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I don't use pesos. Some of my friends do but the Mexicans like dollars but change is a problem. Lots of singles, fives, and tens. Or, as you say... credit card@SteveO Do you ever bring Pesos with you down there? I think using USD would be inviting trouble.
I personally only use Pesos when cash is needed, and a credit card all the other times. If someone wants to lift my numbers somehow I get my money back from the CC company so it is not a big deal. Credit cards also seem to give a pretty good conversion rate, I have yet to find a good way to get cash down here.
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