Chip & Pin Cards

[sippican]

This is a helpful link - one we have found to be truly up to date:

http://creditcardforum.com/blog/chip-and-pin-credit-cards-usa/

 

We were unable to use regular strip and signature cards, during past trips, in Switzerland, Denmark and Hungary. Some were unmaned kiosks, and others manned (the employees were adamant they could not swipe the card even though the machines had the capability).

That being said, other than the unmanned kiosks, the businesses were a bit off the beaten track, not in major tourist areas.

 

BOA has told us repeatedly that they have chip & pin cards. I have called their bluff each time (a chip and signature is not the same). Unless they have rolled out new cards, I'd be skeptical (see link above).

We do have a true chip & pincard from USAA.

[Hlitner]

As discussed in several threads, MasterCard and VISA are starting the transition this year, with likely completion in 2016. US businesses are being told they must be able to handle PIN and chip transactions by Oct 1, 2015.

 

A few months ago we had a conversation with the Card Manager of one of our banks and he expressed some personal frustration with the US credit card industry. He explained that although most banks will soon be issuing "Chip" credit cards, most will still only work with a signature and not have a Pin. He explained that this is a cost issue with both Visa and MC.

 

We also found it interesting that AMEX now issues Chip cards in the USA, but they do not have a PIN. But AMEX does issue Chip/PIN cards in many other countries.

 

Hank

[SwissDave]

A few months ago we had a conversation with the Card Manager of one of our banks and he expressed some personal frustration with the US credit card industry. He explained that although most banks will soon be issuing "Chip" credit cards, most will still only work with a signature and not have a Pin. He explained that this is a cost issue with both Visa and MC.

We also found it interesting that AMEX now issues Chip cards in the USA, but they do not have a PIN. But AMEX does issue Chip/PIN cards in many other countries.

 

Hank

 

I always thought (probably wrongly) Visa and MasterCard were 'American' brands by origin, but used all over the world. If Visa and MC in Europe and many other parts of the world have been able to go to true chip & pin, and for quite a few years now, is it really due to cost in the US? Perhaps the cost of the higher security would take too long to pay back compared to the level of fraud? (speculating, I really don't know).

 

Is it possible for yourself Hank, or anyone else, to explain how chip & signature works? what I mean is, if it is still a signature card, why the need for a chip?

[Desdichado62]

I always thought Visa and MasterCard were 'American' brands by origin, but used all over the world.

 

That is a correct assumption.

Edited February 8, 2015 by Desdichado62

[Hlitner]

Yes, they were originally American brands although now they are truly universal. But we are told the problem in the USA is simply our vast size and the fact that there are probably over 1 Billion cards outstanding and an amazing number of merchants. Each card has to be reissued and a Chip card costs more per card...and adding a PIN apparently involves more admin costs (we are puzzled by this factoid). And then there is the necessity to replace/upgrade every terminal in every merchant, upgrade all the software in POS machines (like cash registers with integral credit card readers), etc. For some strange reason (I guess its money) MC and Visa have dragged their feet. And it even gets crazier when you do get a real Chip/PIN card. We have one that was issued by Andrews FCU and it is an EMV card which means its fully compatible with the European system. However, the default mode on the card is Signature....even though it does have a PIN. When we asked Andrews why they have the card programmed (and this is actually part of the programming on the Chip) to a signature default they explained that Visa International charges more per Chip/PIN transaction then for a Chip/Signature transaction. This makes no sense...but a lot of stuff in finance does not make a lot of sense :)

 

So we continue to get an anti Chip/PIN attitude in the USA. For example, CapitalOne (very popular with travelers since they have no fees or foreign exchange fees) issues a Chip/PIN Master Card to Canadians but still refuses to issue a similar card to those of us in the USA. When we made a special request we were simply told they would only send a Chip/PIN card to a Canadian address. And it is the same with American Express. Go figure.

 

Hank

Edited February 8, 2015 by Hlitner

[PBJ63]

Just had a very frustrating call to Capital One where we have a Quicksilver card because it charges no foreign transaction fees. We used our strip only card last summer in Amsterdam, Germany, etc. without issue. After reading all the comments about Norway and Denmark, where we travel this summer, I decided to request a chip/pin card, realizing I would probably get a chip/signature card. I was told they were in the process of replacing all their cards by the end of this year, and we could not get a speeded up processing. It would come whenever it comes. Two different people told me "not to worry, if they accept Visa they had to accept this strip/signature card" although they might have to call Visa, etc. I let them both know I was definitely unhappy with this customer service, but there was little I could do. Even mentioned that I might be changing to another company! I will be using Apple Pay where it is available, but we shall see where this goes.

