What Currency Is Used in the USA? A Guide to the US Dollar

If you’re planning a trip to the United States, knowing a bit about the local currency – the U.S. dollar (USD) – can make things easier. The U.S. dollar is used across all 50 states and is recognised worldwide.

Here’s a simple guide to help you understand the dollar and use it comfortably during your travels.

‍

Understanding the U.S. Dollar (USD)

The U.S. dollar is the official currency of the United States. It’s represented by the "$" symbol, and the international code is “USD.”

The dollar is divided into 100 smaller units called cents, making it easy to handle transactions for everyday purchases.

‍

Denominations of the U.S. Dollar

The U.S. dollar comes in both coins and banknotes, each with distinct designs.

• Banknotes include $1, $5, $10, $20, $50, and $100. Each note features images of American leaders or landmarks.
• Coins come in denominations of 1 cent (penny), 5 cents (nickel), 10 cents (dime), and 25 cents (quarter). There are also 50-cent (half dollar) and $1 coins, although these are less commonly used.

‍

Using the U.S. Dollar in Daily Transactions

In the USA, cash is often used for smaller purchases, while credit and debit cards are accepted nearly everywhere.

• Cash is perfect for small purchases, markets, and tips.
• Credit and debit cards are widely accepted in hotels, restaurants, and shops.
• Digital payments through Apple Pay, Google Pay, and similar platforms are also increasingly popular.

‍

Currency Exchange Tips for Travellers

Exchanging currency in the USA is simple, with banks, currency exchange counters, and ATMs widely available.

• Banks and exchange counters at airports and in cities offer reliable currency exchange options.
• ATMs are a convenient way to withdraw cash, with competitive exchange rates. It’s best to check with your bank for any associated fees.
• If you have a credit card with no foreign transaction fees, consider using it for larger purchases to avoid exchange fees.

‍

Understanding the Value of the U.S. Dollar

The U.S. dollar’s value can fluctuate due to global economic factors, so it’s helpful to check current exchange rates.

Having a general idea of the dollar’s value before your trip can make budgeting easier and give you a better sense of your spending power.

‍

Handling and Recognising U.S. Currency

The U.S. dollar includes several security features to prevent counterfeiting.

• Security features include watermarks, security threads, and colour-shifting ink, especially on higher denominations.
• U.S. banknotes are generally accepted even if slightly worn, but severely damaged notes may be refused. If you receive a torn bill, most banks will exchange it for a new one.

‍

Cultural Etiquette Regarding U.S. Currency

Tipping is common in the USA, especially in service industries, and cash is often the preferred method.

• Tipping in restaurants is typically 15-20% of the bill. Tipping is also common for services like taxis, haircuts, and hotel staff, so it’s a good idea to keep some small bills handy.
• While there aren’t strict customs around handling money, treating it with care, especially when tipping, is appreciated.

‍

Ready to Explore the USA?

Knowing how the U.S. dollar works will make your travels in the United States smoother and more enjoyable.

Armed with these tips, you’ll be ready to handle transactions, from dining out to tipping for great service.

So go ahead, explore all that the USA has to offer, and enjoy every moment!