The local currency
The official currency of the United States is the dollar. Some areas in the United States near the border with Canada accept Canadian money. However, generally, you should only use American dollars, as very unfavorable exchange rates will be applied when paying in another currency. Other foreign currencies are not accepted.
Characteristics of the US Dollar (USD)
| Popular names and denominations | American dollar, US dollar, dollar and cents, “buck” |
| Symbols and abbreviations | USD, US$, $ |
| 1 USD | One dollar is composed of 100 cents. |
| USD Coins | Values below $1 are coined in coins. You will find values of 1, 5, 10, and 25 cents. You will also find one-dollar and half-dollar coins, but they are not very common. The half-dollar is a collector’s item. |
| USD Banknotes | Dollar bills are in denominations of 1, 2, 5, 10, 20, 50, and 100. All are quite common, except the two-dollar bill. It is in circulation, but it is not very common. Recently, many bills with additional security features such as microprinting, coloring, and larger designs have been issued. If you return to the US with old bills, your bank may reject changing them due to a concern about counterfeits. |
Exchanging Money in the United States
When it comes time to exchange your money to dollars, you have several options.
The best option is usually to use an ATM. ATMs apply the interbank exchange rate. This is the average between the buy and sell value in the global currency market, so you can take it as the “real” one.
If you are looking for alternatives to using ATMs, you will find currency exchange booths at airports and hotels. The convenience of finding them in these places, however, has a cost, and this lies in the fact that these providers modify the exchange rate and charge you hidden fees. Additionally, you also run the risk of them rejecting your bills if they are torn or in poor condition.
Since the US dollar is a widely used currency, your own bank in your home country may be able to offer you the opportunity to exchange money to that currency before you start your trip, and you can then arrive in the US with some cash in dollars. If you plan to exchange money more than once, your bank is likely to have a collaboration agreement with one of the US banks. With this type of agreement, you will avoid the US bank charging you transaction fees in foreign countries or additional fees for withdrawing money from their ATMs.
Traveler’s Checks in the United States
Traveler’s checks used to be the safest and most widely used option for carrying money abroad. However, ATMs have surpassed them, and in comparison, it is an inefficient way.
Use of credit and debit cards in the United States.
Most debit and credit card providers are accepted throughout the US, and many of them are American in origin. Regardless of which bank you are with, you should be able to use your own card in most places. Even cards from smaller providers will probably be accepted. Just remember to communicate with the issuer of your card before you travel abroad to avoid your card being canceled for suspicious activity abroad.
In the US, credit cards are king. Visa, MasterCard, and American Express are the most widely accepted cards. Check which ones have transaction fees for use abroad so you can plan ahead for the costs of using them. Sometimes one card provider will be better for you than another.
In small establishments, you will often find a minimum limit below which they won’t let you pay by card. It is not very common, but there are establishments that only accept cash payments. Always carry some small bills with you for tips, minor purchases, tolls, and transportation expenses.
Always choose the “Withdraw in dollars” option instead of withdrawing in your own currency at ATMs. Otherwise, you are giving the ATM permission to modify the exchange rate. This is known as “Dynamic Currency Conversion” (DCC) and usually results in unnecessary fees.
ATMs in the US.
There are over 425,000 ATMs throughout the US. 48% of these are owned by financial institutions and the remaining 52% by independent operators. The latter can usually be found near supermarkets and small establishments, as well as in busy streets. You can expect to pay additional fees for withdrawing money at these ATMs.
Fees will be lower, or at least displayed more transparently and comprehensibly, at ATMs owned by large commercial banking operators and post offices. To plan ahead, you can use an ATM locator to find the ATM of the bank that is best for you. Here are links to the locators for MasterCard, American Express, Maestro, and Visa.
Banks in the US
Many of the world’s major banks are American, so you won’t have any difficulty finding bank branches almost anywhere you go. Whether it’s a large city, a smaller one, or a rural area, the financial infrastructure in the US is well developed. Banks usually open until 5pm and on Saturdays until 12pm. If your bank is one of the global banks, it is very likely that you will find an affiliated bank in the US. These are the main commercial banks in the United States:
The main commercial banks in the United States:
Most foreign banks have branches in the US.