[sippican]

Two different people told me "not to worry, if they accept Visa they had to accept this strip/signature card" although they might have to call Visa, etc.

 

We were told the same thing by the card companies. In three separate instances, the clerks refused the card. The language barrier didn't help and perhaps the clerks just didn't know how to process a swipe transaction, but they flatly reused.

[Hlitner]

We have had several conversations with European merchants (and one banker) about the situation in Europe. Thing really do vary (especially in Northern Europe) depending on the specific community and their local banks. In Brugges, our B&B owner explained that I theory, he could take a magnetic strip Visa/MC and call it in to his bank as a manual transaction. His new card reader did not even have a slot (most do have slots) for magnetic strips, although he thought there might be a way he could manually punch in the number (he did not know how). He also explained that as long as he used a Chip/PIN card he (the B&B owner) bore no risk as his payment was guaranteed by the bank. But if he did any other kind of manual transaction he could be liable if it later turned-out that the card had been stolen or voided.

 

We heard a somewhat similar tale in an Antwerp where a merchant would not even try to process our magnetic strip card. He told us there was some kind of manual procedure but he would not take the risk. On the other hand, while traveling extensively in France this past spring we had no problem using our magnetic strip card except on the autoroutes and in gas stations where they were useless.

 

The craziest situation happens in Holland. The only train station in the country that will accept a magnetic strip card is the Grand Station in Amsterdam. Two other stations told us they were not permitted to accept anything other then a EMV Chip/PIN card and admitted is was strange that they were only good at the Amsterdam Station. When trying to buy tickets from Antwerp to nearby Delft, I had to run to a nearby ATM and get some more cash :).

 

Hank

Edited February 10, 2015 by Hlitner

[MCazer]

When I called my credit card company ( Marriott Rewards w/chip and no transaction fees)

 

They told me that the card readers will read my card as Chip and Signature, but if there was any problem, like at a kiosk in a train station, that after reading the card, it may bipass the signature part, or if it asks for a pin, I am to use 0000 as the pin for the transaction.

[Danish viking]

That sound very secure :D

[*Flower*]

We do have a true chip & pincard from USAA.

 

I have a card with USAA and am curious to know whether they charge foreign transaction fees for your out of country expenses.

 

We're planning a transatlantic with Northern European stops- and am trying to find a card that has chip/pin/no foreign transaction fees.

 

TIA....

[CruiserBruce]

I have a card with USAA and am curious to know whether they charge foreign transaction fees for your out of country expenses.

 

We're planning a transatlantic with Northern European stops- and am trying to find a card that has chip/pin/no foreign transaction fees.

 

TIA....

 

Yes, they do. But it is among the lower...1 or, tops 3%, I forget which. We also carry a USAA, but it is not our primary card.

[Pennsylvania Sailor]

I have been through the whole chip and pin and chip and signature card discussion with AmEx. I have an USAA chip and pin card. Just curious, what about debit cards (ATM cards) do they also require a chip in Europe?

[CruiserBruce]

I have been through the whole chip and pin and chip and signature card discussion with AmEx. I have an USAA chip and pin card. Just curious, what about debit cards (ATM cards) do they also require a chip in Europe?

 

No.

[PNW Traveler]

Yes, they do. But it is among the lower...1 or, tops 3%, I forget which. We also carry a USAA, but it is not our primary card.

 

We use our USAA card in Europe - 1%. The cost is much lower than our other cards. We carry two others as backup cards. For ATM withdrawals we use our Bank of America card and try to use their reciprocal no fee bank affiliates. The USAA card is a chip and PIN card that is preferred in Europe.

[Carolla5501]

I need to call USAA and get them to send me a new card :).

 

I have a true chip and pin from Diners Club but the transaction fees are higher then USAA. But for things like subway tickets it is great to have one.

 

 

Sent from my iPhone using Forums

[Splinter]

Which USAA card do you carry?? Is it chip and PIN, or chip and signature?

[CruiserBruce]

We have PIN and Chip, USAA MasterCard. When we got it last October, it was the only PIN and chip card they offered.

Edited February 23, 2015 by CruiserBruce

[PNW Traveler]

We have the USAA chip and PIN card as our primary travel credit card. Consult the USAA website for information on their chip and PIN card. You will be able to request the card via phone to USAA.

[pompeii]

I just got a chip and pin card through Andrews Federal Credit Union. Had to jump through a couple of hoops in that you have to join the American Consumer Council (if you use promo code "CONSUMER" you don't have to pay the $10 membership fee - I found that out after the fact:() and then you have to open a savings or checking account with the credit union, min deposit $5. Then they will send you your Visa card.

 

But once you do those things, you're set with a no annual fee, no foreign transaction fee card that - keeping fingers crossed - will work great in Europe.