Americans traveling overseas have a problem in their wallets. I do not refer to exchange rates (which are generally a bit better than a year ago given the relatively secure dollar). I refer to our antiquated credit cards.
Will your credit card work when you're overseas?
May 5, 2012 at 7:05PM
Most countries have turned to chip-and-pin credit cards, though the vast majority of cards issued in the United States still rely on a magnetic strip to exchange information. This dichotomy can cause problems overseas, especially in some small stores and at automated kiosks such as those encountered at gas stations.
"I want to spend money in Europe, but I've heard they won't take my credit card. What should I do?" one confused reader recently asked.
For one, bring a bit of cash in the currency of the country you're visiting.
Also, try to secure a U.S. card with a chip, though they are far and few between. Among them: J.P. Morgan Select Visa, British Airways Visa and Hyatt Credit Card. Diners Club is upgrading its members with chip-enabled cards. Wells Fargo began a pilot program last spring with plans to roll out chip cards to the public last August. We're still waiting.
There is an alternative to chip-embedded credit cards: AAA and Travelex both offer prepaid debit cards with chip technology. The exchange rates can be higher than you get when use your credit card, so turn to debit cards only when credit cards fail.
And remember, that should be infrequent. Usually, especially when people are handling the financial transaction, your credit card should work fine.
Send your questions or tips to travel editor Kerri Westenberg at travel@startribune.com, and follow her on twitter @kerriwestenberg.
