Spending money in the USA — cards, ATM fees, and the tipping system explained

The United States is one of the easiest places in the world to use a card — contactless, chip-and-PIN, and mobile payments are universal. The traps are specific: out-of-network ATM fees ($3–5), the tipping system, and gas station card quirks. A zero-forex card and minimal ATM use is all you need.

The US card landscape

The USA has near-universal card acceptance. Contactless has grown dramatically since 2020 — Apple Pay and Google Pay work at most retailers, restaurants, and transport. Chip-and-PIN cards from the UK work fine; US terminals are set up for both chip-and-signature and chip-and-PIN. Your Starling, Wise, or Revolut card works everywhere a Visa or Mastercard is accepted.

ATM fees: the main cost

Out-of-network ATM fees of $3–5 are charged by the ATM operator on every foreign card withdrawal. Chase ATMs charge non-Chase cards $3. Bank of America: $3. Wells Fargo: $2.50. Plus your card's own forex fee on top. The cheapest ATM access for UK visitors: use Allpoint ATMs (free or cheap for many cards, inside CVS and Walgreens) or minimise cash use entirely. Charles Schwab (US) reimburses all global ATM fees — if you're American, this is the definitive solution.

Tipping: the system and the numbers

Tipping is not optional in the USA — it's how service industry workers are paid. Servers in restaurants typically earn $2–$5/hour base salary, with tips making up the majority of income. Standard tips: 18–20% at sit-down restaurants, 15% for counter service if prompted, $1–2 per drink at bars, 15–20% for taxis and rideshares, $2–5/night for hotel housekeeping. Card terminals now default-suggest 20–25% or higher — read before you tap. Skipping the tip when prompted is noticed.

Gas station cards: the quirk

US petrol stations (gas stations) often require a US zip code for card-at-pump payment as a fraud prevention measure. Foreign cards without a US zip code may be declined at the pump. The fix: go inside and pay the cashier — they can process any Visa or Mastercard. Some gas stations also add a $100 pre-authorisation hold on card-at-pump payments, which releases after the transaction settles.

Best cards for USA visits

For UK visitors: Starling Bank is the top pick — zero forex fees, no Starling ATM fee (though the US ATM operator still charges $2.50–3.50). Wise is equally excellent. Neither completely eliminates the US ATM operator fee, but paired with Allpoint ATMs (in CVS/Walgreens — check if your card is in the Allpoint network), you can get close to fee-free. For American travellers: Charles Schwab is non-negotiable — unlimited ATM rebates plus zero forex fees.

How much cash do you actually need?

Less than you think. The USA is the world's most card-friendly major economy. You need cash for: farmers markets, small food trucks without card readers, some parking meters (though most now take cards or apps), cash tips at bars and for hotel housekeeping. $50–100 in cash is usually sufficient for a week-long US trip. One ATM withdrawal covers most scenarios.

Sales tax: the hidden addition

Unlike the UK and EU, prices in the USA are displayed without sales tax. Tax is added at checkout and ranges from 0% (Oregon, New Hampshire) to 9–11% in some states (California, Tennessee, some cities). On a $50 restaurant meal in New York City, you'll pay $50 + 8.875% tax + tip = approximately $65–68 total. Always factor tax into your mental price estimates.

The tipping economy and its cash requirements

The US tipping system requires more cash than most travellers expect. Tipping is not optional at sit-down restaurants — it is the primary component of service staff income. 18–22% is the standard expectation at full-service restaurants. Bar tabs get $1–2 per drink. Hotel housekeeping gets $3–5 per night (left in the room). Valets, bellhops, and concierge staff each receive $5–20 depending on the service. Rideshare and taxi drivers typically receive 15–20%. Nail salons, barbers, and beauty services get 15–20%. While most point-of-sale systems now include tip prompts for card payment, cash tips are preferred in some contexts. Budget $30–50 per day in small bills for tipping on a typical tourist trip.

