Yankee in need of currency exchange advice, please...

[MicCanberra]

Not quite. Even if it were, that also wouldn't mean the exemption could be removed since the majority don't have those cards, and as yet there's no agreement to fund the infrastructure upgrade that would enable it - and no sign of that.

 

 

They do exist, I have friends in the US (both east and west coasts) with chip and pin cards.

[Beanb41]

Bureau de change make their money on exchanges. Whilst some may advertise no commission check the actual rates of exchange to ascertain if paying a small commission will actually get you more. One is able to go onto the trading banks websites and check what the buy and sell rates are at any given time. It is worth noting that not all trading banks have the same exchange rates. Most differ by a few cents.

My experience is that exchange rates are better in ones home country ie bank sell rate than the buy rate in the new country. Overseas currency sitting in a bank vault costs the bank money until such time as the can quit it thus the sell rate is generally better.

We have a second credit card when we travel overseas which we always have in credit in order that if we ever get caught short we can go to an ATM and withdraw cash with no interest charges. Most banks charge interest from the time of draw down until repaid in full if a cash advance is made against a credit card.

[MicCanberra]

We also load up out travel Credit card and also a debit card so that we can budget better and cut down on the fees if requiring a cash advance.:D

[CruiserBruce]

They do exist, I have friends in the US (both east and west coasts) with chip and pin cards.

 

Yes, they exist...we have one. But they are far from common or readily available in the US.

[The_Big_M]

They do exist, I have friends in the US (both east and west coasts) with chip and pin cards.

 

They exist, but are very limited. It's not just a matter of asking your bank - or many banks for one. And of the few with chips, most still don't include a PIN. They're signature only. So for a US citizen, there's not a lot of point at the moment.

[jmckay331]

Ok interesting conversation. My debit card has chip and pin. My cc has chip and I'm sure I can call to establish a pin...it may have one already but since I don't use it for cash I don't actually know it. Most cc have a pin associated with it, so not sure the confusion. The only difference I see is that most folks using cc don't use a pin for purchases (in the US). I plan and calling AMEX before my travel anyway so that they know I will be traveling and not freeze my account. AMEX is good for freezing acct, lol. I will also check on the pin thing so that at least if necessary I know what it is and can make a cc purchase. I plan on having local currency but hate carrying around a lot of cash so will be looking for atm to pull out cash as needed from my regular checking acct. anyway most us banks are switching to chips for security purposes so this will be a moot point soon.

 

 

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[CruiserBruce]

Ok interesting conversation. My debit card has chip and pin. My cc has chip and I'm sure I can call to establish a pin...it may have one already but since I don't use it for cash I don't actually know it. Most cc have a pin associated with it, so not sure the confusion. The only difference I see is that most folks using cc don't use a pin for purchases (in the US). I plan and calling AMEX before my travel anyway so that they know I will be traveling and not freeze my account. AMEX is good for freezing acct, lol. I will also check on the pin thing so that at least if necessary I know what it is and can make a cc purchase. I plan on having local currency but hate carrying around a lot of cash so will be looking for atm to pull out cash as needed from my regular checking acct. anyway most us banks are switching to chips for security purposes so this will be a moot point soon.

 

 

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A number of misconceptions here.

 

Yes, your ATM card now has a chip, and a PIN. But that really isn't related to the credit card situation.

 

The credit card situation is entirely different. A PIN number on the vast majority of credit cards in the US gets you a cash advance, with hefty fees, not an additional level of security. Your statement "using it for cash" confirms this. Unless you want to pay incredible fees, don't use your credit card for cash!

 

The credit card PIN and chip discussed here is an additional level of security for standard credit card use...for charging your meal, for example. The vast majority of US chip credit cards don't have a PIN assigned. They are what is referred to as "chip and signature" cards, and they are widely accepted in the world. I have been in Europe for the last 10 days, using my chip and signature card widely. The only exception, unstaffed machines, like train stations.

[jmckay331]

I'm curious now about the comment about ATM card...it's a debit card not an "atm" card so has the visa logo and I can use it that way, still hits my bank account just takes longer if rung up that way versus as debit. Can anyone tell me if this would be an issue in Australia? Or would I always need to use as cc vs debit. Just curious. Btw, I would NEVER use my cc for cash as fees are ridiculous, but thanks for the concern. I appreciate the lesson in the diff between chip and pin and chip and signature, I wasn't aware there was a difference it the chips but hey you learn something every day [emoji57]. It is curious though that the US banks/merchants etc choose signature vs pin as pin seems more secure. I'm sure it is $$$ related. Regardless I'm prepared either way, I'll have enough cash available in account to go that route if cc not an option. Maybe that would be better to control impulse purchases ...I do like to spend on vacation, lol

 

 

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[MicCanberra]

The cards with the chip and pin do make it easier when travelling abroad though.

[MicCanberra]

I'm curious now about the comment about ATM card...it's a debit card not an "atm" card so has the visa logo and I can use it that way, still hits my bank account just takes longer if rung up that way versus as debit. Can anyone tell me if this would be an issue in Australia? Or would I always need to use as cc vs debit. Just curious. Btw, I would NEVER use my cc for cash as fees are ridiculous, but thanks for the concern. I appreciate the lesson in the diff between chip and pin and chip and signature, I wasn't aware there was a difference it the chips but hey you learn something every day [emoji57]. It is curious though that the US banks/merchants etc choose signature vs pin as pin seems more secure. I'm sure it is $$$ related. Regardless I'm prepared either way, I'll have enough cash available in account to go that route if cc not an option. Maybe that would be better to control impulse purchases ...I do like to spend on vacation, lol

 

 

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When we travel, we have a credit card (chip and pin) for all purchases, we often load some extra credit on it so that if travelling over the billing period we don't have to worry about paying a bill for that month. Our particular card (28 degrees) has no international fees with purchases but does with cash advances.

