It's best to bring US-dollar denomination traveler's checks and some US dollars in cash. You can exchange money in banks or in casas de cambio.  Note that bank exchange facilities are often only open between 9am and 3 or 4 pm.

Major credit cards are accepted by airlines, car rental companies and more expensive hotels and restaurants - but take extra care when using them, as credit-card fraud and theft is rife in Mexico. In heavily touristed areas such as Acapulco, Cancún and Cozumel, you can often spend US dollars as easily as  pesos at hotels and restaurants (although the exchange rate will probably be awful).

Note that the dollar sign is used to refer to pesos in Mexico; prices in US dollars are usually marked US$ or USD.

US Dollars are instantly recognisable in Mexico - Pounds, Euros, and Swiss Francs are not. European notes are 'odd sizes', 'funny colours' and because the cashiers don't  tend to see as much of the currency, some delay may ensue. 

 If you don't feel like buying US Dollar traveller's cheques and using those, take your Euro / CHF cash or traveller's cheques to a bank or exchange house and they will exchange it for you, but you may have to wait a  little longer.

If you carry traveller's cheques, here are a few tips for taking them to  Mexico:

• Carry  well-known branded cheques; American Express or VISA are the best known in Mexico.
• Carry  the Cheques only in US Dollars
• Keep the cheques safe - you may want to leave them at the Hotel Deposit Box
• Hotels will take payment by traveller's cheque (or cash them for you) but their rates will generally be unattractive in comparison to Banks or Currency Exchange Centres.