Card Not Present


“Card Not Present” (CNP) is a term in the payment card industry used to describe transactions when the physical card is not physically presented during the payment process. It often applies to transactions conducted online, over the phone, or via mail order. These types of transactions typically present a higher risk of fraud compared to those where the card is physically swiped or inserted into a card reader.


The phonetics of the keyword “Card Not Present” are:Card: /kɑːrd/Not: /nɒt/Present: /ˈprɛz(ə)nt/

Key Takeaways

  1. Definition: Card Not Present (CNP) refers to a transaction in which the physical credit card is not available to be checked by the seller. This situation typically arises in online shopping, phone orders, or mail orders.
  2. Risk Factor: CNP transactions tend to be at a higher risk of fraud because without the physical card, it’s harder to verify the identity of the person making the purchase. The seller must rely on information entered by the buyer which can be easily stolen or fabricated.
  3. Security Measures: To combat fraud in CNP transactions, various authentication methods are applied such as CVV verification, AVS checks, 2-step verification, and other advanced algorithms. Companies also heavily invest in fraud detection and prevention systems.


The term “Card Not Present” (CNP) is significant in the field of technology, particularly in electronic commerce and online transactions. It refers to a situation where a credit or debit card is not physically presented to a merchant during a transaction. This typically occurs in online shopping, telephone orders, or mail orders. CNP transactions are important because they carry a higher risk of fraud compared to card-present transactions since the merchant cannot visually verify the card itself and the identity of the cardholder. Therefore, additional security measures such as CVV checks, address verification service, and two-factor authentication are often used in CNP transactions to reduce the risk and ensure a secure, smooth transaction process. Overall, understanding CNP is essential in developing and applying effective measures against credit card fraud in an increasingly digital economy.


Card Not Present (CNP) is a term that refers to transactions where the customer does not physically present their credit or debit card at the point of sale. The purpose of CNP transactions is to facilitate remote sales where the buyer and seller are not in the same location. These types of transactions are common in e-commerce stores, over the phone sales, and billing agreements where businesses charge recurring payments. It has effectively enabled the growth of online commerce and made it convenient for consumers to make purchases from the comfort of their own home or any location.CNP transactions technology brings convenience, but it also inherently carries some risk due to the absence of physical verification methods to authenticate the cardholder’s identity. To mitigate this risk, businesses may use additional security measures like CVV verification, Address Verification Service (AVS), or 3-D Secure protocols. This helps to ensure that the person making the transaction is indeed the cardholder, thus protecting both businesses and consumers from fraudulent activities. Through CNP transactions, businesses can reach a wider customer base and consumers can enjoy a simplified and seamless shopping experience.


1. Online Shopping: One of the most common examples of card not present transactions is online shopping. When you make a purchase on an e-commerce platform such as Amazon or eBay, you typically enter your credit card details rather than physically presenting the card. This is considered a “card not present” transaction.2. Telephone Orders: If you order a product or service over the phone, the vendor will ask for your card information verbally, and then enter it into their system. Since your card isn’t physically shown to the merchant, this is also considered a “card not present” transaction.3. Recurring Subscription Services: Many recurring payment models, such as Netflix subscriptions, gym memberships or utility bills, also fall under the category of “card not present” transactions. Here, card details are entered once and stored securely by the company. The agreed upon amount is then automatically charged each month, all without the card being physically present.

Frequently Asked Questions(FAQ)

Q: What does the term “Card Not Present” mean?A: The term “Card Not Present” (CNP) refers to a situation where a credit or debit card is not physically presented during a transaction. These transactions typically occur during online or over-the-phone purchases.Q: When are Card Not Present transactions typically used?A: CNP transactions are most commonly used for online shopping, payments over the phone, and recurring billing such as subscription services.Q: Are CNP transactions safe to use?A: While CNP transactions are generally safe, they can be more susceptible to fraud because physical card security features (like a chip or signature) can’t be used. However, many businesses employ additional security measures such as CVV checks and address verification to prevent fraud.Q: What is a CNP fraud?A: CNP fraud occurs when your credit or debit card’s information is stolen and used without your permission in a transaction where the card is not physically present, like an online purchase. Q: What precautions are taken to mitigate the risk of CNP fraud?A: Merchants often mitigate the risks of CNP fraud by employing additional verification measures such as: requesting for the CVV number, verifying the billing address, and using fraud detection software that watches for suspicious purchase patterns. Q: How can consumers protect themselves from CNP fraud?A: Consumers can protect themselves by ensuring they only provide their card details over secure connections, regularly reviewing their transaction history for any unusual activities, and reporting lost or stolen cards immediately.Q: Can a CNP transaction be disputed?A: Yes, if you notice a CNP transaction that you didn’t authorize on your account, you can dispute the charge with your card provider. Generally, you’ll need to provide information about the transaction and why you believe it’s fraudulent. Q: What is the impact of CNP transactions on businesses?A: While CNP transactions can open businesses to a larger customer base, they also carry a higher risk of fraud. This can lead to financial losses if the fraudulent transactions are charged back. Hence, many businesses invest in fraud prevention mechanisms to safeguard against such instances.

Related Finance Terms

  • E-Commerce
  • Payment Gateway
  • Online Fraud Prevention
  • Transaction Authentication
  • Digital Wallet

Sources for More Information


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