Chip and PIN credit cards for Europe

[audreyh1]

My daughter has been using the PenFed visa for purchases and also cash at ATM's in Switzerland and Italy. No problems and no transaction fees. Interest accrues immediately for cash advances but was only 50 cents for the month as the card gets paid off weekly.

If you didn't have a balance on the card already, then using it for cash advances and paying off weekly is probably an OK strategy.

But PenFed doesn't reimburse fees from other banks to use their ATMs, so that is a disadvantage.

 

[Sarah in SC]

One thing I just thought of, Audrey, regarding the debit on the brokerage account:
before we got the investor checking, we used the debit on our overseas trips. I, too, was freaked out about that so what I did was buy a money market mutual fund with all the cash in there except for a couple of thousand $ we planned to use on the trip. I then felt a bit safer that even if the card was compromised, I only had to worry about a smaller amount of loss.

I know you said you'd get the checking, but thought it was a FWIW idea to share with others.

 

[audreyh1]

One thing I just thought of, Audrey, regarding the debit on the brokerage account:
before we got the investor checking, we used the debit on our overseas trips. I, too, was freaked out about that so what I did was buy a money market mutual fund with all the cash in there except for a couple of thousand $ we planned to use on the trip. I then felt a bit safer that even if the card was compromised, I only had to worry about a smaller amount of loss.

I know you said you'd get the checking, but thought it was a FWIW idea to share with others.

That's true - you can certainly put most of the cash in a separate mutual fund from your brokerage account cash balance.

I keep my spending separate from my brokerage which is another issue in terms of cash management. Being able to have only the funds I want available for ATM or paying credit cards in a separate checking works much better for me, as well as having a limited amount exposed to ATM fraud. I won't be turning on any self overdraft protection. In the event of unauthorized access I'd rather deal with the fees.

 

[audreyh1]

That's probably Thursday's rate. It's works something like this: they use the prior day's rate on the posting date for a transaction, and the rate doesn't change over the weekend.

Interesting. I checked today, and they are still showing the 1.137 rate. I'll see what it says tomorrow.

 

[explanade]

I actually asked them why the difference in the rates and they came back and asked me for the first 6 digits of my card.

I guess they have different deals with different banks.

But Schwab specifically said they use the rates on the Visa site. When I've checked my other ATM cards, I didn't recall this noticeable a spread.

 

[audreyh1]

I actually asked them why the difference in the rates and they came back and asked me for the first 6 digits of my card.

I guess they have different deals with different banks.

But Schwab specifically said they use the rates on the Visa site. When I've checked my other ATM cards, I didn't recall this noticeable a spread.

I really didn't think they did have different deals with different banks. I thought all VISA marked cards would have the same rate as they only publish the one rate with their calculator.

 

[fosterscik]

This thread has been really helpful to me. I am rapidly closing in on ER and DW and I have decided to travel much more as we move toward that date. I'm planning a two-week vacation in Spain next May and want to have my cash needs met. I think I'm good to go with my BarclayCard arrival+ credit card (It's supposed to be chip and pin when needed and several people have reported success). It has an annual fee but the 2% cash-back toward travel makes it attractive to me. ATM use is another story. I have used the CapitalOne360 debit card in the past but they have no partner ATMs in Spain...

This thread has encouraged me to open a Schwab account to get their fee-free (or in reality fee-reimbursed) debit card for ATM cash. Given it works with any ATM network it looks like a great deal.

I thought I'd share this deal for others who also are exploring this account. If you deposit $10k in a new account and use offer code REFER you get a $100 bonus from Schwab. They obviously want you to use the brokerage account, but there is no requirement to do so. This 1% reward nicely offsets any penalty associated with moving cash to this account from any online bank (meets or exceeds their annual interest rates). The only downside I see is the hard credit check (and the need to monitor/maintain yet another account).

 

[fosterscik]

Here's a link giving details of the offer:
Schwab Personal Referral Program

 

[MichaelB]

Got my AmEx replacement card in the mail today. Pleased to see them rolling out chip cards.

 

[audreyh1]

This thread has been really helpful to me. I am rapidly closing in on ER and DW and I have decided to travel much more as we move toward that date. I'm planning a two-week vacation in Spain next May and want to have my cash needs met. I think I'm good to go with my BarclayCard arrival+ credit card (It's supposed to be chip and pin when needed and several people have reported success). It has an annual fee but the 2% cash-back toward travel makes it attractive to me. ATM use is another story. I have used the CapitalOne360 debit card in the past but they have no partner ATMs in Spain...