Sales tax: the US pricing trap

US prices displayed in shops and on menus almost never include sales tax. Tax is added at the register. The rate varies by state and sometimes by city: Oregon has no sales tax; California's is 7.25–10.75%; New York City's is 8.875%. For a $200 purchase in San Francisco (combined rate approximately 8.625%), the actual cost is $217.25. For a $3,000 electronics purchase, the tax can add $200–300. This is relevant for budget planning: double the potential tax impact when planning large purchases. Tourists cannot claim US sales tax back (unlike EU VAT refunds), so what you pay is what you pay.

International card use at US point of sale

US payment terminals have historically caused difficulties for international cardholders due to two quirks: some terminals prompt for a US ZIP code when processing cards (enter 00000 if your card has no US ZIP), and some self-service terminals (petrol stations, parking metres) still have only magnetic stripe readers. Modern US terminals now universally support chip-and-PIN, and Apple Pay and Google Pay work smoothly at any NFC terminal. Contactless payment adoption has been fast since 2020 and most major US retailers (Walmart, Target, CVS, Walgreens, Starbucks) support tap-to-pay reliably.

Healthcare costs: travel insurance is non-negotiable

The US healthcare system is the world's most expensive. An emergency room visit for a minor injury costs $500–2,000 before any treatment. A broken bone requiring surgery can cost $20,000–80,000. A serious accident or illness can result in bills exceeding $500,000. UK travellers are not covered by NHS for US treatment. Comprehensive travel insurance with a high medical limit (at least £5 million, ideally unlimited) is essential for any trip to the United States — not optional. Check your card's insurance policy limit and exclusions before travel. If your card offers £2 million in medical cover, it is inadequate for the US.

USA money summary

The United States requires the most active financial management of any major English-speaking destination. The tipping economy means cash is more necessary than in Europe or Australia. Sales tax means prices are always higher than displayed. Healthcare costs mean travel insurance is genuinely non-negotiable. ATM fees are among the highest in the developed world. Despite all this, the practical setup is manageable: zero-fee card (Starling, Chase UK, or Wise) for all purchases, $150–200 cash on arrival from a major bank ATM for tips and incidentals, comprehensive travel insurance with at least £5 million in medical cover, and Apple Pay on your phone for contactless use at major US retailers. Keep a credit card as backup for Section 75 protection on large bookings and pre-authorisation holds at hotels and car hire desks. The US financial environment is simply more expensive and more fee-laden than Western Europe — but it's entirely navigable with the right tools.

Health insurance and the US system for visitors

The US has no universal healthcare system that covers foreign visitors. NHS coverage ends at the UK border. A single ambulance ride in New York City costs $1,000–3,000 without insurance. An ER visit for a broken arm: $5,000–15,000 before treatment. A week's hospital stay for a serious infection: $50,000–200,000. These are not edge cases — they are the actual cost of uninsured US medical care. Travel insurance with comprehensive medical cover (minimum £5 million, ideally unlimited) is genuinely non-negotiable for US visitors. Check whether your card's included travel insurance meets this standard — many do not, with medical limits of £2–3 million that are inadequate for major US medical incidents. Standalone travel insurance from Direct Line, Allianz, or AXA typically provides higher and more appropriate US medical limits.

Eating affordably in the United States

Eating affordably in the US is possible with the right approach. Chain fast food (In-N-Out in California and the Southwest, Five Guys nationwide, Shake Shack in cities) is decent quality at £6–10 per meal. Grocery stores (Whole Foods, Trader Joe's, Kroger, Walmart Supercenter) have extensive prepared food sections with hot meals, salad bars, and deli counters at reasonable prices. Diners — the American lunch counter institution — typically serve large breakfasts for $10–15. The expensive US food is sit-down dinner at mid-range and above restaurants, where the bill with obligatory tip routinely reaches $50–80 per person. Combining grocery-bought breakfasts and lunches with one dinner out per day keeps daily food costs to $40–60 rather than $100–150 for three restaurant meals.

Key takeaways