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Thursday, November 23, 2006

Credit card transaction process

During a credit card transaction, there are a few step before reaching the bank.

1. Each electronic credit card terminal has a magnetic stripe reader.
2. When the card is swiped through the terminal, the magnetic reader will scan the card information.
3. Then, the transaction amount will be keyed in, together with the name and account number.
4. This data is then transmitted for approval by the bank.
5. The bank then transmits an approval (or decline) back to the terminal.

Easy and simple right!!

Almost every credit card device performs these 5 basic steps. In the modern world, credit card networks have become faster and better. There are lots of features, services and accessories available to the ever-growing market for credit card. This extra features will be discussed in the next post.