In the past, if a customer did not have a physical debit or credit card on them, it would be nearly impossible to make a purchase. Not in today’s world. A customer can complete a purchase today without being physically present. These types of payment options are called card not present transactions.
This type of transaction occurs when either the cardholder is not present or the credit card is not physically present during the time of the transaction. Generally, the most common form of this transaction is a remote purchase, be it by internet, fax, or mail. When is a transaction considered “card present”? If payment details are captured in person at the time of the sale, it fits the criteria for being “card present”. An example of this type of sale is when cards are physically swiped through an EMV chip reader or swipe.
Just go give you an idea, here are a few CNP transactions that businesses come into contact with every day of the week. Here are just a few card not present transactions:
Like any credit/debit card transaction, a business will have to pay a processing fee for CNP payments; this is just like interchange fees and assessment fees. Interchange fees are almost always higher for CNP transactions due to the fact that the chance of chargebacks and fraud are higher without the card present. For reference, CNP transactions accounted for 45% of the United States’ credit card fraud. With the adoption and growth of online retail and eCommerce, experts project that this percentage will increase.
We understand where solo professionals, small business, and mobile services are coming from; this is why we serve Card Not Present Merchants nationwide. We accept all major credit and debit cards with our wireless terminals so you never have to miss out on revenue from clients due to a lack of payment options. Pinpoint Payments is a full-service payment processing company and the best option to help verify card no present transactions. Contact us toll-free at (888) 325-7640 for more information on our payment procession solution for card not present transactions.