DEFINITION
Card Not Present (CNP) Transactions
Card Not Present (CNP) transactions refers to all transactions where a cardholder does not have to physically present their card. Namely, when making transactions online, over the phone, or even mail-order purchases. These transactions are convenient but often require additional security measures to prevent fraud, such as 3D secure.
Synonyms
Remote card payment
Acronyms
CNP
Share
Synonyms
Remote card payment
Acronyms
CNP
Examples
A person wants to buy a new TV. However, instead of going to the store in person and swiping their card, they make the purchase online. After navigating to their desired TV, the user fills out their card information, such as the card number, expiration date, and CVV. They are then prompted to enter a one-time password sent to their phone to authenticate the purchase. After doing so, the transaction is labelled as a CNP transaction and is processed.
FAQ
Why are CNP transactions considered risky?
Unlike traditional means, threat actors do not need physical access to your card to perform fraud. For example, your card data may be leaked online. However, it’s worth noting that most platforms have additional forms of security when performing CNP transactions.
How are CNP transactions secured?
CNP transactions are typically secured by using 3D Secure protocols, tokenization and AI-based fraud detection software.
Do all online payments qualify as CNP?
Since online transactions by default involve using the card details instead of presenting the card itself, they are all categorized as CNP transactions.
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