What is a chip and PIN credit card?
Many countries, including most of Western Europe, Japan, Mexico and Brazil, have adopted chip and pin credit card technology, which is said to be more secure than traditional magnetic stripe technology. A chip and PIN credit card, sometimes called a “smart” credit card, has a built-in microchip that requires a personal identification number, or PIN, to be used in lieu of a signature. Chip and PIN credit cards also have a magnetic stripe for use in the US and other countries that have not converted their credit card processors and ATMs to accept customer PIN input.
Will my magnetic stripe credit card work in a chip and PIN country?
Visa and MasterCard require merchants in chip and PIN countries to also accept magnetic stripe credit card payments, which means you should have no problem using a magnetic stripe or chip and signed credit card at hotels and restaurants.
Problems can arise when trying to use a magnetic stripe or chip and signature credit cards at unattended payment locations such as train ticket kiosks, parking lots, bike rental stations, and toll booths. Without a person on site to process your magnetic stripe credit card payment, you will not be able to use your credit card at all.
Does any bank in the US offer chip and PIN credit cards?
In 2015, credit card issuers began providing chip and PIN cards to their US customers. Prior to that time, some US banks and credit unions began testing chip and PIN credit cards with select groups of customers. However, as of this writing, most US chip and PIN cards do not have a PIN; you must request it from your bank or credit card company. This means that these chip and pin cards are being used as chip and signature cards.
If you plan to travel outside of the US, contact your credit card issuer and request a four-digit PIN.
If this option is available through your credit card issuer, it will give you a higher level of protection against fraud.
What about Chip and Signature cards?
Chip and signature credit cards are protected by microchip technology, but still require a customer’s signature. Anecdotal reports indicate that users have encountered problems trying to pay with chip and signature cards at underserved payment locations in Europe. Chip and signature cards are accepted in hotels and restaurants.
Are chip and PIN credit cards safer than magnetic stripe cards?
The big selling point for chip and PIN technology is the increased fraud protection provided by the card’s microchip. In February 2010, Cambridge researchers Ross Anderson, Steven Murdoch, Saar Drimer, and Mike Bond announced that chip and PIN credit cards have a security flaw that can allow a clever criminal to trick the card reader into thinking that a valid PIN has been provided, when in fact it has not.
If your credit card number is used without your permission, the consumer protection laws of your country may limit your liability. For example, in the United States, Regulation E protects consumers from liability for electronic theft of their bank accounts, limiting liability to $ 50 if the theft is reported within two business days.
In the UK, banks must reimburse customers for fraudulent transactions, but a loophole that allows banks to avoid reimbursement if ‘gross negligence’ can be proven is often used to the benefit of banks, according to the site. UK financial website This is Money.
Are there alternatives to chip and PIN credit cards?
If you travel to a chip-and-PIN country and don’t have a chip-and-PIN credit card, you can still buy goods and services. You will need to plan ahead and be prepared to use one of these payment methods:
Cash, which you can get from an ATM using your debit card;
Prepaid currency cards, such as the Travelex Multi-Currency Cash Passport;
American Express cards, which are known to work at bike rental kiosks and other neglected payment stations in Europe;
Pre-ordered train tickets, subway passes, museum tickets, and toll cards. You can order many of these items from home before you leave on your trip.
Will my chip and PIN credit card work in a country with a magnetic stripe?
It should, although you may encounter problems at gas station pumps and other underserved locations that require you to enter a US ZIP code to complete your transaction. In some places, you can enter “99999” instead of an actual zip code, and your transaction will go through. In others, you will need to ask an employee to process your payment.
