New innovations in credit cards, 1985

That was interesting, thanks for sharing.

I opened my small retail store at the end of 1987. These cards were in use, but I still processed cards the 'old fashioned way' as seen in the beginning of the video. The reason: these electronic terminals were very expensive to buy or lease (yes, we had to buy or lease them) for a small business owner, and the service charge each month from the calling center itself (to call in and actually use their services) was ridiculous. Then for the terminal to 'call the call center' not only tied up your phone line (so customers calling in would get a constant busy signal), but the small business owner was charged per call made going to the call center.

My local banker suggested I wait a couple of years - by then the small businesses who rushed to get a terminal would probably be out of business by then, and the 'used / refurbished terminals' would be a fraction of the cost. He was 100% correct, and that's what I did (I didn't get mine until 1990).

IIRC, with a 'business phone line' back then, you were allowed 30 free outgoing calls per month - after that you were charged 20 cents per minute per outgoing call -which added up at the end of the month. These credit card calls usually took more than a minute - watching the screen flash: Dialing / No Answer / Dialing / No Answer / Dialing / Connected / Waiting for Authorization. Then you stared at the screen waiting for the 'authorization number' to appear which was always a few minutes (holidays were the worst - you would tie up the phone for at least five minutes waiting for the authorization to come through ). It was a nightmare. The only one making money in this whole ordeal was the phone company.

I first encountered a card swiper in summer 1986 while vacationing in London.

I believe it was the Virgin Superstore on Oxford Street where I first saw the swiper machine.

Saw it several more places in London, including the HMV Music Shop, Harrods and Selfridges.