Kaardimakseteks

Kaardimakseteks is the Estonian term for card payments, a form of electronic payment that uses payment cards such as debit, credit, or prepaid cards issued by banks. It enables consumers to pay for goods and services by presenting a card at a point of sale or through online orders, rather than paying with cash or bank transfers.

How it works in general: In a card-present transaction, the cardholder provides the card to the merchant, who uses a payment terminal to request authorization. The terminal forwards an authorization request through the merchant’s acquiring bank and the card network to the card issuer. The issuer approves or declines the request, and the authorization amount is reserved. If approved, the merchant completes the sale and later captures the funds. The settlement process transfers the funds from the issuer to the merchant’s account, typically within one to several business days. Card-not-present transactions, such as online purchases, follow a similar flow but rely on online gateways and additional authentication or verification to mitigate fraud.

Networks and security: Card payments rely on international networks such as Visa and Mastercard. Technologies include EMV chips, contactless payments (NFC), and online methods like 3-D Secure for additional authentication. Payment data security is governed by standards such as PCI DSS, and in many jurisdictions by requirements under strong customer authentication (SCA) and other consumer protection rules, especially for online transactions.

Benefits and challenges: Card payments offer convenience, speed, and traceability for both merchants and customers. Costs for merchants include processing fees and compliance obligations, and there is ongoing risk of fraud and chargebacks, particularly for online purchases. Overall, card payments remain a dominant method of electronic commerce and retail payments in many markets.