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.
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.
Revolut Standard
8.9 GreatRevolut'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 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.
Monzo Current Account
9.3 ExcellentMonzo 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.
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.
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 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.
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.
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.
New to Starling? See if you can keep some more money in your pocket with our promo codes and special offers.
Discover whether Kroo’s account and card could work for you.
New to Revolut? Check out what it offers and see if you can save more with our discount codes and deals.
The UK’s first digital bank, smile is known for its role in past technological innovations in banking. While it was on the cutting edge of banking in the late 90s, is it still today?
With a current account from The Co-operative Bank, you’ll get access to worldwide travel insurance from AXA, UK and European breakdown cover from RAC, everyday rewards and the option to have a greater degree of control over your spending.
Ireland’s largest financial services group offer a variety of eye-catching features with their current accounts, including cashback rewards.
Copenhagen-based Danske Bank has a current account for everyone, from 11-to 17-year olds to those wanting fee-free cash withdrawals in non-sterling currencies. You can earn a £7 cash reward paid into your account each month, zero interest and fees on the first £100 of an overdraft and favourable interest rates on personal loans.
Metro Bank’s main current account is great for overseas travelling, as it offers zero charges for use in Europe. We’ve put everything you need to know about the account in this guide.
If Starling doesn’t sound quite right for your needs, have a look at these alternative options for day-to-day banking, travelling and saving.
There are a number of cards and banking apps similar to Revolut that you can use in the UK, so we’ve put together a list and compared their features for you.