This thread has encouraged me to open a Schwab account to get their fee-free (or in reality fee-reimbursed) debit card for ATM cash. Given it works with any ATM network it looks like a great deal.

I thought I'd share this deal for others who also are exploring this account. If you deposit $10k in a new account and use offer code REFER you get a $100 bonus from Schwab. They obviously want you to use the brokerage account, but there is no requirement to do so. This 1% reward nicely offsets any penalty associated with moving cash to this account from any online bank (meets or exceeds their annual interest rates). The only downside I see is the hard credit check (and the need to monitor/maintain yet another account).

Good tip, thanks!

 

[audreyh1]

This is for Explanade, and other folks trying to understand credit cards and foreign exchange.

Can't say this completely explains it, but here is a more detailed view at the issue of how foreign exchange rates are set by VISA, and some comparisons with other foreign exchange sources. There is even a special interbank rate for exchanges in excess of a million dollars (OANDA).

How does Visa Calculate its Currency Exchange Rate? | The Inquiring Investor

 

[uds0]

This thread has been really helpful to me. I am rapidly closing in on ER and DW and I have decided to travel much more as we move toward that date. I'm planning a two-week vacation in Spain next May and want to have my cash needs met. I think I'm good to go with my BarclayCard arrival+ credit card (It's supposed to be chip and pin when needed and several people have reported success). It has an annual fee but the 2% cash-back toward travel makes it attractive to me. ATM use is another story. I have used the CapitalOne360 debit card in the past but they have no partner ATMs in Spain...

This thread has encouraged me to open a Schwab account to get their fee-free (or in reality fee-reimbursed) debit card for ATM cash. Given it works with any ATM network it looks like a great deal.

I thought I'd share this deal for others who also are exploring this account. If you deposit $10k in a new account and use offer code REFER you get a $100 bonus from Schwab. They obviously want you to use the brokerage account, but there is no requirement to do so. This 1% reward nicely offsets any penalty associated with moving cash to this account from any online bank (meets or exceeds their annual interest rates). The only downside I see is the hard credit check (and the need to monitor/maintain yet another account).

Clearly you won't want to use your Barclay Arrival+ credit card for you cash needs due to cash advance fees.

If you don't need the chip, I got the no annual fee version of the Arrival card (non-plus) which has reduced points (1 point except 2 on travel and dining) but otherwise virtually the same other benefits including free FICO score and no FTF.

Contrary to what is being reported in many ngs, the Schwab debit card IS available without a companion brokerage account. Simply apply for a savings account instead. (I have one!)

State Farm Bank is also a great debit card (but no chip) - no fees and reimbursed ATM fees, including balance inquiries, which Schwab may not cover, and allows deposits via ATM (Schwab doesn't and even provides mailers to mail checks in). I have not ever had a non-chip debit card rejected at an ATM for cash withdrawal, so no chip shouldn't be much of an issue with State Farm Bank.

For my upcoming 5 week trip in April, I zeroed in on:

Debit cards:
1. Schwab chip card (no offline pin so won't work at offline terminals like train ticket kiosks) - no fees and [only] ATM cash withdrawal fee rebates.
2. State Farm Bank NON-chip debit card - no fees and ALL ATM fees rebated plus allows deposits via ATM.
Note: BofA debit cards, as of Nov 2013, charge 3% PLUS $5 at non-Global Alliance ATMs!

Credit Cards (chip):
1. Andrews no AF/FTF Globtrek Rewards Credit Card with ON and OFFline PIN support - for train ticket kiosks (rewards program minimal).
2. BofA no AF/FTF fee Travel Rewards VISA - 1.5% cash back against travel purchases and no fees - not for use for cash advances! No purchase PIN capability (yet?)
3. Delta Skymiles (has AF/no FTF) Business (free bag, airmiles, other Amex perks)

Although Barclaycard Arrival Plus ($450 total signup bonus) works at offline terminals, when $89 AF posted I moved credit to no-fee Arrival to get additional $210 total signup bonus (Andrews provides OFFline PIN support)

I replaced Chase Sapphire Preferred (40k signup bonus?) at AF posting with business Ink card to get large 70k signup bonus - both converted 1:1 to United Airmiles instantly. The CSP, without ANY PIN support except for cash advance, given that they missed promised PIN support in 2014, is just not competitive, and the darn metal card was heavy and a pain to destroy! They even send a return envelope because of that issue.

NOTE: I applied and got both of the replacement card types shortly BEFORE dropping prior card so that I could move credit from existing card if needed (Barclay did) to qualify for replacement. Also, assure that all points are redeemed or converted to airmiles before canceling account to avoid losing them!

