Swipe cards are used most everywhere -- from credit cards used to make purchases to swipe cards that work as keys to enter doors and even cards that can help companies keep track of workers' time. Although each specific use of a swipe card may use a different system to verify and log data, the basics of how the cards work is the same. When a card touches or passes by the swipe-card reader, information is submitted to a central computer system to evaluate the information that was sent.
Card Is Swiped
A swipe card must come in contact with the corresponding card reader before any transaction can take place. The transaction becomes active when the magnetic stripe on a credit, debit or EBT card is moved through a console at a retailer. Other swipe cards, such as those that work as keys, activate when they come in contact with the card reader, such as tapping the card to pad next to a door handle.
Electronic System
The card reader then transmits data through the electronic information system associated with it. Systems can be as simple as a card reader attached to a single computer or small network to something more complicated, such as the credit card verification system. Most methods of transmission require a computer with the appropriate programming to read information from a swiped card, and a network connection, such as a wireless network or a phone line, to transmit information.
Information Sent Once a swipe card makes contact with a card reader that is synched with the card -- such as a credit card being swiped w
hen you make a purchase -- information about that card is sent to a computer to process key information about the transaction. In the instance of a purchase, a third-party credit card verification system confirms that the card is active and there is enough money in the account to cover the purchase. In the instance of a key card swipe or time-and-attendance swipe, information is sent to the business's computers verifying the identity of the cardholder and will unlock a door or record that a worker is in the building.
Further Verification Some card swipes will ask for additional verification information to confirm the identity of a card user. A cardholder may be asked to enter a personal identification number when the transaction is processed. Some card readers also ask for verification such as to confirm a purchase or, in the instance of a time-and-attendance card swipe, may ask if a person would like to clock in or out of work.
Transaction Fees With some swipe cards, especially credit and debit transactions, come fees. A retailer is charged each time you make a credit transaction. The 1.6 percent to 3 percent fee is charged back to a company each time a card is swiped, in addition to annual fees the company pays for access to the credit card verification network. Banks may charge a fee to the account holder, common in the case of debit cards, when a card is swiped.
What is Micro ATMs?
Micro ATM is a mini version of an ATM. Micro ATMs are like modified point of sales terminals this terminal can connect to banking network via GPRS to perform banking transactions. This machine contains card swipe facility and fingerprint scanner. These machines are carried by bank representative at remote/mobile locations. These machines are handy and not capable of keeping any cash. The cash is carried by the bank representative along with him/her. He/She is also responsible for collecting a cash and depositing it user account.
What transactions can be done at Micro ATM?
The Micro ATMs can perform following transactions –
Cash Deposit
Cash Withdrawal
Fund Transfer
Balance Enquiry
Service Request acceptance
Aadhar Seeding
eKYC based saving account opening
HOME PERSONAL FINANCE Micro ATMs – How It Is Different From Other ATMs?
Micro ATMs – How it is different from other ATMs?
Raviraj Parekh April 17, 2018 No Comments
ATM has made our life very easy. There is no doubt about it. However, in the cash crunch scenario like today Micro ATMs is the best suitable option. Micro ATM is small POS type machine. Micro ATMs allows customers to perform financial transaction like cash deposit, withdrawal, and fund transfer. In this post, we will discuss about Micro ATM and its benefits.
In this article, you will learn
What is Micro ATMs?
Micro ATM is a mini version of an ATM. Micro ATMs are like modified point of sales terminals this terminal can connect to banking network via GPRS to perform banking transactions. This machine contains card swipe facility and fingerprint scanner. These machines are carried by bank representative at remote/mobile locations. These machines are handy and not capable of keeping any cash. The cash is carried by the bank representative along with him/her. He/She is also responsible for collecting a cash and depositing it user account.
Cash Deposit Machine Locator – How to find CDM Near You?
What transactions can be done at Micro ATM?
The Micro ATMs can perform following transactions –
Cash Deposit
Cash Withdrawal
Fund Transfer
Balance Enquiry
Service Request acceptance
Aadhar Seeding
eKYC based saving account opening
How Micro ATM Works?
Working of Micro ATM is similar to normal ATM machine.
Firstly, you need to undergo via a verification process. For the verification process, Aadhaar card with fingerprint scanning or card swipe option is provided.
Once verification is completed Micro ATM will display various transaction options.
You need to select the option and device will process the transaction.
On successful transaction, a message will be displayed on the screen and print receipt is generated.
You will also get SMS alert from your bank about the transaction.