Chuy, or Chui as it is named on its Brazilian side, is the perfect example of a friendly border. The border between the countries passes through the middle of an avenue. The Uruguayan side is called Avenida Brasil and the other one is expectedly called Avenida Uruguay, and you can move freely among the sides. Chuy hosts a small casino, attracting mainly Brazilian tourists; Uruguay is a regional gambling centre with casinos in all of its main tourist locations.
Since the town is usually considered only as a crossing point, few stop here for more than the necessary, thus accommodations are very limited. I can recommend the Nuevo Hotel Plaza, Av. Artigas corner Arachanes, by the Plaza de Independencia. This cute place is at the very center of the town and offers cosy rooms for around $10 a single, including a basic breakfast. Credit cards are accepted only for charges $15 and higher. You can pay in dollars, but it is better to exchange into the local currency at one of the many exchanging locals by the border, as the rates are fair.
If you are arriving from Brazil, you may be surprised by the electric sockets: in Uruguay, they have three round holes set in a straight row. I was more than surprised to find that my Nepali adaptor fitted almost perfectly.
In the culinary sense, this place is hot and offers the best of both worlds: immense cuts of meat on the southern side of the line and feijoada, cozido, and all the other Brazilian hits just a few meters north from there. The immigrations are placed at the exit of the town on each side of the limit, and if you do not need a special visa, you should not bother going there, as all the buses leaving the town make a short stop there for a passport-stamping rite. As with most travels among a country’s main cities, the capital, Montevideo, is half a day away, and buses headed there leave at all hours. If you have the time, it is recommended to break the trip at the town of Rocha, from where you can take a local bus to La Paloma, 28km south from there. La Paloma is a tiny Punta del Este for locals searching for beaches facing the ocean, but not attracted to the overwhelming crowds of its big sister.