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How Do Debit/Credit Cards Work on Pay Swipe Machine?

Suruchi Pandey

Using a credit or debit card on a pay swipe machine is easy. Just swipe your card, and that’s it. It only takes less than 30 seconds for the transaction to complete. But have you ever wondered what goes on during that brief transaction? Well, you’ll be surprised to learn the number of tasks completed in such a short time.

Of course, most of it is technical, but you don’t need to know all that to transact. However, having some general knowledge of how the system works is crucial, considering the charges involved at different stages during the transaction.

In this article, you will discover the most important things to know about using credit and debit cards on a pay swipe machine.

  • What is a Pay Swipe Machine?

As the name suggests, a pay swipe machine is a device that allows you to transact using a card such as a debit or credit card instead of cash.

  • What is the difference between a Debit and a Credit Card?

To understand how the system works, you need to know the difference between the two types of cards.

  • The Debit Card

Most people are familiar with atm swipe machine price because they are the simplest to pay during monthly rental. A debit card can do everything an ATM can do. But it’s more convenient because it’s acceptable on any system that supports credit cards. The money comes from your checking account; that’s why it’s also known as a check card.

  • A Prepaid Debit card allows you to deposit money into your debit account through an electronic transfer, mobile check, or direct deposit.
  • The Credit Card

A credit card allows you to borrow funds from your card issuer. It’s a loan, so that means you will have to pay the money back later at interest. Depending on how you use your credit card, you can either build your credit report or damage it. Any late or defaulted payments will reflect negatively on your credit. To build good credit, make sure you pay the monthly installments in full and on time. Also, remember to use the credit card EMI calculator to calculate the exact amount you will need to pay each month to avoid any confusion.

  • How the Card/Pay Swipe Machine Works

Below is a step-by-step guide to how the system works.

STEP 1: Swipe Your Card

To initiate the transaction, both the card and the machine must have some form of physical contact. Depending on the type of machine you are using, you can either tap the card on the side or pass the magnetic stripe through a console.

STEP2: The Electronic System

Here, your credit/debit card information will transmit through the Electronic Information System (EIS). The system has an established network connection to verify the data received from your card.

STEP 3: Sending the Information

Once your card information transmits, it will go to a system to confirm the transaction information provided. Is the card valid? Is there enough balance to cater to the transaction? These are some of the things that the system will check. Depending on the status of your account, you will either receive an approval or a decline.

STEP 4: Additional Verification

You might be required to provide further verification, but that will depend on the type of card you have. Some cards will ask; others won’t. Usually, the purpose of this is to prove your identity and authenticity. You might also have to provide your ID number during the transaction.

STEP 5: The Transaction Charges

Some cards, especially credit cards, might charge some transaction fees after you swipe. That happens because the merchant has to pay fees for every transaction you make using a credit card. And to be exact, the charges can be anything between 1.6% – 3%. That’s on top of the annual mandatory fees they have to pay to provide the credit card services. The account holder might also have to pay some additional charges.


Card transactions are fast, convenient, and reliable. However, maintaining them can be a bit tricky, and the cost will vary from one card issuer to another. Understanding how the pay swipe machine work is essential to choose the best and the most affordable credit or debit card.

Suruchi Pandey

Hi there! This is Suruchi Pandey. I am a Self-employed, Working Professional. I love to Blogging, Creative Art, Photography, Reading, Others. I would love to connect with everyone here.

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