A GUIDE TO CREDIT CARDS AND CREDIT CARD READERS.
Commonly referred to as “plastics”, credit cards are now quickly replacing cash as the most preferred method of payment by customers. Credit cards are small square-shaped cards that contain electronic information being read by a credit card reader for verifying transactions. These cards are issued by banking companies and works the same way like electronic or digital money since you can use them to pay for your purchases, then pay the same amount back to the issuing bank.
Credit cards look much like the same as a debit card, but works in an entirely different manner.
If you have seen a credit and debit card, then you probably have noticed that both of them carry a black magnetic strip on the back. It is this black stripe that contains the card owner’s primary information such as his account number, name, zip code, address, remaining balance on his account among others. As such it is very important that this black streak not be damaged otherwise you will not be able to charge anything, and would need to have the card replaced by your bank.
If you have used charge cards to pay for your purchases in the past, chances are you are now familiar with the usual method of using it – by swiping it on an electronic pay terminal which accesses your banking information so that your desired transaction can be processed. These devices are called credit card readers.
Card readers work by reading the information on the stripe itself, then sending that same information to the bank’s computer to verify if the account is still valid and whether it has enough funds to charge the total price to be purchased. Should the verification process be successful, then the amount to be charged is taken out of the account and a confirmation message is then sent back to the originating machine (of which, in this case, would be the card reader), all within a minute or two.
Nowadays, people seldom use cash in making payments. Businesses and commercial companies are fully aware of this trend too, and are now joining the bandwagon by providing their customers a means to pay with their credit cards instead of cash. Credit cards give consumers the ability to pay for their purchases even through online shopping, especially nowadays that businesses and companies have put up their own e-commerce websites to cater to a wider clientele.
If you own a credit card, it would be a great tool to help you build a good credit history, plus it can be used in emergencies when you have no available cash yet needing to pay for something, though make sure that you will use it in a smart and wise way.
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