We are heading to Playa del Carmen and Akumal in January. The one outstanding issue is how best to convert our money, and if it is even necessary. Are there ATM's at the airport in Cancun where we can get pesos? After reading up on this part of Mexico it seems as if the dollar is as readily accepted as the peso. Can we do as good by just using our US dollars? Is it also true that plastic is not as commonly used here as in other foreign destinations?

Big lies you got.
-That area of Mexico was made for the US tourists and CC are accepted even in the markets.
-There are ATM's all over town, so wait till you get there. US dollars are accepted all over town.
- I can not think of a place that will not accept your credit card, no one.
- Even the most underdeveloped countries in Latin America are very up to date when it comes to banking, credit cards acceptance and exchange houses.

In general I think Miguel is on the mark with respect to PDC, but a few caveats to mention: there are places here that don't accept credit cards, certainly, and a number of places prefer cash (American or Mexican) to credit cards; relatively few places accept American Express and about nobody accepts less common cards such as the Discover card; and you'll probably get a better rate all in all using pesos instead of US dollars.

Steve

I would withdraw peso from an ATM upon arrival. Even if US is accepted, I'm not sure why it would be preferred. Only means a trip to the bank for the person you are dealing with, instead of you.

If you do take US I would have it in smaller bills, getting change is often difficult (i.e., breaking a $50US or 200 peso note for a $3 cab ride).

Charge cards are accepted but this often opens the debate about credit card cloning or fraud in Mexico.

There are many threads on many forums over the last year or so:
1. No fee ATM (USAA Fed Savings has 15 free out of network a month).
2. No fee Credit cards (USAA Plat MC, like all MC and Visa, charges a 1% foreign currency conversion, but has a 1% rebate and no annual fee). Citi AA MC charges 3%.
3. Don't sign the CC receipt if the "foreign bank" has done the currency conversion to USDs. You'll get a very unfavorable exchange rate. Insist on the local currency charges that you expected.
4. If you pay cash in USDs, you may get an exchange of 10:1 viz 11.3:1 - that is to say if you have a choice of paying $4000. MXP viz $400.US, by paying in pesos you'll actually be paying $354.US - that is reality. Most MX merchants, artists, etc. don't want the hassle of conversion with their banks (if they use banks).
5. Large denomination ($200. $500. and the new $1000 )MX peso bills are often very inconvienient. Few have change.
M (from San Miguel de Allende, MX)

There are many threads on many forums over the last year or so:
1. No fee ATM (USAA Fed Savings has 15 free out of network a month).
2. No fee Credit cards (USAA Plat MC, like all MC and Visa, charges a 1% foreign currency conversion, but has a 1% rebate and no annual fee). Citi AA MC charges 3%.
3. Don't sign the CC receipt if the "foreign bank" has done the currency conversion to USDs. You'll get a very unfavorable exchange rate. Insist on the local currency charges that you expected.
4. If you pay cash in USDs, you may get an exchange of 10:1 viz 11.3:1 - that is to say if you have a choice of paying $4000. MXP viz $400.US, by paying in pesos you'll actually be paying $354.US - that is reality. Most MX merchants, artists, etc. don't want the hassle of conversion with their banks (if they use banks).
5. Large denomination ($200. $500. and the new $1000 )MX peso bills are often very inconvienient. Few have change.
6. You'll often get a discount paying in cash (MX pesos) outside of hotels and restaurants.
M (from San Miguel de Allende, MX)

Let's make this simple, OK? We just returned after our 5th trip to Playa Del Carmen. I saved the pesos from the last trip and had about $115 US in pesos. That's about all you will ever need, exchange at the airport and get small bills. Otherwise, for a week's trip we do tip and often so we usually carry about 60 $1.00 bills, $5.00's, $10.00's and $20.00's. Lock them in your room safe and you'll be fine. Most if not all will accept USD. Have fun!