By alphacardprocess January 12, 2022
As mentioned earlier, there are two types of credit card transactions: card present and card not present. Card present transactions are those in which the physical credit card is presented to the merchant by the cardholder. This type of transaction generally offers more protection for both the consumer and the merchant, as it is less likely that a fraudulent purchase will be made.
Card not present transactions, on the other hand, do not require the physical card to be presented to the merchant. This type of transaction is generally less secure, as it is easier for a thief to make fraudulent purchases using a stolen credit card number. In addition, card not present transactions may have higher processing fees than card present transactions.
The following are some of the most common types of card not present transactions:
- Phone or Mail Orders – Purchases made over the phone, on the internet, or through the mail typically require the merchant to take your credit card number and process it as a card not present transaction. If you provide your credit card number during one of these transactions, you should be sure to use a secure payment method, such as PayPal, to protect yourself from potential fraud.
- Purchases made over the phone, on the internet, or through the mail typically require the merchant to take your credit card number and process it as a card not present transaction. If you provide your credit card number during one of these transactions, you should be sure to use a secure payment method, such as PayPal, to protect yourself from potential fraud. Hotel Reservations – When you make a hotel reservation, the hotel usually asks for your credit card number to hold the room. In most cases, this is a card not present transaction.
- When you make a hotel reservation, the hotel usually asks for your credit card number to hold the room. In most cases, this is a card not present transaction. Rentals – Car rentals, bike rentals, and other types of rentals often require you to provide your credit card number to reserve the item. This is a typical card not present transaction.
- Car rentals, bike rentals, and other types of rentals often require you to provide your credit card number to reserve the item. This is a typical card not present transaction. Post-Purchase – In some cases, a merchant may ask for your credit card information after a purchase has been made. For example, Amazon requires you to enter your credit card number after you have made a purchase in order to authorize the return of an item. This is a card not present transaction.
As you can see, there are many types of transactions that fall into the category of card not present. If you are unsure whether or not a particular transaction is considered card present or card not present, be sure to ask the merchant.
Are all card not present transactions considered riskier?
No, all card not present transactions are not automatically at a higher risk of chargebacks or fraud. In any case, it is important for businesses to be proactive about their order verification process. Methods such as AVS and CVV are designed to help identify fraudulent transactions while also protecting cardholders from unauthorized use of their credit cards.
That said, it is typically easier for a thief to make purchases over the phone or online using someone else’s credit card. For example, if the criminal has your credit card number and expiration date, they could easily make purchases by “phishing” for a phone number or searching the internet for an email address. By answering a few questions, such as your billing zip code and home phone number, they may be able to trick you into providing them with all of the information they need to make unauthorized purchases over the phone.
In addition, online merchants do not always ask for verification such as CVV2/CVC2, which is the three-digit security code on the back of most credit cards. This makes it easier for criminals to make fraudulent purchases online.