What happens if a cardholder makes more than a prescribed number of PIN attempts?

When a cardholder exceeds the allowed number of PIN attempts while attempting to access an ATM or point-of-sale system, the system is designed to protect both the cardholder and the issuing financial institution from unauthorized access. Therefore, the appropriate response is for the ATM to capture the card.

Capturing the card serves a dual purpose: it prevents unauthorized individuals from gaining access to the cardholder's account and helps to secure the card to prevent further attempts. Once the card is captured, the cardholder generally must contact their bank or card issuer to regain access, which often includes steps for verifying their identity and resetting their PIN if necessary. This measure reinforces the importance of keeping the card and the associated PIN secure.

In contrast, the other options do not align with standard protocols. For instance, automatic activation of a card or processing with a temporary PIN would not occur in situations where security has been compromised, as these actions could further jeopardize the cardholder’s account security. Additionally, while banks might be informed of potential security issues, it typically isn't an immediate response to a single user exceeding PIN attempts; rather, the action of capturing the card is the priority in securing access.