Imbedded ID chips Credit Cards

Robert, The use of "chip & PIN" credit and debit cards is not limited to Europe. Canada and other countries also use the same technology. Your Magnetic Stripe credit or ATM cards should work fine for obtaining cash at ATM's. Regarding ticket machines, I used Kiosks at FCO, Termini and other places in Italy during my trip last year, and at that time the machines processed the transactions using the magnetic stripe. That was apparent as it didn't request a PIN. The changeover is continuing though, so it's difficult to say whether the Kiosks in Italy will continue to accept magnetic stripe cards. You might find it helpful to have a look at This Excellent Website for further information on travels in Italy (do a search to find the appropriate section on tickets and credit cards). Happy travels!

And just to add, it is the unmanned kiosks or fuel pumps that can be an issue. Any merchant or transit station with a person that manually processes your card will be able to use a magnetic swipe card. There seem to have been a lot of travel articles lately on this issue and for some reason they are highly misleading, so your question is common but your concerns are unwarranted.

The only time I ran in to a problem was trying to buy gas on a Sunday when there were no attendants. The small stations were technically open but for self service but wouldn't accept my card because I didn't have a chip. Luckily we had enough gas to reach a gas station that could fill us up but it was bit nerve-wracking!

Thank all of you for your comments.
Robert, the Ron-in-Rome website really has some great information – thanks for the link. I read the credit card newspaper article last Sunday and it was the first time I heard of this credit card issue. In the last four years I have freely used my VISA card in Scotland and Italy. The newspaper article mentioned a "Chip and PIN Prepaid MasterCard" from Travelex. Travelex wanted $767 + $9.99 shipping for a 500 Euros prepaid card. This morning the ex.com exchange website converted 500 Euros to $721. My wife and I are going over to Italy in September for a RS tour, so I'm not too concerned since we will be spending 90% of our time with an experienced RS guide who should be familiar with this situation. I will have some free time before the tour for a day trip to Venice (from Padova) where I might have a credit card issue. I think I'll just "hide" some extra cash on me for the day.

My last few trips to Europe I've used cash-only. Twice my credit card (CapitolOne) was compromised somehow and fraudulent charges were attempted after I came home. CapOne notified me both times, so no fraudulent charges were actually made. I had used the card to pay hotel bills. Now, I just keep some cash from my last trip and hit the ATM my first day. I withdraw the maximum amount of cash for a few days so I have enough for "walking around" and paying hotel bills. It's not a problem so long as I get my cash into my moneybelt soon (not while standing at the ATM). I carry a wallet and small purse, plus lots of pockets in my clothing. I've heard that some of our credit unions are issuing chip-and-pin cards. So far, I haven't found an ATM that rejects my American debit card. Since you have to use a PIN at an ATM, our style cards should be secure enough.

This is a problem. We just came back from Europe and tried to get train tickets at the Amsterdam train station. They would not honor or gold Amex or mastercard without a "chip". I then overheard a cab driver in Paris saying that he only accepts credit cards with chips. we called Amex in the US and they sounded like they did not ever hear of such a problem It is a problem Fortunately the hotel and the restaurants did not pose a problem. Fortunately too our ATM cards worked. But it meant that we had to be careful of not exceeding the ATM daily limit. Cannot say anything about Italy since we were not there. Mr. Steves needs to investigate this issue in more detail for all travelers.
Thanks.

It's not a problem in Italy.

Returned from two weeks in Italy this month. Never had problems with any of my credit cards, be it in a store, restaurant, or Trenitalia machine.

I had been worried about this too! I recently returned and can report never having a problem at least in Rome and Florence (I wasn't using a car, so I can't say there were no issues at gas stations). I used Capitol One for credit card purchases because they are friendlier on the fees. Bancomats were everywhere and we had no trouble getting cash using a Bank of America bank card. Even though I alerted Capitol One we were traveling, they put a hold on the account once during our trip but a quick call fixed that. Just make sure you have a charged up cell phone! have fun...

Swan, Henry, Michael, Celeste, and Barb thank you very much for your input. I'll post my experiences when I return from Italy and hopefully they will help someone else.