diff --git a/src/better_read.c b/src/better_read.c
new file mode 100644
index 0000000..4b01e16
--- /dev/null
+++ b/src/better_read.c
@@ -0,0 +1,66 @@
+#include <stdlib.h>
+#include <stdio.h>
+#include <assert.h>
+#include <string.h>
+
+void read_one_line(char* rtn_line);
+int is_seperating_line(char* one_line);
+
+int main() {
+    char* seperating_line = "%%%%%%%%%%";
+    printf("Seperating line:\n%s\n", seperating_line);
+    return 0;
+
+
+
+    int i = 0;
+    char* a_line = (char*)malloc(sizeof(char));
+    read_one_line(a_line);
+    
+    while (!is_seperating_line(a_line)) {
+        printf("line %d:\n%s\n\n", i++, a_line);
+        read_one_line(a_line);
+    }
+    return 0;
+}
+
+/* checks if the current message is a seperating line */
+int 
+is_seperating_line(char* one_line) {
+	char* seperating_line = "%%%%%%%%%%";
+	if (!strncmp(one_line, seperating_line, strlen(seperating_line))) {
+		return 1;
+	}
+	return 0;
+}
+
+/* reads one line of input into one_line */
+void 
+read_one_line(char* rtn_line) {
+    int c;
+    /* used to keep track of the size of the input */
+    size_t index = 0, size = 0;
+    char* one_line = (char*)malloc(sizeof(char)), *temp;
+    while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
+        /* reallocate space if there's not enough */
+        if (size <= index) {
+            size *= 2;
+            size += 1;
+            temp = realloc(one_line, size);
+            assert(temp != NULL);
+            one_line = temp;
+        }
+        one_line[index++] = c;
+    }
+    one_line[index] = '\0';
+
+    /* copy the input to rtn_line */
+    temp = realloc(rtn_line, index);
+    assert(temp != NULL);
+    rtn_line = temp;
+    strncpy(rtn_line, one_line, index);
+
+    /* and of course, free the allocated space */
+    free(one_line);
+    one_line = NULL;
+}
\ No newline at end of file
diff --git a/src/main.c b/src/main.c
index 0adff9f..4935c98 100644
--- a/src/main.c
+++ b/src/main.c
@@ -47,49 +47,51 @@
 #define CREDIT_CARD_ID_LEN 8
 #define TRANSACTION_ID_LEN 12
 #define TRANSACTION_TIME_LEN 19
-#define END_CREDIT_CARDS "%%%%%%%%%%"
+#define SEPERATING_LINE "%%%%%%%%%%"
 
 /* structure typedefs */
 typedef struct {
-    char card_id[CREDIT_CARD_ID_LEN];
+    char card_id[CREDIT_CARD_ID_LEN + 1];
     int daily_lim;
     int trans_lim;
 } credit_card_t;
 
 typedef struct {
-    char trans_id[TRANSACTION_ID_LEN];
-    char card_id[CREDIT_CARD_ID_LEN];
-    char trans_time[TRANSACTION_TIME_LEN];
+    char trans_id[TRANSACTION_ID_LEN + 1];
+    char card_id[CREDIT_CARD_ID_LEN + 1];
+    char trans_time[TRANSACTION_TIME_LEN + 1];
     int trans_amount;
+    
 } transaction_t;
 
 /* function prototypes */
-
 void print_stage(int stage_num);
-void stage_one();
-void stage_two();
+void stage_one(credit_card_t* one_card);
+void stage_two(credit_card_t* all_cards, int* num_cards);
 void stage_three();
 void stage_four();
 
-void read_one_line();
+void read_one_line(char* rtn_line);
 
 /* the main function */
 int main(int argc, char *argv[]) {
     /* holds all the credit cards */
     credit_card_t all_cards[MAX_NUM_CARDS];
+    /* counts the number of credit cards read */
+    int num_cards = 0;
 
     /* stage 1: reading one credit card record */
-    stage_one();
+    stage_one(&all_cards[num_cards]);
+    num_cards++;
     
     /* stage 2: reading all credit card records */
-    stage_two();
+    stage_two(all_cards, &num_cards);
 
     /* stage 3: reading the transactions */
     stage_three();
 
     /* stage 4: checking for fraudulent transactions */
     stage_four();
-
     return 0;
 }
 
