Ed Perkins writes for SmarterTravel about how Chip and PIN may affect credit and debit card transactions for American's who are traveling abroad...


Why Your Credit Card Might Not Work Overseas - SmarterTravel.com

Ed Perkins on Travel
by Ed Perkins - April 16, 2009

The next time you go overseas—especially to Europe—don't be surprised if you have occasional trouble using your credit card. Many big European banks have switched to chip-enabled cards that require use of an identification number (PIN) to complete the transaction, and only a very few cards issued in the United States comply with the new European standard. International card networks (American Express, MasterCard, and Visa) require all participating merchants to accept U.S. cards, and many do.  But you may still face situations where your card won't work.

This column was suggested by reports of difficulties experienced by American travelers in Europe. Several reported having their cards refused by a local hotel, restaurant, or merchant unless the travelers provided a PIN. After the usual argument, some accepted the American card; others didn't. The worst case came from an American traveling in Scandinavia, who tried to buy a rail ticket with his Visa card from a vending machine in a small-town station that did not have an attendant. He was flat unable to buy a ticket and had to prevail on some helpful local to buy it for him.
Advertisement

After checking with the card networks and a few banks, I've concluded that the U.S. card establishment really doesn't have a foolproof solution to the problem. Here's what they say:

* The party line is that there's no problem: Your U.S.-issued card is good everywhere with a signature and without a PIN. Even though some parts of the world have adopted chip-enabled systems—requiring a PIN—as a means of authentication, magnetic-stripe cards issued in the United States continue to be accepted everywhere the card is accepted, including countries that have adopted chip-and-PIN technology. Most terminals in those countries can recognize a non-chip-enabled card and will indicate when a signature, rather than PIN, is necessary.

Continue Reading Ed's column at SmarterTravel