Debit Cards for Purchases

Most debit cards issued by US banks and credit unions these days have either the Mastercard or Visa logo on the front. This means that they can be used just like credit cards; at any merchants that accepts credit cards in the first place. The only difference is that your not "charging", instead the purchase is immediately deducted from the checking account.

You're going to have trouble using your debit card for meals. Most restaurants don't accept plastic (debit or credit). For that matter, many hotels insist on cash too.

If the merchant accepts plastic and it has the hardware to read magnetic strip cards, you may use your debit card. European debit cards use smart chips instead of magnetic strips, thus some merchants may only have to hardware to process smart chip cards. In general, merchants that cater to tourists will have the proper hardware. Merchants that deal mostly with locals may or may not.

[ED: Global card networks like Visa, Mastercard & American Express require that merchants accept all cards, chip-and-pin or not. (That doesn’t mean that every cashier is aware that options still exists or knows how to do it.) To avoid the hassle we recommend you withdraw your spending money via ATM machines and that you use a DEBIT card for lower fees; it’s much easier and you can sometimes get discounts if you use cash instead of credit. Carry cash and change for parking and train stations so you don’t have to use your cards there.]

Debit cards are bad in general. And worse when going to Europe.

If anyone there charges too much to your account, it is immediately sucked out and you are in a bad position to try and recover your money while in a foreign country working with a local business in another language that may have made a mistake or that cheated you. Add to this communicating to your own bank with huge time differences.

Use an ATM and a credit card.

Check with your bank. I like using my debit card for purchases because I get a better rate and lower fees. I was in Italy in March of 2007, my 6th trip there, and for the first time I could not use my debit card for point of sale purchases. I called my bank and they said that due to fraud they had blocked purchases but I could use my card at ATMs.

I just got back from Paris, and I called my bank before I left and they said I could now use my debit card for purchases again. I used it at ATMs and restaurants with no problem.

It is true that in Italy a lot of restaurants don't take credit/debit cards. Just get money from an ATM. Get the maximum every time you withdraw to reduce the amount of fees.

The best reason not to use a debit card for regular purchases is you risk losing your access to cash. If a hotel/restaurant mistakenly or fraudulently adds a huge charge to your card, your account is drained and you are in trouble.

You will be able to straighten things out and won't ultimately lose your money. In the meantime, however, what do you do for spending money? It's like losing your passport. You can get it straightened out but why subject yourself to the hassle?

My wife carries a debit and credit card in her money belt. Her cards are for seperate accounts than the debit and credit card I carry. If my debit card is lost or eaten by an ATM. I can go to an internet cafe, transfer money into my wife's account and use her debit for cash. If I lose my credit card, we cancel it and use hers.

I haven't yet lost a debit or credit card. Carrying the two extra cards, however, gives us extra peace of mind.