US has now introduced the chip-and-pin technology
For those who are frequent international travelers it would be a familiar sight to see their cards being rejected when they travel abroad. Most people would have experienced some hitches while trying to make a purchase using their credit cards while they are travelling abroad.
The reason for this is - since the last few years most countries other than the US have already made the switch from the magnetic stripes to the chip-and-pin technology in the credit cards. The magnetic stripe cards required swiping and signing while making a purchase, but the chip-and-pin card means the technology reads the chip embedded in the card and the card is subsequently verified using the PIN that is entered by the customer to complete the transaction. Most customers have faced these frustrating situations while traveling abroad. But there is some reason to cheer now.
At least two banks in the US have announced that they are getting into the chip-and-pin bandwagon. While most of Europe has already switched over to this new technology, there are also many countries in Canada, South America, and Asia that are converting to this technology.
Wells Fargo as well as Chase are the ones in the US, to begin these new programs that have the chip as well as the swipe capabilities. They are targeting the heavy international travelers as some of the early recipients of this technology, but on a limited basis.
Well Fargo and Chase have been issuing cards which provide these overseas travelers some relief by addressing the problems they face while using the standard credit cards while on travel. USA today, reports that this will bring about some respite for these travelers, as no merchant abroad accepts the magnetic swipe technology anymore. The ones who hold the Palladium card from Chase and the ones that are invited into the program by Wells Fargo, will however be alleviated from this problem.
Around 15,000 customers are being targeted by Wells Fargo as they have been identified as the heavy international travelers and will run the trial for the chip-and-pin card and they will have no surcharge fee. Depending on the outcome of the test, Well Fargo would roll out more number of cards. But unfortunately until that happens, the only chance one might have is to get selected to be part of the pilot program by Wells Fargo.
MasterCard, Visa, and Amex are accepted worldwide and yet it is sometimes difficult to find a person who can swipe these magnetic cards at restaurants and hotels.
