Cash or card in the USA: Which is the best way to pay?

Planning a trip to the USA? You’re likely getting ready and working on your travel budget. While setting a spending limit for yourself is a good idea, it’s just as important to understand how people in the US typically pay. Unlike some countries that still rely heavily on cash, the USA has largely moved away from it, with card and mobile payments being the most common methods.

How often you'll use cash depends on where exactly you're travelling and what you plan on buying. We’ll cover this and go into more detail to help answer the question - which is more convenient, cash or card in the USA?

We’ll also show you a cost-effective way to handle your finances in the US with Wise. For any international purchases, online or in-person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* and great mid-market exchange rates.

How cash-centric is the USA?

The USA isn’t cash-centric at all, and it hasn’t been for years. According to a Statista report on preferred payment methods in the US, credit cards are the top payment method at the moment, but it’s predicted that mobile payments will overtake them by 2027.¹

At the moment, Americans use cash for around 12% of POS transactions. Credit cards account for over 40% of transactions, while debit cards make up around 30%.¹

Cash etiquette in the USA

The United States is famous for its tipping culture. People normally leave between 20% and 25% of the bill in restaurants, which is the minimum. It’s not unusual to leave more on top of that if you’re happy with the service.²

Tipping has become such an integral part of eating or drinking out that you actually show you’re not satisfied with the service by leaving a smaller tip. So, people still tip, but probably around 10%.²

If you’re at a bar, it’s standard practice to tip 1 dollar per drink, or more if you’re having cocktails. Don’t forget to tip your taxi drivers, hairdressers and food delivery people, too.²

Cash or card in the USA - the comparison

We’ve listed some common situations where you’ll be paying for things in the USA. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card	Cash
🚕 Taxis3	Yes	Yes
🚗 Uber or Lyft3	Yes	No
🍽️ Restaurants and bars	Usually, yes	Usually, yes
🏙️ Empire State Building tickets4	Yes	Yes
🏰 Disney World tickets5	Yes	Usually, yes
🚌 Public transport6	Sometimes	Yes

Want to work out exactly how much things cost? Explore our live USD exchange rate currency converter.

Using your card at an ATM in the US

ATMs in the USA look and work just like those in the UK and in Europe. There are over 450,000 of them at the moment and you can easily find one in big cities, at gas stations and in malls and even in smaller towns. However, if you plan on staying in a more rural area, it's a good idea to withdraw some cash in advance.

Limits at US ATMs depend on the bank. On average, you can expect between 400 and 1,000 USD per transaction.⁷

Will my UK debit card work in the USA?

Yes, all major card brands are accepted in the USA. However, additional fees will likely apply for using your card abroad, so make sure you check this with your bank.⁸

Can I use my UK credit card in the USA?

Yes, you can use your UK-issued credit card in the USA. Try not to use it for withdrawing money, as this may result in a higher fee.⁸

Reasons to use cash in the USA

If you’re visiting a big city, you’ll be able to use your card almost everywhere. However, you might want to use cash for smaller purchases or for giving cash tips.

Also, using cash might make it easier for you to stick to your budget. If you can see how much money you have left at all times, it’s less likely that you’ll overspend.

Reasons to use credit or debit cards in the USA

Cards are the more practical and more convenient choice. You won’t have to worry about exchanging currency or scheduling an ATM visit. All major card companies are accepted in the US, so you’ll be able to spend like you do back home.

Lastly, let’s not forget that cards are much safer than cash. Carrying large amounts of cash anywhere makes you an easy target for pickpockets, and if lost or stolen, it’s nearly impossible to recover. With a card, you can quickly freeze your account and report unauthorised transactions.

Are contactless card payments common in the USA?

Contactless payments are very popular in the US, with over 50% of Americans using them. This includes both cards and mobile wallets. Contactless payments are most commonly used when buying groceries, followed by pharmacies and retail shopping.⁹

Unlike many other countries, there’s no limit for contactless transactions in the USA. However, merchants still might ask you for PIN verifications for purchases over 100 USD.¹⁰

Your Wise card can also be used for contactless payments in the US. If you don’t want to carry multiple cards with you, you can get the Wise virtual card with the same features.

Get your Wise virtual card 💳

Other payment methods in the USA

Besides the traditional cards and cash, other payment methods are available in the USA.

Mobile payment

Americans commonly use e-wallets, with over 150 million having used one so far. Popular global platforms like PayPal, Apple Pay, Google Pay, and Venmo are widely accepted in the USA.¹¹

If you plan on using any of these wallet apps during your trip, make sure you update them before you leave to avoid any issues.

For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, too.

Buy now pay later options (BNPL)

BNPL (Buy now pay later) methods are a popular alternative to credit cards in the USA, especially among young people. Some well-known providers, such as PayPal, Affirm, Afterpay and Klarna, allow you to pay for your purchases in installments.¹²

These companies offer either interest-free repayment or minimal fees. Either way, this can be a great option for delaying a larger purchase while managing your budget more effectively.¹²

What is the best way to pay in the USA: cash or card?

If you have to choose between cash or card in the USA, a card is the better option. It’s more convenient and much safer, whereas carrying cash increases the risk of pickpockets.

However, it’s still a good idea to carry some dollars for smaller purchases or leaving tips. This way, you’ll always have a payment option for any situation.

Spend like a local in the US with Wise

Cards and cashless payments are the primary payment methods in the USA. Although cash is slowly becoming less common, it’s still wise to carry a small amount to be prepared for any situation.

And if you want to spend like a local in the US and 150+ countries, without worrying about exchange rates and hidden fees, the Wise card might be just the thing you’re looking for.

The Wise card can be used for all international payments, including accommodation costs and daily expenses. It automatically converts the currency at the mid-market exchange rate with only a small, transparent currency conversion fee*.

Learn more about the Wise card 💳

You can also use it to easily withdraw cash from the ATMs in the USA. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP.

Cash or card in the USA - FAQs

To summarise, here are some of the most frequent questions about using cash or cards in the USA.

How cashless is the US?

The US is quite cashless, with credit and debit cards being the most popular payment methods.

Is it safe to carry cash in the USA?

It depends on where exactly you’re travelling to, but it’s not advisable to carry larger amounts of cash with you.

Can you use a UK debit card in the USA?

Yes, you can use your UK-issued card wherever card payments are accepted.

Should you exchange money before you travel to the US?

There’s no need to exchange money before travelling. You can do so once you arrive or use a card which will convert currency automatically, like the Wise card.

Do taxis in America take card payment?

Yes, you can pay by card in US taxis.

How much money do you need for a week in the US?

This largely depends on your own spending habits and where exactly you’re going. For reference, the average price of a cup of coffee in the USA is around £4.20, a pint of beer is about £4.80, while a three-course meal for two is just over £60 on average.¹³

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Sources used:

1. Statista - Biggest POS payment methods in the US forecast for 2027
2. Qantas - guide for tipping in the US
3. NerdWallet - using your card in an Uber
4. Empire State Building - Empire State Building ticket prices
5. Disney World - payment at Disney
6. USA Hello - using public transportation
7. ATM Fee Saver - ATMs in the USA
8. Finder - travel money in the USA
9. CNBC - Mastercard contactless survey
10. Clearly Payments - contactless payment market overview
11. Pay.com - payment methods accepted in the US
12. Statista - BNPL services in the US
13. Numbeo - cost of living in the USA

Sources last checked on date: 04-Feb-2025