Credit Card processing techniques have been evolving with various business trends. In the earlier days card processing was done by transmitting ARU (Automated response unit) via telephone or by collecting and mailing of credit card slips to merchant banks trough US mail.
Today, the credit cards magnetic strip is read by swiping the credit card through a Credit Card processing reader. The transaction can also be performed electronically by reading a computer chip or by manually entering the financial information on a credit card terminal via a computer or a website.
However, it is always recommended to make a transaction by swiping the credit card. This process incurs low costs and avoids fraud of credit card numbers.
What is a Credit Card Terminal?
While out shopping, most of us might have come across a credit card terminal at the billing counter. Ever wondered how the credit card terminal actually works. The billing executive will ask you to swipe your credit card into the credit card terminal, and he may also ask you to enter the credit card number and other information required to complete the transaction.
A credit card reader essentially requires to be plugged in a power supply or it may come powered by batteries. It may also require a telephone line/internet/cellular phone network.
When a credit card is swiped in the credit card terminal or keyed in the keypad, the credit card reader contacts the network to check for authorization of the credit card. The transaction is later retained in the machine and can only be retrieved when the polling window is opened.
The credit card information is then uploaded and later submitted to the merchant account. The electronic funds are then transferred directly to themerchant account or the polling service provider may directly upload the data.
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