Gary: When you take Mastercard or Visa, in the US or Europe, you agree to terms that require that you accept, for example, a non-chipped card in Europe. Required. Period. End-of-story.

Do you want me to tell you how many times in France my non-chipped credit card has been turned down over the last 11 years? In a country that benefits tremendously for tourism? Do I need to tell you how many merchants have insisted that their machine won't take a non-chipped card despite having the thin slot to swipe them with on every single card reader supplied by the banks?

It is not enough to assume that things will be a certain way because it's logical that's how they'd be. "Too important for local commerce" carries no weight when you have a merchant who, perhaps, would much rather pocket cash that's not reported than allow a non-chipped card to be used.

In general, I see this most in the south of France. Surprisingly, more often in regional cities (Pau, Tarbes) than the little places along the way. In Paris it would be rare... don't think I've ever had it happen.

In one instance in Pau a local who spoke perfect English and French tried to show the girl at the counter exactly how it worked. She'd have none of it.

I said "logic" doesn't work. Well, maybe it does. Or at least I'm trying to apply logic in suggesting that they would prefer cash that goes unreported to credit cards.
All retailers want to see a real physical card. You get a lower rate and, if you cross your t's an dot your i's, you're much better off in the event of fraudulent use. There are so many ways a "virtual" card isn't as secure, and that's what this is. Despite its physical wrapping, it's nothing more than a virtual credit card, a string of numbers.