Card Not Present What You Need To Know!

 

With the increased prevalence of online shopping and the shift towards contactless payments, card not present (CNP) transactions are becoming increasingly common. CNP transactions refer to any payment where the cardholder does not physically present their credit or debit card for purchase. Examples include web-based purchases, mail order/telephone orders (MOTO), and recurring payments such as those used for subscription services.


CNP transactions, while convenient, come with a greater risk of fraud. This is due to the fact that CNP purchases are not authenticated through signatures or pins and it can be difficult to verify the identity of the purchaser. As a result, merchants must take extra care when accepting card-not-present payments to ensure they are verifying the identity of the customer and reducing potential chargeback risks.


Here are some best practices for merchants when it comes to CNP transactions:

* Utilize fraud prevention tools such as Address Verification System (AVS) or 3D Secure 2.0 authentication. AVS verifies the cardholder's address against what is on file with their bank, while 3D Secure adds an additional layer of security by requiring the customer to enter a password or other authentication credentials upon checkout.

* Offer payment methods in addition to credit and debit cards such as PayPal, Apple Pay, Google Pay, etc., which are also considered CNP purchases but have built-in fraud prevention capabilities.

* Make sure to collect all necessary information from the customer, such as full name, billing address, and email address.

* Use IP geolocation services to detect suspicious behavior or purchases made from uncommon locations.

* Monitor your transactions for any unusual activity or patterns that may indicate fraud.


By implementing these strategies, merchants can significantly reduce their risk of chargebacks and fraudulent activity when accepting card not present payments. Additionally, it is important to stay up-to-date on any changes in the payment processing industry that may affect your CNP transactions. Doing so will ensure you are able to adjust accordingly and remain compliant with any new regulations or requirements.


Follow these best practices and you’ll be able to keep your card not present transactions safe, secure, and compliant! 

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