If you’re off to explore America, you’ll want a debit card that you can use with ease and avoid expensive fees. This guide will explore how you can use a debit card in the US, which is best for the job and whether or not you still need to take cash.
Can you use your UK debit card in America?
You can use any Mastercard or Visa-branded card in America, though it’s best to check whether or not your debit card charges a foreign transaction fee before using it. Foreign transaction fees are typically around 2.99% of the purchase amount, and there are usually fees for withdrawing cash abroad as well.
However, some banks don’t charge fees for spending abroad. If yours isn’t one of these, it could be a good idea to open a separate account with one of these and use this card instead of your main bank account to avoid those sneaky charges. Check out our guide to debit cards with low transaction fees.
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Revolut's our pick as the best all-in-one finance app because it has a range of features on top of what you'd expect from a current account. You're able to invest in shares, commodities and even crypto from the app, which could help simplify someone's finances if they want it all in one place. You can also add travel insurance at the touch of a button, make international payments, hold different currencies and receive your salary early. Oh, and you get a generous welcome bonus when you sign up as well.
Pros
Low overseas fees
Quick sign-up
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked Revolut <18 account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
Monzo is a go-to for many travellers as it’s a free account which has no foreign transaction fees and uses Mastercard’s exchange rate, which is typically low. You can also make fee-free ATM withdrawals, but with some limitations. If Monzo’s your main bank account - as in at least £500 was paid into your Monzo account over the last rolling 35-day period and you have at least 1 direct debit - you can make fee-free withdrawals outside the EEA up to £200 every 30 days (3% afterwards). If you happen to have Monzo Plus, Premium, Perks or Max, the amount you can withdraw fee-free is higher.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Pros
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Cons
Free ATM withdrawals outside the EEA limited to £200,
£1 fee for depositing cash at PayPoints,
Maximum cash deposit of £1,000 every 6 months
No rewards program
Minimum opening balance
£0
Switch service guarantee
Yes
Account fees
£0
Overseas card transactions
0%
Overseas cash withdrawals
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
There’s always the option to opt for cash when you’re travelling, and that’s no different for America. While most transactions in the US can be completed using your card, cash is still useful to have for small establishments or paying for tips. To get a decent rate, make sure to exchange your currency before heading to the States. You’ll find that rates tend to be higher if you’re exchanging money at the airport.
Prepaid travel cards
All prepaid travel money cards will allow you to load and spend in US dollars. The main advantage of using a prepaid travel card is that you can lock in an exchange rate when you convert GBP to USD. You can also avoid foreign transaction fees that some debit and credit cards charge. While Visa, Mastercard and American Express are accepted everywhere, if your travel card doesn’t have your name printed on the front, the merchant may reject it – although this tends to only happen in smaller shops. Also, watch out for initial load fees, reload fees and inactivity fees.
Credit cards
Credit cards are extremely common in America, and there are no issues with Visa, Mastercard and American Express acceptance. You can use your credit card for purchases and cash withdrawals – although cash withdrawals often come with cash advance fees, so it’s best to avoid this if possible. Like with debit cards, you might be charged a foreign transaction fee by your UK card issuer, so it’s always best to check this before using your card stateside. Contactless payment terminals are common at places like Walmart, Target, Kmart and other major retailers.
US tipping culture
The US has a strong tipping culture to substitute for low wages. You’ll need cash to tip, especially if you’re at a bar, restaurant, club or hotel. A gratuity of 20% to 25% on top of the bill (before VAT) is standard. Some places will add the tip to the bill, especially if you’re with a large party. If this happens, you’re not required to pay extra.
Beyond restaurants and bars, you should be tipping other service people, including taxi drivers, beauty therapists, porters and delivery drivers. 10% is the accepted minimum amount, but 20% is customary.
Bottom line
It’s very easy to use your debit card in America, with most retailers, bars and restaurants accepting card payments. It’s always a good idea to check that your banking provider doesn’t charge any fees for overseas spending before you travel. However, if they do, there are plenty of banks and banking apps which don’t.
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Kate Steere is an editor at Finder, specialising in fintech, banking and cryptocurrency. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run. See full bio
Kate's expertise
Kate has written 141 Finder guides across topics including:
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