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 include an embedded microprocessor that effectively replaces the function of the magnetic strip, although this is still in place. 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. These new hi-tech cards are favoured by police and governments as they significantly reduce the risk of card 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. 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 who don’t have cards with the new smart card technology would not be able to make use of these new facilties.

The American banking industry are falling behind the rest of the world in the adoption of this new smart card technology. It is reported that credit card fraud hasn’t been as big a problem in the United states as it is in other parts of the world.

Another crucial reason for the delay in adopting this valuable new technology is the cost of introduction. The estimated cost of introduction has been 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.