Credit/debit card reminder for travellers to the UK

[londonbear]

In an attempt to cut fraud, the "signature" procedure has changed since 1 January for cards issued in the UK and many from abroad. Rather than signing a slip, you may be asked to use your 4 digit "PIN" code on a shielded keypad. If your card has a gold window on the left side of the front to provide the contacts for the internal chip, the likelihood is strong that this procedure will be followed.

 

Back up procedures still allow for signatures if the card is not a "chip and pin" type or for special circumstances. If you have just forgotten your number, you may have to ask the manager of the shop for permission to sign as the shop is liable for fraud loss in those circumstances.

 

A similar changeover happened in France a few years ago and caused problems for foreign travellers. If you plan to use a credit or debit card on a visit to the UK, check with your card issuer. If they send you with a new number, memorise it or keep it completely separate from the card.

[OneFinger]

RE: Credit/debit card reminder for travelers to the UK

 

Thanks for this very useful info. I didn't know that was a new law in the UK.

 

But, just a heads-up on using PINs instead of signature. This is definitely LESS SECURE since others may observe your pin when you enter it. In addition, thieves have found ways to alter ATMs in the USA to capture your credit card info and PIN without you knowing it. I personally don't trust the security of a machine in a store and I refuse to enter my PIN and insist on a signature.

 

In the USA, some stores add transactions fees (up to $3.00) for each debit card purchase. To avoid these charges DO NOT use your PIN and sign the slip as a credit card purchase. (Current regulations do not allow merchants to add fees on credit card purchases. However, debit cards are not subject to the same regulations.)

 

Finally, debit cards (when used with a PIN) can be point-of-purchase transfers depending on the merchant. What that means is that some merchants are able to get instant electronic transfer of your funds. (I.e., before you reach the store exit the money has already been debited from your account.) With point-of-purchase sales there is no "float" (2-3 processing days before transfer of funds) as there is with credit card purchases.

[Epigonos]

The fact is there are disadvantages to all of these except plain old credit cards. At one time I had a credit card logo on my debit card which seemed like a good idea. I could thus use the card as a regular credit card and the money was removed from my account and I didn't have to pay a bill at the end of the month. No pin number was required. My card was lost or stolen and I reported it to my bank but somehow the information didn't get recorded and within a few week over four thousand dollars was removed form my account which I didn't realize until the arrival of my next statement. I then had to go into the bank explain in detail what had happened and fill out an individual form for each fraudulent transaction -- something like fifty and then wait two weeks for the bank to replace the money in my account. At least with a fraudulent credit card charge you can call the bank explain and refulse payment without any loss. I immediately got rid of the debit card with the visa/mastercard logo and went back to a regular old ATM debit card which required inputting my pin number. Can I still loose money? Of course but certainly not as easily.

[OneFinger]

RE: Credit/debit card reminder for travelers to the UK

 

>...I then had to go into the bank explain in detail what had happened and fill out an individual form for each fraudulent transaction -- something like fifty and then wait two weeks for the bank to replace the money in my account.

 

You've hit on one of the major flaws with debit cards - your money (readily available funds) is NOT protected as with credit cards. I'm surprised it only took you two weeks to get the money reinstated. I've heard horror stories of it taking much longer.

 

Unfortunately, there are not a lot of options to safeguard our money/credit cards.

 

I have read of experiments where a chip is implanted under your skin with personal info (including credit card data). The idea is that you'd only have to wave your arm in front of an RF reader to use your credit card. (I can just see the thieves of tomorrow torturing you for your PIN and then hacking off your arm to head for the closest ATM.)

[uptownmike]

RE: Credit/debit card reminder for travelers to the UK

 

Can be quite confusing. I'll just stick with my 30 year old American

Express card and when can't use that will use my 20 year old plain VISA>

[+ deej]

RE: Credit/debit card reminder for travelers to the UK

 

>You've hit on one of the major flaws with debit cards - your

>money (readily available funds) is NOT protected as with

>credit cards. I'm surprised it only took you two weeks to get

>the money reinstated. I've heard horror stories of it taking

>much longer.

 

It's getting better than it once was. CitiBank's current MasterCard-sponsored debit cards are protected almost the same as as a normal MasterCard.

 

Not all debit cards are alike. My previous bank used a Visa-sponsored debit card and I actually did lose money on a fraudulent purchase (which was later reimbursed by the vendor).

 

This is just one of those questions you should ask when acquiring the debit card (or opening the account) in the first place. <shrug>