Using Debit Card in America

TheEffect

Banks in the US charge you to withdraw cash from an ATM, some of them as much as $3, so you get hit by fees from both the US bank, and your own bank.

The exception is Barclays - They've got an agreement with Bank of America, so if you've got a Barclays debit card, use a BoA ATM and you wont be charged the BoA withdrawal fee, nor the £1.50 fee from Barclays (just the exchange % will be added).

As mentioned, when asked if you want to pay via Debit or Credit, choose credit otherwise you card wont work.

No chip and pin in the US, so just swipe and sign, or swipe in some cases.

M_Thomson

lr1277 wrote: »

I don't know what you mean by normal, but are you aware, the majority of card readers over there read the magnetic strip and not the chip on your card?

And?

lr1277 wrote: »

I don't know what you mean by normal, bI don't know what you mean by normal, bIf you are not aware, this is a less secure system than the security provided by the chip and pin system.

It wasn't that long ago we had signatures here you know. It's not an entirely alien concept to UK residents.

lr1277 wrote: »

I don't know if you saw about the customer data stolen from Target stores back in December. According to the Department of Homeland security in the last couple of days, the malware that stole the details from the machines in Target is now prevalent on a large number of cash registers across the country. A couple of affected companies have identified themselves but the majority have not.

Yes, there has been breaches, but you are fully protected should your details be stolen. Chip and Pin isn't entirely secure either you know?

lr1277 wrote: »

If I were travelling to the US soon, I am not sure what I would do.

Needless worrying. You are fully protected against fraud in the USA.

lr1277 wrote: »

Either make sure your card has excellent fraud prevention/recovery measures
or
use cash/travellers cheques.

Again, why? You are protected fully by your card issuer. Visa, Mastercard and Amex insist on it.

lr1277

Perhaps I am worrying needlessly.
But the OP is planning on using a debit card. If the OP's current account was defrauded, there would be the issue of getting a replacement card whilst abroad and also the hassle of having their account dipped into, which may cause standing payments to fail.
A credit card would be much better, but using a credit card is not the OP's intention.

Perhaps the OP's bank will be behave brilliantly if the OP's account is defrauded. I too had a quick look for using Halifax's debit card abroad and all I found was something on exchanging money. Perhaps there is more relevant information if I did a longer and deeper search. However this initial search doesn't inspire confidence.

I realise we too had swipe cards until a few years ago but chip and pin was introduced as it is slightly safer than swipe cards. Also due to the internet, the attacks on payment systems are much more complicated and sophisticated.

You maybe right in that card providers provide protection. Looking at some bank websites, some state fraud protection is given, others do not. Again not confidence inspiring.

As the saying goes, you pays your money....

M_Thomson

lr1277 wrote: »

Perhaps I am worrying needlessly.
But the OP is planning on using a debit card. If the OP's current account was defrauded, there would be the issue of getting a replacement card whilst abroad and also the hassle of having their account dipped into, which may cause standing payments to fail.
A credit card would be much better, but using a credit card is not the OP's intention.

Perhaps the OP's bank will be behave brilliantly if the OP's account is defrauded. I too had a quick look for using Halifax's debit card abroad and all I found was something on exchanging money. Perhaps there is more relevant information if I did a longer and deeper search. However this initial search doesn't inspire confidence.

I realise we too had swipe cards until a few years ago but chip and pin was introduced as it is slightly safer than swipe cards. Also due to the internet, the attacks on payment systems are much more complicated and sophisticated.

You maybe right in that card providers provide protection. Looking at some bank websites, some state fraud protection is given, others do not. Again not confidence inspiring.

As the saying goes, you pays your money....

All banks provide fraud protection providing you are not negligent with your card. As I said Mastercard, Visa and Amex insist on it. If they didn't, then the banks would not be allowed to issue cards.

Your account can still be compromised, if you use Chip and Pin. If someone finds out the pin, or uses it online etc. You're right about the hassle if someone does get access to your money, from that point of view, it is easier to use a credit card as it is the banks money.

However, from a fraud point of view, visiting the US is no more risky than any other country in terms of getting your money back.

