When a Magnetic Stripe Reader (MSR) reads data where does it send info and how does it get it there?
May 28, 2010
in
Mobile Credit Card Processing
I know how the stripe of the card is magnatized but how does that information reach the entity that verifies the information. (ie: the reader is connected by phone line to a hub at the specific credit card company and their system digitally checks it) - this is an example and I have only an idea of how it works but do you know exactly the process. Also what is the entity that verifies the informaton.
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2 comments
Cliff P on May 28, 2010 at 11:06 am
Once the information leaves the the machine it goes to a credit card processing network. The network sends the card to the issuers network to verify the card. Usually the issuer marks the account at that moment for the pending funds. Then the ach withdrawal takes place from the issuer through the feds and back to the merchant.
prefered_guy on May 28, 2010 at 11:06 am
It works on the same way as the tape recorder does.
In the recorder has a roller which moves the cassette tape over the head(which reads the data from the magstripe). In this case the motion of the card swipe moves the card over the head in the credit card/debit card reading machine.
The head is a tiny electromagnet. When the card is swiped on the head it creates a flux which creates electric impulses which is then transfer through telephone wires to the database and the transaction is made.