The financial institution or payments provider (like Elavon) that processes card payments on behalf of your business. Sometimes called your “merchant services provider."
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The final step in a chargeback dispute when the card scheme (like Visa or Mastercard) makes a ruling. It can be costly and is best avoided with strong evidence upfront.
The approval from a cardholder’s bank confirming that the transaction can go ahead. It checks that the card is valid and funds are available.
Your customer – the person who made the payment using their credit or debit card.
The network that facilitates the card payment – e.g. Visa, Mastercard, or American Express. They set the rules and oversee the chargeback process.
A formal dispute where a customer (through their bank) asks for a card payment to be reversed. These are designed to protect customers but can affect your business if not handled well.
Our online customer portal where you can view and respond to chargebacks, receive alerts, and manage your account.
The cardholder’s bank – they decide whether to approve transactions and whether to start a chargeback.
Short for Payment Card Industry Data Security Standard. A set of rules designed to keep card payments secure and protect customer data. All merchants must comply.
A code used to explain why a chargeback was raised. These fall into categories like fraud, processing errors, or customer disputes.
A request for documentation (like a receipt) before a chargeback is filed. Responding quickly can help avoid escalation.
Secure transactions use authentication and encryption methods that confirm the cardholder’s identity and protect card details. They’re backed by fraud prevention measures and are easier to defend in chargeback cases.
What does it look like in practice?
|
Transaction type |
What happens? |
How it’s secure? |
|---|---|---|
|
Chip & PIN (in person) |
Customer inserts their chip card and enters a PIN, which is validated. |
PIN entry proves cardholder is there. Data is encrypted. |
|
Contactless (NFC) |
Customer taps card/device near the terminal. Limits apply. |
Uses tokenisation; transaction is encrypted. |
|
3D Secure (online) |
Customer is asked to verify their identity (e.g. SMS code, app, fingerprint). |
Extra layer of authentication from cardholder’s bank. |
|
Digital Wallets (e.g. Apple Pay, Google Pay) |
Customer uses biometrics or passcode to confirm. |
Encrypted card details + secure authentication. |
Transaction type
Chip & PIN
(in person)
What happens?
Customer inserts their chip card and enters a PIN, which is validated.
How it’s secure?
PIN entry proves cardholder is there. Data is encrypted.
Transaction type
Contactless
(NFC)
What happens?
Customer taps card/device near the terminal. Limits apply.
How it’s secure?
Uses tokenisation; transaction is encrypted.
Transaction type
3D Secure
(online)
What happens?
Customer is asked to verify their identity (e.g. SMS code, app, fingerprint).
How it’s secure?
Extra layer of authentication from cardholder’s bank.
Transaction type
Digital Wallets
(e.g. Apple Pay, Google Pay)
What happens?
Customer uses biometrics or passcode to confirm.
How it’s secure?
Encrypted card details + secure authentication.
When a card is accepted by swiping the magnetic stripe on a card, the transaction carries extra risk and should be treated with caution.
What does it look like in practice?
|
Transaction type |
What happens? |
How it’s secure? |
|---|---|---|
|
Magstripe swipe (in-person) |
Chip card is swiped and data from the magnetic stripe is read. No PIN is used. |
Transaction should be madeas Chip & PIN. Liability shifts to merchant. |
|
|
Non-chip card is swiped and data from the magnetic stripe is read. No PIN is used. |
Take extra care, but the transaction will be processed securely. Liability stays with bank. |
|
|
Card has been cloned to look like swipe card. Once swiped, transaction shown as manual entry |
This is a non-secure transaction. |
Transaction type
Magstripe swipe
(in-person)
What happens?
Chip card is swiped and data from the magnetic stripe is read. No PIN is used.
How it’s secure?
Transaction should be madeas Chip & PIN. Liability shifts to merchant.
Transaction type
What happens?
Non-chip card is swiped and data from the magnetic stripe is read. No PIN is used.
How it’s secure?
Take extra care, but the transaction will be processed securely. Liability stays with bank.
Transaction type
What happens?
Card has been cloned to look like swipe card. Once swiped, transaction shown as manual entry
How it’s secure?
This is a non-secure transaction.
Unsecure transactions lack proper authentication or encryption, making them more vulnerable to fraud — and harder to defend if disputed.
What does it look like in practice?
|
Transaction type |
What happens? |
How it’s secure? |
|---|---|---|
|
Manual key entry |
Merchant manually types in the card number (e.g. over the phone). |
No cardholder present. |
|
Online checkout (no 3D Secure) |
Customer enters card number, expiry and CVV only. |
This is considered “card-not-present” and therefore unverified. |
|
Offline transactions |
Card accepted when terminal is offline. Can’t verify the transaction. |
No real-time authorisation; transaction may later be declined. |
Transaction type
Manual key entry
What happens?
Merchant manually types in the card number (e.g. over the phone).
How it’s secure?
No cardholder present.
No authentication.
High fraud risk.
Transaction type
Online checkout
(no 3D Secure)
What happens?
Customer enters card number, expiry and CVV only.
How it’s secure?
This is considered “card-not-present” and therefore unverified.
Transaction type
Offline transactions
What happens?
Card accepted when terminal is offline. Can’t verify the transaction.
How it’s secure?
No real-time authorisation; transaction may later be declined.
What’s what in chargebacks?
An ABC glossary of terms
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Helping thousands of customers around the world grow their business through payments
Customer service and support
We’re here to help!
Customer service: 0345 850 0195
Telephone: Monday to Friday 8am-5pm
Chat: Monday to Friday 8am-6pm
Opayo product support: 0191 313 0299
24 hours a day, 365 days a year
Copyright© | U.S. Bank Europe DAC. Registered in Ireland with Companies Registration Office. The liability of the member is limited. United Kingdom branch registered in England and Wales under the number BR022122.
U.S. Bank Europe DAC, trading as Elavon Merchant Services, is a credit institution authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
Helping thousands of customers around the world grow their business through payments
Customer service and support
We’re here to help!
Customer service: 0345 850 0195
Telephone: Monday to Friday 8am-5pm
Chat: Monday to Friday 8am-6pm
Opayo product support: 0191 313 0299
24 hours a day, 365 days a year
Copyright© | U.S. Bank Europe DAC. Registered in Ireland with Companies Registration Office. The liability of the member is limited. United Kingdom branch registered in England and Wales under the number BR022122.
U.S. Bank Europe DAC, trading as Elavon Merchant Services, is a credit institution authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
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