kortagreiðslur

Kortagreiðslur, or card payments, refer to transactions in which a cardholder uses a payment card to pay for goods or services. They encompass debit cards, credit cards, and prepaid cards issued by banks or financial institutions and accepted at merchants that participate in card networks.

When a card is presented, the merchant’s payment terminal or online checkout sends an authorization request through a payment processor to the card issuer via a card network such as Visa or Mastercard. The issuer checks the card, funds availability, and fraud indicators, and returns an approval or decline. If approved, the merchant completes the sale and later captures the payment. Settlement follows, moving funds from the issuer to the merchant’s acquiring bank, which credits the merchant’s account after deductions for fees.

Common variants include in-person payments with cards and contactless taps, online and mobile payments, and mobile wallets that substitute card data with digital credentials. Security is supported by EMV chips, PINs, CVV codes, tokenization, and, for online transactions, 3D Secure authentication. Payment card data handling adheres to standards such as PCI-DSS to reduce risk.

Advantages include speed, convenience, and broad acceptance across shops and online merchants. Limitations involve processing fees for merchants, potential fraud risk, and dependence on networks and issuers. Consumer protections generally provide dispute and chargeback mechanisms for unauthorized or erroneous charges, with liability rules defined by local regulation and card schemes.