A Card-Not-Present (CNP) transaction occurs when the customer’s card is not physically present at the time of purchase. This includes online purchases, payments made over the phone, and transactions where the card details are manually keyed into a terminal. CNP transactions carry a higher risk of fraud, so they have higher processing fees.
Frequently Asked Questions (FAQs)
- Is manual card entry in Charge for Stripe a CNP transaction?
Yes. Even if the customer is standing in front of you, if you type in their card number instead of using Tap to Pay, it is processed as a CNP transaction, and the higher fee rate will apply. - How can I reduce the risk of fraud with CNP transactions?
Always ask for the CVC code (the 3 or 4-digit code on the back or front of the card) and use address verification services (AVS) if possible. Stripe has built-in fraud detection tools that can also help. - Why are CNP transactions riskier?
They are riskier because it’s much harder to verify that the person making the purchase is the legitimate cardholder. All a fraudster needs is a stolen card number, whereas for a CP transaction, they would need the physical card itself.
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