Travel Tip

Travel Alert: Tips for Using Your Magnetic Stripe Travel Card Abroad

Americans traveling in Europe have encountered problems when trying to make a purchase with their Visa and MasterCard cards. The problem, they are told by retail staff, is that Europe’s card reading equipment is designed for chip-and-PIN technology and cannot read the magnetic stripe on American-issued cards. This is not true, and cardholders traveling abroad need to know what to do to ensure a smooth, successful transaction.

It is true that issuers and merchants in Europe have converted cards and equipment to chip-and-PIN technology, but their machines are still capable of accepting the magnetic stripe cards issued and used in America. The problem, according to the recent article “U.S. magnetic stripe credit cards on brink of extinction?” at www.creditcards.com, is likely one of inadequate training, with staff unaware that their chip-and-PIN-based machines can process magnetic stripe cards. In fact, when a cashier or clerk initiates the transaction, machine prompts will direct them “to do what is necessary to read the magnetic stripe so the machine can print a receipt for signing by the customer,” the article explains.

So, what should American cardholders abroad do if told by a retail establishment that their magnetic stripe Visa or MasterCard card cannot be accepted? Politely ask the cashier to swipe the card in the chip-and-PIN machine and follow the prompts it provides for completing the transaction. If the cashier refuses your request, ask to speak to a supervisor or manager. The fact is, any retailer that accepts Visa and MasterCard has to comply with international standards that require merchant acceptance of magnetic stripe cards. A manager should be aware of this standard and ready to help you complete the transaction.

For more information:
See www.creditcards.com, "U.S. magnetic stripe credit cards on brink of extinction?" http://www.creditcards.com/credit-card-news/credit-card-magnetic-stripe-ban-europe-1273.php?aid=2741cce8&rss_lnk=25