What is a card-not-present transaction?
A card-not-present transaction occurs when a payment is made without physically presenting the card to the merchant. This includes online, telephone, and mail order transactions.
Why are card-not-present transactions riskier?
The absence of a physical card increases fraud risk because the merchant cannot verify the cardholder directly. Fraudsters often exploit stolen card details in these scenarios.
How are CNP transactions secured?
Security measures include CVV checks, AVS verification, tokenization, and 3D Secure authentication.
Where are CNP transactions commonly used?
They are widely used in e-commerce, subscription services, and remote payments.
How do merchants reduce fraud in CNP transactions?
Merchants use fraud detection tools, require additional authentication, and monitor transaction patterns.