What currency should I take with me in cash?

The best option to take with you would be US dollars. Paying in Mexico is also not always better in local currency.

Currency exchange in Mexico

None of the exchangers took a commission from me. You can exchange money in a bank or currency exchange, which displays the exchange rate. You can also exchange currency if you buy something and get pesos as change.