While CNP transactions are convenient for consumers, they pose a greater risk for fraudsters. That’s because it’s harder to verify the cardholder’s identity when the card is not present. As a result, CNP fraud is one of the most common types of credit card fraud.
In this guide, we’ll cover everything you need to know about CNP transactions, including how they work and how to prevent fraud.
A card not present transaction is any credit or debit card transaction that occurs without the card being physically present. This can include transactions made over the phone, online, or via mail order.
CNP transactions are more convenient for consumers than traditional point-of-sale (POS) transactions because they don’t require the cardholder to be physically present. However, this convenience comes at a cost. CNP transactions are more susceptible to fraud because it’s harder to verify the cardholder’s identity.
There are three primary types of CNP transactions:
CNP transactions work differently than POS transactions because the card is not physically present. Instead, the cardholder’s information is stored on a database and processed electronically.
When a customer initiates a CNP transaction, their credit or debit card information is sent to the merchant through the card network. The card network then verifies that the customer has enough funds to cover the purchase and routes the transaction to the merchant’s bank.
The merchant’s bank then deposits the funds into the merchant’s account and sends a confirmation back to the card network. Once the card network receives confirmation, it notifies the customer that the transaction is complete.
CNP fraud is one of the most common types of credit card fraud. This is because it’s harder to verify the cardholder’s identity when the card is not present. As a result, criminals can more easily steal credit and debit card information and use it to make fraudulent purchases.
There are a few different ways that criminals can commit CNP fraud:
There are a few steps that you can take to protect yourself from CNP fraud:
Card not present (CNP) fraud is a type of credit card fraud that occurs when a criminal makes a purchase without physically presenting the credit card. This can be done by skimming credit card numbers, phishing for personal information, or stealing data from a company’s database.
CNP fraud is one of the most common types of credit card fraud, so it’s important to take steps to protect yourself. You can do this by using a secure payment method, checking your statements regularly, and using a fraud monitoring service. Additionally, be sure to keep your personal information safe by never sharing it with anyone.