Cards compliance and acquiring
EMV, PCI DSS, merchant underwriting, interchange modelling and the chargeback chain
Cards compliance and acquiring: EMV, PCI DSS, merchant underwriting, interchange modelling and the chargeback chain.
What You Can Do After This Chapter
Learning objective. Learner explains how an EMV chip proves a card is genuine with ARQC, what PCI DSS requires and who it applies to, and how merchant underwriting uses MCC, KYB and risk rating. Learner models interchange, traces the chargeback chain through representment, pre-arbitration and arbitration, explains acquiring economics and BNPL risk, and states the scheme compliance and certification cycle.
Practical assessment. Learner receives a case where a merchant is charged back for a EUR 250 online purchase, then traces the chargeback chain, drafts the representment evidence, and explains the pre-arbitration and arbitration steps. Learner also models the interchange on the transaction and prices the merchant with MDR.
Expected deliverables.
- Chargeback chain diagram with deadlines
- Interchange model for EUR 250
- Merchant underwriting checklist: MCC, KYB, risk rating
- BNPL risk note
Completion criterion. Learner traces the chargeback chain correctly, drafts valid representment evidence, models the interchange accurately, and explains the acquiring pricing.
- EMV chip and ARQC: how a chip card proves it is genuine
- PCI DSS: what it requires and who it applies to
- Merchant underwriting: MCC, KYB and risk rating
- Interchange modelling: how the fee is built and who earns what
- The chargeback chain: representment, pre-arbitration and arbitration
- Acquiring economics: pricing a merchant, MDR and the acquirer P and L
- BNPL: how buy now pay later works and where the risk sits
- Scheme compliance: mandates, fines and the certification cycle
Start Lesson 1: EMV chip and ARQC: how a chip card proves it is genuine →