Chip-and-PIN Cards

Nicholas: As someone else posted here earlier, this question has been asked and answered a lot on this forum. I'll give you a response, but you might want to go to google.com and run this search: "chip pin cards europe site:ricksteves.com". If you do, you'll find more comments than you probably care to read. Anyway, yes, the chip & pin cards are used in the UK for credit cards. It isn't apparently an issue for debit/ATM cards. Having a card without a chip & pin only prevents you from using self-serve devices (such as gas pumps or ticketing kiosks). If there is a customer service person around, they can swipe your card. Having said that, you might want to open a local bank account just to save on the fees when you use an ATM. It might be more convenient since you'll be there for an extended period of time. (Some U.S. companies offer fee-free withdrawals, however, such as the Charles Schwab Bank.) There has been some speculation that U.S. branches of Canadian banks might begin to offer chip & pin cards, but I think it is only speculation at this point.

When I lived in the UK, I opened a bank account with a UK bank. However, it wasn't as simple as just going into the branch and opening the account. I had to provide a letter of referral from my employer along with some other documentation. I suspect there are similar requirements for foreign students. Do you know anyone who is currently in the study abroad program who could advise you on what they did? If you are going to use your U.S. card, open an account with a bank that does not charge you a transaction fee. Chip and pin won't be an option with a U.S. bank.

I want to clarify something in Paul's post about debit cards. Both debit and credit cards issued in the UK have the EMV chip. I have a debit card issued by a UK bank and that card does have chip and pin technology. In the UK, both credit and debit cards use chip and pin. What I think that Paul meant is that ATMs (aka "cashpoints" in the UK) will accept a card with a magnetic strip.

Seems to me if you are going to be in England for a year, the practical answer is a local bank account. You will probably want a checking (cheque) account just for practical purposes in addition to your credit card and ATM.You may want to see if your local USA bank has a relationship with a British bank, or just wait until you are there.

Nicholas, one more thing ... do a search on the university and international student bank. Oxford has a page with specific info on bank accounts for international students and required documentation. Here is the link:
www.ox.ac.uk/feesandfunding/prospectiveugrad/finances/bank/

With a non-chipped card you can: - Use ATM's - Make purchases in any attended store that accepts credit cards (although some clerks have been known to refuse, they are not allowed to by contract). All chip terminals in stores can also read the magnetic stripe. With a non-chipped card, you can NOT:
- Use self service kiosk/machines etc. in a non-attended environment, e.g. self service gas pumps/ticket machines, although some machines will work if they do not perform off-line PIN verification through the chip and if they read the magnetic stripe. In this case you might use you PIN.

Most of Europe is at the same "level" as the UK regarding this technology. I.E. if you don't have a PIN number to tap in, things can be awkward. Strangely, Spain is very similar to the US in that when you make a card purchase, you have to sign. (How quaint!) Spanish customers visiting our hotel rarely have "chip & PIN" cards, but it is just as easy to take their money as it is with US visitors. Roger

Laura wrote: Both debit and credit cards issued in the UK have the EMV chip. I have a debit card issued by a UK bank and that card does have chip and pin technology. In the UK, both credit and debit cards use chip and pin. What I think that Paul meant is that ATMs (aka "cashpoints" in the UK) will accept a card with a magnetic strip. Laura: Yes, that is exactly what I meant. Thanks for the clarification. I never use my debit card for anything other than ATM withdrawals so I wasn't thinking about using it in place of a credit card, but I know many people do.

Things have seemed to change quite a lot in the UK, at least, about using American style swipe only cards. Last night I was at a Nandos restaurant and it was the third place this week I have been where there was a new sign on the counter stating that swipe only cards would now not be accepted. I wonder if this is a sign of things to come.

Nigel: maybe they don't care, but those 3 establishments can kiss most of their American customers goodbye.

Stop going to Nando's? NEVER! One of my guilty pleasures in the UK.

Since we tend to pay cash about 99% of the time, it is not important. When they cut off access to an ATM, then it will be important.

In the Netherlands, all businesses will change to chip and pin by the end of the year. Most terminals are physically able to accept both, but only one method is connected. For more information (although quite limited in English), check the website of the Dutch payment facilitator Currence: www.currence.nl ATMs will not change, as far as I know.

Dutch Rail has already switched over to 100% Chip & Pin. No magnetic strip cards are accepted at the machines or counters :( If the situation gets worse, I wonder how Visa and MC international are going to respond to this. Their position is that merchants have to accept all types of cards....seems the banks don't care.

News article posted today: Wells Fargo to Pilot EMV Chip Technology for International Travelers http://www.businesswire.com/news/home/20110413005522/en/Wells-Fargo-Pilot-EMV-Chip-Technology-International

I believe American Express offers the chip and pin card now. They call it 'The Blue Card'.

AE used to offer chip & pin on with their Blue card, but have discontinued it.