Instructions for merchants

In­struc­tions on ac­quir­ing ser­vices for mer­chants

Payment cards are one of the safest ways to accept payment for products and services. However, there is always some degree of risk that can be minimised by following Landsbankinn’s terms and conditions, instructions and recommendations.


Generally, the merchant can trust that a product or service paid for by card is paid in full, provided that there are no grounds for the card holder to request a chargeback. This applies regardless of whether a transaction is confirmed by PIN or other means of authentication by the card holder, in accordance with instructions on the relevant payment acceptance device.

It is important to note that if certain conditions are fulfilled, the card holder has a right to object and request reimbursement of transactions made with their payment card. The merchant could be required to reimburse the card holder following such objection. An authorised card transaction does not guarantee payment. An authorised card transaction indicates that at the time of the card transaction, the card was open and the account balance was sufficient to pay for the products or services. It is not permitted to perform a card transaction for the purpose of holding an amount from the cardholder’s account in order to pay for products or services at a later time. Please refer to Landsbankinn’s instructions on authorisation in cases where the transaction amount has not been finalised or it is not certain that the transaction will go forward.

Payment cards accepted

Disputed transactions and chargebacks

A chargeback is processed in cases where a cardholder disputes a transaction. The issuer of the cardholder’s card requests the chargeback on their behalf according to Visa and/or Mastercard policies. Visa/Mastercard makes the final decision on whether or not the cardholder has a right to a chargeback. If they decide in favour of the cardholder the amount is charged to the merchant. The policies may also state that the amount must be charged to the merchant temporarily while the transaction dispute is being processed. The acquiring service provider is responsible for handling the chargeback, both temporarily and permanently, as applicable.

The acquiring service provider will request information from the merchant, pursuant to the relevant policy, to respond to a chargeback claim, if a response is warranted. In some cases such information can result in the cardholder’s chargeback claim being rejected, in which case the merchant will be refunded the disputed amount if a temporary chargeback has been performed. Chargebacks are handled in accordance with the card company policies (Visa and Mastercard), with strict rules regarding response deadlines for chargeback claims, the form in which a chargeback is submitted, and authorisations to respond to chargeback claims.

Online transactions


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