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American credit cards are lacking the technology necessary for them to be universally accepted in many foreign countries. The all important missing component in American cards is smart card technology.

Smart cards still have the old magnetic strip, making them compatible with older terminals, but they also have an embedded microprocessor. 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 means that more data can be stored on the card instead of relying upon database access. Banks, police authorities and governments like these new cards as they are more difficult to clone and therefore reduce the incidence of fraud.

Buying from stores or paying bills in restaurants shouldn’t be a problem as the old style cards can still cope with the terminals used in these situations. The new smart card technology is essential if you want to make use of an increasing number of automatic terminals that are commonly found at ticket kiosks and petrol station gas pumps. Americans who don’t have cards with the new smart card technology would not be able to make use of these new facilties.

Although the rest of the world is quickly adopting the new, high security technology the American banking industry has no immediate plans introduce the new cards. They say that card fraud has not been as big an issue in the United States as it is in other countries.

Another reason for the delay in adoption is cost. The cost of introducing the new technology has been estimated at around $5.5 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 retired or over 64 you may want to consider Over 64s Insurance and if you have any form of medical condition you need to look at Pre Existing Medical Insurance.

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