Thank you everyone for your input.

Yes, merchants should take the cards but some are refusing which doesn't help if you're the one standing there with little cash and a card they won't accept even though it is perfectly valid. Especially if you are in a country whose language you don't speak and the person on the other side has limited English!

Carrying extra cash seems to defeat the purpose of having credit cards in my mind.

As my bank here won't issue replacement cards with the chip I guess I'll just have to be extra careful about where I try and make a purchase, check before hand whether there is an ATM in close proximity if I need it and deal with it as best I can.