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I always take cash, and wear it in a money belt around my waist.
It's true that Al Wikala takes credit cards, BUT if you pay cash you get a discount. So I always pay cash there for that reason.
If you stay at a 5-star hotel, you'll probably be able to change your traveler's checks to cash there. However, if you're staying at a lower-budget place (when not going to the festival, I stay at a 3-star hotel which suits me just fine), traveler's checks are a bad idea, because about the only places you can exchange them for cash are 5-star hotels.
I've never tried the ATM card approach myself, but I remember that one year at the Ahlan wa Sahlan festival the ATM machine just outside our hotel seemed to be perpetually out of order (or maybe it was out of cash). For that reason, I wouldn't rely on being able to get cash from a magic money machine.
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