Fraud Prevention Hinders American Tourists

American credit cards are sadly lacking when they come to Europe and indeed visit other countries that use smart card technology. 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. Smart card technology has been introduced to prevent fraud in over 22 countries including most of Europe, Brazil, Mexico and Japan and more countries are adopting the technology as time progresses. It is expected that many additional coutries wil adopt thisnew technology over the forthcoming two years including India, China and Latin.

The oncard microprocessor allows more data to be stored on the card rather than relying upon database access. These new hi-tech cards are favoured by police and governments as they significantly reduce the risk of card fraud.

Old style magnetic strip based cards are still suitable for most shops and restaurants as these match the terminals that are are in common use in these situations. However, the new smart card is essential at an increasing number of automated terminals that are often found at petrol station gas pumps, ticket kiosks and the like. Americans with their old fashioned magnetic strip based cards would not be able to use these facilities.

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 key reason for the delay in adoption of this technology is of course the cost. The cost of introducing the new technology has been estimated at around .5 billion to introduce the new technology and this is mainly due to the need for replacement terminals.

So it looks like American tourists in Europe and elsewhere will need to make certain they have cash in their pockets rather than rely on their credit cards.

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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.