Why can’t I use a credit card everywhere in the world?

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Travelers all over the world have used traveler's cheques

In today’s global economy one would expect to be able to travel anywhere and be able to use their credit card. There is no need to bother with exchange rates with paper currency or to carry around loose coins that you won’t really be able to exchange back to your currency. If you believe that we have some bad news for you, your credit card will not work all over the globe and it may not be for the reason you are thinking.

The main reason your credit card may not work everywhere is that not everyone is connected to the internet. Processing a credit card requires an internet connection and that is something that is lacking in many places around the globe still to this day.

For many Americans the thought of Cuba opening its doors to tourists and American business ventures is exciting. Classic car enthusiasts will flock to see the vintage automobiles that call the streets of Havana home. History buffs will want to see the old Spanish forts and San Juan Hill where Teddy Roosevelt led the Rough-riders and don’t forget the architecture. As of the end of 2016 only one small bank in the US issues a credit card that will work in Cuba and no US companies have secured deals with Cuban companies yet. For the traveler there is another problem as well, Cuba has very little connection to the internet. Cash is still king though that will change.

It should not be too much of a surprise that the nations in the world with the smallest amount of internet penetration are amongst the poorest nations of the world; Eritrea (1% of the population), Somalia (1.75%), Niger (2.2%), Sierra Leone (2.5%) and Chad (2.7%). It is much of the same with the rest of sub-Saharan Africa. Only Nigeria stands out and it should be no surprise that it’s GDP is the 20th largest in the world. The internet can bring riches and one of those riches are foreign visitors and their credit cards.