Modern shoppers want the freedom to pay however they want, whenever they want — and business owners have to accommodate. Whether your consumers are shopping on their mobile devices or browsing your catalog from the comfort of their homes, supporting card-not-present (CNP) transactions is the key to making payments simpler.
Defining Card-not-present (CNP) Transactions
Card-not-present (CNP) transactions are payments made without physically presenting a card — No terminals, swiping, or tapping needed.
How do CNP transactions work? After collecting a customer’s info, such as their account number and billing address, the merchant sends it to the payment processor. The processor verifies the information, authorizes the transaction, and then deposits the funds into the merchant’s account. Easy.
Common Types of Card Not Present Transactions
There are a few kinds of CNP transactions all good merchants ought to know:
- Online Shopping: Most CNP transactions occur online through a website or mobile app equipped with a secure credit card processing gateway.
- Telephone Purchases: Customers can place orders over the phone by giving their card information to the merchant.
- Mail-order Purchases: These purchases involve the customer sending their card information to the merchant via snail mail.
The Advantages of Card-not-present Transactions
CNP transactions offer several benefits to merchants and customers alike:
- Increased Convenience: Customers can make purchases without physically visiting a store. They can also set up recurring online payments, avoiding the frustration of reentering their info.
- Use of Secure Payment Gateways: Merchants can use secure payment gateways to process CNP transactions, ensuring that each customer’s data is encrypted and protected.
- Easier B2B Payments: CNP transactions make it easy to work with partners — whether they’re based in other countries or just around the block. Being able to pay someone without scheduling an in-person meeting is far more efficient.
- Easy Automation: Merchants who support CNP can choose systems that integrate seamlessly with their business management software, getting one step closer to the truly paperless office.
Start Accepting CNP Transactions Today
CNP transactions are becoming increasingly popular as more customers shift to the convenience of online and remote shopping. Merchants who want to thrive need to step up their payment game.
Want to know more? Talk to the experts at K and B Solutions about card processing that gives your clientele more options.