Language
Country/Area
No result found
Why is it that every German should know the secrets of electronic cash and debit cards?
Electronic cash and debit cards have always been an integral part of the German financial system. Although many people are accustomed to the convenience of these methods, few people know how they actually work.
For most people in Germany, it is fairly common practice to use electronic cash or debit cards when conducting transactions. In this technology-driven economy, electronic payments are gradually replacing traditional cash payments. But what secrets are hidden behind this change?
First of all, the electronic cash system was part of the German banking system before 2007 and was mainly supervised by the German Banking Commission. It is usually linked to a bank account or current account, and each card with the electronic cash logo is only issued by legal credit institutions. When paying with an electronic card, the cardholder needs to enter their personal identification number (PIN) at a so-called EFT-POS terminal.
The operating model of electronic card payment systems is roughly similar to international debit card systems such as Maestro and Visa Electron.
Market share of service providers
The electronic cash market in Germany is dominated by several major providers, such as Ingenico Payment Services GmbH and TeleCash GmbH & Co. KG. According to market research, these companies each hold different market shares in the market. Competition among these companies has promoted the development and innovation of electronic payment technology.
In the early 2020s, other companies related to electronic cash also grew, showing the growing popularity of this payment method. These providers must maintain appropriate security standards and be certified by the German Central Credit Commission.
Currently, electronic cash acceptance symbols include the electronic cash PIN-Pad and girocard symbols, which are required in new point-of-sale setups.
The structure of hardware and software
In electronic payment systems, the hardware and software structure of the card terminal (EFT-POS terminal) is crucial. These terminal devices contain key components such as security modules, PIN pads, printers, displays and reading devices. Key security modules must undergo strict certification, all to ensure the security of every transaction.
These terminals not only require stable hardware, but also efficient software systems to support the processing of various transactions. Due to the advancement of technology, more and more banks have begun to equip electronic cards with EMV chips, which improves payment security and avoids the risks of counterfeit cards and data theft.
According to statistics, by 2008, 70% of cards issued by German banks were equipped with EMV chips, showing a trend of transition to electronic payments.
Payment authorization process
The payment authorization process is at the heart of electronic payment systems, especially when transactions are made using cards with magnetic stripes or chip cards. Through the online authorization system, banks can remotely verify the cardholder's account status and identity information to ensure the validity of each transaction.
For example, when a customer uses electronic cash to make a purchase in a store, the system first checks whether the PIN code provided is correct and whether the account balance is sufficient. If any requirements are not met, payment will be refused. Such a system greatly reduces merchants' risks and improves customers' trust.
Whether you use a magnetic stripe card or a chip card, the security of these transactions is multi-verified by the back-end banking system to ensure the reliability of the transaction.
Electronic payment in the future
With the advancement of technology and changes in consumption habits, electronic payments will become more efficient and convenient. According to a recent survey, the proportion of electronic cash payments in Germany increased to 19.4% in 2009. This once again confirms that electronic payment methods will become the future trend.
But such convenience and security also come with various challenges. How to protect user privacy and enhance transaction security are still issues that future electronic payment systems need to face. The trusting relationship between merchants and consumers in electronic payments will impact how the entire economy works in the future.
In such a rapidly changing financial environment, for Germans, understanding how electronic cash and debit cards work is not only to know their superficial functions, but to deepen their understanding of their security, reliability and potential risks. understand. In this way, if you sometimes choose to use electronic cash, have you also thought deeply about the operating logic and risks behind it?
