Smart Card (smart chip) Visa?

The only US card that has the smart chips is American Express. But the catch 22 is that not many merchants across the pond accept AE. Another option is to purchase a prepaid debit card once you arrive in Europe, these will have smart chips. The problem exists, but I've never found it to be a big hassle. I simply rely on cash from ATM machines. ATM machines will always accept magnetic strip cards.

The only card company that I have heard of that offers a chip card (on request probably) is American Express (AMEX), and the problem with AMEX is that it isn't accepted very much in Europe, because the average merchant doesn't like the high percentage of the sale that AMEX charges them -- I think it's something like twice the amount that VISA and MasterCard charge.

Did you really have a lot of trouble in Spain? I have a Spanish bank account, with a Euro debit card, and it isn't "chip and pin". There may be some chip cards in Spain, but I understand that they will not finish converting until 2011. Same for Germany. I had no problem using my debit card there.

France and England were the first to convert. That's why you had trouble in France.

Theoretically, VISA says that all merchants are supposed to accept non-chip cards -- it just requires an extra step to print out a charge slip. Some merchants either just don't know how to do that, or they are lazy.

The biggest issue is with using machines, such as the ones that sell Paris Metro tickets. These require a chip card.

Sooner or later, the USA will have to convert. It's only a question of when.

The US isn't going to be switching to smart chip cards. Instead we are "leap frogging" technologies, and implementing contactless RFID (paypass) cards. A few weeks ago I received an RFID debit card from my bank. I did some shopping today at my local mall, and no less than five different merchants had the hardware to read my card without taking it out of my wallet....this is the future. It's already been rolled out in London and Tokyo.

Yep...I want to "leapfrog" to a technology that radiates my info all over the place! It could mean an end to pick-pocketing as we know it! ;)

The banks and merchants don't care about your problems:) Contactless cards speed up cash register transactions, thus cutting labor costs for retailers....that's what they care about;)

Amy,

As you'll be in France, I agree that a "chip card" would be a good idea, especially if you need to use the automated ticket machines. For example, the ticket machines at CDG will ONLY accept "chip cards". I found that having a "chip card" was a HUGE benefit when I was there earlier this year. If I had to rely on the ticket office for RER tickets, I would STILL be in the queue!!!

Canadian Banks have now started to issue "chip cards", and I was able to get a chip VISA card fairly easily. However, the full "roll out" probably won't happen until next year (which isn't that far off). I haven't been able to get a "chip" debit / ATM card yet, but I'm assured those will be issued as well in a few months.

Do you have any relatives in Canada? The only easy solution I can see would be a supplemental card issued by a Canadian bank.

Good luck and hope you find a solution!

Michael,

Actually, the RFID cards have been available for quite a while. In one case, one of the Gas companies had these linked to customer's credit card accounts, allowing the customer to pay for fuel just by "swiping" the card at the appropriate spot on the gas pump.

I have to agree with Norm on this one. I'm not convinced that the encryption or security for RFID cards has been adequately tested and I can see the potential for problems. In addition, consumers are nervous about this technology (which is also being used with new Passports, I believe), which has created a thriving market for companies that make "RFID Blocking Wallets / Passport Holders / etc."

Cheers!

Well, Michael, they'll care if they start taking major hits on fraudulent transactions!

RFID technology has been around for many years. For the past twenty years I've used it on my commute to work via an E-ZPass tag attached to my windshield which allows me to speed through highway and bridge toll booths without stopping. But the use of RFID technology in it's current form in credit/debit cards is "next generation" and is more advanced than the tags the Mobile Gas stations used to offer.

Also, I never said that I endorsed or even like my paypass debit card, and I have no idea if the info on it can be easily stolen or not I was just relaying my experience with it. It was sent to me by my bank out of the blue, and used for the very first time today. If US retailers and banks decided to go their own way on credit card technology they're not gonna care about my two cents on the matter.

Also, it's not as if the current magnetic strip cards are any more secure. On a trip to China earlier this year, I used it just one time at a bank ATM machine, and when I returned from my trip the bank called and said the number had been stolen and the card needed to be replaced. Oddly there was no suspicious activity on my monthly statement, so I'm not sure how the bank detected it?

I must agree with the previous posts on the Canadian bank idea. I've tried very hard to get one in the U.S. and it can not be done. If you have a friend or relative in Canada that is a great idea.

Buying petrol is also a problem at stations that do not have a human attendant. The pay at the pump stations generally do not accept the U.S. credit cards. I solved the problem by setting up a French bank account..... but I had to buy a house in France first ;-)

Michael,

As a total aside here, I was contacted by my credit card company earlier this year and told my number had been stolen and they had to issue me a new card. There was no fraudulent activity on my account, either, but it turned out some store I shopped at online had their accounts hacked into and the cyber-thief made off with tens of thousands of credit card numbers, all of which had to be reissued. The CC company would not tell me which retailer had been compromised.

