The term is used for a number of different concepts:
- cardholder-initiated transactions, where a cardholder makes use of a payment card
- electronic payments by businesses, including salary payments
- electronic check (or cheque) clearing
Card-based EFT
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Credit cards
Card-based EFT transactions are often covered by the ISO 8583 standard.
Transaction types
A number of transaction types may be performed, including the following:- Sale: there the cardholder pays or return or service.
- Refund: where a merchant refunds an earlier payment made by a cardholder.
- Withdrawal: the cardholder withdraws funds from their account, e.g. from an ATM. The term Cash Advance may also be used, typically when the funds are advanced by a merchant rather than at an ATM.
- Deposit: where a cardholder deposits funds to their own account (typically at an ATM).
- Cashback: where a cardholder withdraws funds from their own account at the same time as making a purchase.
- Inter-account transfer: transferring funds between linked accounts belonging to the same cardholder
- Payment: transferring funds to a third party account
- Inquiry: a transaction without financial impact, for instance balance inquiry, available funds inquiry, linked accounts inquiry, or request for a statement of recent transactions on the account.
- Administrative: this covers a variety of non-financial transactions including PIN change.
Authorization
EFT transactions require communication between a number of parties. When a card is used at a merchant or ATM, the transaction is first routed to an acquirer, then through a number of networks to the issuer where the cardholder's account is held.A transaction may be authorized offline by any of these entities through a stand-in agreement. Stand-in authorization may be used when a communication link is not available, or simply to save communication cost or time. Stand-in is subject to the transaction amount being below agreed limits. These limits are calculated based on the risk of authorizing a transaction offline, and thus vary between merchants and card types. Offline transactions may be subject to other security checks such as checking the card number against a 'hotcard' (stolen card) list, velocity checks (limiting the number of offline transactions allowed by a cardholder) and random online authorization.
A transaction may be authorized via a pre-authorization step, where the merchant requests the issuer to reserve an amount on the cardholder's account for a specific time, followed by completion, where the merchant requests an amount blocked earlier with a pre-authorization. This transaction flow in two steps is often used in businesses such as hotels and car rental where the final amount is not known, and the pre-authorization is made based on an estimated amount. Completion may form part of a settlement process, typically performed at the end of the day when the day's completed transactions are submitted.
Authentication
EFT transactions may be accompanied by methods to authenticate the card and the card holder. The merchant may manually verify the card holder's signature, or the card holder's Personal identification number (PIN) may be sent online in an encrypted form for validation by the card issuer. Other information may be included in the transaction, some of which is not visible to the card holder (for instance magnetic stripe data), and some of which may be requested from the card holder (for instance the card holder's address or the CVV2 value printed on the card).See also
- MAPESA : Blog specialised on money transfer, remittances and cards issues www.mapesa.org
- EFTPOS
- Wire transfer
- Automated Clearing House
The term payment card covers a range of different cards that can be presented by a cardholder to make a payment.
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Types of payment card
Typically a payment card is backed by an account holding funds belonging to the cardholder, or offering credit to the cardholder...... Click the link for more information.
The term payment card covers a range of different cards that can be presented by a cardholder to make a payment.
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Types of payment card
Typically a payment card is backed by an account holding funds belonging to the cardholder, or offering credit to the cardholder...... Click the link for more information.
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction.
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A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
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Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
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automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller.
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Checkout redirects here; for the game featured on The Price Is Right, see Check-Out.
Point of sale or point of service (POS or PoS) can mean a retail shop, a checkout counter in a shop, or the location where a transaction occurs.
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This article may be too long.
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A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
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Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
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ISO 8583 Standard for Financial Transaction Card Originated Messages - Interchange message specifications is the International Organization for Standardization standard for systems that exchange electronic transactions made by cardholders using payment cards.
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An acquirer is a member of MasterCard and/or Visa which maintains merchant relationships and receives all bankcard transactions from the merchant.
Acquirers charge the merchants fees which include: a monthly rent for the EFTPOS terminal (if it is not owned by the merchant)
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Acquirers charge the merchants fees which include: a monthly rent for the EFTPOS terminal (if it is not owned by the merchant)
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A personal identification number (PIN) is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token (such as a banking card) and a
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A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card.
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printed (NOT embossed) group of four digits on the front towards the right.]] The Card Security Code (CSC), sometimes called Card Verification Value or Code (CVV or CVC
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This article may be too long.
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A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
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A wire transfer is a method of transferring funds from one entity to another. Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash office.
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Automated Clearing House (ACH) is the name of an electronic network for financial transactions in the United States. ACH processes large volumes of both credit and debit transactions which are originated in batches.
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