Credit Debit Card And Debit Cards

979 WordsOct 29, 20154 Pages
Before credit and debit cards were developed, merchants would issue a line of credit to customers who did not have the funds to purchase their items. This credit processed involved using a ledger to record the amount owed for the items purchased. In today’s vastly growing economy, credit and debit card use plays an ever-present role in society. “Credit and debit card acceptance enables merchants to sell goods and services to customers who increasingly choose electronic forms of payment over other payment types” (“Payments 101”, 2010). Everything from purchasing house hold items such as grocery’s and furniture, to minimal tasks such as paying for parking for an hour, credit and debit cards provide people with more freedom when it comes to having access to funds and making purchases. Along with the rise of credit and debit cards, in a computerized and technological world where information is valuable, securing credit card information has its challenges. Validation and encryption are important practices that ensure the security of debit and credit cards, and they play a key role in providing the customer with assurance that their funds and bank information is confidential and secure. This paper will begin by explaining how credit and debit transactions take place and will go into further detail about the security, validation, and encryption processes that take place throughout the transaction. For the purpose of this paper the term credit cards will refer to both credit and
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