CNP - Card Not Present

A card transaction where the merchant cannot physically see the payment card.

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Card-not-present fraud (CNP) occurs through online transactions, telephone, or mail. In simple terms, it’s a fraudulent payment where a merchant does not see a card for a visual check.

A CNP fraud tends to happen after a payment card or information on the card has been stolen (name, card number/PAN, and 3-digit CVV security code at the back) or purchased from the Dark Web.

CNP fraud accounts for 75% of all card frauds on average in many countries.

The PCI Security Council (PCI SSC) introduced a standard (PCI DSS) to help combat this type of fraud. It stipulates that companies should have systems in place to safeguard customers’ credit and debit card details.

Initiatives like PSD2 aim to increase security for electronic CNP transactions, for instance, by requiring Strong Customer Authentication.

Read more about compliance.