Summary A customer not present transaction is exactly that – the customer is not present at the point of sale. Typical CNP scenarios are telephone or mail order transactions. There is more risk of fraud associated with this.

Sometimes a customer is not actually present in a shop or at the point of sale for a credit card transaction. This may sound strange but some card transactions, like placing an order over a phone or by mail-order do not need the customer to be present at the point of sale.

This situation is known as a Customer Not Present transaction. Acquiring Banks make a distinction between customer present and Customer Not Present transactions, as there is a potential increase in fraud when the customer does not present the card or sign a sales voucher at the point of sale.

Customer Not Present transactions take place everyday over the phone and with mail-order firms across the globe so there is no need to worry unduly about these risks. When you apply for your Merchant Service the Acquiring Bank will ask what percentage of your transactions will be to customers who are not physically present. They will use this to calculate the cost of your service and to issue a Merchant Service ID that allows you to conduct Customer Not Present sales.

Taking orders over the Internet means the customer is again not present. Understand the distinction the Acquiring Bank makes so you can prepare your business appropriately and get the right Merchant Service for your operation.

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