What is a Cardholder-Activated Terminal (CAT)?

A Cardholder-Activated Terminal (CAT) is a device that allows cardholders to conduct transactions independently, without the direct assistance of a merchant. This often includes self-service kiosks or payment terminals where customers can input their payment information and complete their transactions directly. The design and function of CATs empower consumers to manage their transactions at their own pace, enhancing convenience and potentially reducing wait times.

Understanding the other choices clarifies the unique role of CATs. A cash dispensing machine typically provides cash withdrawals rather than facilitating a broad range of transaction types, making it distinct from a CAT. A device activated by the merchant involves a more traditional model where the merchant interacts with the payment system, which is contrary to the cardholder-centered approach of a CAT. Similarly, while a Point of Sale (POS) system does involve transaction processing, it is generally a setup managed by the business rather than being a self-service option for customers. This differentiation highlights why the answer identifies CATs as tools specifically designed for cardholders to engage in transactions autonomously.