American credit cards do not work in many places in Europe and other parts of the globe. Although the Yanks invented the computer chip, our cards don't work in automated machines elsewhere, like gas stations and subways, because they use a magnetic strip, rather than an embedded computer chip. Coupled with a PIN number, the chip provides security much greater than the strips. On one trip to France we had a Travelex chip'n'pin card that worked most places, but the conversion rate was usurious. Then I heard that AAA was offering such a card, and got one, only to find that it is a chip and signature card, totally worthless in automated machines. However, now banks are coming around, and we are getting chip'n'pin cards from USAA, which is doubly excellent. If you are going to Europe, or Australia (I understand), these are really handy.
Just another excuse to cross the pond.
Some more banks have just learned the hard way about magnetic cards- hackers hit up ATMs all over the place for 45 million in about a day using prepaid debit cards. So very sad...
ReplyDeleteChip and PIN cards have vulnerabilities, too, but hacking them is pretty cumbersome at present. The USAA agent advised me to keep the card in a metal case so that thieves couldn't steal it electronically. I believe he was thinking of the new RFID cards, which emit a radio signal when energized. A lot of misinformation out there.
ReplyDeleteMake sure they give you what they claim. Had the same offer from Chase, source of my CC's, six months ago. First card they sent had no chip. Second did, but its just a chip and sign, unless you want a cash advance (i.e. to borrow money at 18+% rate) in which case it is a chip and pin! Heading to Italy tonight, hoping we won't have to beg for Euro's at the Milan train station tomorrow.
ReplyDeleteI have received the USAA cards. They are truly chip and PIN, not signature, like the BofA AAA card I was sent previously. The Chase scam is a beut. That rate is even more than the Travelex. But that Travelex card did help us in the metro and elsewhere.
ReplyDeleteUSAA is MC only. No VISA yet. No debit card either.
ReplyDelete