How did they know back when the credit card machines were manual that the card was still good?

Question

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?

In: 1

Answer 1

I don’t think in the beginning there were any calls. Making an imprint of the card on carbon paper was sort of like writing a check to someone. Back then you didn’t know if the check was any good either until days after you deposited it.

It had to do a lot with trust. Not all places would accept checks or credit cards. Maybe you wouldn’t accept a check from someone you didn’t know well.

Also, in the beginning it was hard to get a credit card. Only the most well-to-do had them.