During the past few months while driving in the USA, we identified several "work-arounds" for Canadian Snowbirds who are unable to purchase gas with a Canadian credit card at U.S. gas pumps, due to a lack of a valid zip code.

1. U.S. Bank Debit (or Check) Card - The best "work-around" . . . but probably better suited for long-term or frequent visitors to the USA.

Since debit cards (known as Check cards, in the USA) normally require a 4-digit PIN identifier rather than a zip code at the pumps, consider opening a U.S. account and transferring your "gas money" into it. You do not have to live in the USA to have such an account.

On a recent visit to the States, we walked into a Bank of America and without an appointment opened a Regular Checking account using our Canadian address and other details. The only identification documents we needed were our passports and driving license. Half-an-hour later, we left with our new Bank of America bank (debit) card and a 4 digit personal identification number (PIN). The teller even tested it for us before we left and within 10 minutes, we were using it at a gas pump.

The card has worked at all the gas pumps where we have swiped it with no problems at all. When prompted, we press the pump's "debit" card button and enter the PIN instead of a Zip code. The pump then powers on and we start our fill. There may be transaction charges involved but we have been able to avoid all these by keeping a daily minimum of US$750 in the account. We also avoid the bank's monthly (US$12.00) service charge by maintaining this balance.

Every month, the Bank sends us a personal email advising us that our statement is now available on the Bank's secure website. It's very simple (and safe) to view, and print or download if desired.

One advantage of using the Bank of America is that it has branches close to many Canadian/U.S. border crossing points, so it is very easy to go into the nearest on your next U.S. visit, and deposit gas funds for your trip.

2. Canadian Debit Card (for certain Canadian banks only) - Suitable for short term visitors to Florida - this works but may involves a Canadian bank transaction cost.

Most major U.S. gasoline vendors are partnered with NYCE - one of the leading ATM networks in the United States. Recently, several Canadian financial institutions became members of the NYCE network; their debit cards are now acceptable for initiating purchases at the pumps of these partnered gas vendors. Debit cards do not require a zip code for at-the-pump authorization; instead they require your 4-digit personal identification number (PIN) issued by your bank.

The Canadian financial institutions issuing debit cards acceptable on the NYCE network are: ATB Financial, Desjardins, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Canada Trust. Additional institutions may be added from time to time. For an updated list, visit: http://www.nyce.net/consumers/canadian/canadian_banks/index.htm.

A list of U.S. gas companies partnered with NYCE include: 7-Eleven, Amoco, BP, Chevron, Citgo, Exxon, Gulf, Hess, Mobil, RaceTrac, Shell, Sunoco and Texaco. For a complete list of gas companies and other organizations accepting Canadian NYCE partnered debit cards, visit: http://www.nyce.net/consumers/canadian/canadianretailer/index.htm.

NYCE maintains a useful information website for Canadians at: http://www.nyce.net/consumers/canadian/index.htm

Look for the red and white "NYCE" symbol in the "Cards Accepted" panel on the gas pump.

NYCE does not charge for this service but in a recent test using a Scotiabank debit card in Florida, we noted that Scotiabank applied a C$1.50 service charge to our account for each transaction.

Further, all our Scotiabank debit card gas charges were applied to our C$ chequing account with the Bank's applicable U.S. exchange rate added, even though we maintain a Scotiabank U.S. chequing account. We were unable to arrange to have a Scotiabank U.S. debit card or have the charges directed to our Scotiabank US$ account.

3. A Canadian Zip Code - A number of readers have contacted me to suggest entering "00000," "11111," "12345" or "99999" (depending upon gas brand). Other suggestions have included punching in the 3 digits from your postal code followed by two zeros (e.g., L5G 4N9 would be entered as "54900"). All claim that these work at their southern destinations.

These may work for gas stations in specific locations since the entire zip code program (and any local workarounds) is installed at the gas station manager's discretion. With the exception of Pilot Gas stations which uses the zip code test on a national basis, they are not system-wide and this means there is no consistency for the Canadian who drives in the USA and wants to use his or her valid Canadian credit card while travelling. It's very frustrating to drive up to a pump of a major brand gas station and find your valid Canadian credit card does not work!

The sad thing is that a simple adjustment to the pump authorization software could easily handle out-of-country credit cards. At present when you swipe your card, the pump card reader identifies the card number from the card's magnetic strip and can immediately identify whether it is a domestic (U.S.) or non-USA card. The code for the financial Institution issuing the card is embedded in the first set of card numbers. If the software recognizes a U.S. Institution, the pump could then require zip code input; if non-U.S., the zip code test could be bypassed (known as "looping" in the programming world).

4. Chipped Credit Cards - The perfect solution if it ever becomes available at U.S. gas pumps.

In Europe, Visa and Mastercard have been using credit cards with computer chips embedded in them for several years now. Similar to Debit Cards, these "chipped" cards use a PIN for identification. The European "chipped" cards are so common now that during our 2007 U.K. travels, we found some retailers would no longer accept (or had the point-of-sales equipment to process) our regular "swiped" Visa or Mastercard.

Canadian institutions have already started a program of replacing existing "swiped" credit cards with "chipped" cards; the replacement of all cards in use will not be completed until at least 2011. Most Canadian retailers have already installed the equipment necessary to make sales using the new "chipped" technology.

It will take a similar national roll-out and replacement program of chipped cards in the USA, before U.S. vendors can accept Canadian "chipped" cards. Once "chipped" card readers are installed at gas pumps, the zip code requirement will be a thing of the past.

But don't hold your breath. In a recent interview with a Bank of America official, we were told that the cost of replacing all the card readers at retail (including gas pump) locations, would be prohibitive. In fact, at present there is no committed timeframe for such a change in the USA.

Dave Hunter,
Author, "Along I-75" and "Along Florida's Expressways."
Email: mile_oak@rogers.com

August, 2009