What is a card-not-present transaction? Online and phone card payments
By SendPay Business · · 2 min read
A card-not-present, or CNP, transaction is any card payment where the physical card is not shown to the business at the time of payment. Online shopping, in-app payments and phone orders are all card-not-present.
Card present vs card not present
In a card-present payment, the card is tapped, inserted or swiped, and the chip or phone proves it is real. In a card-not-present payment, the business only receives the card details, so it cannot check the card itself.
Why fraud is higher
Stolen card details can be used online without the physical card, so most card fraud today happens in card-not-present payments. Chargeback liability also often sits with the business rather than the card issuer.
Reducing the risk
- Use 3D Secure so the cardholder confirms the payment in their banking app.
- Check that the billing address and security code match.
- Watch for unusual orders, such as many cards tried from one device.
- Keep clear delivery records to answer any disputes.
Where SendPay fits
SendPay platforms include payment links and invoicing under your own brand, and can issue branded Visa cards to your customers, powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.