100 Dumb US Laws (With Proof They Exist)
Dollars in cash are no longer something I bring to the USA. Paying with your card through your phone at coffee shops, stores, and even concession stands at stadiums is seamless. It is more convenient, faster, and cost-effective. You can always withdraw backup cash from an ATM if needed. In this article, I will share some cultural differences, my backup options, and tips on how to save up to 5% on every payment.
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Table of Contents
Which Payment Card to Bring to the USA
💳 Google Pay, Apple Pay, or Embossed Card
In the USA, you can safely use a card through your phone. Contactless payments via Google Pay and Apple Pay are widely supported. Some payment terminals are directly linked to the merchant’s loyalty programs. For instance, after using the same card four times at a coffee shop, I received a free coffee on the fifth transaction automatically.
Still, I strongly recommend bringing a physical embossed payment card as a backup in case the merchant does not have a contactless terminal or the technology fails.
💳 Mastercard, Visa, and American Express
Mastercard and Visa cards are accepted by virtually every merchant in the USA. American Express cards are accepted by approximately 99% of merchants that accept credit cards. Therefore, the choice of card network is practically irrelevant for travel purposes.
💳 Debit Card vs. Credit Card
The terms credit, debit, and payment card are sometimes incorrectly interchanged, even though there are significant differences:
- Debit Card (referred to as a “debit card” in the USA) is typically issued with all bank accounts. With a debit card, you can only spend the money available in your checking account.
- Credit Card (known as a “credit card” in the USA) is essentially a loan. Issuance usually requires proof of income and credit history. With a credit card, you are spending the bank’s money, which must be repaid within a set timeframe to avoid accruing relatively high interest rates. Credit cards are the standard in the USA.
- Payment Card is a general term covering both debit and credit cards. In the United States, locals sometimes incorrectly refer to any plastic card as a “credit card,” regardless of its actual type.
For routine payments in the USA, a debit card will suffice. However, if you plan to rent a car, you will likely need a genuine credit card. Many car rental agencies do not accept debit cards or impose strict conditions and deposits. Either bring a credit card or thoroughly verify the rental agency’s terms and conditions beforehand.
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The Best Card for Payments in the USA
💵 How to Save on Card Payments in the USA
Different banks convert payments in USD to your home currency at varying rates. The exchange is always based on the central bank rate, plus a fee charged by the card network and the bank’s margin. This margin covers system operations, staff, customer support, and profit. The margin on USD payments typically ranges from 2.5% to 4%, depending on the bank and card type.
You can save on this margin by using cards from companies like Revolut or Wise, where you can load dollars directly. These modern, branchless fintech companies operate with significantly lower overhead costs. Their exchange rates are comparable to those of the central bank (mid-market rate). Both services offer cards in digital and physical formats.
Compared to a debit card from a traditional bank, you can save up to $34 on every $1,000 spent.
💵 Option 1: Revolut
Revolut is a digital bank founded in the UK in 2015. It offers accounts in over 30 currencies, with exchange rates very close to the central bank’s rate.
Revolut offers Mastercard or Visa payment cards in both virtual and embossed physical formats. The Revolut Disposable Card is particularly noteworthy, as its number changes after each payment. I use it for various trial services online or one-time purchases. It allows successful card verification without risking unauthorized recurring charges.
I use Revolut for payments and purchases in foreign currencies, saving roughly $0.025 per dollar compared to my standard bank card. Additionally, all foreign payments are separated from my main bank account.
It is crucial to avoid currency exchanges to USD over the weekend (Saturday and Sunday), as Revolut charges an additional 1% fee on weekends. This fee protects against potential currency fluctuations that might occur when markets are closed. Revolut processes the exchange at the rate fixed at the time of the transaction but settles it when markets reopen.
A free Revolut account allows you to exchange up to €1,000$1,187
Converted using the exchange rate 1 EUR = 1.1866 USD as of February 16, 2026. (or currency equivalent) per rolling month without exchange fees. You can even set a limit order to purchase dollars only when the rate drops below a certain level. If your trip to the USA is months away, you can accumulate dollars gradually and potentially save even more.💵 Option 2: Wise
Wise, previously known as TransferWise, was founded in the UK in 2011. Accounts are managed via a mobile app or online interface. Opening and maintaining a Wise account is free, though money transfers and currency conversions incur a small transparent fee. Setting up an account usually takes about 15 minutes.
