Credit/Debit Cards?
Answer:
A merchant finds out your credit limit only AFTER you present them the card for payment.
The black stripe on the back is magnetized and contains only the account number information.
Once your card is swiped at the terminal, the merchant's computer instantanaeously contacts the creditor and ascertains whether or not you have enough credit capacity to actually charge the account.
If you do, it approves the sale and generates an approval code.
If not, the transaction is not completed and the merchant is told the attempt was denied.
they don't that's your code/id number and it's magnetic keep it away from mag's or you'll wipe it out
its not the balance, its the code. the card has a certain pattern unique only to your card embedded in the stripe. when you swipe it, the machine reads this code using magnetism, accesses your account and performs the necessary task.
Modern Technology.
when you deposit money into a checking account the key the info into a computer.Once that info is recieved by the computer it willpost to your account. when you purchase an item it will go thru a verifying process and once the money is shown to be in the account then your payment will be debited from the account.the stripe does not contain the amount of the card. It is just like a key to your account.
The balance in your account is not put in the debit or credit cards. The Black stripe is a magnetic strip and it is programmed to know the account transactions. The debit cards are directly linked to your designated account and it will hon our the transaction only up to the balance available in the account.
But, for the credit cards the limit is fixed individually and you can used only upto this amount. When you swipe the card at the vendors shop or at ATM it will pass the transactions only for the balance amounts available within the limit.
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