How can that payment machine scan the card and then how can it pay if there are no electronics in the card?
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The magstrip/chip in a card don’t know how munch money is in the account. Basically there’s just some identifying ID. Bob12345
The reader then contacts a bank via a network, requests that Bob12345 owes $10. the bank says Ok I know Bob12345 is a valid number, and deducts the amount from that account.
Back in the days before electronic readers, they had physical swipe readers with carbon paper copies. The business would then send those to their bank at the end of the day. There was a credit bureau number they could call to get approval.
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