I know that for really big amounts they called the credit card company. But did they also do it for small amounts of $10-$20? And if so how did it work in a Taxi when there were no mobile phones?
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In some respects, it didn’t matter. The whole point of a “credit” card was that having one was a marker of trust in you from the bank. It meant you could write a cheque and the bank agreed to honour that transaction with the seller, up to a certain limit.
My first bank card, for example, had text on the back saying it was good to cover debts of up to $100. This gave the seller the confidence that they would receive the money, while the bank took the risk that you could not actually pay the debt (the risk is balanced through interest and fees).
Even now, when you use a credit card, it is the bank that pays for the sale, and then pursues you for the debt.
The raised lettering is only there to make it easier for the teller to record your bank details, effectively making it very easy write a check.
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