The short answer
Both, but plan around cash. Visa and Mastercard work in mid-range and upmarket riads and hotels, larger restaurants, supermarkets, fuel stations, ticketed sights such as the Majorelle Garden and modern shops in Gueliz. The souks, small cafés, taxis, market stalls, hammams and rural stops on day trips are cash only. American Express is rarely accepted.
In more detail
Treat Marrakech as a cash city with cards as a backup and for bigger bills. Most of daily medina life, from a glass of mint tea to a petit taxi to a tip, is paid in notes and coins. Out on a day trip to the Atlas or the Agafay, roadside cafés and village shops almost never take cards.
When a card terminal asks whether to charge you in your home currency or in dirhams, always choose dirhams. The home-currency option, called dynamic currency conversion, builds a poor exchange rate into the price. The same applies at ATMs that offer to convert for you.
Split your money. Keep a small daily float in an easy pocket and the rest of your cash and a backup card zipped away or in the riad. A money belt is more than most people need, but flashing a thick wad of notes in the souks is never a good idea.
Good to know
- Carry small notes for taxis, tips and stalls; change is often short.
- Bring a second card from a different network in case one is declined.
- Tell your bank you are travelling to Morocco before you go.