Travelers May Get Confused by New 'Chip and Pin' Technology; U.S. Travelers May Need to Be Persistent with Merchants Overseas.ORLANDO, Fla. -- Millions of Americans travel overseas each year and use their credit and debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. in much the same way they use them in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . But recent changes in the United Kingdom and other countries may require Americans traveling there to be better informed when they pay with plastic. "The UK has gone completely 'Chip and PIN' and that's causing a bit of confusion for some travelers as well as merchants overseas," said Scott Denman, managing director, AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . "Chip and PIN" is a credit and debit card payment system that uses a microchip (1) Another term for a microminiaturized integrated circuit (a "chip"). (2) To insert an RFID tag beneath the skin of an animal. It is expected that some day, humans will be microchipped. in the card and PIN (personal identification number) in order to complete a transaction. It is the latest technology designed to prevent credit and debit card fraud which cost the financial services industry in the U.K. $914 million in 2004. While the new system may make credit cards more secure, the issue for travelers is whether or not their U.S. bank-issued credit and debit cards, which typically do not have a chip but instead use a magnetic stripe A small length of magnetic tape adhered to credit cards, badges, permits, passes and tokens. The tape is read by magnetic stripe readers incorporated into ATMs, identification readers and payment terminals. and cardholder card·hold·er n. One who holds a card, especially a credit card. card  hold signature, will work with the new Chip and PIN systems. "The answer is a definite 'yes,' but travelers should know they may need to be more persistent with merchants to complete the transaction with a signature," said Denman. "The new card readers used in the U.K. are still able to read the magnetic stripe on a U.S. bank card even though it does not have a chip, but consumers may have to be insistent in·sis·tent adj. 1. Firm in asserting a demand or an opinion; unyielding. 2. Demanding attention or a response: insistent hunger. 3. that the merchant accept their signature instead of a PIN." The reason is that PINs for credit cards issued by U.S. banks are not recognized by the Chip and PIN system, so a signature is required for purchases. While all merchants who display the Visa/MasterCard/Amex logos must accept any card bearing those marks, some merchants in the U.K. may be resistant to accepting magnetic-stripe cards or may be unaware that they will work. However, even though the PINs for U.S. debit A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. and credit cards are not recognized at the point of sale, they will still work at ATMs overseas. If U.S. travelers have difficulty using their credit or debit cards for payments overseas, they should ask the merchant to swipe the card and follow the prompts on the terminal. If a merchant refuses, cardholders need to be persistent in requiring the merchant to accept a signature to complete the sale. Since other countries may convert to the Chip and PIN system over time, it is prudent for travelers to be knowledgeable about this issue regardless of their travel destination. For more information, contact your local AAA club travel agency. As North America's largest motoring and leisure travel organization, AAA provides more than 49 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at http://www.aaa.com. AAA news releases can be downloaded from http://www.aaa.com/news. |
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