What function does an electronic terminal serve in card transactions?

An electronic terminal in card transactions primarily serves the function of connecting to card companies or payment networks to facilitate quick and secure authorization of transactions. This connection enables the terminal to communicate with the issuer bank and other relevant entities to confirm that a cardholder has sufficient funds or credit available before completing the transaction. This process is essential for ensuring the reliability and effectiveness of electronic payment systems, allowing consumers to make purchases seamlessly.

The other options do not accurately represent the primary function of an electronic terminal in card transactions. Generating loyalty points, storing transaction history, or providing financial advice are not direct operations of the terminal itself; rather, they can be features offered by associated systems or apps but are not integral functions of the terminal in processing payments.