What type of transaction does an Electronic Data Capture (EDC) Terminal perform?

The Electronic Data Capture (EDC) Terminal is specifically designed for processing card information and transaction approval. This type of terminal is commonly used in retail environments to facilitate credit and debit card transactions at the point of sale. When a customer swipes or inserts their card into the EDC Terminal, the device reads the card's information, communicates with the payment network, and checks the available funds or credit in real-time, ultimately approving or declining the transaction based on that information.

The functionality of the EDC Terminal is centered around electronic transactions, making it distinct from non-electronic bank transfers, which do not involve immediate electronic processing. Additionally, EDC Terminals are not limited to investment banking transactions and do not primarily focus on customer identity verification, which is typically handled through other mechanisms such as Know Your Customer (KYC) processes. Therefore, the terminal's core purpose of processing transactions aligns perfectly with the correct answer.