Across the Board

Blog on e-business and online payments.

Tag Archives: credit card

Card number from a photo

How many times have you had to type a credit card number when you wanted to pay for something? It’s painful, isn’t it? 16 digits one by one, then check for mistakes… next payment: once again, 16 digits one by one, etc. is a solution for everyone who’s tired of putting the whole credit card number again and again.

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Glossary: Chargeback

Chargeback – the return of funds to a consumer. It’s his protection guarantee and last line of defence. Chargebacks occur mostly due to fraudulent activity or consumer disputes.

A chargeback is usually requested by the cardholder and initiated by the card issuer. Most common reasons are that a consumer doesn’t recognize a specific transaction or isn’t satisfied with the purchased service/product and wants his money back.

Merchants usually prefer refunds, which are the same from the customer’s point of view (he gets his money back), but a lot better for the ebusiness owners. Merchants have to pay a relatively big fine for every chargeback; furthermore, lots of chargebacks make a merchant a risky one for acquirers, which can lead even to the end of their cooperation.

Of course if a chargeback request is unfounded, the merchant can prove this (he has a time limit to respond to a chargeback request) and convince the acquirer that there’s no reason to reverse the transaction.

Bottom line, being a cardholder you have the full right to request a chargeback whenever you think you deserve your money back. However, asking for a refund will make you more friendly towards the merchant and there’s a good chance you’ll get your money back (that is if you have a good reason).
And being a merchant… Simply be aware of this mechanism and provide good quality service or/and products.

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3 “obvious” directions of the payment industry

Payment industry – especially recently – evolves really fast. Just read some headlines on any of the news sites: “ is going to…”, “NFC in new model of smartphone…”, “PayPal is buying…”, etc. That’s why I think right now is the best moment to talk about the future of this industry. So, where is the payment industry going?

Right now we can consider and talk about three possible (or maybe better – obvious) directions.

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Cracking the credit card code

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Glossary: Card Security Code

Card Security Code – usually called CVV (Visa) or CVC (MasterCard); it’s a three or four digit code located on a credit card, but not encoded on the magnetic stripe. If a client can provide such a code, it proves that he actually is in possession of the credit card and didn’t use, for example, a card number generator or a copy (skimmed) of the card.

The most common code is CVV2 (or CVC2) used in card-not-present transactions. For Visa, MasterCard, JCB, Diners Club and Discover credit and debit cards, this is a three digit code printed on the back of the card. American Express differs a bit – they have a four digit code printed above the credit card number.

Also the names of the code differ. Apart from CSC we have:

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Glossary: Issuer

Issuer is an institution from which the consumer gets his credit card. Usually it’s simply a bank (hence the popular term issuing bank), but it might also be e.g. a credit union. Such bank is associated with credit card brands, like Visa, MasterCard or American Express.

The issuing bank is actually the institution, which grants you the credit. So they are the ones, who check your credit history, debts. And later they decide what your credit limit is.

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Glossary: Credit card

Credit cardCredit card – a plastic card (usually 85.6 × 53.98 mm ) which allows its owner to spend money on goods and services. It is possible to spend or withdraw money up to a certain limit.
The card issuer creates a revolving account and grants the cardholder a line of credit. After that the cardholder may borrow money to pay a merchant.

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