We also have a Citibank debit card which we load up and use for any cash advances from and ATM, it also has no transaction fees and depending on the ATM rarely attracts the ATM fee as well.

 

Either card can be used for either transaction but the cc will attract fees on the cash advance if used after our additional credit is exhausted.

[The_Big_M]

It is curious though that the US banks/merchants etc choose signature vs pin as pin seems more secure.

 

Wasn't so much a choice, that was just the technology available when cards were introduced. Each place had signature.

 

However, as technology and fraud changed, a business case was found that the cost of upgrading met the cost of loss. In Australia we converted a few years back. However, that threshold hasn't been met yet in the US.

[CruiserBruce]

I'm curious now about the comment about ATM card...it's a debit card not an "atm" card so has the visa logo and I can use it that way, still hits my bank account just takes longer if rung up that way versus as debit. Can anyone tell me if this would be an issue in Australia? Or would I always need to use as cc vs debit. Just curious. Btw, I would NEVER use my cc for cash as fees are ridiculous, but thanks for the concern. I appreciate the lesson in the diff between chip and pin and chip and signature, I wasn't aware there was a difference it the chips but hey you learn something every day [emoji57]. It is curious though that the US banks/merchants etc choose signature vs pin as pin seems more secure. I'm sure it is $$$ related. Regardless I'm prepared either way, I'll have enough cash available in account to go that route if cc not an option. Maybe that would be better to control impulse purchases ...I do like to spend on vacation, lol

 

 

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To my knowledge. ...someone else will correct me...a debit card is the same as an ATM card. I only use our ATM card to get cash at a bank, but I have seen comments that using a debit card to, for example, buy food at a store, doesn't work in Australia.

 

Just to get chip and and signature cards out ( and they aren't done yet), the cost is approximately 5 billion dollars. Can you imagine the customer service issue when literally 200 million Americans have questions about their PIN number....want a different number...or have some other issue?

 

Instead, a directive from VISA and MasterCard that no business was to reject a chip and signature card because it didn't have a PIN. That has worked fine. Exceptions are unstaffed machines, like train stations. As mentioned, we are in Europe now (and we're in Australia for a month thins time last year), and there haven't been any issues.

Edited August 15, 2016 by CruiserBruce

[The_Big_M]

To my knowledge. ...someone else will correct me...a debit card is the same as an ATM card. I only use our ATM card to get cash at a bank, but I have seen comments that using a debit card to, for example, buy food at a store, doesn't work in Australia.

 

It's a matter of definition. I took the previous poster as distinguishing that way to refer to a credit card that can only operate from a debit balance, i.e. you can only access your own funds, not with a credit limit, but it's used on the Visa or MasterCard credit card network.

 

You're right that a debit card can equally be from a savings account, as that is what it is both ways. Just what sort of account network you use is really the difference in debit accounts.

 

As for using the debit card you refer to, we have long had that and it's called EFTPOS, and widely available. However, as it was set up long ago, it is with the consortium of domestic financial institutions, so a US card wouldn't be recognised on it.

[OzKiwiJJ]

Just to get chip and and signature cards out ( and they aren't done yet), the cost is approximately 5 billion dollars. Can you imagine the customer service issue when literally 200 million Americans have questions about their PIN number....want a different number...or have some other issue?

 

 

Do they give an option to have a pin on those chip and signature cards? If so, that could start a soft rollout of pins.

 

Also I wonder what the cost of credit card fraud is in the US? 5 billion to roll out chip and signature cards sounds like a lot of money but it may be a drop in the bucket compared with fraud costs.

[CruiserBruce]

Do they give an option to have a pin on those chip and signature cards? If so, that could start a soft rollout of pins.

 

Also I wonder what the cost of credit card fraud is in the US? 5 billion to roll out chip and signature cards sounds like a lot of money but it may be a drop in the bucket compared with fraud costs.

 

I have thought the same thing about the adding of a PIN later to a chip and signature card, but some indications I have seen are that a new card will be issued when we go to PIN and chip.

 

As PIN and chip only helps prevent face to face fraudulent purchases...not over the phone or Internet purchases, the reduction in fraud is not as large as many people think. And you still have the cost to roll out something new. Plus the huge customer service logistics issue. So it is not an easy, flip the switch and poof, all fixed.

[OzKiwiJJ]

I have thought the same thing about the adding of a PIN later to a chip and signature card, but some indications I have seen are that a new card will be issued when we go to PIN and chip.

 

As PIN and chip only helps prevent face to face fraudulent purchases...not over the phone or Internet purchases, the reduction in fraud is not as large as many people think. And you still have the cost to roll out something new. Plus the huge customer service logistics issue. So it is not an easy, flip the switch and poof, all fixed.

 

If my memory is correct pins were optional for a few years in Australia before we moved to mandatory pins.

[MicCanberra]

If my memory is correct pins were optional for a few years in Australia before we moved to mandatory pins.

 

Correct.:D