What happens when you swipe the card?
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Upon Swiping, the POS machine only checks for the authenticity of the card (Fake or Genuine).
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The customer details stored in the magnetic stripe will be sent to the system through POS to get the response for the transaction
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Upon Swiping, POS machine validates the credit limit stored on the magnetic stripe and approves/rejects the transaction.
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Swiping provides the merchant with all information needed for accounting purposes only.
When a credit card is swiped at a POS terminal, the customer's card details (stored in the magnetic stripe or chip) are read and transmitted to the payment processing system for authorization. The system then sends back a response (approved/declined) for that specific transaction. Option A is incorrect because the POS does more than just check card authenticity - it processes the entire transaction. Option C is wrong because credit limits are not stored on the magnetic stripe; they're checked in real-time with the issuer's system. Option D oversimplifies - swiping enables transaction processing, not just accounting.