What is a CNP Transaction?
A card not present transaction is any type of credit or debit card purchase that doesn’t involve the physical presence of the card. In other words, the cardholder and merchant are not in the same place when the transaction takes place.
CNP transactions are becoming more and more common as consumers increasingly shop online and over the phone. They can also occur when a cardholder gives their credit or debit card information to someone else to make a purchase on their behalf, such as when buying tickets or making a hotel reservation.
What is Needed for a CNP Transaction?
Since the physical credit or debit card is not present during a CNP transaction, the cardholder’s information must be provided to the merchant in some other way.
This can typically be done by entering the credit or debit card number, expiration date, and security code into an online form or giving it over the phone. Some companies also offer cardholders the option to save their credit or debit card information on their website or app for future use, which can make CNP transactions even easier.
What are the Risks of CNP Transactions?
Since cardholders are not physically present to hand over their credit or debit card and sign for their purchase during a CNP transaction, there is an increased risk of fraud. In fact, CNP fraud is one of the most common types of credit card fraud.
There are a few different ways that criminals can commit CNP fraud, such as stealing credit or debit card information from online databases or using skimming devices to capture card data when the card is used in person.
How Can I Protect Myself from CNP Fraud?
There are a few different things you can do to protect yourself from CNP fraud, such as:
– Only shop on secure websites: Make sure that any website you make a purchase on starts with “https” and has a lock icon next to the URL. This means that the site is encrypted and your information will be safe.
– Don’t save your credit or debit card information online: It can be tempting to save your credit or debit card information on websites for future use, but this can also make you more vulnerable to CNP fraud. If a website’s database is hacked, your information could be compromised.
– Use a credit card instead of a debit card: If you do end up being a victim of CNP fraud, it’s important to know that your credit card issuer is liable for any fraudulent charges. Debit card issuers, on the other hand, may not be as forthcoming in refunding your money.
– Monitor your credit card and bank statements: Keep an eye on your credit card and bank statements for any unauthorized charges. If you see anything suspicious, report it to your issuer right away.
– Use a fraud monitoring service: A fraud monitoring service can help you keep an eye on your credit card and bank account activity for any suspicious charges. This can give you peace of mind and help you catch CNP fraud early