Re: not the terminal, the punch card
All hail Zappa, allright, but that's not the origin. It was written on the envelope that contained your credit or charge card statement, printed on a Hollerith card. You weren't supposed to damage it, because it would be reread when you sent it back with a cheque. Was Harvey Matusow the original cracker? Didn't he repunch his card to change his balance to a large positive value, withdraw the balance, then scarper from the USA with the cash?
International banking wasn't very international back then. I knew of a guy, the departing business partner of my neighbour in the 60s, who emigrated to Australia a couple of days after maxing out his Barclaycard with professional camera equipment bought on Oxford Steet (Dixons, maybe?). He was never chased for the balance.