Card Transaction Types

Learn about the different credit card operation types for 'card not present' transactions.


Jupico supports a variety of card transaction types, allowing you to customize your payment processing flow based on your business requirements. This page provides an overview of the different card transaction types available and how they work within Jupico's platform.

'Card Not Present' Transactions

What is a 'Card Not Present' (CNP) Transaction?

A Card Not Present (CNP) transaction is a type of payment made when the physical credit or debit card is not present at the point of sale. This typically occurs during online, phone, or mail-order transactions, where the merchant processes the payment without physically handling the card. CNP transactions have become increasingly common with the growth of e-commerce and remote purchasing.

In a CNP transaction, the customer provides their card information, such as the card number, expiration date, and security code (CVV), to the merchant. This information is then used by the merchant to process the payment. CNP transactions may also involve additional security measures, such as address verification (AVS) or 3D Secure, to help reduce the risk of fraud.

Due to the nature of CNP transactions, they carry a higher risk of fraud compared to Card Present transactions, where the card is physically swiped or inserted into a terminal. As a result, merchants that process CNP transactions may face higher processing fees and stricter security requirements from their payment processors.

Understanding and implementing security best practices for CNP transactions is essential for merchants to protect their business and customers from potential fraud. This includes using secure payment gateways, implementing fraud detection tools, and ensuring that customer data is handled and stored securely.

Credit Card Operation Types

1. Authorization

An authorization is a process of reserving funds on a customer's card without charging them immediately. This enables you to confirm the transaction at a later time, ensuring the availability of funds before providing the goods or services. Authorizations are typically used in scenarios where the final transaction amount is uncertain or when a delay between the transaction and the delivery of goods or services is expected.

Authorization Use Cases
  • Hotels and car rentals: These businesses often place a hold on a guest's credit card to cover potential incidental charges, damages, or late fees. The final amount charged may vary depending on the actual expenses incurred during the stay or rental period.

  • Gas stations: When a customer pays at the pump, the gas station authorizes a predetermined amount (e.g., $100) to ensure the customer has sufficient funds to cover the fuel purchase. The final amount charged is adjusted based on the actual volume of fuel dispensed.

  • Restaurants: When a customer pays with a credit card, the restaurant may authorize the bill's total amount before adding a tip. Once the tip is added, the final transaction amount is captured, including the tip.

  • E-commerce with backordered items: An online store may authorize a customer's credit card when the order is placed, but capture the payment only when the items are available and ready to ship. This ensures the customer is not charged for items that are not yet in stock.

  • Custom or made-to-order products: Businesses that produce custom or made-to-order items may authorize the payment when the order is placed but capture the payment only when the product is ready to ship. This ensures that the customer is charged only after the item has been produced and is available for delivery.

2. Capture

A capture is the process of confirming a previously authorized transaction, charging the customer for the reserved amount. Captures are used in conjunction with authorizations to complete a two-step payment process. This allows businesses to collect payment once the goods or services have been delivered or the final transaction amount is determined.

3. Sale

A sale transaction combines both authorization and capture in a single step, charging the customer immediately upon transaction approval. This transaction type is ideal for businesses that provide instant access to goods or services or when the final transaction amount is known at the time of purchase.

4. AVS

A Address Verification Service (AVS) Only transaction may be used by sub-merchants to determine whether to accept a transaction. This type of transaction only returns AVS information and does not request authorization. The format of the AVS information is exactly the same as the format used for Sale transactions.

5. Void

A void transaction cancels a previously authorized or captured transaction before it is settled. This allows businesses to reverse a transaction in case of an error or a change in the customer's order. Void transactions can only be performed before the transaction has been settled.

6. Refund

A refund transaction returns funds to the customer's card for a previously settled transaction. Refunds are typically issued in cases of returns, cancellations, or customer disputes. It is important to note that refunds can only be processed after the original transaction has been settled.

7. Rollback

The rollback (or Communications/System Reversal) is generated when there is a problem delivering the response back to the server side code. It is the transaction requestor’s responsibility to generate a rollback transaction for all transactions that do not receive responses.

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