Living In USA

The United States is becoming more and more a cashless society. People are making purchases by check, charge account, bank (debit) card, or credit card rather than carrying much money in their pockets or purses.

Most people receive monthly statements of bills and then send payment by check for charges such as department store purchases, telephone, electricity, gas, newspaper delivery, and similar household expenses. Increasingly, however, people are paying their bills through the Internet using a home computer and their bank's secure website. Many use credit cards to pay for gasoline and service station expenses and for restaurant, hotel, and travel costs. In most supermarkets a variety of payment options are available: cash, personal check, credit card, or debit card.

Many people, however, prefer not to accumulate monthly bills. They work out a combination, paying some bills in cash and charging others. This is a matter of personal choice. If you use credit cards, be sure to pay promptly; the interest charged for late payments can be high, and your credit rating can be adversely affected if you do not pay your bills by the deadline stated on the bill.

Many credit card companies charge a yearly fee and interest rates that vary from one company to the next. It is important to check the amount of the interest rate as well as the amount of the yearly fee, then select a card that will cost you the least. Competition among credit card banks and companies is tremendous. Take your time in choosing a card, and read the information provided very carefully. Some companies advertise that they charge no yearly fees and some seem to be offering low interest rates on the amount carried over on the card, but buyer beware! Read the small print; most of these great deals are not deals at all. That low interest rate may last only a month or two, then jump to one far above the market rate. The most common credit cards are Visa, MasterCard, American Express, and Discover. They can be used at most stores, restaurants, hotels, and gas stations. Some stores, however, do not accept American Express. When you receive your credit card, be sure to sign the back of it in the space provided.

Most department stores offer charge accounts; they will ask for bank and other credit references. Approval of new accounts can take from a few minutes to a few weeks. When your application is approved, you will be sent a credit card (sometimes called a "charge card") that can be used only in that particular department store. Charge cards greatly speed up the buying process. In addition, you can return goods and obtain a credit on your account (you will generally not get a cash refund).

There are disadvantages to having a credit or charge card. If you lose it and someone picks it up, or if someone steals your wallet, he or she can run up heavy charges on your account. If this happens to you, call the store or credit card service immediately and report the loss. Then write them at once and tell them again the day and time you phoned in to report the loss. Keep a copy of the letter. You will not be liable for any charges made on the card after the time you first reported it. Some people carry their credit cards only when they go shopping; others carry them whenever they go out, but whatever you do, always be on guard for possible purse snatchers or pickpockets. Visa and MasterCard do not generally hold a theft victim responsible for more than a set amount.

ATMs (Automated Teller Machines) are fast replacing bank services for withdrawing and, in some cases, even depositing money. When using an ATM, do so from a car if possible — for safety reasons. When on foot, use normal safety precautions and be sure that no one sees you enter your PIN (personal identification number). Also, ATMs usually charge a transaction fee unless your bank account is with the same bank that owns the ATM.