Article

Travelex intros Chip and PIN for American travelers

Americans can use the cards to withdraw funds from EMV-compliant ATMs in Europe.

December 1, 2010

Travelex Currency Services Inc., a New York-based foreign exchange currency provider, is making available a reloadable MasterCard-branded Chip and PIN card that American travelers and tourists can use to withdraw funds from EMV-compliant ATMs in Europe.

EMV, or Europay, MasterCard and Visa, is a security system designed to prevent thefts, such as card skimming, at ATMs. EMV-compliant ATMs do not accept magnetic-stripe cards issued by U.S. banks and used by American travelers and tourists.

Travelex Currency Services, a subsidiary of London-based Travelex Group, is making its Cash Passport card available in euros and British pounds, said Maria Brusilovsky, a Travelex spokesperson. Travelers can purchase the card for a minimum of 125 British pounds (U.S. $194.89) or 175 euros ($231.29), Brusilovsky said.

"Cash Passport has been around for a few years, and we added Chip and PIN to enhance its functionality," she added.

Jon Dario, president of Travelex Currency Services, said there is a growing demand from American travelers for technology compatible with what merchants are utilizing abroad.

"Much of the global market already has moved away from magnetic-stripe cards," Dario said.

Chip and PIN technology is universally used throughout major European markets, including the United Kingdom and France. It also has become a standard in Canada, said Travelex officials. A Chip and PIN card has a chip embedded into the card and cardholders must type their four-digit PIN into the ATM.

According to the European ATM Security Team Ltd. (EAST) in Edinburgh, Scotland, there were 388,482 ATMs in Europe during the first half of 2010. More than 95 percent of the ATMs were EMV complaint, meaning they only accepted Chip and PIN cards, according to the EAST, a nonprofit organization that gathers and provides information about the European ATM industry. Lachlan Gunn, EAST coordinator, said Travelex's decision will help American tourists and travelers who increasingly will find their magnetic-striped cards rejected at European ATMs.

The inability of American tourists to use their magnetic-striped cards abroad to withdraw funds from European ATMs or pay for purchases at the point-of-sale has led to lost sales throughout Europe and elsewhere, according to Aite Group, LLC's report, "The Broken Promise of Pay Anytime, Anywhere: The U.S. Cardholder Abroad." Aite, a Boston-based consultancy, issued the report in October 2009.

Aite surveyed online 1,019 international travelers who live in the United States. The report found that nearly half of U.S. cardholders visiting Central Europe, Western Europe, Asia-Pacific or the Middle East in the last four years have experienced some form of a problem using U.S.-issued payment cards.

Aite estimated that 9.7 million U.S. cardholders experienced issues with card payments abroad in 2008. And 5.5 million U.S. travelers said they would have spent, on average, an additional $712 per year if they had not experienced problems with the magnetic-stripe cards.

Cash Passport will still include the traditional magnetic stripe to accommodate merchants who don't accept Chip and PIN, Travelex officials said. West Suburban Bank issues Travelex Chip and PIN cards.

Travelers can purchase Cash Passport at Travelex store locations and at Travelex kiosks in airports. In February, Gemalto, the French smart card manufacturer, launched a dual-interface EMV Chip and PIN card for U.S. banks to issue to customers traveling abroad.