=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Phile 1.3 of 1.14 ELECTRONIC FUNDS TRANSFER SYSTEMS --------------------------------- WRITTEN BY: THE LINE BREAKER & CODE CRACKER As a respond from The Master Hacker we have written this g-phile for those of you are either new or have no knowledge of carding. This is a 5-part g-phile covering all areas of using a credit card for carding. Part 1 is mainly a explaintion of how credit cards go through clearing houses and to the customers statement. ELECTRONIC FUNDS TRANSFER SYSTEMS ---------------------------------> EFTS can broadly be described as computer data collection and relecommunication techniques that electronically transport information about the movement of funds between accounts managed by financial institutions. THE IMPETUS FOR EFT SERVICES ----------------------------> With the adoption of the MICR (Magnetic Ink Character recognition) stand in I Think about 1959, the banking industry took the first step toward facilitating computerized handling of the growing number of checks used in America. By the 70's paper check processing had reached a level where more than 37 billion individual pieces of paper moved through the banking system annually. In 1983 at the present rate of growth, it was anticipated that this number would reach 55 billion. Two general approaches are being follwoed in an effort to reduce the burden of check processing: the elimination of or supplant of check transactions by electronic messages and the reduction of the physical transport of paper. REPLACEMENT OF CHECK TRANSACTIONS BY ELECTRONIC MESSAGES --------------------------------------------------------> Examples are the installation of automated teller machines (ATMs) by financial institutions to provide on-line computerized banking services, the development of automated clearinghouse services (such as checkless payroll deposits) and telephone bill-paying services which allow customers to enter bill paying information directly in electronic form to a bank's computer through Touchtone telephones. Automated teller machines are unattended computer terminal-type devices that offer most of the services avaiable from a teller. They are actived by a customer through the combined use of a plastic card with a magnetic strip bearing machine readable account information, and a special secret number known only by the customer (termed a PIN or personal Identification number). Among the services offered through these machines are cash withdrawls, transfers of funds between accounts, and account balance inquiry. Although early development of these machines was restricted to providing off-line cash despensing, almost all new ATM installations are on-line to the financial institution's account database. Automated clearinghouses (ACHs) are regional computer centers fun for the most part by the federal reserve system and concentrating thier activities on the processing of pre-authorized electronic deposits or withdrawls from checking accounts maintained by financial institutions. Typical volume in the early 80's was over 11 million electronic items per month submitted to the ACHs primarily on magnetic tape for sorting and redistribution. The predominant types of electronic items processed by the 32 ACHs were military payroll and social security electronic deposits. Other types of transactions include withdrawl of funds to pay bills pre-authorized by the customer for payment. Electronic deposits or withdrawls destined for a F.I. not served by a specific regional ACH are transmitted via telecommunications links to the appropriate regional ACH for local redistribution. Bill paying by telephone is another popular EFT service designed to elimate paper check mailing and processing. In its most basic form, the service involves customer-direct input by a touchtone telephone to a computer of the data necessaty to generate electronic withdrawls from a account maintained by the cusotmer and an electronic deposit to an account maintained by the billing company. Deposits destined for a company that does not maintain an account with the customer's bank can be routed through the local ACH for delivery to an appropriate bank. REDUCTION OF PAPER FLOW -----------------------> Truncation of the physical transport of paper bearing instructions for the movement of funds between accounts is another EFT application. For example, efforts to truncate the flow of checks through the use of image processing techniques are under development. The thrust of this effort is to create electronic images of checks at the point of first deposit and to transmit only these images to the customer or customers's bank. The national credit card clearing and settlement system are other examples of such truncation systems. When a customer uses Visa or Mastercard to make a purchase, he or she normally is not dealing with a merchant who has an account with the financial institution that has issued the card. As a result, the evidence of the completed sale in the past was physically forwarded to the merchant's contracting bank for credit to the merchant's account and then on to the card-issuing banl for posting to the customer's statement. In 1978, national systems were installed by the two competing bankcard organizations which truncated the flow of this paper at the merchant's bank of deposit and forwared only an electronic message to the card issurer for posting to the cardholders statement. These systems were later expanded to include worldwide bankcard sales. The system that supports this electronic transmission fpr Visa cards processed over 60 million customer purchases per month during the latter part of 1985, or approximately 60% of all Visa card sales worldwide. The Visa system transmits this sales data overnight in a form which can be directly posted to a customer's descriptive billing statement through a network linking together 250 Visa bank processing centers in Europe, Canada, and the U.S. Magnetic tapes are sent to the balance of Visa banks operating in more than 125 countries throughout the rest of the world. As a result of the implemention of these two systems, both national systems have uniformly adopted cardholder billing statements which simply list a description of the sale without including a copy of the sales receipt. telephone numbers and password format. Gaining access to the ACH will give to all the information about credit cards needed. From Person names to expiration dates to issuing banks. We hope you have found this article intresting.