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.

Key takeaways