The majority of credit cards issued now come with EMV chips. What I’m referring to is the little silver thing on the side of your card, circled in red above.
The purpose of EMV chips is to authentic transactions. Instead of simply reading the card info via the magnetic strip like an old swipe machine does, a chip reader communicates with the EMV chip in a way that makes it much harder for anyone to steal your credit card number.
There are two ways EMV chips are implemented:
- Chip and signature
- Chip and pin
Chip and Signature
How it works: The card reader reads your chip, and then you sign to verify the transaction.
This is the most common method across the board. The vast majority of establishments in the United States implement this method, and it’s probably what you’re used to at this point.
Chip and Pin
How it works: The card reader reads your chip, asks for your four digit pin number (which is set ahead of time), which you then type in. It’s very similar to making a purchase on a debit card or withdrawing cash from an ATM.
This method is more commonly implemented in Europe (as well as other parts of the world), at payment terminals where there is no human to facilitate the transaction. Instances where you’ll be required to input a pin after using your credit card are at self-service gas pumps, highway tolls, parking meters, and buying tickets for trains, subways, etc.
I’m probably not the best example as I don’t reside in the USA all year, but I’ve never been required to enter a pin to verify a credit card transaction within the United States.
My Experience in Europe
I am currently in the United States visiting family and friends, but I was just in Europe from the end of May through mid July. When using my credit card to pay for transactions where a person was present, like for a bill at a restaurant, I was often asked to input the pin of my card. This was never an issue though, as they would override the pin requirement and accept a signature instead.
However I ran into many situations at self-service payment terminals where a pin is the only way to verify the credit card: Driving through tolls, paying for gas, paying for parking, buying subway tickets… the list goes on. Every time this happened I would whip out my Schwab debit card to use instead, but it would’ve been nice to have been able to earn rewards on all those transactions.
That doesn’t have to happen to you. Before your next trip abroad, if you forsee yourself having to pay for a lot of things at self-service terminals (for me, it was when I rented a car that I ran into self-service payment terminals constantly), then bring along a card with chip AND PIN technology. Unfortunately the tricky part is finding one that doesn’t charge foreign transaction fees.
Note that the SPG card pictured above does not have chip & pin technology, only chip & signature.
Cards with Chip & Pin and No Foreign Transaction Fees
Many credit cards from the following issuers offer credit cards with chip & pin technology:
- US Bank
- Wells Fargo
- Synchrony Bank
You can read about specific cards here. I’ll go over a couple good options below.
AAdvantage Aviator Red World Elite MasterCard
The AAdvantage Aviator Red World Elite MasterCard comes with 50,000 American Airlines miles after just one purchase and paying the annual fee of $95. You’ll earn two AAdvantage miles for every dollar spent on American Airlines purchases, get a free checked bag for yourself and four travel companions on domestic American itineraries, preferred boarding, 25% off in-flight purchases, and a rebate of 10% of your redeemed miles each year (cap is 10k rebated per year). You’ll also get access to American Airlines’s Reduced Mileage Awards.
Note that this AAdvantage Aviator Red World Elite MasterCard is a separate product from the AAdvantage Aviator Red MasterCard, also issued by Barclaycard, which is what most of you who used to have the U.S. Airways card were converted to back in early 2015. So if you have the AAdvantage Aviator Red MasterCard, you should are still eligible for this card and its bonus.
Barclaycard Arrival Plus
The Barclaycard Arrival Plus comes with 50,000 bonus Arrival miles after spending $3,000 on purchases in the first 90 days.
The card earns 2 miles per dollar on all purchases. You can redeem the miles to offset any travel expense greater than $100 inside your Barclaycard account within 120 days of the purchase. Here is How to Redeem Arrival Miles. Arrival miles can be redeemed for any travel expense like any flight (no blackouts), taxes and fees on award tickets, hotels, airbnb, car rentals, cruises, and more. You also get a 5% rebate on all redemptions.
After meeting the minimum spending requirement on the card, you’ll have at least 56,000 Arrival miles, which you could redeem to offset a $560 charge. And when you redeem the miles, you get the 5% rebate back instantly, so redeeming 56,000 would offer 2,800 miles back, worth another $28. It’s great for travel as it has no foreign transaction fees, and is a Mastercard, which means you will probably pay less in currency conversion fees. The card has an $89 annual fee which is waived the first year.
Credit card links have been removed from posts and added to the menu bar at the top of every page of MileValue under the heading Top Travel Credit Cards.
While it doesn’t really matter within the United States, if you travel to Europe often it would be wise to carry a credit card with chip and pin technology that also doesn’t charge foreign transaction fees.
Anyone else have troubles with their credit cards at chip and pin only payment terminals abroad? What’s your solution?