Money

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Currency

The U.S. monetary system is very simple: The most common bills are the $1 (a "buck"), $5, $10, and $20 denominations. There are also $2 bills (seldom encountered), $50 bills, and $100 bills (the last two are usually not welcome as payment for small purchases). All the paper money was recently redesigned, making the faces on them disproportionately large, but the old-style bills are still legal tender.

Coins come in seven denominations: 1¢ (1 cent, or a penny); 5¢ (5 cents, or a nickel); 10¢ (10 cents, or a dime); 25¢ (25 cents, or a quarter); 50¢ (50 cents, or a half dollar); the gold-colored Sacagawea coin, worth $1; and the rare silver dollar.

Note: The "foreign-exchange bureaus" so common in Europe are rare even at airports in the U.S., and nonexistent outside major cities. It's best not to change foreign money (or traveler's checks denominated in a currency other than U.S. dollars) at a small-town bank, or even a branch in a big city; in fact, leave any currency other than U.S. dollars at home -- it may prove a greater nuisance to you than it's worth.

Traveler's Checks

Traveler's checks are widely accepted, but make sure that they're denominated in U.S. dollars; foreign-currency checks are often difficult to exchange. The three traveler's checks that are most widely recognized -- and least likely to be denied -- are Visa, American Express, and Thomas Cook. Be sure to record the numbers of the checks, and keep that information in a separate place in case they get lost or stolen. Most California businesses are pretty good about taking traveler's checks, but you're better off cashing them in at a bank (in small amounts, of course) and paying in cash. Remember: You'll need identification, such as a driver's license or passport, to change a traveler's check.

Credit Cards & ATMs

Credit cards are the most widely used form of payment in the United States: Visa (Barclaycard in Britain), MasterCard (EuroCard in Europe, Access in Britain, Chargex in Canada), American Express, Diners Club, and Discover. There are, however, a handful of stores and restaurants in California that do not take credit cards, so be sure to ask in advance. Most businesses display a sticker near their entrance to let you know which cards they accept. (Note: Businesses may require a minimum purchase, usually around $10, to use a credit card.)

It's highly recommended that you bring at least one major credit card. You must have one to rent a car, and hotels and airlines usually require a credit card imprint as a deposit against expenses. And in an emergency, a credit card is invaluable.

You'll find automated teller machines (ATMs) in just about every town in California, and on every block in the business districts of the big cities. Some ATMs will allow you to draw U.S. currency against your bank and credit cards. Check with your bank before leaving home, and remember that you will need your personal identification number (PIN) to do so. Most accept Visa, MasterCard, and American Express, as well as ATM cards from other U.S. banks. Expect to be charged up to $3 per transaction, however, if you're not using your own bank's ATM.

One way around these fees is to ask for "cash back" at grocery stores that accept ATM cards and don't charge usage fees. Of course, you'll have to purchase something first. The same is true at most U.S. post offices.

ATM cards with major credit card backing, known as "debit cards," are now a commonly acceptable form of payment in most stores and restaurants. Debit cards draw money directly from your checking account. Some stores enable you to receive "cash back" on your debit-card purchases as well.