Card-not-present-transactions-all-you-need-to-know!

1. Card-Not-Present Transactions All You Need To Know! When you make a purchase online or over the phone, you are completing a card-not-present (CNP) transaction. In order for these transactions to be processed, the merchant must obtain an authorization code from the card issuer. This code verifies that the customer has the funds available to cover the cost of the purchase.

2. CNP transactions are different from card-present transactions (such as those completed at a brick-and-mortar store) in a few key ways. First, the customer’s card is not physically present to be swiped or inserted into a card reader. Second, the customer’s signature is not required. Finally, the transaction is completed without the merchant ever having to handle the customer’s card.

3. Because CNP transactions carry a higher risk of fraud than card-not-present transactions, they are often subject to additional fees. For example, many merchants will charge a higher “card-not-present” rate for processing these types of transactions. Despite the added risk, CNP transactions are growing in popularity. This is due in part to the growth of e-commerce and the increasing number of consumers who are comfortable making purchases online or over the phone.

4. If you’re a merchant who accepts CNP transactions, there are a few things you can do to minimize your fraud risk: -Require additional information from the customer, such as a billing address or CVV code -Verify the customer’s identity using third-party services -Use fraud detection tools to screen for suspicious activity By taking these precautions, you can help ensure that your CNP transactions are safe and secure.

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