In this period we are receiving many questions about how to pay in the United States , but also specific questions about the use of cash, credit cards and prepaid cards in the USA: which of these payments should be used and under what circumstances? What is the preferred payment method for American retailers? How does a credit card work in the United States ? What are the approximate commission costs for withdrawing and paying by card? But above all, what is the most convenient payment method ?
We have decided to give the answers to these questions starting from some objective data and, where it can help, bringing our experience in this regard: we must certainly remember that the United States is a large and varied territory and that therefore situations can vary, especially regarding the possibility of paying with certain debit or prepaid cards or withdrawing with them at the counters.
Here are some recurring questions with their answers.
What is the most common payment method in the USA?
Have you ever wondered why in Italy at motorway toll booths very long queues form in front of the cash registers, while the cash registers where it is possible to pay with cards (without commissions!) are always deserted? I often ask myself this, and - leaving aside my instinctive judgments on the lack of intelligence of some of my compatriots - I come to the conclusion that the use of cards has not yet entered the habits and "forma mentis" of Italians: perhaps there is no we trust because we don't know how the credit card works , and therefore we are terrified that the terminal will eat the card with all our money...!
Here, unlike Italy, the use of credit cards in the USA is normal: this fast and effective payment method has entered the daily life of Americans, who pay with the card for both the turkey sandwich for 2 dollars and the television New for thousands of dollars. Therefore, in theory and in practice, the most frequent payment method in the USA consists of "swiping" the card. This doesn't mean that if you use cash they won't be accepted: it's just to describe a trend different from ours that, as soon as you get there, you'll immediately notice.
USA Credit Card: is it necessary to have it to go to the United States?
In general, the most used card in the United States is the credit card (the one with the numbers in relief, so to speak) and know right away that, even if you don't have to use it very frequently, it is highly recommended to carry one in your name . Why? How does a credit card work in the USA?
- The main reason why we strongly advise you to bring your credit card concerns its reliability: if your debit card or prepaid card is not accepted for any reason by a retailer, your credit card (of the Visa, Mastercard circuits , American Express ) will in any case be accepted and you can pay without problems.
- The second reason is advice inspired by common sense and concerns car rental . As you can read in our article on US Car Rental - apart from rare cases in which car rental with a debit card is permitted - you will not be able to collect the car you rented for your road tour if you do not present a credit card. credit in your name : this is a security measure that the agencies require, as stated in almost all regulations. In fact, you will have to calculate an amount determined based on the estimated rental costs as a security deposit to leave to the agency: this money will remain blocked on your credit card and, until you return the car (without damage!) you will not be able to use it .
- To be honest, we must also point out some very rare cases in which agencies - not without hesitation - can accept a security deposit in cash , but it is a route that we do not recommend you take, because you seriously risk being left stranded!
- Similarly, we point out that, in some cases, agencies can simply request your credit card details without requiring any deposit, therefore without blocking money on your card.
In this regard, I would like to point out that, among the various cards available, American Express offers advantages to those who travel often (travel insurance, the possibility of skipping queues at the airport, discounts on car rental, etc...), I talked about it in detail in a dedicated article, which you can read by clicking below.
How is it best to use the various payment methods?
Let's say you want to leave with just one credit card , with which you intend to pay all the expenses of the trip: what to do if, for example, the deposit requested by the rental agency is higher than expected? What if some hotel – as happened to me in New York – asked you for a deposit at the beginning of your stay in the facility? These are expenses that, if you have not foreseen adequately, could put you in difficulty with the other payments you will have to make during your holiday. How to solve this problem?
ATMs and Prepaid Cards in the United States: are they safe to use?
We have therefore understood that it is highly recommended to bring your credit card for obligatory expenses (car rental) and to keep it as a safe "life jacket" for any type of payment; in all other cases, our advice is to bring a prepaid card or debit card in the United States and use it to pay other expenses with these. Why use them ? Because, as we'll see, swiping them doesn't require a fee!
They are cards generally accepted by everyone in the USA, although in some cases it could happen that the payment is refused even though your card belongs to the most reliable banking circuits, i.e. Visa, MasterCard and American Express : be careful especially with Postepay and with of the Maestro circuit which, in some cases, can make you suffer a little.
And the cash ? Well, it's fun to handle dollars, and you can use them as much and whenever you want, but here are some tips to save some money:
- before leaving, make the euro-dollar exchange in Italy, looking for the cheapest rate - which probably won't be at the airport. Here is a useful euro-dollar converter ;
- bring a not exorbitant amount , just to survive the first few days of holiday;
- when you have finished them, do your accounts carefully and avoid making many and frequent withdrawals, since the commissions are high: you will have to pay those of the Italian bank, those of the American bank (even if there are various ATMs in which this commission does not exist ) and a currency exchange fee;
- withdraw the money with an ATM : in the USA the commissions for withdrawing with a credit card are decidedly higher;
- If you are out of cash, don't go and withdraw even just $10 right away! At the risk of appearing insistent… use the ATM! Swiping it won't cost you anything, there are no commissions! Otherwise, paying by credit card in the USA is obviously safer, but costs more.
Some advice…
- Ask your bank what the commissions are for spending outside the eurozone, just to get an idea of how to manage your cards, or perhaps to decide to get another one: some are designed specifically for trips abroad , just below we give you a specific example ;
- warn the bank that you will be abroad for a period of time: seeing all your unusual payments they may become suspicious and block your card;
- checking the commission costs a little, we noticed that online account cards are also a little more convenient than traditional ATMs. If you want to save as much as possible, you could consider buying one and bringing it to America (below we suggest an interesting card from this point of view).
Some interesting papers for those traveling abroad
As mentioned, there are some products that can prove advantageous for those traveling abroad. By way of example, I would like to point out some cards that seem particularly interesting to me: Hype, Wise, Revolut, YOU and N26 . These are primarily debit cards; YOU is the only one that is a credit card but, as you will see in the description, it has some important advantages, which make it perhaps the most interesting of the lot.
Hype
Hype is a well-known prepaid card (MasterCard circuit) distributed by Banca Sella which, with the Start account, gives the possibility of withdrawing money with a 3% commission on the MasterCard circuit exchange rate for all transactions in non-Euro currencies, including of which obviously the dollar (withdrawal in euros is free up to 250 euros).
Hype Start , designed especially for a young target, also has other interesting features that focus on ease of use:
- it has a dedicated app that allows you to carry out all operations without ever having to go to the bank
- allows you to exchange and receive money in real time with your friends, through an email or a telephone number
- it has no issuing cost
- has an IBAN to which the salary can be credited
- it can be topped up at no cost up to 15,000 euros per year
- allows you to pay directly with your smartphone in participating shops
- no management costs
- ability to manage your finances wisely with a system that allows you to set goals for automatic savings and notifications for when you spend more than you should
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