In MVD or touristy areas such as Punta del Este or Colonia never had any problem paying with either CC or debit card neither in hotels nor restaurants nor larger shops or supermarkets. However, Uruguay is quite rural outside these areas, so things could be different if you are out in the countryside.

Just be aware that ATM cash withdrawal limits in Uruguay tend to be pretty low (at least for foreign cards), so if you try to withdraw e.g. USD 300 equivalent in Uruguayan pesos, chances are that this won’t get through.