Credit cards are popular and a great way to get through the check out line a lot faster. However, the idea behind a credit card is only as good as the credit card swipe machines. These swipe machines must know everything about your credit card before you can even pass through.
The credit card swipe machine was developed by IBM. They used the idea of magnetic strips to keep customer information stored to create a credit card. This began in 1970. The credit swipe machine was then built so that it would be able to read the information that is being stored.
The strip on the credit card keeps track of the charges; both negative and positive. The credit card swipe machine then changes the negative and positive into 0’s and 1’s using a binary code. The credit card machine gives this information to the computer that then changes the binary code into numbers.
Reading the strip on the credit card allows the data to be transferred through the telephone line to where the cardholder’s bank then determines if there is money for the transaction or if there is not enough money for the transaction. This allows you to know if your card is accepted or rejected
There could be a problem with using the credit card swipe machine. With it being part of a computer system, it can be hacked into. This could cause a cardholder to have his identity stolen or have fraudulent charges. Sales clerks also can skim the information for further use after the purchase has been made.
The average price for a credit card swiping machine, with a printer, is roughly $350. This does not include the price of installation. The combination of the swipe machine with the printer saves space and allows the customer to get a receipt quickly.