What are Card Not Present transactions and payment types?
Card not present transactions (CNP) are where the cardholder does not need to physically present their card for a merchant to inspect.
In the industry, there are many different terms for card not present transactions, and they can come in different formats. With a Nochex merchant account you can accept card not present payments and transactions!
It’s often said that card not present transactions involve a higher risk of fraud. Many businesses spend large sums of money on fraud prevention and data validation tools to avoid this fraud.
Fortunately, as a Nochex merchant you don’t need to spend or invest in this technical systems. All Nochex Internet Merchant Accounts and payments have the highest level of Fraud and Prevention Security.
If your business is ready to take online payments in a secure, stable way – apply for an account here.
What do Card Not Present transactions look like?
Online Payments
Purchasing goods or services online using a service like Nochex to process the transaction.
Telephone Payments
As it says on the tin… purchasing things over the phone. For example paying a bill, or ordering from your local takeaway.
Card On File Payments
Also known as recurring payments, or subscription payments. These are when the card information is saved, and charged at certain intervals.
Mail Order
Not as popular as it once was, but these transactions still exist!
Card Not Present Transactions and Chargebacks
As previously mentioned, CNP transactions carry greater risk. As the name suggests, for a payment to be processed, you do not need to display the card to pay.
With this risk, comes chargebacks. A chargeback occurs when a customer disputes a transaction with their card issuer and would like the transaction to be reversed.
Many merchants will experience chargebacks in their processing lives. Some processors, like Nochex, perform extra fraud prevention techniques such as 3D Secure.
We've created a handy guide for chargebacks here!
3D Secure for Safer Payments
3D Secure stands for Three Domain Secure. It’s a fraud prevention technique then increase the security of a payment. It is a collective of Verified by VISA (VBV) and MasterCard Secure Code (MSC).
The 3 stands for 3 parties involved in the payment process;
- VISA and MasterCard (card issuers)
- The Acquiring Bank
- The company the purchase is being made from
3D Secure gives added protection that previously never existed. All Nochex card not present transactions are 3D Secure enabled!
Learn more about 3D Secure for Safer Payments
Do Card Not Present Transactions Cost More?
Card not present transactions occur when both the card holder, and credit card used are not physically present when a transaction takes place.
Typically, card not present transactions are completed remotely often over the internet, phone, email or mail.
Card present payments are where card details are captured at in person, at the time of sale. These are most regularly completed on an MPOS device or chip-and-pin machine.
As a merchant, you may find that card not present transactions are slightly more expensive to process than their physical alternative. Depending on the industry, payment provider and the products or service you provide, you may be charged various rates.
The shift of card not present payments.
Card not present payments have seen much innovation over the past 15 years. Initially, fraud and security was the primary focus, typically card not present payments pose a higher risk.
Although mail order payments are no longer as popular, the close alternative of telephone payments has seen a surge of uptake in this mobile generation. Digital payments are simple and secure, and can often be completed in seconds.
Still looking for a card not present payments solution?
Apply for your account with no monthly fees here!
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