Commerce Glossary

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What is a Card Not Present (CNP) Transaction?

card not pres - ent
Whenever a transaction is completed, and the cardholder (or his or her credit card) is not physically present to hand to the seller.
How do Card Not Present (CNP) transactions work?

Whenever credit card information is exchanged over the internet, phone, or mail, it is called a CNP transaction. The card associations created this term to help identify these transactions, because CNP situations tend to be where the majority of fraudulent activity occurs. The Address Verification System is one way that the card associations encourage sellers and banks to monitor for fraud in CNP transactions.

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