What is the primary function of an account-number-verifying terminal?

The primary function of an account-number-verifying terminal is to compare and verify account numbers during transactions. This process involves checking the validity of the account number entered by the merchant or consumer against the database of valid account numbers held by the payment processing network or financial institution. By confirming that the account number is valid, the terminal helps prevent fraudulent transactions and ensures that the payments are processed accurately.

This verification step is critical for maintaining the integrity of the transaction process, as it establishes that the account is legitimate and capable of accepting transactions. Accurate account verification contributes to reducing chargebacks and other issues related to unauthorized payments, thereby enhancing security in electronic transactions.

Considering the other choices, while authorizing transactions, encrypting card information, and securely storing transaction history are all essential components of payment processing, they do not specifically address the key function of account-number verification, which focuses directly on confirming account validity during transaction processing.