You wouldn’t think that using a credit card could pose many problems, right?

I’ve previously noted that UK mobile phone companies are not setup to handle non-UK cards, although I’m not sure if this is because of fraud or security concerns. But now actually using your card to purchase a phone top-up, a magazine, or a snack can be an interesting experience.

On an earlier trip this year (2010) I was amazed at the way vendors would turn my card over in their hands as if it was … well, I’m not sure what. Apparently the vast majority, if not all, UK cards have an embedded electronic chip. Instead of swiping the card, the narrow edge is inserted in a machine and you enter a PIN number. This is unremarkably known as “chip and pin”.

Well, the chip system did not take off in the USA so most of us don’t have one.

Hilariously, our attempts to purchase coffee or food would send the staff into a frenzy. It seemed to be a training issue, which required the supervisor to be located and the concept of swiping a card to be explained to the bemused staff member.

On my last trip, however, at one establishment my card was rejected as a valid form of payment completely, and I had to use cash.

I didn’t push the issue, other than to mention that they would not get much trade from Americans, so I can’t be completely certain that the staff person was correct or just untrained. But they did seem awfully certain.

You will not have any problems with car rental, paying at hotels, buying gas, etc. It seems to be only with smaller merchants.

Weird.

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UPDATE: October 2011. It is worse, much worse. See part 8.