What characterizes a card-absent environment?

A card-absent environment is primarily characterized by situations where the physical card is not present during the transaction. This can occur in various contexts, such as phone orders or electronic commerce, where the transaction is conducted remotely without the cardholder or the physical card being present. In these scenarios, the payment information (like card number and security code) is provided through alternate means, such as over the phone or via a secure online interface.

When looking at the other options, it's important to note that they describe situations where the card or the cardholder is physically present, which does not fit the definition of a card-absent environment at all. Thus, the correct answer highlights the essence of card-absent transactions, emphasizing the ways consumers typically engage in commerce without the physical card, effectively capturing the distinct nature of such environments.