Tuesday May 24, 2022

How payment terminals have evolved

The first generation of terminals was based on the principle of typing the necessary information (card number, payment card, etc.) on the keyboard. Transaction authorization could be performed by dialing the telephone system of the payment system or against a database of blocked cards stored in the terminal’s memory.

Kind of generation payment terminals checked the payment transaction through the knowledge of the financial limit, the type of use and the time of validity on magnetickm prouku cards and a list of prohibited and blocked cards stored in the payment terminal (off-line).

Once or every week (later and daily), data on completed transactions was then transferred to the bank or another city. First, floppy disks were used, later telephone and data lines. Because the terminals were used primarily to collect transaction data, this method was called Electronic Data Capture.

In 1979, VISA tested the first electronic payment terminal that connected by telephone to an authorized center (dial-up terminal). The prototypes were produced by GTE, Northern Telecom, Sweda and TalTek in a sweat of 200 pieces. Their price was around 600 USD, so it was not clear that merchants would buy them for each of the payment systems separately. All competitors, American Express, Diners Club, MasterCard and VISA, therefore had to agree that the terminals would be modified so that they could accept more types of payment cards at the same time.

At that time, one of the small rental companies joined the manufacturers of terminals, which brought a number of technical innovations and in 1984 won a contract from VISA for 50,000 pieces of terminals. By 1997, it had gained 65% market share in the United States. This company was VeriFone.

Aunt generation payment terminals (16-bit), introduced since the late 1990s, supports the operation of several applications simultaneously. This development has been issued by banks, which need to run payment, loyalty and other operations at terminals. The card operator for erpac stations thus has specific requirements. The development of new business models thus brought new technologies, e.g. transmissions using GSM, GPRS or Bluetooth (first introduced in 2003 by Ingnico).

The growing demand of banking associations for the security of transactions since 2002 requires the introduction of an end-to-end information network with the help of 3DES and, since 2005, RSA. Therefore, in the years 2001-2002, manufacturers expanded their offer with 32-bit payment terminals and 16-bit terminals with a coprocessor, allowing so-called multitasking (performing more types of operations at the same time).

How to recognize a fallen pension and which falench of banknotes is the largest?

A special type of terminal is the self-service store, telephone and parking machines Cardholder Activated Terminal (CAT). MasterCard, VISA and American Express credit cards are usually accepted for payment, because CAT terminals are not usually required for online transaction authorization, which requires debit card. French banks have introduced the largest number of CAT terminals in the world, thanks to the full range of introduced IP cards that can work with online, including the limit and client PIN. The number of these terminals reached about 400,000 in 2001 (of which 250,000 in France). We can meet them especially when paying the toll on the dormitories, parking, etc.


In the mid-1980s, the first online terminals began to be used. Each transaction takes place in real time (approximately within 10-20 s) in the authorized center of the card system, including where PIN, if used for card holder verification. The combination of both described in the described procedures are terminals operating in a semi-online mode.

Toto een et as a telekomunikan nklady. Terminly umoujc on-line oven transakc se nazvaj Electronic Funds Transfer at Point Of Sale (EFTPOS). Zahjen migrace bank na ipov karty pedpokld completely replaced imprinter payment terminals up to 8-10 years. At the same time, there will be a number of self-service vending machines (vending machine, car park, etc.), where it will be possible to pay with bank cards, and the use of long IP cards for contactless check-in of public transport passengers will be developed.

In May 2003, a new series of 32-bit Ingnico payment terminals (I5100, I5300, I7300 and I7700) received the Australia Design Award for Outstanding Design. The Australian company Design + Industry has been devoting more than a year to the design proposal, both in terms of ergonomics and technical integration, durability and safety. Even the choice of colors (you) was the subject of independent research.

According to Ingnico, the migration of banks to EMV IP cards, together with the development of IP card applications in healthcare and transport, contributes to a significant increase in the number of payment terminals. By 2010, their number worldwide will increase to 68 million.

Excerpts from the book
Pavla Juka: Encyclopedia of Payment Cards

1. dl: How to pay securely on the Internet?

Step 2: How did the river come about?

Step 3: How did the pensions come about?

4. dl: How banking originated

5th dl: When did the papyr pension arise?

6. dl: Pensions and echoes: when was the crown created?

7. dl: How are banknotes printed?

8. dl: Protection of banknotes against counterfeiting

9. dl: How and where the payment cards were created

10. dl: How payment cards were created-II

Debt 11: Who issued the first universal payment card

Debt 12: When did banks start issuing cards

13th dl: How MasterCard cards were created

14. dl: How the VISA cards were created

DL 15: The role of payment cards in Europe

16. dl: Payment cards in Europe and their arrests in R

DL 17: What caused the boom in payment cards

18. dl: Payment cards: magnetic stripe

19. dl: How to make cards

Year 20: How the first ATMs were created

21. dl: New generation ATMs

22. dl: Since when do we pay in stores by card


ryvek is from the bookEncyclopedia of payment cardsvydan nakladatelstvm City Publishing, who published publications in the FINANCE edition such as:
Make a investment, 2nd born ed
Investovn pro zatenky
Financial Mathematics Pro, 5.vydn

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