Page "EFTPOS" Paragraph 8

All debit cards now have a magnetic stripe on which is encoded the card's service codes, consisting of three-digit values.

These codes are used to convey instructions to merchant terminals on how a card should be processed.

The first digit indicates if a card can be used internationally or is valid for domestic use only.

It is also used to signal if the card is chip-enabled.

The second digit indicates if the transaction must be sent online for authorization always or if transactions that are below floor limit can take place without authorization.

The third digit is used to indicate the preferred card verification method ( e. g. PIN ) and the environment where the card can be used ( e. g. at point of sale only ).

Merchant terminals are required to recognize and act on service codes or send all transactions for online authorization.