One other thing, you'll be pleased to hear the US is slowly moving to Chip Cards although initially for US issued cards, they will be Chip and Signature. From October 2015, US retailers will be liable if a customer has a chip card and the retailer swipes it and it turns out the transaction is fraudulent. Or if the Retailer does not upgrade their card machines.

Edi81

Don't use your debit card.

Get a Halifax Clarity a Credit Card. It charges no fees for transactions or cash withdrawals from ATMs.

The only thing to remember is that interest is charged from the point of any cash withdrawals but is much better than using debit cards etc.

RoxRoxBling

I've opened a current account with N&P and plan to use that debit card abroad. There are no charges. From what I've seen, the visa exchange rate is better than any travel foreign exchange place (i.e. post office, thomas cook)

I didn't know that USA ATM's charge you for cash withdrawals
But knew about them using swipe instead of chip and pin... shows how behind they are!

reclusive46

RoxRoxBling wrote: »

But knew about them using swipe instead of chip and pin... shows how behind they are!

Its a bit easier for 5 or 6 uk banks to migrate to a technology than it is for the 1200 US banks. The only place that currently uses Chip and PIN/Signature (EMV) in the US is Walmart.

RoxRoxBling

reclusive46 wrote: »

Its a bit easier for 5 or 6 uk banks to migrate to a technology than it is for the 1200 US banks. The only place that currently uses Chip and PIN/Signature (EMV) in the US is Walmart.

After reading a recent article about fraud in USA due to lack of chip and pin, of course it's a lot easier for them to deal with the fraudulent transactions that take place by using swipe and signature than incorporate chip and pin.

The country can put a man on the moon, but find it difficult to migrate to a technology of chip and pin.

Mr_LoL

Thanks. I have a Clarity card and a Fair fx card on my way to me. I have out $3000 on the fair fx card and the clarity card is going to be used as backup. Thanks for the advice

NiftyDigits

Mr_LoL wrote: »

Thanks. I have a Clarity card and a Fair fx card on my way to me. I have out $3000 on the fair fx card and the clarity card is going to be used as backup. Thanks for the advice

Erm....I think you've got that horribly wrong.


Why on earth would you choose a card, that not only would you have to pay to put US$ on to it, but you have to then pay again to take them out of an ATM??
A bit dopey it appears. I think that you have lr1277 to blame for that.


To be fair, the info given to you on this thread is all over the shop, so no wonder you got confused.


The best info that you received on this thread was to use the Halifax Clarity.
You were also pointed towards the Kalixa Pay card...but then rather lamely told that it wasn't a recommendation.
In fact it is a better solution for you than the Fairfx US$ card.


Firstly because you load it in Pounds for free. The exchange, much like the Halifax Clarity, takes place at the point of sale.
So spending in the USA today, you would receive a rate of US$1.646199 for each £1, with no deductions for both the Kalixa Pay and the Clarity.
The Fairfx US$ card currently offers US$1.6100 for £1.


So already, you've lost more than 3.5 cents for every £ that you exchanged and you have not even left the country.
I estimate that you've lost around £65 on that single transaction.
It gets worse.
When you get to the USA and wish to take your money out of the ATM, Fairfx are going to charge you US$2 to do so(on top of any fee the ATM might charge), each time.
So, in short, you have made a relatively poor decision.


The Halifax Clarity/Kalixa Pay combination would have been much better for you.


You could have simply used the Kalixa Pay for purchases, in order to avail yourself of the full MasterCard exchange rate and used your Halifax Clarity for ATM withdrawals...which gives you the same benefit, but has no ATM withdrawal charge attached.


The Halifax Clarity only charges 1% to 1.7% interest per month. So if you withdrew the equivalent of £1000 and then paid it back a month later, it would cost you between £10 and £17. Clearly a much better solution than the US$ card.
In practice you could cover the Halifax bill as soon as you got home. So one would likely pay less than a couple of weeks of Interest; perhaps £5 to £8.


Unfortunately, you have already committed to the US$ card, so you can do nothing but to enjoy your trip.