What are Card-Not-Present (CNP) Transactions?: Here’s What Caribbean Entrepreneurs Need to Know 

Card-not-present (CNP) transactions are any purchases made without the physical presence of the cardholder or the card. This includes online shopping, phone orders, and mail orders. CNP transactions are becoming increasingly popular, as more and more people shop online. However, they also present a higher risk of fraud than in-person transactions. 

Why CNP transactions are a fraud risk? 

CNP transactions are a fraud risk because the cardholder is not present to verify the purchase. This means that fraudsters can use stolen credit card numbers to make purchases without being caught. CNP fraud can also be difficult to detect, as the fraudster may be located far away from the business. 

How to accept CNP transactions securely? 

There are a number of things that Caribbean businesses can do to accept CNP transactions securely, including: 

  • Use a secure payment gateway such as First Atlantic Commerce. Our secure gateway will encrypt customer data and help protect it from fraud.  
  • Use address verification system (AVS). AVS compares the billing address provided by the customer to the billing address on file with the credit card issuer. If the addresses do not match, the merchant may want to decline the transaction. 
  • Use card security codes (CVC/CVV codes). CVC/CVV codes are three- or four-digit codes that are printed on the back of credit and debit cards. They are an additional layer of security that can help to prevent fraud. 
  • Monitor transactions for suspicious activity. Caribbean merchants should monitor their transactions for suspicious activity, such as large purchases from new customers or purchases made from unusual locations. 
  • Use a fraud detection and prevention software such as Kount to help stop threats and improve business operations.  Kount is available via the FAC platform.  

Additional tips for accepting CNP transactions securely 

Here are some additional tips for accepting CNP transactions securely: 

  • Keep your software up to date. Make sure that your software, including your operating system, web browser, and security software, is up to date. This will help to protect your systems from known vulnerabilities. 
  • Educate your employees about fraud. Train your employees on how to identify and prevent fraud. This includes teaching them about the different types of fraud, how to spot red flags, and what to do if they suspect fraud. 
  • Have a fraud prevention policy in place. Your fraud prevention policy should outline the steps that you will take to prevent and detect fraud. It should also include a process for handling fraudulent transactions. 

Additional tips for different payment methods 

Online: In addition to the tips above, merchants can also take the following steps to accept CNP transactions securely online: 

  • Use a strong password for your payment gateway account. 
  • Enable two-factor authentication (2FA) on your payment gateway account. 
  • Use a web application firewall (WAF) to protect your website from attack. 
  • Regularly scan your website for malware and vulnerabilities. 

Over the phone: If you are taking orders over the phone, it is important to secure the information you receive from the customer in compliance with PCI requirements. You should: 

  • Only collect the information that you need to process the transaction. 
  • Never store customer credit card numbers in plain text. 
  • Encrypt all customer data before transmitting it to your payment gateway. 

In person and manually: If you are accepting CNP transactions in person and manually, you should: 

  • Use a secure payment terminal. 
  • Ask for photo identification from customers. 
  • Encrypt all customer data before transmitting it to your payment gateway. 

Want to learn how to protect your Caribbean business from fraud? Check out the video below:

By following these tips, businesses can help to protect themselves from CNP fraud. By accepting CNP transactions securely, businesses can minimize their risk of financial loss and protect their customers’ data.  If you’re interested in learning more about how FAC can help your business grow, please  contact us today