@@ -101,25 +103,168 @@ void print_stage(int stage_num) {
     printf("\n");
 }
 
-void read_one_line() {
-    
+/* reads one line of input into one_line */
+void 
+read_one_line(char* rtn_line) {
+    int c;
+    /* used to keep track of the size of the input */
+    size_t index = 0, size = 0;
+    char* one_line = (char*)malloc(sizeof(char)), *temp;
+    while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
+        /* reallocate space if there's not enough */
+        if (size <= index) {
+            size *= 2;
+            size += 1;
+            temp = realloc(one_line, size);
+            if (temp == NULL) {
+                exit(EXIT_FAILURE);
+            }
+            one_line = temp;
+        }
+        one_line[index++] = c;
+    }
+    one_line[index] = '\0';
+
+    /* copy the input to rtn_line */
+    temp = realloc(rtn_line, index);
+    if (temp == NULL) {
+        exit(EXIT_FAILURE);
+    }
+    rtn_line = temp;
+    strncpy(rtn_line, one_line, index);
+
+    /* and of course, free the allocated space */
+    free(one_line);
+    one_line = NULL;
 }
 
-/* stage 1: reading one credit card record */
-void stage_one() {
+/* reads a line of input, and extracts the information */
+void
+read_one_card(char* one_line, credit_card_t* one_card) {
+    int i;
+
+    strncpy(one_card->card_id, one_line, CREDIT_CARD_ID_LEN);
+    one_card->card_id[CREDIT_CARD_ID_LEN] = '\0';
+
+    char* daily_lim_str = (char*)malloc(sizeof(char)), *temp;
+    size_t index = 0, size = 0;
+    for (i = CREDIT_CARD_ID_LEN + 1; one_line[i] != ' '; i++) {
+        /* reallocate space if there's not enough */
+        if (size <= index) {
+            size *= 2;
+            size += 1;
+            temp = realloc(daily_lim_str, size);
+            if (temp == NULL) {
+                exit(EXIT_FAILURE);
+            }
+            daily_lim_str = temp;
+        }
+        daily_lim_str[index++] = one_line[i];
+    }
+    daily_lim_str[i] = '\0';
+    one_card->daily_lim = atoi(daily_lim_str);
+
+    char* trans_lim_str = (char*)malloc(sizeof(char));
+    index = 0, size = 0;
+    while (one_line[++i] != '\0') {
+        /* reallocate space if there's not enough */
+        if (size <= index) {
+            size *= 2;
+            size += 1;
+            temp = realloc(trans_lim_str, size);
+            if (temp == NULL) {
+                exit(EXIT_FAILURE);
+            }
+            trans_lim_str = temp;
+        }
+        trans_lim_str[index++] = one_line[i];
+    }
+    trans_lim_str[i] = '\0';
+    one_card->trans_lim = atoi(trans_lim_str);
+
+    free(daily_lim_str);
+    daily_lim_str = NULL;
+    free(trans_lim_str);
+    trans_lim_str = NULL;
+}
+
+/* checks if the current message is a seperating line */
+int 
+is_seperating_line(char* one_line) {
+	char* seperating_line = "%%%%%%%%%%";
+	if (!strncmp(one_line, seperating_line, strlen(seperating_line))) {
+		return 1;
+	}
+	return 0;
+}
+
+/* stage one: reading one credit card record */
+void stage_one(credit_card_t* one_card) {
     print_stage(STAGE_ONE);
+    char* one_line = (char*)malloc(sizeof(char));
 
+    /* read the first line into one_line */
+    read_one_line(one_line);
+    
+    /* then break the line down into seperate parts */
+    read_one_card(one_line, one_card);
 
+    /* finally, print the required output */
+    printf("Card ID: %s\n", one_card->card_id);
+    printf("Daily limit: %d\n", one_card->daily_lim);
+    printf("Transaction limit: %d\n", one_card->trans_lim);
 
     printf("\n");
 }
 
 /* stage 2: reading all credit card records */
-void stage_two() {
+void stage_two(credit_card_t* all_cards, int* num_cards) {
     print_stage(STAGE_TWO);
 
+    /* the current card being analysed */
+    credit_card_t curr_card;
+    curr_card = all_cards[0];
 
+    /* the current line being read */
+    char* curr_line = (char*)malloc(sizeof(char));
 
