Thanks to e-commerce, international shopping is as simple as using a credit card. In need of cash? The majority of bank cards work with overseas ATMs. Also, wire transferring money allows you to send and receive across the world.
Considering these easy options, could adopting EMV cards have effects on international spending habits?
The answer is yes, they make shopping abroad even easier.
The use of EMVs is rapidly increasing all around the world, but they were not made as a universal payment option. Credit card companies and financial regulators are pushing for its expansion for many reasons:
- EMVs are simply credit cards which allow’s them to work well for e-commerce.
- The process of currency conversions aren’t an issue.
- EMVs work with the elder terminals as well as the chip-enabled terminals.
The distinction with the EMV cards is the extra step required for completing transactions:
- Consumers signatures (chip-and-signature) or,
- Consumers PIN number (chip-and-PIN).
EMVs are highly favored within the financial industries for their security verification steps. Also, they are extremely difficult to clone.
In most parts of the world, EMV cards are required in order to make purchases. This means every consumer must have it and every merchant must accept it. Therefore, all travelers must have one or they will not be able to complete transactions.
EMVs will become the official credit card standard in the U.S. as stated by the new liability rules. The expansion of this new practice is slower than expected in the U.S.. But, even if your state’s consumers are not using EMVs, your international consumers will.
Merchants are encouraged to update their credit card processing systems as EMVs take over. When it does, they will have become the closest thing to a universal payment option the world has ever seen.