| Commentary

40 Background

| Commentary

6: PAYMENTS BY CARD

40 Background

The process by which payments by card are authorised has changed over time.

At one time, when a cardholder presented his card the merchant had to examine it carefully to ensure that it was not out of date and that its serial number did not appear on a list of lost or stolen cards issued by the merchant bank from time to time. If the proposed transaction was for an amount above a limit agreed with the merchant bank (‘the floor limit’) the merchant telephoned the bank for authorisation to accept the card for that particular

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