How to use American credit and ATM cards in France

Mastercard claims that cardholders have access to more than a million ATMs in 210 countries and Visa claims a similarly high number, but go ahead and use them, and you’ll find barriers erected in all directions. Some are purely economic: surcharges, high ATM fees, currency conversion charges, and cross-border transaction fees. Then, there are the really tricky ones: differing global security standards.

So, you walk up to an ATM in France with a Visa or Mastercard logo and insert your US-issued credit or debit card with the same logo. Depending on the ATM, it may ignore your card, spit back your card, or even eat your card (less likely). Your card is defective by French standards, lacking a crucial piece of technology to provide a higher level of security against fraud. All across Europe, merchants and ATMs are implementing new technology often referred to as “chip and pin.” In France, this technology goes back to the early 90s, and in its original form was country-specific. This meant that cards issued outside of France were at a distinct disadvantage — typically French, you might say, analogous to their choice of SECAM for TV over the US’s NTSC or the rest of the known universe’s PAL. Still, a new global standard for this so-called chip and pin technology is emerging, called EMV. This is good news, since it means global travelers aren’t going to be restricted from using their beloved plastic, but bad news for US-based cardholders whose cards are incompatible with this technology.

Now, the merits and woes of chip and card can be debated endlessly, but a very practical consideration still exists: I’m in France / UK / Italy and I want to get cash / buy train tickets / get gas / buy something at a store. Here are some basic tips to get you started:

ATM/Cashpoints:

Risks: You often can’t tell if they will accept your card until you’ve inserted the card, but in my experience, the worst they will do is spit your card back out. Still, be cautious - non-US designs are different, and you don’t want your card to fall victim to a so-called “skimming” scheme where thieves attach a card reader and collect card data and PINs. If anything about the ATM seems ‘wrong’, pick another one.

- Network Logos: Your card will have either a Plus (VISA) or Cirrus (Mastercard) logo on the back — try to pick an ATM that matches.

- Finding Compatible ATMs: I try to look for ATMs which advertise “foreign cards welcome” - you’ll often see these in airports, train stations, and more touristy areas. If one ATM in an area doesn’t work, keep trying - with tens of thousands of ATMs, you’re bound to find one soon. We tried a BNP Paribas which didn’t work (card wouldn’t insert) then found a LCL two doors down which worked like a charm.

- Transaction Sizes: While it may be tempting to make large withdrawals, remember that ATMs can issue large notes as well - exchanging a 100 EUR or 100 Pound note isn’t something you can do anywhere. It can be helpful to get a receipt to remember locations that did or didn’t work.

Stores:

Point of Sale terminals generally have a slot up front to insert your card, and keypad on top to enter the PIN. Many terminals allow the magnetic strip to be swiped as well, either above the PIN pad or on the side. If this isn’t possible, the register generally will accommodate the transaction either by swiping or hand-entering the card, although convincing the clerk to do this may not be trivial. Younger clerks especially may not remember how this used to be commonplace. Remain polite but insistent, as Visa and Mastercard rules do require that they accept your card.

Gas Stations and Train Stations:

Almost universally, self-service systems for dispensing fuel, train tickets, or anything else will not accept a card without a smart chip. Equally universally, human beings will accept your chip-free card. At train stations, approach a staffed ticket counter. At gas stations or attraction ticket offices, find a person to discuss the matter. Consider having some cash for emergencies as sometimes these can be difficult to navigate, although few self-serve devices take cash either. Resist the urge to walk.

Restaurants:

Most restaurants which take cards have a small wireless device which acts as a combination card reader and PIN entry device. When you express a desire to pay by card, the waiter will bring the wireless device over, enter the transaction amount, and accept the card. If it were PIN-based, he or she would then hand you the pin entry pad (which is often attached with a short cord), you’d enter your PIN and the charge would go through. These devices almost always allow the card to be swiped and a signature to be gathered. If not, mechanisms exist for authorization via phone call (slow and to be avoided). Is is very much not typical for a waiter to remove a card from your sight to make the charge, as might be expected in the US. It is wise to keep your card in sight at all times.

Credit versus Debit Cards:

All this security is because debit cards are overwhelming the norm in Europe, and where liability for fraud is on the banks in the US, it falls to merchants and card users in Europe. The net issue here: if your card is cloned and your bank account is cleaned out, you might have no legal recourse if you were unable to prove the fraud. Of course, your account being US-based, this doesn’t affect you, but it might help to explain why people find PIN-based transactions so comforting.

This does lead to one important detail: if you use a debit card with your bank account, consider not using it for anything but PIN-based cash withdrawals overseas. Make sure you notify your issuer before you leave, but also be aware that this results in them backing off their anti-fraud efforts. The more times the card is exposed the higher risk you’re at. With a pure credit card, only your line of credit is at risk, but with a bank debit card, your whole account is at risk. Plan accordingly.

Final thoughts:

I’m finding this post much longer than expected, but one last item for those who like to travel outside the US. One way to avoid some of the fees is by making a careful choice of what ATM card to carry in those circumstances. Bank of America is the sole US issuer participating in the Global ATM Alliance which offers fee-free withdrawals from major banks in several European countries (plus China). Another alternative is the Fidelity mySmart cash management account which doesn’t charge ATM fees at all, period.

Tags: ATMs, cash, chip and pin, credit cards, EMV, europe, foreign ATMs, Mastercard, PIN, puce, Visa

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