Card-not-Present (CNP) Transaction
Card-not-present (CNP) transactions are payments made without the physical presence of a card. This type of transaction is becoming increasingly popular as more and more people shop online and use mobile payment systems. CNP transactions are typically made through e-commerce websites, mobile apps, or telephone orders. In these cases, the customer provides their card details to the merchant, who then processes the payment.
History of Card-not-Present Transactions
The concept of card-not-present transactions has been around since the early days of credit cards. In the past, merchants would accept payments over the phone or through the mail. However, with the rise of e-commerce, CNP transactions have become much more common. In recent years, the use of mobile payment systems has further increased the prevalence of CNP transactions.
The increased popularity of CNP transactions has led to the development of new security measures to protect customers and merchants. For example, many merchants now require customers to enter a one-time code sent to their mobile phone in order to complete a CNP transaction. This helps to ensure that the customer is the legitimate cardholder.
Comparison of Card-not-Present Transactions
| Type of Transaction | Physical Presence of Card | Security Measures |
|---|---|---|
| In-Person | Yes | Chip and PIN, Signature |
| CNP | No | One-Time Code, 3D Secure |
Summary
Card-not-present (CNP) transactions are payments made without the physical presence of a card. This type of transaction is becoming increasingly popular as more and more people shop online and use mobile payment systems. CNP transactions are typically made through e-commerce websites, mobile apps, or telephone orders. To protect customers and merchants, new security measures have been developed, such as one-time codes and 3D Secure.
For more information about CNP transactions, you can visit the websites of major credit card companies, such as Visa, Mastercard, and American Express. You can also find more information on the websites of payment processors, such as PayPal and Stripe.
See Also
- Chip and PIN
- Signature
- One-Time Code
- 3D Secure
- E-commerce
- Mobile Payment Systems
- Visa
- Mastercard
- American Express
- PayPal
- Stripe
