American credit cards are sadly lacking when they come to Europe and indeed visit other countries that use smart card technology. The important missing element in American cards is smart card technology.

Smart cards still provide a magnetic strip that makes them compatible with older terminals but they also have an embdedded microprocessor that provides the smart technology. The new Smart card technology has been successfully introduced in over 22 countries around the world including most of Europe, Braziland Mexico. Over the next couple of years many additional countries including China, India and Latin America will adopt this new technology.

The embedded microprocessor makes it possible to store large amounts of data on the card rather than rely on a central database. Banks, police authorities and governments like these new cards as they are more difficult to clone and therefore reduce the incidence of fraud.

The new technology isn’t too much of an issue when making purchases in stores or paying restaurant bills as most of these merchant terminals still rely on magnetic strips. However, there are an increasing number of automated terminals, at ticket kiosks and gas pumps, that require the use of a new smart card. Americans, with their old fashioned cards, would be unable to use these facilities.

The American banking industry are falling behind the rest of the world in the adoption of this new smart card technology. They say that card fraud has not been as big an issue in the United States as it is in other countries.

Another crucial reason for the delay in adopting this valuable new technology is the cost of introduction. It has been estimated that it would cost around .5 billion to introduce the required technology most of which would be spent on the new terminals needed by merchants.

So if you’re an American headed for Europe or elsewhere in the near future the answer is to make certain that you always have some cash in your pocket.

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One thing you can be certain of when travelling is the need for adequate and appropriate travel insurance. If you are over 64 you should be looking at Senior travel insurance and if you have any form of medical condition you need to look at Travel Insurance for Pre-Existing medical conditions.