Seniors on the Go /By Ed Perkins
More help for using your credit card in Europe
Apparently, my earlier reports — that travelers to Europe may need PINs to use their credit cards — didn’t answer all of your questions. I’ve certainly received enough e-mails to convince me that additional explanation is warranted.
The origin of the problem is in the fact that many European banks are now issuing “smart” credit cards. These cards contain an imbedded chip and require that buyers enter a PIN when making a credit purchase. In fact, banks and merchants in the UK now require buyers who have smart credit cards to use a PIN for charges.
As a consequence, many European and UK merchants now routinely ask for PINs when they process credit cards. Unfortunately, some of them seem to be making the same request of Americans who still use “dumb” cards and do not use PINs for credit card purchases.
Several readers have encountered resistance to PINless transactions and, accordingly, many travelers have followed the widespread suggestions that they should go with the flow and get PINs before leaving for Europe. To compound the problem, some U. S. banks treat PIN-based credit transactions as cash advances, triggering all sorts of additional charges.
According to Visa International, these problems shouldn’t happen. Visa rules require European merchants to accept valid Visa cards presented by foreign travelers without use of a PIN (and, as far as I can tell, the same goes for Master- Card). Moreover, says a Visa spokesperson, all merchants displaying a Visa logo are required to accept any form of valid Visa payment — credit or debit — that is presented to them. Visa says it is committed to enforcing this policy and that American travelers should not be concerned about signature-only card acceptance at any participating Visa merchant.
That sounds clear enough. But Visa acknowledges that some foreign merchants may not be equally clear about how to treat chip-less cards issued in North America. So, what should you do when you encounter a waiter or hotel clerk who doesn’t get it?
According to Visa, the merchant’s card reader should immediately recognize a chip-less card and continue with a conventional no-PIN transaction. If the merchant isn’t clear, the card reader should display the proper prompts. If the merchant balks, Visa says you should insist that the person involved swipe your card through the reader and follow the prompts. If the person still balks, ask to speak with a manager. And if that doesn’t work, have the manager call the assistance numbers and speak with a Visa representative directly.
The bottom line: You do not need to get PINs for your credit cards if all you want to do is make credit purchases — but be prepared for occasional struggles with local merchants who say you do. You need PINs only for cash advances from ATMs. Which is not a good idea — for ATM cash, use a debit card instead.
As long as it was on the subject of foreign travel, Visa volunteered several other suggestions, all of which have been around a while but which are still important.
• Notify the bank(s) that issued your card(s) that you’re going overseas before you leave.
• Check on daily cash withdrawal limits from ATMs to make sure they’re adequate for your travel needs.
• In case your card(s) or wallet is stolen, keep a record of your card numbers and assistance phone lines somewhere else.
