Debit and ATM cards

Here's a crazy question. I have never had a debit card or an ATM card. Are they the same card that you can use as either a debit card or an ATM card? I hope so because my bank said I had to request one or the other and that the debit card could also be used at ATMs. We are getting closer to our trip. We fly out on July 31st to begin our adventure. Thanks again for all your all's help in answering my questions. By the way, I'll probably will have a few more before we leave.

It probably would help if you named the bank. I can't give an opinion since I'm Canadian and things work somewhat differently here--I believe here all ATM cards are also debit cards (which of course are all chip and pin.) I assume your card will be chip and pin?

It's a local bank who uses a service out of Florida I think. As far as pin and chip or pin and chip, I'm not sure but I think all cards issued now are. I could be wrong.

Here's a good link on the difference between the two:

http://www.handsonbanking.org/financial-education/adults/atm-vs-debit-cards-the-difference/

An ATM card can only be used in an ATM to pull cash from your accounts. A Debit card has a Visa logo on it and can be used as an ATM card but can also be used similar to a credit card (with or without a PIN). The difference is that it pulls the money directly from your checking account, rather than sending you a bill at the end of the month.

And by the way, no, not all cards have chip and pin. My Debit card uses a PIN but there is no chip.

Rebel54 gave a good answer: All debit cards are ATM cards but not all ATM cards are debit cards. Since you have never had either, make sure that you use it in the States to make sure you know how to use it before you go overseas. Also - you will need to let your bank and all of your credit card companies know what countries you are traveling to so they do not put blocks on your cards.

I am looking at my cards and my Schwab is chipped, my capital one, Ally and Chase are not. Reminder to look at how much the transaction fees are. I've also read that some foreign ATMs won't accept PIN longer than 4 numbers.

Good point. A 4-digit PIN is the way to go in Europe, for sure.

Some banks don't need you to report on foreign travel any more (mine doesn't), but it never hurts to ask.

Even the bigger US banks have finally caught up with the chips being implanted in the ATM cards. Took them forever to get caught up with Europe.

Just remember to get a 4 DIGIT PIN, not 6 digits and don't make it a word as many ATMs in Europe do not have the letters on their PIN pads. Make sure it's numerical not alphabetical.

By the fall, all US credit card companies must convert to chip cards, or any losses due to breaches won't be covered. Most unfortunately seem to be going with chip and sign, as opposed to chip and pin.

Due to a data breach, one of my cards is being replaced with a chip and pin card by Barclay. At least one good thing came out of the data breach!!

Barclays is on the forefront of the switch. Unfortunately, after years of big talk, Chase is a real laggard -- finally got my debit card replaced, but it still uses the mag strip in the Chase ATMs.

A shout out to Charles Schwab Bank.... Got the tip from travel sites. No ATM fees and they reimburse the fees the dispensing ATM charges.

And their card has chip. Capital one 360 doesn't charge but doesn't reimburse.

Barclays is on the forefront of the switch. Unfortunately, after years of big talk, Chase is a real laggard -- finally got my debit card replaced, but it still uses the mag strip in the Chase ATMs.

Barclays is a UK based bank, and since we have had rules across Europe requiring chip and pin for several years now, it isn't too surprising they are at the forefront inn the US.

They have direct experience of how much it cuts down on fraud.

A shout out to Charles Schwab Bank.... Got the tip from travel sites. No ATM fees and they reimburse the fees the dispensing ATM charges.

And their card has chip. Capital one 360 doesn't charge but doesn't reimburse.

I'm not sure if Capital One 360 is different from other of their cards, but my Capital One debit has no fees and does indeed reimburse any fees charged by others. I've tested it and know that it works that way.

Also note that European banks do not charge fees when use your atm. Any fees will be charged by your own US bank.

Frank

My CapOne card has a chip and I got a 4 digit pin directly from them by separate post. No foreign transaction fee but using it at an atm will incur fees.

I'm not sure if Capital One 360 is different from other of their cards, but my Capital One debit has no fees and does indeed reimburse any fees charged by others. I've tested it and know that it works that way.

Also note that European banks do not charge fees when use your atm. Any fees will be charged by your own US bank.

Frank

Just be aware that while this is generally true of ATMs located in Bank Buildings, and usually those located at the major supermarkets, it is often NOT true of ATMs located elsewhere, such as highway services, many smaller shops, etc.

We were also advised that some ATM's in Europe/Asia will not take a pin that starts with a zero - so you may want to consider this.

My CapOne card has a chip and I got a 4 digit pin directly from them by separate post. No foreign transaction fee but using it at an atm will incur fees.

Again - just to clarify - I have a Capital One debit card that draws on a Capital One checking account that I established for travel. There are no transaction fees of any kind and any fees charged at any atm are refunded.

I also have a Capital One credit card that charges no fees; however, would never use it to withdraw cash anywhere. The "fees" that would be incurred would be charging interest from the date of withdrawal.