 

[audreyh1]

Contrary to what is being reported in many ngs, the Schwab debit card IS available without a companion brokerage account. Simply apply for a savings account instead. (I have one!)

That's interesting, because Schwab themselves say a brokerage account is required.

 

[Sarah in SC]

I definitely had the Schwab debit card and checks for years with only my brokerage (savings) account.

Last year I decided to open a high yield checking account as well, and switched my debit card and bill pay to that.


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[uds0]

Schwab brokerage and Schwab bank are two different entities. The savings account I have is with the bank and has no relationship to the brokerage side.

 

[Sarah in SC]

My Schwab bank and brokerage accounts are linked and money is automatically swept from the brokerage to the bank account whenever I use the debit card or bill pay. Likewise I can choose to deposit checks in either one on Schwab's mobile app. It is pretty seamless.


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[audreyh1]

My Schwab bank and brokerage accounts are linked and money is automatically swept from the brokerage to the bank account whenever I use the debit card or bill pay. Likewise I can choose to deposit checks in either one on Schwab's mobile app. It is pretty seamless.


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Do you not worry about someone getting hold of your debit card credentials and then pulling money out and the money from the brokerage automatically swept to cover that and more abuses?

I know of someone who had that happen to them. Took a long time to unwind. Husband had used the debit card at a hardware store. Money started to fly out and the "overdraft protection" or whatever kept pulling money from the brokerage account.

After that they decided to only use a debit card as an ATM card and never for purchase at a store. They also made sure accounts were "unlinked" so that there was no overdraft protection.

 

[Sarah in SC]

I typically purchase a money market mutual fund with all but the money I expect to spend while traveling, that way any loss is limited to what is actually in "cash" in the account. Anything over that is locked up in the mutual fund and must be traded T+1 to get out.

However, I've been surprised that so many places, even in remote Central Asia, will take credit cards for fuel or hotel purchases.

Oh, and I am fairly obsessive about checking Mint every time I get internet when traveling (and at home).
I also am on Schwab's advisor website all day at work, and check my own accounts there at least daily when working.

 

[audreyh1]

I typically purchase a money market mutual fund with all but the money I expect to spend while traveling, that way any loss is limited to what is actually in "cash" in the account. Anything over that is locked up in the mutual fund and must be traded T+1 to get out.

OK - I see how that limited you exposure to unauthorized withdrawals.

 

[kcowan]

Use of chip and PIN reduces fraud in Canada

The usage in Canada has dramatically reduced fraud and most of the international transactions would be in the US and Mexico.

 

[Marita40]

I haven't read this whole thread. I'm travelling to Italy and Austria next month. A quick call to my bank (debit card for ATM) and Penfed (credit card) was all it took to get a chip and pin version of each card. It appears that nearly everyone is on the verge of rolling these out--my employee credit card will start issuing them next month.

 

[uds0]

I haven't read this whole thread. I'm travelling to Italy and Austria next month. A quick call to my bank (debit card for ATM) and Penfed (credit card) was all it took to get a chip and pin version of each card. It appears that nearly everyone is on the verge of rolling these out--my employee credit card will start issuing them next month.

Be sure to quickly check the fee schedules on those cards for travel abroad and alert the issuers about your travel dates and itinerary so the cards don't get blocked while traveling. ATM fees are typically not charged in Europe, and having a debit card that reimburses any that do (like Schwab or State Farm) eliminates that potential cost. Even if a card issuer states that they don't charge FTF (foreign transaction fee), many debit card issuers still pass through the VISA ISA 1% fee charged them by VISA.

 

[sengsational]

Do you not worry about someone getting hold of your debit card credentials and then pulling money out and the money from the brokerage automatically swept to cover that and more abuses?

I know you're taking to Sarah, but I'll also chime-in that I'm paranoid enough not to use my debit card except in trusted places. That's the insane thing I do to get 1.5% on twenty-five grand (see kasasa-providers). This madness will end soon.

 

[audreyh1]

I know you're taking to Sarah, but I'll also chime-in that I'm paranoid enough not to use my debit card except in trusted places. That's the insane thing I do to get 1.5% on twenty-five grand (see kasasa-providers). This madness will end soon.

We only use ours as an ATM card.

And we have them on accounts where we can limit the $$ When traveling. We use different ATM cards at home.

 

[Sarah in SC]

Oh, me, too. The debit card only gets used when we are traveling (I never need cash at home any more) and only at bank (inside) ATMs. If the merchant will take a card, we use a credit card. That is what I consider safest.

I don't think we found a single place besides banks in the bigger cities in Kazakhstan and Mongolia that could take any sort of card. Ulan Baatar does have a handful of restaurants and hotels that do, though.


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