Credit cards are the most popular payment method in the USA, holding the largest share of transaction value, closely followed by debit cards and rapidly growing digital wallets. While credit cards dominate overall, debit cards frequently edge out credit for daily, in-person, small-dollar transactions.
Credit & Debit cards
These are the most popular payment method and a must-have for every merchant.
The dominant payment method in the US is the credit card, driven by rewards programs, consumer protection, and widespread acceptance for both e-commerce and retail. For everyday in-person transactions like groceries and gas, the debit card is the most frequently used method.
Debit card payments offer less protection, but you might be able to make a claim for a refund under a voluntary scheme called 'chargeback'. If you use payment services such as PayPal, Apple Pay or Google Pay, check their 'terms & conditions' to see what cover they provide. Never pay by direct bank transfer.
At the moment, Americans use cash for around 12% of POS transactions. Credit cards account for over 40% of transactions, while debit cards make up around 30%.
Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.
Here are some of the most secure payment methods available online:
Yes, PayPal provides significant protection against scams through its Buyer Protection Program, 24/7 fraud monitoring, encryption, and strong security features like two-factor authentication, covering eligible purchases that don't arrive or aren't as described, and protecting unauthorized transactions, though users must file disputes within 180 days.
Popular PayPal alternatives for personal and business use include Stripe, Apple Pay, Google Pay, Venmo, Skrill, Payoneer, Square, and Wise, each offering strengths like ease of use for friends (Venmo), robust e-commerce integration (Stripe, Shopify Payments), global features (Payoneer, Wise, Skrill), or mobile convenience (Apple Pay, Google Pay). For businesses, options like Tipalti, Revolut, and Braintree cater to specific needs like mass payouts or platform payments.
Zelle can only be used by customers in the US with local bank accounts and phone numbers - you can't make a Zelle payment to someone in Mexico.
Visa Gift Card
Visa gift cards are widely accepted by several merchants, restaurants, and retail stores. Its acceptance by many people leads to its widespread use globally, especially in the United States.
The "15/3 rule" for credit cards is a strategy to improve your credit score by making two payments during your monthly billing cycle: one about 15 days before the statement closing date and another three days before, aiming to lower your reported balance and credit utilization. While the specific 15-day/3-day timing isn't magical, making multiple payments to reduce your balance before the statement closes helps lower credit utilization, a key factor in credit scoring, though it doesn't increase the number of on-time payments reported.
Most Widely Accepted Internationally: Mastercard (210+ countries and territories, 110+ million merchants) and Visa (200+ countries and territories, 130+ million merchants). Most Widely Accepted in the U.S.: Visa and Mastercard (10.7+ million U.S. merchant locations).
The PayPal "$600 rule" refers to an IRS requirement for third-party payment apps (like PayPal, Venmo) to report payments for goods/services over a certain threshold to the IRS via Form 1099-K, a rule delayed multiple times but originally set to become $600, though recent legislation has scrapped the low $600 threshold, replacing it with a much higher one (around $20,000 and 200 transactions for 2025), meaning most casual users won't get a 1099-K for personal payments, though all business income must still be reported.
For a $100 domestic transaction in the US, PayPal typically charges sellers around $3.49 (2.99% + $0.49 fixed fee) for goods/services or $3.29 (2.9% + $0.30 fixed fee) if using a linked card for a friends/family payment, though sending to friends/family from a bank or balance is free, while international or different payment methods (like cards for personal) incur higher fees.
Yes, someone can access your bank account through PayPal if they gain control of your PayPal account, usually via phishing or malware, which gives them access to linked funds; however, PayPal uses strong security (encryption, firewalls) to protect your data, and the merchant doesn't see your bank details, so the risk is primarily from your own account security being compromised. Key is to enable 2FA, use strong unique passwords, and be vigilant against scams.
PayPal and Zelle have similar security protocols and encryption. They both have strict controls and offer two-factor authentication for payments. Zelle has the additional advantage of being embedded into many banking apps.
The average gold bar weighs 400 troy ounces – which, when you do the math, hits a million dollars.