How to Spend Your Money in the USA: A Visitors Guide
With infamous cities like New York, and Los Angeles and breathtaking natural wonders, travelling to the United States will be a life-changing experience.
To make your trip to the USA as smooth as possible, it is important you know how to manage your finances whilst in the US.
With the information in this blog, you will be able to confidently manage your money for your American trip, decide which options are the best for you, and maximise your travel budget to make the most out of your adventure.
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Table of Contents
What is the Currency Used in the USA?
The official currency used in the United States is the US Dollar ($). It is commonly known for its symbol '$' and the abbreviation 'USD'.
The US Dollar was established as the currency for the USA in 1792.
Since its establishment, the US Dollar has become the most used currency all over the world.
The banknotes that are most frequently used in the USA include $1, $5, $10, $20, $50, and $100.
What is the Best Way to Get Your Money to the USA?
Planning ahead is crucial when taking money to the USA. Here are the most effective ways to take money to America:
Getting More Value with Prepaid Travel Money Cards
Prepaid travel cards can be an excellent option for tourists.
These cards, specifically made for those who like to travel abroad/to the USA, allow people to load US Dollars in advance of their trip and use it similarly to a Debit or Credit Card.
Providers of Travel Money Cards will usually offer more competitive exchange rates to customers and the card can be reloaded online when a person needs to (even when you're in the USA).
There are various providers of travel money cards available, including ourselves at EasyFX, and all come with different benefits, so it is worth researching before committing to the right one for your US trip.
If you have further questions about prepaid travel money cards, you can talk to our amazing team today to get the answers you're looking for!
Advantages of Prepaid Travel Money Cards
- Competitive exchange rates (better value for your money on the USD exchange rate).
- Protection against theft as the amount loaded is the only amount at risk.
- Easy to monitor spending via associated travel money card apps.
Disadvantages of Prepaid Travel Money Cards
- Some travel cards charge withdrawal/transaction fees, similar to using a bank debit or credit card, which we'll get into below. Luckily, the EasyFX travel money card doesn't apply fees for withdrawals or transactions.
- Travel Money Cards aren't as widely accepted as traditional bank cards, depending on who provides them. The EasyFX travel card, supplied by MasterCard is accepted when used in the USA.
Should you Exchange Currency Before Travelling to the USA?
You may want to take some cash in USD before arriving in the USA, especially for small expenses such as tips, taxis, or public transport where card payments might not be as convenient.
Exchange rates from banks, or airport kiosks are usually the most expensive options here (less favourable customer rates) if you are looking to exchange currency before you travel, it is advised to shop around and utilise independent currency exchange services, or some supermarkets that offer better USD exchange rates.
Advantages of Exchanging Currency Before Travelling
- Handy to have cash as soon as you arrive in the USA for smaller purchases.
- Removes the pressure of needing to find an ATM on your arrival.
Disadvantages of Exchanging Currency Before Travelling
- Risk of carrying a large amount of cash during your journey (potential loss or theft).
- Less favourable exchange rates if you exchange currency at the airport or use a high-street bank.
Is Withdrawing Cash from ATMs in the USA the Better Option?
Many tourists who travel to the USA wait until they arrive to get cash for their trip.
This approach allows people not to carry large amounts with them whilst travelling (less stress1) but, it must be noted, that depending on the card you use, you may be hit with overseas withdrawal fees.
If you're withdrawing money using your regular bank cards, your bank may apply a fee for withdrawing cash from ATMs in the USA.
ATMs in the US may also apply their own fee to make a cash withdrawal.
This is why using a card that offers fee-free international withdrawals is key as it will help you save money.
Advantages of Withdrawing from ATMs when in the USA
- No need to carry excess cash when travelling.
- Access to more favourable exchange rates when in the USA.
Disadvantages of Withdrawing from ATMs when in the USA
- Be aware of withdrawal fees before doing this option.
- Some ATMs may have withdrawal limits in place.
Spending Money in the USA: Popular Options
In today's digital world, there are more ways to pay and spend money abroad than ever.
But which is the best option for a trip to the USA?
Let's take a look at the most popular ways in more depth...
Using Cash to Spend in the USA
Having cash on hand during your US travels is useful for small purchases, tips and places that may not accept card payment (rural areas, potentially small businesses).
In the USA, tipping is customary, and cash is often the preferred way to do so!
Using cash for spending will also be handy for street vendors and parking meters if you're driving to different US locations.
However, for larger transactions, cash may not be the best option, after all, relying heavily on using cash for all of your trip's spending comes with its risks.
Advantages of Using Cash to Spend in the USA
- Great for small transactions, tips, and potential emergencies.
- No fees for using cash as payment internationally.
Disadvantages of Using Cash to Spend in the USA
- Risk of theft or loss.
- Difficult to recover if stolen or lost.
- Not ideal for larger purchases (and the stress of carrying large amounts on you)
Using a Credit Card to Spend in the USA
The USA is one of the most card-friendly countries in the world, with most major credit cards being accepted almost everywhere, from restaurants and shops to transport services and most street vendors.
Advantages of Using a Credit Card
- Widely Accepted in the United States.
- Potential rewards for international spending.
