Card Reader

Categories: Tech

Like a psychic with tarot cards. Also, a way to pay for things...a very important device in today's world. More and more people rely on credit and debit cards to make purchases (as opposed to old fashioned cash that your grandpa uses). Whether it's an automatic teller machine (ATM) at your bank or a point-of-sale terminal at a store or gas station, card readers transmit the information that's on a magnetic strip and/or microchip on the credit or debit card.

If you are making a purchase, the name on the card, the account number, the expiration date and the validation code are sent to a payment processor. If you are using an ATM, the info gets sent to your bank.

Also, many electronic devices, such as an iPad or smartphone, can be used to accept credit card payments by attaching a small portable card reader.

Related or Semi-related Video

Finance: What is an ATM?23 Views

00:00

Finance a la shmoop what is an A-T-M... hmm that's automated teller machine ATM

00:10

there there the big ugly machines that puke $20 bills when puking is good you [ATM spitting out $20 bills]

00:16

see them in front of your bank and it stores the magic Aladdin lamp rub comes

00:20

via your plastic debit card which you insert and wait then

00:26

you type in your PIN or personal identification number and then well if [Person typing in PIN number on ATM]

00:30

you have cash in your account the cash machine will spit out the money YUM

00:35

these computerized robot machines also let you take care of other bank stuff

00:39

without having to schlep into the bank transferring dough between accounts and

00:43

depositing checks and so on...Basically all the stuff you can do with an app on [Girl using an app on her phone]

00:48

your smartphone now and the irony here should not be lost

00:51

ATMs replaced tens of thousands of bank tellers when they came out in the 1980s

00:57

they were the first mass job replacement of human beings with robots and and yes,

01:03

phone apps now are replacing those testy ATM robot machines yeah and for those of

01:09

you with job phobia over robots while the advent of the ATM machine is a good

01:13

allegory to follow your jobs coming next you [Mans eyes turn red]

Find other enlightening terms in Shmoop Finance Genius Bar(f)