How does it work? | Bank card

How does it work? | Bank card


The first Bank cards appeared in America in the late 19th century. They were made of cardboard and have served only to confirm the creditworthiness of the owner outside the Bank. In 1914, Western Union issued the first card with a fixed credit amount for each customer. Ten years later to replace short-lived the paper cards came in a metal card with embossing. They were Ambasciatori (i.e. squeezed) the card number, name and address of the client. The use of such cards will automate the payment process, as data elbassiouny cards could be printed on checks and receipts with a special press.

The beginning of Bank credit cards put John Biggins, specialist Brooklyn Flatbush National Bank. He organized a system of payment on receipts, which took the stores from buyers for small purchases. Then the outlets gave these receipts to the Bank who paid them off buyers.

And in 1946 the company Diners Club created the first mass card system. Its main difference from the previous systems was the presence between buyers and sellers of a mediator, who undertook the calculations. This concept is liked by the customers, and in the year 285 trading companies served 35 thousand cardholders. Diners Club regularly charged their customers a fee for annual maintenance in the amount of 3 dollars.

Over time, the use of maps has become to go beyond America. So in 1951, Diners Club gave the first license to use their system in the UK. After a few years your card system launched by American Express and Bank of America. The latter is called Bankamericard, and 20 years later was renamed VISA.

In 1960 he created the first map of plastic. Its peculiarity was the presence of a readable magnetic strip, and 15 years later she received an electronic memory.

Modern Bank cards are made of polyvinyl chloride, but some premium cards can be made from metal. The cards usually have a magnetic strip with one, two or three tracks of data. It duplicates the information displayed on the surface of the card, the magnetic strip is designed for the automated processing of the cards. It should be noted that the first digit of the card number, you can define the payment system. Thus, figure 4 corresponds to Visa and 5 is MasterCard. And the first 6 digits forming the identification number of the Bank that issued the payment system is unique.

In chiped cards have a special EMV chip, which is responsible for verifying the transaction at compatible ATMs. The test is performed at the hardware level, the ATM generates a number that the chip has to give the right answer.

Also, the current plastic cards can be chip and RFID antenna for contactless card reading. RFID hardware is not connected with the work of the EMV chip and the magnetic layer. In addition, the number of RFID chip used for payments has nothing to do with the number on the plastic or the magnetic strip. Communication occurs only through the Bank server, where the credit card number and RFID chip associated with a single account.