The virtual Wise Visa card can be used for payments immediately after account approval, with no additional fees for issuance. You can also request an embossed physical Visa card, which requires a small one-time shipping fee. The card typically arrives within two to three weeks.
Our company uses Wise for international payments. In our first year, we saved $170€142.90
Converted using the exchange rate 1 EUR = 1.1866 USD as of February 16, 2026. on transaction fees alone, with additional savings coming from exchange rates that match the real mid-market rate. -
Always Choose Settlement in Dollars at the Terminal
Some payment terminals and ATMs offer the option to pay in U.S. dollars or your home currency (e.g., EUR, GBP). In such cases, the screen will display the exact amount to be charged in your home currency.
If you are given the choice, always select payment in the local currency (U.S. dollars) so that your bank’s (or Revolut/Wise) exchange rate is applied. Choosing your home currency results in a less favorable rate determined by the terminal operator or merchant service provider. Based on my long-term experience, the difference can be up to 5% or more.
This option, known as “Dynamic Currency Conversion (DCC),” is something I have encountered in Austria, Portugal, and Greece as well. You can often ask your bank to block the DCC service entirely or simply remember to always choose settlement in the local currency.
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How to Pay by Card in the USA
When paying in a store, you may be asked whether your card is a debit or credit card. If you truthfully respond with “debit,” you might confuse the system or the cashier if you are using a non-US card. They are often unfamiliar with international card distinctions, and I was once even refused service because of this confusion.
It is generally better to say it is a “credit card,” even if it is technically a debit card. Some European debit cards are processed via the “credit” network rails in the USA (requiring a signature rather than a PIN). Americans are less accustomed to cards that strictly require entering a PIN for every retail purchase. If the payment fails, inform the cashier that a PIN needs to be entered.
Gas station pumps may also require you to input a ZIP code for security verification. Often, entering your home postal code (if it is 5 digits) or a common US code like 90210 will suffice.
If you are paying with a physical card on an older terminal, swipe the magnetic stripe through the terminal’s slot. The cashier might ask for an ID (such as a passport) and request you to sign the receipt.
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Dual Pricing and Using an ATM Instead of a Card
Merchants in the USA pay a fee to the card networks for each transaction. As a result, you might encounter a minimum purchase requirement for card payments or “dual pricing” (cash vs. card price). For example, I noticed this at a gas station, where card payments incurred a higher price per gallon than cash payments.
Some clubs, bars, and small restaurants do not accept payment cards at all (“Cash Only”). However, there is often an ATM available in the corner where you can withdraw cash.
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Prices in the USA Are Displayed Without Tax
Prices in the USA, with the exception of fuel or prescription medication, are always shown without sales tax. The tax is added to the total at checkout. For instance, if the price tag says $10, you might pay $10.89 at the register depending on the local jurisdiction.
The sales tax rate varies by state, county, and even city, which is one reason prices are displayed without tax. Another reason is that lawmakers want consumers to be aware of exactly how much tax they are paying to the government.
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FAQs About Paying by Card in the USA
Can I Tip with a Card?
Yes, most merchants allow tipping by card. You will often encounter a screen prompt during payment on the tablet terminal, asking you to add a tip. The screen might show preset options (typically 15%, 20%, 25%, or even 30%) as well as a “Custom Tip” or “No Tip” button.How Much Is the Fee for Card Payments in the USA?
I do not know of any major bank that charges a specific “transaction fee” just for the act of paying by card abroad, although it is not impossible. However, most traditional banks charge a “foreign transaction fee” embedded in the exchange rate or as a percentage (1-3%). Some merchants might add a surcharge for card payments, usually around 3%, especially for small transactions. The exchange rate used by your bank usually has a greater impact than any explicit fee. The best rates are offered by Revolut and Wise.What Are the Fees for ATM Withdrawals in the USA?
ATM withdrawal fees vary depending on your home bank, your account type, and the US ATM operator. The US ATM usually charges a surcharge (access fee) ranging from $3 to $7, which is displayed on the screen before you confirm the transaction. Your home bank may also charge a foreign withdrawal fee. Always decline the ATM’s currency conversion (DCC) and select settlement in dollars to avoid poor exchange rates.What Card Do I Use Abroad?
I use a Revolut card (mostly via Apple Pay) when abroad because it offers a better exchange rate. I also carry my Visa Infinite debit card and Mastercard World Elite credit card from my primary bank as reliable backups.
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