Credit Card Machine: Basics, Varieties And Working

by Banking Desk

In this era, everything becomes electronic. We make our electronic payment through the use of the machine which is known as a credit card machine. Here in the article given you the basics, varieties and the working concept of a credit card machine. So, go through it as it’s essential for us to know about the function of electronic machines and electronic money.

What is a Credit Card Machine

Credit Card Machine, also known as:

  • PDQ: Process Data Quickly
  • Chip &
  • Pin Card Readers

Our handheld devices that allow merchants/businesses to accept card payments electronically.

Types of Credit Card Machines

  • CounterTop
  • Portable &
  • Mobile

Working Concept Behind Credit Card Machine

After the customer arrives for payment at the billing point for a product/service purchase. Merchant will feed in the total invoice amount on the card machine and handover the same to the customer. After the customer confirms the fed amount, he/she inserts their chip card/swipes their magnetic stripe card in the machine and enters the PIN when asked, followed by pressing the enter button.

In case, he/she uses a contactless card and machine in a combine. The Customer will need to just tap their card on the contactless card reader, post confirmation of the fed amount. Then following step sequence will begin within a few seconds:

Name of Step

Basic Explanation

Payment Authenticated

Merchant bank receives the payment request from the card machine connected via Telephone/Broadband. The merchant needs to have an account with the merchant bank in order to accept card payments.

Transaction Submitted

Post request receipt, merchant bank asks the card issuer like Visa/Master Card to seek authorization from card owner’s bank.

Authorization Requested

The card issuer will cross-check card details and send the authorization message to the customer’s bank.

Authorization Response

The card issuer will check the customer details and check for funds available in the customer’s account for clearing the transaction.

Retailer Payment

Post payment verification, a green signal is sent to the card machine and merchant and customer copy for the transaction is printed out. The customer’s transaction is cleared within seconds and the customer’s bank credits the amount to a merchant account within 2-3 days.

To conclude, with the increasing popularity of card usage worldwide, a major share of the global population now prefers to make payments electronically by card. And to make it a working reality credit card machines play a crucial role. Simply speaking card machines and cards combined make doing business transactions globally: A quicker, simpler and secure job.

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