In the credit card country USA, you pay with “plastic money” for almost anything, from having a cup of joe and doing your grocery shopping to gassing up and paying parking fees. And making a hotel reservation or booking a rental car is virtually impossible without a credit card.
To help you plan your trip, here are a few credit card tips and things to consider before you fly off to the States.
Paying by Credit Card in the States
Credit card payments are standard for:
Renting a car
Gassing up
Paying road toll
Eating out
Booking a room
Paying for taxis
Using public transportation
Going shopping
Renting a Car
Rental car companies want to be on the safe side and will block a certain amount until you bring the undamaged car back, and then you’ll need to wait for additional few days for the bank to unblock your money.
Pro tip: Since blocking an amount on a prepaid credit card isn’t possible, make sure you have a charge card or debit card for your car rental.
Gassing Up
To pay directly at the pump, you’ll need to enter a US zip code and deposit your credit card before refueling. A certain amount will be blocked. This is to guarantee your payment. The actual charge on your card will happen several days later, leading to uncomfortable situations when money is blocked for days or even a week or two.
Paying Road Toll
Despite Route 66 and the concept of freedom, you’re not entirely free from all duties. There’s a road toll to pay on many car routes in the States, and credit card payments have become the norm at most highway entryways.
Eating Out
Paying by credit card for your consumption is possible across the United States, including the tip for the waitstaff (20 percent is typical).
Pro tip: Americans write the numbers one and seven slightly differently. Prevent confusion by paying attention.
Booking a Room
Factor in blocked amounts for hotel rooms as they may stay inaccessible for a few days after checking out. To speed up the process of getting blocked amounts released, you could call your credit card company or prevent issues beforehand by increasing your spending limit.
Paying for Taxis
Using a taxi in the states, you can pay by credit card and see the due amount on the Passenger Information Monitor (PIM). Swiping your card through the device and adding a tip will ensure you can get in touch with the driver later on, should you have forgotten something in the car.
Using Public Transportation
Paying at a ticket machine for public transportation by credit card isn’t just convenient, it’s even necessary sometimes when cash isn’t accepted.
Going Shopping
At supermarkets, you can swipe your credit card through a scanner and may have to sign, too.
The Most Widely Accepted Credit Cards in the US
VISA
MasterCard
American Express (AMEX)
Diners Club
JCB Card
VISA and MasterCard are the leaders, but you can use your AMEX card in some hotels, shops, and restaurants. It’s less straightforward with a Diners Club card and gets even more complicated with a JCB card. Therefore, it’s good to have a VISA or MasterCard besides Diners Club or JCB cards.
Credit Card Fees in the USA
Fees can include:
Cash withdrawal fees (usually between three and four percent of the withdrawn amount)
Foreign transaction fees (both fees for payments in USD and your home currency may apply and vary between 0.5 percent and two percent)
Conversion fees
Surcharge fees (applicable at some ATMs; you’ll be notified before withdrawing cash)
Annual fees
As for cash withdrawal fees, some ATMs ask you to agree on an individual extra fee, so pay attention to any warning on display. An offered conversion into your home currency is never beneficial to you either. Many ATMs don’t even accept debit cards, and Maestro card withdrawals can be costly.
Credit Cards Without Any Fees
It pays to compare credit card providers beforehand as some may not charge you any additional fees for use in the US.
Credit Card Limits in the States
Given that you’ll likely need a credit card to book a room or rent a car, with specific amounts being blocked for a while, it’s worth budgeting your expenses before your trip and increasing your credit card limits accordingly.
The Perfect Credit Card for Your USA Travels
When choosing the right card, think about the activities you have in mind. Do you like to pay cash? Make sure your credit card provider doesn’t charge you any withdrawal fees. Also, answer these questions:
How will you spend your vacation?
Will you book a room?
Will you rent a car?
If you drive around the States in a car, you’re going to gas it up every now and then.
Shortlisting credit card providers is easier if you consider the fees mentioned earlier, plus whether there is a billing model and how recognized the card is across the USA.
Further Preparations
Got the credit card that’s right for you? Now activate it for your vacation in America and ensure you have a PIN. You can tell your credit card provider when you come back to prevent fraudulent charges after your holiday.
Speaking of unauthorized transactions, you’ll be glad to have brought a second card with you in case of a blocked card due to suspicious activity. You don’t want to wait for a card replacement when you urgently need money. It’s also an excellent idea to have other payment methods like Google Play, Apple Pay, or Samsung Pay.
These payment providers are also good to pay for your ESTA application, the electronic US travel authorization.
Interested in going to the United States?
We recommend getting in touch with Dream of USA’s immigration experts.