credit card problems?

This is a question that comes up frequently. European cards have smart chips embedded in them and some merchants don't have the hardware to read our magnetic strip cards- only smart chips cards. But as a general rule any business that deals with tourists on a continual basis will have the hardware to read strip cards, businesses that deal mostly with locals may or may not. But the problem you had with your hotel probably had nothing to do with with the above issue. Your bank probably refused the charge because it suspected a fraudulent transaction. Calling your back before you leave the US and letting them know your travel plans usually prevents this from happening. Out of curiosity were you using a credit car or debit card to pay your hotel bill?
If you were using a debit card, it's possible you may not have had enough "available" funds in your checking account. When you rent a car or check into a hotel with a debit card a hold of a few hundred dollars is placed on the fund in your account. So when you return your car or check out of your hotel you could run into some cash flow problems..unless you have a lot of money in the bank. For hotel and rental cars it's best to use credit cards as the hold in just placed on your credit limit.

While there are a number of possible logical reasons, I guess I can offer my experience. On a trip in 2004, at a train station in Belgium, I had much the same experience you describe. Card did not scan, hand entering did not work. Used my other card just fine. I used that card for the next few days, called the first card, they could see nothing wrong (had called before leaving, no balance issues, no explanation why the transaction did not clear) A day or two later, my second card did not work, same thing, went back to the first card...no issues.

All this just to point out that there may be no good reason, sometimes networks are spotty. Now in my case one card is a MC and the other a Visa, maybe that helped, a slightly different network, but it may just be chance...good reason to carry two.

The most common reason that your credit card might not work abroad is that you failed to notify your credit card company or bank that you are going to be traveling outside the US. I would still carry more than one credit card in case some other glitch occurred.

Kerri,

As Michael mentioned, the machines you saw that "read" cards in a different way are probably those designed for "chip cards". The cards are inserted into the end and remain in the machine for the duration of the transaction. A PIN is required instead of a signature.

However a few points to note. I just returned from Europe last week and noticed that many of the card machines there are similar to those in my area - they have both a "swipe" mechanism on the side as well as the slot on the front for the "chip cards".

One other point is that the "chip cards" are no longer exclusive to Europe. One of my credit cards has the chip and these are increasingly being offered by financial institutions here (for both debit and credit cards).

Some automated ticket machines in Europe will ONLY function with the chip cards (the SNCF machines at Paris/CDG are one example). At the present time, it appears that the ticket machines at Milano Centrale will still accept magnetic strip cards. One point to note about Milano is that the ticket machines on the main floor only accept credit or debit cards, while those 2 floors down by the ticket windows will also accept cash. There's often a huge queue at the ticket windows so the machines are a good option.

Although you don't want to carry a second card with you, I've found that's often the best solution. I usually travel with both a Visa & MasterCard. On my recent trip, I found that my primary ATM card WOULDN'T work and ANY machines in Europe (it's worked fine in the past). I resorted to an alternate card which accesses the same account and it worked fine (thankfully!).

Happy travels!