Travelex Chip & Pin Cards
 

I'm considering getting one of those credit cards that can be used in Europe & the UK since the US credit cards are so behind the times. Has anyone used one?e

They have a very bad exchange rate. We travel to EUROPE TWICE A YEAR for 3 to 4 weeks and I have never had a problem using my regular US credit cards.I use British Airways MC or Virgin Amex as they do not charge a foreign exchange fee that can add up to 3% on other cards!

<< US credit cards are so behind the times >>

Why do you care if US credit cards are not the latest fashion. They still work. I think not being the latest up to date product is not a good reason to spend more money. But it is your money and you can spend it any way you want.

If you will be driving and using unmanned tollbooths and pay-at-pump gas stations, or making multiple ticket purchases from automated kiosks at train stations, it might make sense to have such a card for these uses only. For other uses -- hotels, museums, restaurants, stores -- the US-style cards are welcome, though in some places you might need to instruct a clueless cashier to swipe the card or enter info manually. Of course, cash from an ATM is always good to have for the occasional shop or restaurant that takes no credit cards at all.

No, and I never would use one as they are very bad value for the money. My American cc's work just fine.

Before you purchase such a card you might want to do an honest price comparison and determine exactly what you are paying for this service.

For the most part, French pay-at-the-pump gas stations accept only credit cards issued by French banks. I have seen no evidence that Travelex cards are accepted at these locations.

All of the banks and hypermarkets in France now sell pre-loaded debit cards as well. At least you would be certain that they work in all of the European machines.

Here's an example: http://g.moneybookers.com/mastercard...FcYKfAodVipyig

Hi I,
>...the US credit cards are so behind the times.<

You are exactly right.

The one thing you really don;t want to do is to show just how provincial you are by using an out-of-date, old fashioned CC; even if the Tx card will cost you about 10% more.

Enjoy your visit.

((I))

Those Travelex cards aren't credit cards. Why would you pay so much extra money for nothing? Why do you care so much about this issue? Now if you have some plans to use a machine where you'd have to have a chip and pin, and you intend to do that a lot for some reason, I could maybe see buying one with some money on it just for that use but it's such a premium you pay to do that, it would have to be a really good purpose. I wouldn't ever do it and pay extra for that card, but if you don't have any special need for why you need one, I really wouldn't do it.

It is more important to have either a Visa or a MasterCard than a chip on it in Europe. Many places will not accept AmEx cards, chipped or otherwise.
You can swipe your card and sign everywhere as has already been stated.
Save your money and use your existing CC provided it is Visa or MasterCard backed.

American credit cards work in 99% of places that accept cards. The Travelex card is a waste of money.

<i>Many places will not accept AmEx cards, chipped or otherwise.</i>

I don't find this to be the case. I'm not saying Amex is as widely accepted as Visa or Mastercard, but I find it is accepted most places I try to use it. I only have Amex credit cards and rarely encounter a problem.

>>>I'm considering getting one of those credit cards<<

>>>Those Travelex cards aren't credit cards.<<<

Exactly. They aren't credit cards. They are more like the old travelers checks, but now in card from. Travelers checks were a better deal than these cards as many banks/credit unions did not charge fees to buy them although the merchants did when you were cashing/purchasing. The Travelex charges a fee for the card, a fee to load, a fee to get your money, a lousy exchange rate and a fee if you want to cash out after your trip. I watched someone trying to use one at an ATM and they were rejected, but Travelex still deducted a fee for the attempt.

total rip off! notify your banks that you are traveling (when/where), and use your behind the times American cards. have never had a problem and we do use Amex quite often, as well

I have found that most small businesses in Spain and France do not accept American Express because of the fee (7% or more, depending on the business) and the time it takes to see the funds deposited in their bank account, up to 30 days in some cases, very difficult for a small mom and pop operation with limited cash flow. Of course most upscale stores and gourmet restaurants will accept Amex, but smaller ones accept VISA and MC, and prefer cash.

I don't know where travelgourment hangs out, but I only use Amex for major purchases and hotel bills (now that it has no foreign transaction fees added to the bill). Everything else is cash, VISA or the new Harvard Platinum MC from Barclays (again, no fees).

<i>I don't know where travelgourment hangs out</i>

Well, considering I live in Denmark, I spend most of my time there, but I have had next to no problems with my Amex anywhere in the world. But, honestly, I think folks should use the card that they use at home. If they use Amex at home, they shouldn't bother with a second card for travel. Chances are they have a debit card that they can use as a Visa/MC backup for those instances where Amex isn't accepted.

Oh, and I think you are exaggerating (by quite a bit) both the fees and the reimbursement time for Amex. Perhaps you are just repeating what you were told by someone, but I seriously doubt that the numbers you quote are remotely accurate.

My company in France accepts Amex, with a commission of 2.75%. Since it is indeed the highest commission of any of the cards we accept, we do gently encourage the use of other cards. France has one of the lowest Visa/MasterCard commissions in the world (we pay 0.75% but lots of merchants have even lower rates), so we try to convince everybody to use either of those cards.