- Reduces the need to carry large amounts of cash on your US trip.
Disadvantages of Using a Credit Card
- Some banks may charge you per transaction for using your credit card in the US.
- There is still a risk that smaller businesses in the US may not accept certain credit cards.
Using a Debit Card to Spend Money in the USA
Debit cards can also be used for purchases during a trip to the USA.
However, it must be noted, that debit cards can also come with transaction fees, sometimes higher than the use of a credit card. These can be around 2% to 3% of the transaction amount, depending on who you bank with.
Some banks do offer debit cards that have the benefit of no overseas transaction fees, so it is worth looking into the details of your current bank before you leave and potentially finding an alternative.
Advantages of Using a Debit Card in the USA
- Convenient and widely accepted in the United States.
- Avoids the risk of carrying cash.
Disadvantages of Using a Debit Card in the USA
- Transaction fees are common.
- Less overall protection than credit cards.
Mobile Payment Apps for Your USA Spending
Another alternative for spending money in the USA is to utilise the now very common mobile payment apps that are available.
Contactless payments are incredibly popular in the USA, especially in busy, bustling cities. If you have your bank card is linked to Apple Pay, Google Pay, etc. then you will be able to use it at most retailers that accept contactless payments.
Most stores and restaurants in the US accept contactless payments so it makes it a secure and convenient option.
Of course, although contactless, you will still be technically using your credit or debit card to make a transaction abroad... So fees as mentioned above will still be something to be aware of!
Advantages of Using Contactless Payments in the USA
- Quick, convenient and secure.
- No need for cash or to use your physical card.
Disadvantages of Using Contactless Payments in the USA
- Some places may not accept contactless payments.
- Dependent on having a charged/working device (always have a backup way to pay!)
- International transaction fees if using your connected bank card will still apply when using contactless payment.
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So, what is the best way to spend money in the USA?
When all is said and done, typically the best way to spend money whilst on your trip to the USA is to use both Cash and Card payments.
This is because you can tailor more easily to both potential small payments and larger ones.
Utilising both of these options while in America will allow you to not carry too much cash lowering any potential risks and having more security with the rest of your funds available via a card, whichever you decide is best for you between a travel money card, debit, or credit card.
Our Advice for Spending Money in the USA
For your American adventure, we suggest taking a small amount of cash around $100-$200. This can be used for tips and smaller purchases during your trip.
Larger payments can be relied upon using a card that suits your requirements best but ultimately, you want one that has no fees for withdrawals or transactions when used in the USA.
This combination will minimise risks, and fees, and have the safety net of cash when it is ever needed.
Final Things to Consider if You Use Your Bank Card in the USA
Using your bank debit/credit card in the USA is straightforward, but it is important to be aware of the following key points:
Foreign Transaction Fees
Most UK banks will apply fees for foreign transactions and ATM withdrawals. It is important before you leave for the USA that you check how expensive these fees are. If the fees are high, it may be better to look or apply for a card with cheaper fees, or no fees for use internationally, like the EasyFX Travel Money Card.
Notify Your Bank
To avoid your bank card being blocked for suspicious activity, inform your bank that you'll be travelling to the USA. You should be able to do this online or via mobile banking apps.
Exchange Rates: Which currency should you pay in?
When making purchases in the USA with your bank card you may come across a choice where you can either be charged in USD or have it converted via 'dynamic currency conversion' to GBP and pay in Pound Sterling.
Make sure you always get charged in USD, choosing to pay in GBP straight away will lead to the purchase being much more expensive than allowing your bank to do the conversion, which usually works out at a much better rate.
The Best Ways to Spend Money in the USA: A Summary
Spending money in the USA as a tourist can be simple and stress-free with a bit of preparation before the trip.
A combination of a prepaid travel money card alongside a small amount of cash to hand will allow you to cover most expenses without incurring unnecessary fees along the way.
Debit and Credit cards can be used in the USA but it is important to make sure you check the fees associated with the bank you are with and inform them of your travel plans to the US to avoid your card potentially being blocked.
By planning how to manage your money in advance, you can focus on enjoying all of the exciting experiences in America that await you!
Travel Money in the USA, Made Easy, with EasyFX
At EasyFX, we specialise in everything foreign exchange and help thousands of customers with their money worldwide, including the United States.
Whether you're a frequent traveller or go on holiday a couple times a year, you can avoid high international transaction and withdrawal fees with the EasyFX travel money card that can cater to 13 different currencies in multiple popular destinations all over the world.
With an Excellent Trustpilot rating from thousands of happy customers, you can trust us with your holiday funds.
We are also regulated and authorised by the FCA, FSMA and FINTRAC, giving customers peace of mind that their money is always safe and secure in segregated client accounts.
If you want to learn more about our travel money card or you need to send money to the USA, please talk to our team of foreign exchange experts today or sign up for an account in less than 15 minutes.
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Need to send money to the USA? We can help!
At EasyFX, our goal is to make international money transfers affordable, smooth, and easy, for everyone. Whether a small transfer or large transaction, we can cater to all types through our money transfer app, or our expert brokers, who are ready to find you the best rate available, saving you money.
If you'd like to receive a free transfer quote, please contact our team today!
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