This post is meant to correct a lot of incorrect and misinformation shared in prior posts.
Certainly that's your choice, but I've been travelling internationally for over half a century with a debit card without any issues. Credit cards can also be hacked and cash can be stolen or taken by armed robbery, but both those likelihoods are just as rare as debit card skimming. Different strokes for different folks.
ATM/ABM cards did not get introduced in Canada until 1969 and it wasn’t until the late 70’s that many Canadian banks were using them for cash withdrawals. Debit Cards did not come into use in Canada until 1988, just a short 35 years ago and far less than the over half a century mentioned.
Ok, that helps explain it Carol. I am a retired financial professional and do have some experience in dealing with US banks at a non-personal level, as well as personal. I do know that the US banking industry is very fractured, since it is state regulated, unlike Canada and most European countries where is is regulated at the national level.
America enjoys a robust banking system where banks are either Federally Chartered or State Chartered. Over 20% of banks operating in the US are Federally Chartered. Over 94% of all banks operating in the USA are regulated, in some way, by the Federal Government. This regulation takes place by the OCC (Office of the Comptroller of the Currency), the Federal Reserve or by the FDIC. Many banks are regulated by multiple federal organizations. Many State Chartered banks are members of the Federal Reserve.
In my experience the US tends to be behind the curve, compared to its European and Canadian counterparts. We have required PINs for years, so that adds an additonal level of security that has only recently become more common in the US. Here in Canada, and in Europe as well, except at small merchants or for very small transactions, cash is rare, almost everything is either debit or CC. And yes, our regulations do provide more indemnification, so that obviously helps. Both CCs and debit cards are virtually the same in terms of protections.
The US has required PINs for years, first with the use of ATM cards and then with the advent of the DEBIT cards, when used in “debit mode”. The US adoption of the PIN with these cards predates the use by Canadians for many years.
And, no, your regulations do not provide more indemnification. For instance, both the US and Canada indemnify credit card users for all fraudulent amounts in excess of $50. Exactly the same, except the US protection was enacted in 1974 with the FCBA (Fair Credit Billing Act (Federal protection)) and in Canada that protection was not written into Canadian law until 1991 with the Canadian Bank Act (PART XII.2), 17 years later than the US.
On the Debit side the US laws are just as protective for the citizens, and again, predate Canadian protections for their citizens. Americans have enjoyed protections for Debit Card use since 1978, when the US Government enacted the EFTA (Electronic Funds Transfer Act). If you want to talk about Chip and Pin than yes, Europe and Canada enacted those measure earlier then the US, but for purchasing in the US, we mostly use Chip and Signature with our Debit Cards and Chip and Pin for ATM. Most US and Canadian credit and debit card transactions are now protected by the Zero Liability Policy provided by the Card Issuers, and the coverage is the same. Obviously, your knowledge of American Banking, Credit and Monetary policy is quite mis-informed.
And for all the emphasis you want to put on adoption of Chip and Pin, it provides no protection for CNP(Card Not Present) transactions. CNP transactions account for more than 1/3 of all debit card transactions and account for 80% of all debit card fraud.
Probably, but I have no actual experience with that. In fact, I can't remember the last time I actually wrote a physical cheque. Most payments like that here in Canada are done by either CC or online by electronic transfer (e-transfer). I don't know if the latter even exists in the US.
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“e-transfer” is a branded product of the Canadian “Interac” system. Interac was created in 1994.
**Interac e-Transfers are only available in Canada for individuals who have Interac-partnered bank accounts (most of them). So, no you cannot use Interac e-Transfer in the U.S. That being said, Interac does have a collaboration with Mastercard and Western Union to allow Canadians to send International Transfers. (Forbes Magazine, 04/2023).
Electronic Funds Transfer, was created in the US in 1871. It was first handled by Western Union. EFT has a long history in the US, dating back more than 150 years. I think we have made additional enhancements in the ensuing years.
I'm not young, either, almost to the 3/4 century mark, but in Canada at least, cheques are now pretty rare. The banking systems, while similar, are quite different to the US, IME, and our online and clearing processes are also much faster and more integrated, even between different banks. I am surprised that RBC in Sint Maarten is no longer accepting cheques, certainly RBC in Canada still does! Anyway, this has gone a bit off topic, so I will let it rest there.
Again, you have limited to no knowledge of US Banking and consumer credit policy. Usually, it takes about two business days for a check to clear in the US. That can vary from check to check, though. There are a few factors that might cause a check to clear faster than two days. Banks are generally required by law to make the first $225 of a check deposit available by the next business day. For example, if the check is deposited on a weekend, it’s considered to be deposited on Monday, so the first $225 of the check will be available on Tuesday. Canada has the same average clearance time but only quarantees the depositor the first $100 being available the next business day. Again, Americans enjoy these protections by Federal Law; The Expedited Funds Availability Act, Check Clearing for the 21st Century Act, and many more.
The RBC banks on the island are not affiliated with the Royal Bank of Canada . RBC there stands for Royal Bank of Caribbean and are very different banks. I am a Royal Bank customer in Canada too and I was informed of this from my bank.
This was addressed earlier and is totally incorrect.
@bdeeley is correct. And IME most RBC employees are unfamiliar and poorly informed concerning the foreign operations of the parent bank. They just can't see them on their branch network, so assume they are not the same. RBC US and RBC Financial Caribbean are separate incorporated banks, different from the domestic operatoins in Canada, for legal and regulatory reasons. They do not share branch operations, so yes, they are not the "same" bank, but they do work with clients of other RBC banks on a preferred basis.
When I pull money out of an RBC ATM in Sint Maarten, I am charged a witthdrawal fee, unlike here at home. But ulitmately, as @bdeeley says, they are all subsidiares of the parent bank. I was able to park in the parking lot at the branch in Philipsburg, reserved for RBC customers, by simply showing them my domestic RBC Client Card, so there is some recognition.
RBC Bank in the Caribbean is wholly owned and operated by RBC Royal Bank. Yes, they have to be organized and operated by the laws governing their location, but they are 100% owned and controlled by RBC Royal Bank of Canada. There are links to the Caribbean banks right on RBC’s website and you can login and manage your accounts right from the RBC website. Lack of knowledge on someone’s part doesn’t make it true or accurate. Corporate Leadership still resides with the Parent Bank in Canada.
@boucharda The article clearly says that the ATM was at the RBC in Philipsburg. If you look at the picture at the top of the article, you can actually see the two ATM machines, inside separate areas, on either side of the main doors. In February, I used the one on the left!
NO, the article does not say, in any way, that the ATM was at the RBC branch location in Philipsburg. The article states that the skimming happened at an ATM machine but did not give its location. RBC has branded ATMs at other locations on the island or it could have been an independent ATM. All the article makes clear is that RBC clients were affected.
The Daily Herald often uses that picture of RBC as a stock photo for any articles about RBC. If you infer that it was at the RBC branch because of the word PHILIPSBURG at the top of the article than again you would be wrong. That would be the “Dateline” of the article and it is usually at the beginning of the article and tells you where the article was written or filed. Usually the date is omitted and the location is in all capitals.
*** For those that want to see and get access to RBC Caribbean from the main RBC website, just go to the home page, and click on the link “about RBC” near the top center. Next click on “Caribbean” which will now show up right next to the left of “about RBC”. Now scroll down the page just a little and then on your right side you will be able to choose the location you want and then click the “GO” button. Now you will be able to see “Digital Banking” in the top left with a “Login” button. At this point you should be able to login and do your digital banking. Screen captures below.
RBC Subsidiaries
