Credit Card Blog

Imagine that you’ve finally taken your dream vacation to Europe, only to find out that your credit cards cannot be accepted. That would certainly put a damper on things, and it’s actually happening to lots of Americans who travel overseas. Some countries have instituted a new card system that requires you to enter a PIN instead of signing a receipt after the transaction. Additionally, European cards carry a chip inside them that carries information. American cards don’t have this, and were designed for the “swipe and sign” system we use here at home. That means that American credit cards simply might not work at many European stores, and especially at self-serve machines.

If you’re an American going abroad, carry cash with you to avoid an unpleasant surprise at the last minute. And try to select stores that have an attendant on staff, rather than self-serve situations. The attendant can let you know whether or not your card can be accepted before you ring up gasoline or train ticket charges.

All of the three major credit card companies report that merchants who accept their cards must agree to accept “swipe and sign” cards, even if they have another system in place. Some merchants don’t know or don’t abide by this, though, so it’s best to be prepared when traveling.