I would estimate that only about 50% of the places in France accept Amex (but 90% if we are talking about just hotels and restaurants, particularly in Paris).

We have Visa and 2 AmEx. The AmEx is regularly refused, both here in NL and in other European countries, in hotels, restaurants and shops. This is a royal pia as one AmEx is the business card. The other is linked to KLM FF points.
In Spain last week we had to use my Visa card all the time, as Visa messed up renewing his card and nowhere would accept AmEx - even when they had a sign up saying they would.

There is no exaggeration regarding the fees small merchants pay for accepting the Amex card, nor the time it takes for some to get the funds deposited in their bank account. That's always been one of the main problems in using the card. It's prestigious, at least when it comes to carrying the Platinum or Centurion card, and they offer free rental car insurance coverage (Platinum and Centurion cards), but quite useless in a number of cases. They are changing, slowly evolving, but I would never travel relying only on Amex to get me by.

We accept Amex in our business, but then our clients tend to spend a lot more on average, and we have an agreement with Amex that matches what VISA and MC charge in service fees. Our turnaround time with Amex is generally 3 days, depending on the amount, whereas the funds from VISA and MC are in our account within 24 hours.

Amex is often accepted in Paris or larger cities but once you leave Paris, it might be a good idea to have a Visa or MC. Travelling around rural France, I rarely find a location that will accept Amex.

<i>We accept Amex in our business, but then our clients tend to spend a lot more on average, and we have an agreement with Amex that matches what VISA and MC charge in service fees. Our turnaround time with Amex is generally 3 days, depending on the amount, whereas the funds from VISA and MC are in our account within 24 hours.</i>

That isn't remotely close to the 7%+ or 30 days you claimed earlier. Again, I think those numbers are exaggerations and cannot find anything on the internet to support them.

I always take my AMEX with me when traveling to Europe just to have an extra card for safety reasons. YOu never know what can happen, it doesn't hurt to take it. In fact, once I was buying some books in FNAC in Paris when the entire Mastercard/Visa network went down (at least in their store, I don't know if it was FNAC or the cad company) so no one could buy anything with a charge card except for AMEX cards, which I fortunately had carried with me as I certainly didn't have enough cash for those items and had just spent maybe an hour shopping for them (I routinely blow 100 euro on books and CDs in FNAC). And you can get cash with it in an ATM in case of some emergency where your ATM/debit cards doesn't work. The foreign transaction charge on my AMEX is lower than many charge cards by a bit (it is 2.7 pct rather than 3).

Anyway, I don't use it a lot in Europe due to that fee as I have ones without any, but I certainly take it with me just in case. Actually, I was in London once when the entire Visa network went down, as I recall, for some hours but at that time I could use a Mastercard as I was trying to buy theater tickets.

>>>when the entire Mastercard/Visa network went down <<<

I had that happen in Italy last year (it was down in most of Italy) and used my AmEx. I try not to use my AmEx much in Europe because they charge more fees than my credit union issued Visa and MC.

We are not a small merchant, thus the difference in fees and turnaround time. If you're really interested, just ask a small mom and pop store or restaurante why they will not accept Amex.

There are a number of post on the internet concerning merchant fees:

blog.unibulmerchantservices.com/american-express-merchant-fees/
blog.cardoffers.com/doj-sues-american-express-over-merchant-fee-controversy/
http://www.nakedcapitalism.com/2007/...le-of-how.html
http://www.thestreet.com/story/10910...cm_ven=GOOGLEN

I agree that there are any number of posts on the internet concerning merchant fees. The subject is very well covered. That none of those posts repeat your 7% and 30 days claim (those that give numbers seem to settle at roughly 3% and 3 days) is why I think your claim is greatly exaggerated. And, yes, I'm aware that merchant fees explain why Amex is not as widely accepted as Visa or MC, but that doesn't mean it isn't still quite widely accepted.

Thanks everyone for your input. Some have veered off the subject of Travelex cards. Obviously very few have used this service.

<<Obviously very few have used this service.>>

There's a reason for that. And it's a big stretch to call it a "service."

I read that the fees on those Travelex cards amounted to around 15 pct. So that is just a very expensive way to get money abroad. The only reason I could think of using one was to give to a minor who didn't have his/her own CC or ATM card. Even then, I would try to think of a better way around that problem.

The main reason you would pay the extra charges of the Travelex card is to get a European style Chip and PIN card. We're just back from a 1-month trip to France, and I can testify that there are plenty of situations, once you get away from the tourist areas, in which you absolutely NEED this type of card. Swipe cards, and even cash, won't hack it. Particularly in mid-summer, many systems are automated, there's no-one there to talk to. They expect you to insert your card and punch in your PIN - as virtually ALL Europeans do. We were traveling in the South of France, and without this type of card we could not buy diesel fuel or pay for dockage for our boat (without accosting a Frenchman and persuading him to use his card on our behalf) - very inconvenient! Also many small restaurants in this area only accept this type of card.

