08 / 22 / 17

What are Card Not Present Transactions?

Examples of card present transactions

When a consumer walks into a business and pays for a product or service using a credit or debit card, this is considered a card present transaction. These face-to-face transactions take place everyday at businesses like restaurants, department stores, supermarkets, movies theaters and more.

Examples of card not present transactions

As the name suggests, card not present (CNP) transactions occur without the buyer and seller being in the same place. Here are the five most common instances where card not present transactions happen:

1. Online transactions. Did you know that according to BigCommerce, 80% of Americans have made an online purchase in the past month alone.

2.?Telephone purchases. Bills are still often paid over the phone, and products and services are purchased.

3. Mail orders. This is a struggling industry, but mail order transactions do still happen.

4. Card on file payments. These transactions typically occur when a customer has provided a continuous authorization on a debit or credit card. Some examples include gym memberships, wine clubs, and subscriptions for goods or services.

5. Cloud wallet payments. This is a newer and increasingly popular option for making everyday purchases using mobile phone apps. What?s interesting about cloud wallet payments is that the customer and merchant may be in the same physical location during the transaction, but the card doesn?t need to be.

The Future of CNP Tranactions

Online shopping continues to increase in popularity, as consumers appreciate the convenience it provides. According to recent data from BigCommerce, 96% of Americans have made an online purchase in their life, with 67% of Millennials and 56% of Generation Xers preferring to shop on online rather than in-store.

With e-commerce growing 23% year-over-year, what?s interesting (and a bit startling) is that 46% of American small businesses still do not have a website. With consumers? increasing desire for instant access, fast turnaround, and convenience, it is estimated that online shopping will be the norm in the next few years. Businesses that do not keep up, and establish an online presence will likely be left behind.

Aliant: An E-Commerce Payment Processor

Aliant is proud to be a highly regarded payment processor that specializes in e-commerce processing. With over 14 years of experience in the payments industry, our friendly and knowledgeable integration specialists are equipped with all the tools to quickly identify, address and resolve issues during the integration process. To learn more, or to get started, contact us or call 888.638.6103.


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