Credit cards and debit cards have become part of our daily lives, because nowadays many people prefer to pay with their credit or debit card rather than cash.

But have you thought about how credit cards really work? At the moment, many people with many credit cards are quite rare, most people have one, two or, at best, three credit cards, but the number of people with one or more credit cards is virtually anyone who has reached the age of majority because banks today an account, and hence a credit card, is not only needed to pay for various services, but for example, receive various payments, including wages.

Know how credit cards work in their financial terms

Know how credit cards work in their financial terms

And while all the owners of these credit cards and debit cards know how credit cards work in their financial terms – how and on what terms of the cards give you such a card, and how can you manage that card, rarely do you know how we can with that card these credit cards shop or how these credit cards work directly from a technical point of view. The credit card and debit cards are, by their nature, thin plastic cards, most often about 85.6 millimeters long and 53.98 millimeters wide with slightly rounded corners.

On this card, some kind of identification information is displayed that is different for different cards and different banks. Most often, this identification information is a credit card number, credit card holder name, and signature, as well as a credit card holder image often displayed on credit cards.

Identification information

Identification information

This identification information is the information that allows the individual to pay for the card, because it identifies the credit card holder. Even today, most credit cards and debit cards also contain so-called chips, the technology that makes card readers and ATMs able to read credit card information in stores, and we are able to handle various credit card transactions. However, some credit card holders still have old-generation technology credit cards that contain a magnetic stripe that can be used to pay by credit card or debit card through a special card reader.

Magnetic strips of this kind are common in the United States, but virtually anywhere else, standard credit card is chip technology. Credit cards with microchip technology work with this chip and chip-specific PIN code. These microchips are very small computer chips that store credit card data. When a credit card is inserted into a card reader or ATM that is compatible with this chip technology and the correct PIN code is entered, the embedded system reads the information contained in these chips, but unlike credit cards with magnetic bands, chip cards are not only read, but they seem to interact with the technology of these card readers because the date of these chips is not only read but also after the action is performed, it is encrypted in this card chip.

There are cards that still have magnetic bands

There are cards that still have magnetic bands

Running so that the date on this credit card is stored on the magnetic stripe. And, by pulling them through card readers specifically suited to this type of card, this reader simply reads the information contained in the magnetic stripe of the card – credit card number and expiration date, but no information is encrypted back on the card, which means action with these cards are much more insecure.

These magnetic stripe cards also require that the customer who settles on such a card must leave his signature after settlement, as if he were approving his activity. And magnetic bands are very easy to clone, so magnetic stripe cards are very easy to eradicate or any other illegal activity with them. So if you are given a choice, which is a great rarity nowadays, because now in most of the world only credit cards and debit cards are issued with microchips, then definitely choose a card with a chip, because it is not only easier to pay , but also it is much safer because it protects itself against card counterfeiters and cloners.

 

 

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