I wish someone here would say if the Travelex actually works as well as a real European-issue Chip & PIN card, but so far, I don't see any posters with first-hand experience on this.

OK, I've been using a Travelex card for the past 2 visits to Italy. I'm from Australia, so that could make a difference. It is simply a PIN card, no chip involved.

I loaded it with euros when the exchange rate seemed good, and didn't worry if the rate went up or down after that; there was nothing I could do about it! Same goes for reloading it.

The main reason I wanted to use this form of cash 'management' is because I deal with a Credit Union, and they cannot lift the daily withdrawal beyond $500, and they also charge $5 for each overseas withdrawal. So, that wouldn't be very handy for getting the cash needed to pay for my long term apartment.

I bought this card through my Credit Union, and the initial charges were certainly NOT 15%, more like $11 for the 2 cards, and 1% for the cash loaded. I pay a 2.2 euro charge for each withdrawal, and I made far fewer than half the transactions I would have been required to, with my Credit Union card.

I tend to use cash for any day to day transactions while overseas, and don't use a car while there, so perhaps I am not a typical spender?

Anyhow, I'm happy with the card, and will continue to use it, for sure!

YvonneT wrote: "It is simply a PIN card, no chip involved..."

Are you saying your card does not have an imbedded chip? Have you looked at it carefully? To me, as a US citizen that is the whole point of these Travelex cards. At present, no other US bank issues this type of European "EMV enabled" card, they only offer credit and debit cards with a magnetic stripe, commonly referred to as "swipe cards".

These American swipe cards do work OK in most French ATM machines, no problem. The problem is at automated kiosks like train stations, toll booths, gas stations, and small out-of-the-way places that don't normally cater to foreign tourists.

Hi, again! Well, I've got a "long in the tooth" Travelex, apparently! The new ones do have a chip, mine is just a magnetic strip. Sheesh, left behind by technology again. :-)

HClews - agree totally. I was in France for a month and had endless difficulties because I didn't have a chip card - and the situations where you need one because of automation are increasing all the time. (I had a heck of a time buying tickets for a movie in Lyon because all the purchase options even at the theater were automated.) This is a situation that is changing rapidly - I lived in France for a year and have visited 15+ times in the 20 years since then, including 8 times in the last 14 years, and even two years ago, I had no problem except one place with an American card. I don't know if I would get the Travelex just for that but I do know it's a rapidly growing challenge not to have a chipped card. When are US credit card companies going to catch up with this?

YvonneT

I assume you are using the card as per link?

http://www.travelex.com.au/for-you/cash-passport

There are two things to check when deciding to use this card
1) the exchange rate travelex offer (what percentage below the wholesale rate)
and 2
2) percentage fees per transaction

If the exchange rate is 2% below the wholesale rate(what you see on tv), and the transaction fee is 1%. then a 3% charge is what you need to know for making comparisons to other cards or cash etc.

The one good thing the travelex card offers it is preloaded with the currency you require , which hedges against any fall in your own currency, and it also has the security of not carrying all that cash at the one time.

I still think a lot of these problems could be solved by buying a preloaded card directly in France or another European country. 1. Get euro cash out of ATM 2. Go to bank or hypermarket or post office and buy a card and deposit the cash onto its account. 3. Use card with no additional conversion fees or service charges.

You have a good point kerouac, would you have a link to any of those cards available?
I had a look at the link you provided and it is a card that requires identity verification documents.
With the card you mentioned is there a purchase fee? for example - does a 100 euro card cost 100 euro?
If not, then the only charge is what your own bank charges you for the international transaction.
The other thing to consider is - if this card can be purchased with a debit card ,then it should be able to be purchased with a standard credit card.
Would the purchase of the card incur the full percentage cash rate for withdrawing cash, or only an international exchange rate as per any other item purchased while overseas?
Would be interesting to know!

Just reread your reply kerouc, disregard my point about the card being preloaded with cash, and the credit card question.
The only thing that would be of interest is how much the card cost?

Greener...'below' the wholesale rate? I like that deal :)

Someone here recently did a in depth breakdown of all of the charges on a VISA pre-paid, and by the end you had to ask..why bother?

As for exchange rates...what if the rate got better? You lose. I'm a bit leery of assuming I can outguess exchange rates, and any product that locks in at a certain rate..

I confess that since I do not need one of those cards, I don't know all of the details, but I will try to find out more. However, since they are mostly marketed locally to people who want to make cash safely accessible to their teens on independent vacations and also to people who have been banished from having normal cards due to credit incidents, they are clearly not overpriced or the target group would never consider buying them. (I think I have seen on certain sites that the card costs 5€ and there is maybe a 1% fee to load it, but I'm not sure.)

Michel_Paris

What I mean is the euro's you receive for your dollar are always less than the wholesale rate. That lower rate is different depending who you use to supply your money.

kerouac, no drama about the info, just clarifying the details.
The cards you mention obviously have benefits and I may use them myself at some stage, especially if travelling out of city areas.

Isadore204, hope the info provided is of benefit?