U.S. cardholders are having trouble using their credit and debit cards in countries that use chip-and-PIN bank cards. This occurs mainly in Europe and parts of Asia. A 2009 survey of 1,000 U.S. cardholders that had traveled outside of the U.S. showed that two-thirds had experienced some form of difficulty using U.S. cards while abroad.

It is most prevalent at unattended payment terminals such as ticketing kiosks in train stations, parking garages, highway tolls, parking meters and the like.
Chip-and-PIN cards, used around the world, contain computer chips that make transactions safer and prevent counterfeiting of cards. U.S.-issued magnetic stripe payment cards do not have a chip.

Chip payment cards are also called EMV chip cards, named for the standard that's been adopted by 22 countries, including much of Europe, Canada, Mexico, Brazil and Japan. Some 50 other countries are in various stages of migrating to the technology in the next two years, including China, India and Latin America.

See also, Are there websites where travelers are sharing their experiences and where I can get advice on international payment?