+    /* the sum of the daily limits, used for calculating the average */
+    int sum_daily_lim = 0;
+
+    /* keeps track of the maximum transaction limit, and which card it is */
+    char max_trans_limit_id[CREDIT_CARD_ID_LEN + 1];
+    int max_trans_limit = 0;
+    
+    do {
+        sum_daily_lim += curr_card.daily_lim;
+
+        /* finding the max transaction limit */
+        if (curr_card.trans_lim > max_trans_limit) {
+            max_trans_limit = curr_card.trans_lim;
+            strncpy(max_trans_limit_id, curr_card.card_id, CREDIT_CARD_ID_LEN);
+            max_trans_limit_id[CREDIT_CARD_ID_LEN] = '\0';
+        }
+        
+        /* read the next line, break if it's the seperating line */
+        read_one_line(curr_line);
+        if (is_seperating_line(curr_line)) {
+            break;
+        }
+
+        /* it's not the seperating line, therefore its another card */
+        read_one_card(curr_line, &curr_card);
+        *num_cards += 1;
+        all_cards[*num_cards] = curr_card;
+    } while (*num_cards <= MAX_NUM_CARDS);
+
+    /* finally, print the required output */
+    printf("Number of credit cards: %d\n", *num_cards);
+    printf("Average daily limit: %.2f\n", (float)sum_daily_lim / *num_cards);
+    printf("Card with the largest transaction limit: %s\n", 
+    max_trans_limit_id);
+
+    free(curr_line);
+    curr_line = NULL;
     printf("\n");
 }
 
diff --git a/src/playing.c b/src/playing.c
new file mode 100644
index 0000000..c31059f
--- /dev/null
+++ b/src/playing.c
@@ -0,0 +1,70 @@
+#include <stdio.h>
+#include <stdlib.h>
+#include <string.h>
+#define MAX 1
+#define CREDIT_CARD_ID_LEN 8
+ 
+struct credit_card_t {
+    char id[CREDIT_CARD_ID_LEN + 1];
+    int daily_lim;
+    int trans_lim;
+};
+
+void get_next_line(char* new_line);
+void read_credit_card(struct credit_card_t* arr_credit_card_t, char* new_line, int* num_lines);
+ 
+int main() {
+    struct credit_card_t arr_credit_card_t[MAX];
+    char new_line[100];
+    int num_cards = 0;
+    get_next_line(new_line);
+    read_credit_card(arr_credit_card_t, new_line, &num_cards);
+ 
+    printf("Card ID: %s\n", arr_credit_card_t[0].id);
+    printf("Daily limit: %d\n", arr_credit_card_t[0].daily_lim);
+    printf("Transaction limit: %d\n", arr_credit_card_t[0].trans_lim);
+    
+    return 0;
+}
+
+void get_next_line(char* new_line) {
+    int i = 0, c;
+	while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
+		new_line[i++] = c;
+	}
+	new_line[i] = '\0';
+}
+
+void read_credit_card(struct credit_card_t* arr_credit_card_t, char* new_line, int* num_lines) {
+    int i, daily_limit_found, daily_index = 0, trans_index = 0;
+    char* daily_limit_str = (char*)malloc(sizeof(daily_limit_str) + 1);
+    char* trans_limit_str = (char*)malloc(sizeof(trans_limit_str) + 1);
+    for (i = 0; new_line[i] != '\0'; i++) {
+        if (i < CREDIT_CARD_ID_LEN) {
+            arr_credit_card_t[*num_lines].id[i] = new_line[i];
+        } else if (i == CREDIT_CARD_ID_LEN) {
+            arr_credit_card_t[*num_lines].id[i++] = '\0';
+            continue;
+        } else if (!daily_limit_found) {
+            daily_limit_str = (char*)realloc(daily_limit_str, strlen(daily_limit_str) + 1);
+            daily_limit_str[daily_index++] = new_line[i];
+        } else if (new_line[i] == ' ') {
+            daily_limit_found = 1;
+            continue;
+        } else {
+            trans_limit_str = (char*)realloc(trans_limit_str, strlen(trans_limit_str) + 1);
+            trans_limit_str[trans_index++] = new_line[i];
+        }
+    }
+    
+    printf("newline | %s\n", new_line);
+    printf("card id | %s\n", arr_credit_card_t[0].id);
+    printf("dailyli | %s\n", daily_limit_str);
+    printf("transli | %s\n", trans_limit_str);
+
+    free(trans_limit_str);
+    free(daily_limit_str);
+    trans_limit_str = NULL;
+    daily_limit_str = NULL;
+
+}
\ No newline at end of file
diff --git a/src/test.c b/src/test.c
index e871dbf..47378e8 100644
--- a/src/test.c
+++ b/src/test.c
@@ -6,91 +6,71 @@
 #define CREDIT_CARD_ID_LEN 8
 
