Card not present – defined
Card not present (CNP) refers to the channel used to complete the transaction. These transactions are completed via telephone, internet, mail, mobile device or any time the physical card is not interacting with a card reader.
The CNP channel currently has challenges in terms of fraud detection and prevention. This is because validating the card and authenticating the cardholder is not easily done (it is easier for a merchant to verify the authenticity of the card when the cardholder is in person).
When you process a CNP transaction, you should obtain the following information at minimum:
- Account number
- Cardholder name as it appears on the card
- Expiration date as it appears on the card
- Cardholder’s billing address/the address that appears on the billing statement
- Shipping address (if applicable)
- CVV2 (if you participate in the CVV2 service)
The CVV Number (“Card Verification Value”) on your credit card or debit card is a 3-digit number on VISA®, MasterCard® and Discover® branded credit and debit cards. Your American Express® branded credit or debit card uses a 4-digit number.
For telephone and internet orders, you should also capture:
- Cardholder contact information, such as telephone number or e-mail address
- Time and date of the order
- Details of the conversation
- For mail/fax orders, consider requiring the cardholder’s signature on the order form
- Keep copies of order forms and obtain proof of delivery of merchandise to the address specified by the cardholder
Payments are fast-becoming an opportunity to better serve your customers. Ensure you’re not paying too much to bring added convenience to them.