A fraudster sets up a fake terminal in a busy shop or restaurant. When a genuine customer inserts their card into this terminal, the fraudsters accomplice, in another shop, inserts their counterfeit card into the merchants terminal. The fake terminal reads details from the genuine card, and relays them to the counterfeit card, so that it will be accepted. The PIN is recorded by the fake terminal and sent to the accomplice for them to enter, and they can then walk off with the goods.