 /* structure typedefs */
-typedef struct {
-    char card_id[CREDIT_CARD_ID_LEN];
+
+/* stores information about a single credit card */
+typedef struct credit_card_t {
+    char card_id[CREDIT_CARD_ID_LEN + 1];
     int daily_lim;
     int trans_lim;
 } credit_card_t;
 
-typedef struct {
-    char* str;
-} words_t;
-
 /* function prototypes */
-void stage_one(credit_card_t* all_cards, int* num_cards);
-void read_one_card(credit_card_t* one_card);
+void stage_one(credit_card_t* one_card);
+void read_one_line(char* a_line);
 
 int main(int argc, char *argv[]) {
     /* all_cards will store all credit card information */
-    credit_card_t* all_cards = (credit_card_t*)malloc(sizeof(credit_card_t));
+    credit_card_t* all_cards = (credit_card_t*)malloc(sizeof(all_cards));
     int num_cards = 0;
-    stage_one(all_cards, &num_cards);
+
+    stage_one(&all_cards[num_cards]);
+    num_cards += 1;
 
     free(all_cards);
     all_cards = NULL;
     return 0;
 }
 
-void stage_one(credit_card_t* all_cards, int* num_cards) {
+/* stage one: reading one credit card record */
+void stage_one(credit_card_t* one_card) {
     printf("=========================Stage 1=========================\n");
-    credit_card_t curr_card;
-    read_one_card(&curr_card);
-    printf("Card ID: %s\n", curr_card.card_id);
-    printf("Daily limit: %d\n", curr_card.daily_lim);
-    printf("Transaction limit: %d\n", curr_card.trans_lim);
+    
+    /* read the first line */
+    char* a_card = (char*)malloc(sizeof(char));
+    read_one_line(a_card);
+    printf("\noutside:\none_line:\n%s\n", a_card);
+    printf("strlen(one_line) = %ld\n", strlen(a_card));
+
+    /* Then print the required output */
+    //printf("Card ID: %s\n", one_card->card_id);
+    //printf("Daily limit: %d\n", one_card->daily_lim);
+    //printf("Transaction limit: %d\n", one_card->trans_lim);
+    free(a_card);
+    a_card = NULL;
     printf("\n");
 }
 
-/* read a line of input credit cards into one_card */
+/* read a line of input into one_line */
 void
-read_one_card(credit_card_t* one_card) {
-	int i = 0, c;
-    
-    /* records the length of the current field */
-    int index = 1;
-    char card_id_str[CREDIT_CARD_ID_LEN];
-    char* daily_lim_str = (char*)malloc(index * sizeof(char) + 1);
-    char* trans_lim_str = (char*)malloc(index * sizeof(char) + 1);
-    assert(daily_lim_str != NULL && trans_lim_str != NULL);
-
-    /* read the card ID from the input line */
-    while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
-        if (i < CREDIT_CARD_ID_LEN) {
-            card_id_str[i++] = c;
-            index += 1;
-        } else {
-            break;
+read_one_line(char* a_line) {
+	int c;
+    size_t index = 0, size = 0;
+	while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
+        /* the first character is read */
+        if (!size) {
+            size++;
+            a_line[index++] = c;
+            continue;
         }
-    }
-    card_id_str[i] = '\0';
-
-    /* copy the card id to one_card */
-    strncpy(one_card->card_id, card_id_str, CREDIT_CARD_ID_LEN);
-    one_card->card_id[CREDIT_CARD_ID_LEN] = '\0';
-
-    /* read the daily limit from the input line */
-    i = 0;
-    while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
-        if (c != ' ') {
-            daily_lim_str[i++] = c;
-            index += 1;
-        } else {
-            break;
+		if (size <= index) {
+            /* if there's not enough space, allocate some more */
+            size *= 2;
+            a_line = realloc(a_line, size);
+            assert(a_line != NULL);
         }
-    }
-    daily_lim_str[i] = '\0';
-    one_card->daily_lim = atoi(daily_lim_str);
-
-    /* read the transaction limit from the input line */
-    i = 0;
-    while (((c = getchar()) != EOF) && (c != '\n') && (c != '\r')) {
-        trans_lim_str[i++] = c;
-        index += 1;
-    }
-    trans_lim_str[i] = '\0';
-    one_card->trans_lim = atoi(trans_lim_str);
-
-    free(daily_lim_str);
-    free(trans_lim_str);
-    daily_lim_str = trans_lim_str = NULL;
+        a_line[index++] = c;
+	}
+    a_line[index] = '\0';
+    printf("inside:\n%s\n", a_line);
+    printf("index = %ld\n", index);
 }
\ No newline at end of file