Which statement about a Dial-up Terminal is true?

A Dial-up Terminal is a device that utilizes a traditional telephone line to connect to an authorization center for transaction verification. This method involves dialing a phone number associated with the transaction processor or bank, allowing the terminal to send transaction details and receive authorization in real time.

This is a standard method of transaction processing, particularly before the advent of more modern technology like broadband connections and cellular networks. It allows merchants and service providers to process credit cards and other electronic transactions even in areas where internet connectivity might be limited or unavailable. Therefore, stating that it dials an authorization center for transaction verification accurately describes its primary function and operation method.

The option addressing its inability to process transactions is incorrect, as the Dial-up Terminal is specifically designed for this purpose. Additionally, the option about connecting to the internet is misleading since traditional dial-up methods do not rely on internet connectivity but on established telephone lines. Lastly, cellular networks represent another technology altogether that is not utilized by dial-up terminals in their transaction verification processes.