A GUIDE TO CREDIT CARDS AND CREDIT CARD READERS.
Whenever you go out shopping, unlike before, you now pay with your credit card rather than cash. These cards are small square-shaped cards that fit nicely in your wallet, and can be used for electronic transactions through the use of a credit card reader. Credit cards allow you to pay for your purchases by charging them to your account, then you can just pay the same amount later directly to the bank who had issued you the card.
Debit cards and credit cards look so much alike that sometimes, you need to remember which one is which because the way they are used are totally different from each other.
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. To those who are unfamiliar with these electronic devices, these are commonly known as 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. Verification of the account and confirmation of transaction from the card reader to the bank’s computer will only take a minute or two – just enough time to confirm that the account is valid and has sufficient amount remaining to accept the amount to be charged.
Cashless mode of payment is the norm now, as more and more consumers are joining the trend by paying with their credit cards instead of bringing cash along with them. This is further strengthened by the fact that more and more businesses are also accepting credit card payments much like the same way they do with cash. Plus, with the recent boom in e-commerce, consumers have brought the act of shopping to the internet already and paying for their purchases with their cards – and such practice is expected to continue to rise.
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.