Debit cards in Europe?

From the FTC website (FTC):

"...Your liability under federal law for unauthorized use of your ATM or debit card depends on how quickly you report the loss. If you report an ATM or debit card missing before it's used without your permission, the EFTA says the card issuer cannot hold you responsible for any unauthorized transfers. If unauthorized use occurs before you report it, your liability under federal law depends on how quickly you report the loss.

For example, if you report the loss within two business days after you realize your card is missing, you will not be responsible for more than $50 for unauthorized use. However, if you don't report the loss within two business days after you discover the loss, you could lose up to $500 because of an unauthorized transfer. You also risk unlimited loss if you fail to report an unauthorized transfer within 60 days after your bank statement containing unauthorized use is mailed to you. That means you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts. However, for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss.

If unauthorized transfers show up on your bank statement, report them to the card issuer as quickly as possible. Once you've reported the loss of your ATM or debit card, you cannot be held liable for additional unauthorized transfers that occur after that time...."

Jim,

I'd suggest you check with your financial institution regarding whether your debit card will work in Europe.

If the card has Visa or MasterCard logos, it may work for POS transactions, as well as ATM cash withdrawals. However, if it doesn't have the Logos, it probably won't work for POS transactions.

If you're planning to use if for ATM withdrawals, note that your travel funds must usually be in a chequing account with a four-number PIN. You may also wish to review your daily withdrawal limit with the financial institution, as well as notify them of the dates you'll be using this in Europe.

I'd highly recommend packing a "backup" ATM card in case there are "issues" with the primary card. That's my usual practise, and it really saved me last year as my primary card wouldn't work for over a week (although that particular card has worked well on past trips). The problem was apparently some sort of "coding issue" between the Banks, but it took a while to get it sorted. I was thankful to have a backup card!

Happy travels!

The woman I talked to at my bank said that some of the exchange rates that they see on things purchased with a debit card are horrible, so they recommended that I use the ATM and take out enough cash to last a few days. My bank charges is the same no matter how I take the money out of my account - debit or ATM.

Either way, be sure to let your bank know before you leave. If they see purchases or withdraws overseas, they may put a fraud alert on your card and block your access. My bank put a fraud alert on my account when I purchased the plane tickets! I guess I should be happy that they were looking out for me, but trying to explain it to the dentist when my card wouldn't go through the next day was interesting.

The conversion rate for both debit and credit cards should be the same -- within a point of the interbank rate. I think what Krista is referring is the practice of dynamic conversion. As a favor to you, the merchant agrees to charge in US dollars. Then you are at the mercy of his conversion rate. That offer should always declined STRONGLY. And the bank will add currency conversion fees even if presented in dollars. So you lose double.

Thanks Steve!!!

The "conventional wisdom" is to use debit cards at bank ATMs for cash and credit cards for purchases. The big issue is you do not have the same level of protection or recourse when using a debit card for purchases. In many ways I have found that cash works better than using a credit card. On our last trip we only charged two items during the 33 days we were gone.

The big issue is you do not have the same level of protection or recourse when using a debit card for purchases.

It's probably worth noting that you have the same level of protection in Europe as you do at home (where ever that may be,) so if you're comfortable using a debit card at home...

I would suggest that you take debit cards from two different banks in case one does not work. That may be overkill, but it can save a lot of grief if you arrive at a foreign airport and your bank's server has gone down, as happened to me on one trip. Since then, I have been carrying a debt card from my bank and one from my credit union.

Thanks for clarifying that for me, Frank! That is exactly what I meant. :o)

Like Frank, I use debit cards for cash and credit cards for major purchases (more expensive hotels and restaurants, car rental, airfare, etc.)

My wife and I each carry one debit card and one credit card in our moneybelt/neckpouch. My cards are primary. My wife's debit card is from the same bank but a different account. If we need to we can transfer money into it. My wife's credit card is a completely seperate account. So far I haven't needed to use either of my wife's "backup" cards but it's good to have them available.

Be sure to let the bank know on every card that you will be traveling to keep from getting a fraud alert on your account.

Keep non-800 numbers for your bank to call if they don't work so you can remove a fraud alert, notify them of a lost/stolen card, or transfer funds.