The English-language FAQ on the velib site ( http://en.velib.paris.fr/How-it-works/FAQ2 ) states the following:

What type of cards do the terminals and website accept?

You can use a card to buy your ticket at a terminal or station.
In stations, we are only able to accept chip-enabled cards as well as American Express and Japanese Card Bank (JCB). For Monéo, Electron and Realys, your card is temporarily debited with the €150 deposit. You are then re-credited. The time for re-crediting varies by bank, from 10 to 15 days after your ticket expires.

If you buy your ticket online at velib.paris.fr, your card is pre-authorised and not debited. By buying your ticket online, you can choose when to use it and plan your journeys up to two weeks in advance!

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So it sounds like the holders of non-chip credit cards can still use the velib system if they set up their account online in advance.

For ALL credit card transactions involving a human (as opposed to a kiosk) in Europe, my American credit cards have ALWAYS been accepted. Furthermore, I've never had a problem using my ATM card to withdraw money in Europe or anywhere else in the world.

FWIW, I asked a credit card issuer a couple of years ago if I could get a new card from them with a chip, and they said I could not.

Here's an informative article about "chip and pin technology". From this and other articles I've read, it sounds like US credit cards will gradually shift to chip & pin over the next few years.

http://seattletimes.com/html/travel/...andpinxml.html