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Alan L saved The Rapid Traveler’s bacon before his putting up a long-planned post suggesting the J.P. Morgan Select Visa Signature Card as the current best answer to US travelers’ woes in the chip and pin realm of Europe. Wikipedia’s entry provides a good explanation of the technology. The practical gist is that a whole lot of US travelers stranded in Europe during the Icelandic volcano chaos found their US-issued cards useless in automated ticket vending machines across Europe. As these machines blanket Europe, travel without a chip and pin card becomes increasingly inconvenient.
US card issuers have teased customers with intimations of introducing chip and pin cards but solid cards have been elusive. The Rapid Traveler thought the J.P. Morgan card was the answer, but Alan L wrote:
…the main ADVANTAGE of Diners Club for Americans is that new North American franchisee BMO will give their forthcoming cards chip and pin, essential for going overseas (and who doesn’t?). Apart from the limited-market United Nations Credit Union, the only U.S.-issued cards I can find that are offering any chip at all have only chip-and-signature, a half-measure alternative to the real deal. One of my favorite teachershad a sign on his blackboard that read, “Don’t Start Vast Projects with Half Vast Ideas.” Words to live by.A growing number of overseas merchants won’t take swipe cards at all, some take the opportunity to unleash vicious anti-American diatribes against unwary Yanks who wanted only to patronize these establishments, and I have no read yet on how automated kiosks will react to chip-and-signature cards. These kiosks have left untold legions of U.S. travelers stranded at docks and depots and such without tickets that could not be purchased from other sources or by other means. There is similar trouble with pay-at-the-pump at unmanned gas stations.So until the rest of the credit-card business enters the modern era (American Express told me in writing to forget about chip and pin, and carry cash instead!), get BMO’s new Diners Club card, and don’t leave home without it. Or just don’t leave home.
photo by austinevan
As Alan noted, the humble Diners Club under BMO may be poised for a comeback. The Rapid Traveler has earlier posted about the Diners Club’s quirky selection of airport lounge access and car rental primary collision damage waiver (CDW), and if they ever drop foreign transaction fees this could become a useful card to carry for these specialized purposes. It’s rewards program offers little value for everyday spend, though.
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[…] out chip and pin cards but is not open to new applicants. Some US card issuers are disingenuously issuing chip and signature cards in a lamentable application of American […]
I think that it is extremely unlikely when so many countries are on chip but without the PIN that the machines would refuse the cards. I work in Canada (researching chip and signature brought me here); by refusing chip-and-signature they would be turning away every Asian tourist (not ONE card from Asia I’ve come across uses a PIN even if it has a chip) cards from Australia by choice (called PEN or PIN people in Aus. get to choose at every purchase) but usually default to sign, while I had someone from Germany worried about trying to remember the PIN… Read more »
NB. Unless i am mistaken, most of the recent Diners are actually Master Cards.
Avoid Diners Club in Europe as it is not widely accepted. And, while we’re at it, how about altering US gas pumps so people from overseas (who don’t have 5 digit zip codes) can fill their cars up.
The point of ZIP Code requirement is to prevent fraud. If it’s removed for non-US issued cards, it would defeat the purpose as presumably CC thieves could use stolen non-US CC data to fill up fraudulently.
This is why non-US CC has to be swiped at the register and a signature needs to be obtained.
I spoke to a Sapphire CSR and she told me the main reason they are Chip and Signature is because the cardholder won’t be responsible for purchases that they dispute. However, companies that have Chip and PIN make their cardholders responsible for all purchases.
I thought that Wells Fargo and US Bank had announced chip cards.
How will those work?
Based upon my last reading of that FT thread (which admittedly I’m not up to date on) it seems to me that the Chip-and-Signature cards have a 50% success rate in places where the old mag-stripe doesn’t work. Given that many chip-and-pin cards also don’t work at every unmanned kiosk depending on which bank/country the card was issued in… I don’t think that the JP Morgan Select is that bad of an option. Now, its certainly far from the ideal option, but I’d still rather use it (and carry cash when it doesn’t work) than get hosed by Travelex. Plus… Read more »