Maybe your debit card fell victim to a similar fate?

This "leap frogging" idea is a bit of a red herring. The contactless cards are being rolled out in Europe as a supplement to chip and pin not as some kind of more advanced replacement. As Michael said retailers like them because they speed up transactions but they are only authorised for small transactions (£10, $25-ish) because of the security issues. For other purchases it will still be chip and PIN for the foreseeable future.

If Michael's right and the US banks have no plans to move to chip and PIN then it looks like American tourists are going to continue to be inconvenienced by "not invented here" syndrome.

Much of all this hassle has absolutely nothing to do with chipcard or not chipcard, but has to do with the fact that credit cards issued abroad often do not work in kiosks, chip or not. When we go to France from Denmark, (and we have chipcards in Denmark), we can't pay at unmanned gas pumps, as these only work with cards issued in France. Same with kiosks at trains stations. Merchants should always be able to process a magnetic stripe card if thwey take credit cards issued abroad, but be awatre, some merchants only accept debit cards issued locally. Conclusion: the chip won't help you alot.

Perhaps they handle the paypass card differently in the UK, but I was able to use my paypass card with a transaction over $100USD. The only difference was that I had to sign for the purchase. Under $50USD no signature or pin number is required.

That does appear to be a difference, but one that reinforces my point. PayWave et al aren't a replacement for chip and PIN, they aren't even a replacement for signing a piece of paper which is decidedly old school. Where you have to sign for all but the smallest purchases our cards revert to chip and PIN when the transaction limit is reached.

One of the reasons why I referred to the issue as a red herring is that there is no connection between the implementation of contactless payment (in Europe and the US) and the in introduction of chip and pin.

Contactless won't make chip and PIN go away and for all but the smallest transactions American card holders will still be in the same situation they are now.

"As a total aside here, I was contacted by my credit card company earlier this year and told my number had been stolen and they had to issue me a new card. There was no fraudulent activity on my account, either. . ."

The same happened to me. Bank of America changed both of my credit card numbers because of some kind of fraudulent activity. They did not specify, and there were no fraudulent transactions on my accounts.

I had a similar experience to that described by Angela and Tyler. After a visit to Las Vegas earlier this year (where I used a magnetic strip MasterCard on several occasions), I was contacted by my Bank and notified that they had detected "suspicious activity" on my account. As a result, the Card was immediately cancelled and a new card issued (with a different account number).

There was nothing on my statements to indicate that any fraudulent activity had taken place, so they must have "caught this" before any payments were made. I tried to review all the different locations I had used the card to try and determine which one was "suspect", but it could have been any of them? The MasterCard staff wouldn't tell me which merchant was involved.

I suggested to them at the time that "chip & PIN" would have probably avoided the problem, but they indicated they weren't issuing these yet so I'd have to wait.

Unfortunately, as U.S. credit card firms apparently won't be adopting the new technology I'll be forced to use a magnetic strip cards if/when I return to Vegas (and possibly face the same problem).

Cheers!

This is very strange, I had the exact thing happen to me with B of A. They didn't even bother to contact me. I tried to use my BofA visa one day and it was denied. When I called them they gave the same response as the other posters. Again, no strange activity on my account. Sounds like maybe someone hacked their system?

In response to the original post, I called my credit union and they said that their members are not having any issues with their ATM cards. When I was in UK and Italy last year I had no problems. I hope France is the same this year. I leave on Saturday!

It appears they recently caught the guy behind a lot of the problems:

http://tinyurl.com/p8hcar

It's especially needed when trying to rent a bike in France at the many public bike stations they have. If anyone has a specific bank that US citizens can open an account with please post it or the web site here.

The only US credit card that has the smart chip is American Express, and Velib accepts AE. Another work-around is to purchase a pre-paid debit card when you arrive in Europe; these have the chips embedded in them. But, when you rent Velib bikes, a hold(deposit) or 150euros is placed on the funds in your card until you return the bike. So you would need to put 150+the rental amount on the debit card.

What happens if you get one of these prepaid cards and you end up with money on it when you leave? Besides "having to return to France" (which may or may not happen soon), can you cash it in before leaving?
So, without a card with a chip in it, is it true the only other way to buy a metro ticket is to have Euro Coins since they do not take notes (Euro bills)?

If you still have money left over on your pre-paid card, simply spend the money. You can use them in the US, in addition to the smart chip, the will also have a magnetic strip. They can be cashed-in, but there are some ridiculous fees for doing this.
It's only in the smaller metro stations that you need coins to purchase tickets from the machines. Larger stations have manned ticket windows.

Are you sure all of them can be used in the US? I don't know about this since they were purchased in Euros. Have you done it?
I had heard (hearsay only)that they were slowly taking the live people out of all the stations over time but maybe the big ones will continue to have someone. Thanks.