Over the last decade, EMV (Europay, MasterCard and Visa) cards have been widely adopted across the globe as a means to reduce credit card fraud. Because they require a PIN for authentification, proponents say EMV-enabled chip cards are harder to counterfeit. American cards, on the other hand, still rely on magnetic-strip technology. The problem for U.S. consumers traveling overseas is that many automated ticket kiosks – like those found at train stations, gas pumps, toll plazas and parking garages – aren’t equipped to accept payments without a chip and PIN. In addition, some international cashiers and merchants are unfamiliar with magnetic-stripe cards and may refuse to accept them.  An Aite Group survey found that nearly half of U.S. cardholders visiting Western Europe, Asia Pacific, The Middle East or Central Europe in recent years have experienced problems using US-issued payment cards.

To curb some of these issues, several banks including Chase and Wells Fargo have recently announced the addition of EMV chips to the credit cards they offer. Some credit unions have also begun offering credit or debit cards with chips, including the United Nations Federal Credit Union in New York. But while the number of American financial institutions to offer EMV-enabled  technology has grown, it remains questionable whether chip-and-PIN technology will ever be fully embraced here. The U.S. has been slow to adopt the technology, mainly because of the expense merchants and banks would have to take on to convert to EMV-compliant credit and debit cards and cash registers, which has been estimated at close to $12. 7 billion. American banks also point out that fraud involving credit cards with magnetic strips hasn’t been as prevalent in the states as it has in other countries.

So what do you think? Is the U.S. ready for chip and PIN payment card authentication? Will magnetic-stripe cards eventually go the way of the dinosaur?