Frank

A Credit Card cash advance would be only for a "True Emergency" can't envision any other reason for doing such a thing..... (Medical, stranded)

I'm not sure if Capital One 360 is different from other of their cards, but my Capital One debit has no fees and does indeed reimburse any fees charged by others. I've tested it and know that it works that way.

Also note that European banks do not charge fees when use your atm. Any fees will be charged by your own US bank.

Frank

Thanks Frank! I am leaving for Vietnam in a week and cap one said they have no ATMs there so couldn't say if the local machine vendors would charge. So I have my Schwab and my cap one! Good to know about Europe though.... We're headed there next.

I'm not sure if Capital One 360 is different from other of their cards, but my Capital One debit has no fees and does indeed reimburse any fees charged by others. I've tested it and know that it works that way.

Also note that European banks do not charge fees when use your atm. Any fees will be charged by your own US bank.

Frank

I talked to a Cap One 360 rep, and what I was told is that they don't have any Allpoint ATMs in Vietnam, so I *may* be charged by the vendors there. No offer of reimbursement! I'm going in one week and I could do a "test" withdrawal at a local bank ATM just to test that.

But I got a Charles Schwab Bank ATM card as well, so now I have a backup in case something happens....card eaten by ATM, etc. I'd heard about Schwab Bank from forums...I am admittedly not all that seasoned a traveler but have gotten great info from others who are.

I did a "test withdrawal" at a local ATM here in my hometown, and the ATM machine at the supermarket charged me $3 ATM fee for my Schwab account withdrawal, and Schwab refunded me at the end of the month. It was an Allpoint, so Cap One didn't charge. (I wanted to make sure all the cards were working).

The Schwab account I'm referring to is the High Yield Investor Checking. No fees, no minimums, the only catch is you have to open a Brokerage account as well but at this time you don't have to use it. The only drawback I've seen so far is that it takes about four days for the funds you transfer in to become available to you. I hesitate to park too much money in there in case of fraud/theft. I transfer in cash from an external savings account.

Here's a crazy question. I have never had a debit card or an ATM card. Are they the same card that you can use as either a debit card or an ATM card? I hope so because my bank said I had to request one or the other and that the debit card could also be used at ATMs.

We are getting closer to our trip. We fly out on July 31st to begin our adventure. Thanks again for all your all's help in answering my questions. By the way, I'll probably will have a few more before we leave.

You don't say where you are going.

WE in the USA have chip and signature cards.

In Europe they have chip and pins. If in Europe, any time WE use our CC with a PIN number we are charged with a cash advanced fee.

If you want cash from an ATM, use your debit card.

Correct me if I am wrong.

Thanks Frank! I am leaving for Vietnam in a week and cap one said they have no ATMs there so couldn't say if the local machine vendors would charge. So I have my Schwab and my cap one! Good to know about Europe though.... We're headed there next.

Not sure about Vietnam, but my ATM card would not work in Bangkok, Thailand. Even if I did get it to work there was a very high fee associated with the withdrawal from the local ATM (not my bank). I did exchange USD at the local currency exchange and at the hotel.

We were told to exchange $100 at the change kiosk in Myanmar at the airport and that amount lasted the whole trip.

You don't say where you are going.

WE in the USA have chip and signature cards.

In Europe they have chip and pins. If in Europe, any time WE use our CC with a PIN number we are charged with a cash advanced fee.

If you want cash from an ATM, use your debit card.

Correct me if I am wrong.

OK, I'm confused. :confused:

In Europe, you use your credit card at a restaurant. The waiter brings the card machine. You enter your PIN. And you got home to discover your bank considered that transaction as a cash advance?

Not sure about Vietnam, but my ATM card would not work in Bangkok, Thailand. Even if I did get it to work there was a very high fee associated with the withdrawal from the local ATM (not my bank). I did exchange USD at the local currency exchange and at the hotel.

 

We were told to exchange $100 at the change kiosk in Myanmar at the airport and that amount lasted the whole trip.

I have gotten my Chase ATM card to work at a bank in a small town in Malaysia, and others have used the ATM in Vietnam. It can be confusing but it comes down to the fee your bank imposes (if memory serves, Chase charged me a flat fee, *plus* a percentage for withdrawal), and the fee the local bank/vendor charges. So withdrawing small amounts lessens the chances you'll be stuck w. a large sum of foreign currency at the end, but you incur a lot of fees that way. Two of the best cards for travelers are Cap One 360 (associated w. the online bank) and Charles Schwab. Schwab would reimburse you that fee that the local ATM vendor charges you. e.g. I withdrew $20 as a test withdrawal at an ATM here, the vendor charged me $3 (a whopping 15% if you calculate that way) but at the end of the month Schwab reimbursed me that $3. I expect (and hope) it will work that way on my upcoming trip to Vietnam.

There are many similar articles on the web, but you might find this useful:

http://thepointsguy.com/2013/07/avoiding-atm-withdrawal-fees-when-traveling-abroad/