What distinguishes a dial-up terminal from other types of terminals?

The distinguishing characteristic of a dial-up terminal is its reliance on a merchant's phone line to establish communication. This type of terminal connects to the payment network or processor by dialing a telephone number through a standard phone line, which allows data to be transmitted over this connection. Dial-up terminals are typically used for processing transactions in situations where internet connectivity is unavailable or unreliable, making the phone line a vital component for their operation.

Other types of terminals, such as broadband or internet-based systems, use different communication methods that do not require a phone line, thereby distinguishing them from dial-up terminals. Understanding this reliance helps clarify the overall functionality and historical context of dial-up terminals in the payments landscape.