What to Know About Card-not-Present (CNP) Transactions for Merchant Services Purposes

Your merchant services program can help you collect credit and debit card transactions from people both in-person and online. But there might be times when a customer doesn’t have one’s physical card on hand. That customer might need to complete a CNP or card-not-present transaction.

A CNP transaction is a part of online merchant services that entails collecting card data while online or over the phone. Such transactions have become increasingly important in today’s merchant services world, as more people are doing their shopping from home. Mobile phone shopping also makes CNP deals essential, as more people can access their cards through their phones instead of carrying their physical cards with them everywhere.

CNP deals give you more power over how you can collect customer data and process transactions. But the process isn’t always foolproof, even if the CVV number in the transaction keeps the plan under control.

How a CNP Transaction Works

Online merchant services can handle CNP transactions in moments. You can set up an online store and accept CNP transaction payments through a shopping cart platform. You could also collect payments by phone if you prefer, as you can transfer that data you get by phone to an established database or recording system that keeps track of your payments.

The customer will manually enter one’s data into the website on an order form. The form will include spaces for the card number, the name, the expiration date on the card, and the CVV number. The CVV is critical for CNP transactions, as it helps verify the card for online transactions.

The card data will move on the network, and the card company will review the details on the card to ensure its accuracy. The analysis will include the CVV to confirm the customer’s identity for a CNP transaction.

Can You Save the Card Data?

You can save the card data you collect from a CNP transaction as part of a customer’s account. The data can be saved for future purchases the customer wishes to complete. You only need to collect the CVV content once. After that, you can secure the customer’s card data in an encrypted network database that meets PCI compliance standards.

Your online merchant services account must remove all CVV number data after the initial transaction. The CVV confirms the customer’s identity at the start. But the CVV should not be included in future transactions, as removing the number from your records ensures no one who tries to review your credit card details will have access to every piece of data. It becomes harder for data thieves to steal CVV data if they cannot reach every feature in a transaction.

What Is the Cost to Use?

It will cost more money for you to manage a CNP transaction than it will for you to handle a traditional deal. For example, an average Visa card will have a typical interchange rate of 2.1% plus 10 cents for each transaction. A CNP deal on that same Visa card can be 2.5% plus 10 cents.

The added cost comes from the network being unable to physically validate the card. Since the card isn’t there, the risk of someone potentially stealing a card and using it without someone’s permission is higher.

Can This Prevent Fraud All the Way?

card-not-present (CPN) for Merchant services: How to prevent fraud when conducting CNP

While the CNP transaction process can work for merchant services purposes to prevent fraud, it doesn’t always stop the issue. Some people may still use cards without the original owner’s permission, leading to potential chargebacks. The chargeback can cost you money, as you might pay extra to reimburse the customer and to facilitate the process within the credit card network.

These people who illegally use these cards are often related to the actual cardholders and might have physical access to their cards, or at least to one’s card-linked account for making a purchase. This problem makes it where a CNP transaction will cost more for online merchant services accounts to manage.

Be cautious when handling CNP transactions. This part of merchant services is useful for helping you collect payments and to protect customers’ data. But it is not foolproof, and it will cost more to process a CNP deal.


We all want the best safety and security online. This is especially important when information related to our finances is concerned. It is for this reason that we want to protect our computers from malware threats.

Therefore, as described here, you can use the method above to avoid fraud and ensure success in your transactions. You will be able to conduct CNP Transactions For Merchant Services without a major hindrance.