What is a card not present

transaction?
A card not present (CNP) transaction is processed via the internet,
telephone, email or mobile device. Such transactions do not require
the physical presence of a credit or debit card. This doesn’t mean the
bank details contained in the card aren’t involved, just that the
merchant receives the bank details remotely.

Such CNP payments are good news for your small business as they
provide you with a reliable cash flow to boost your overall revenue.
This is because a customer no longer needs to abandon their purchase
due to insufficient cash or negative card balance. With a digital
payment, a customer has the money right there in their device.
 Of course, with every new innovation in payment technology comes a
number of new concerns about security. That’s why there are some
best practices to prevent card not present fraud.

Card not present (CNP) best

practices 
Every kind of payment system is prone to fraud, and a CNP
transaction is no different. There is also the risk of innocent confusion
causing chargebacks, in cases where someone disputes a charge they
do not recognise on their statement. To avoid these issues, adhere to
these CNP best practices:
 protect your customer
  identify your business
 save proofs of purchase
 use the address verification system
 comply with PCI security standards
Protect your customer
You must always safeguard your customer’s sensitive card details. This
means never writing their details down or entering any of their card
information into unsecured drives. Data leaks happen and can be
devastating for you.
Identify your business
Chargeback disputes can be innocently intentioned, with the customer
simply not recognising where the charge they see on their bank
statement comes from. Avoid such misunderstandings by ensuring
your merchant details and billing descriptor accurately describe who
you are.
Save proof of purchase
Save every bit of proof of purchase information for each transaction
you conduct, apart from the sensitive bank details. This will be most
helpful when it comes to defending your business against chargeback
attempts. Save information such as the time and date of the purchase,
total amount charged, mode of payment, the order placed and
customer contact details.
Use the address verification system
All merchants accepting CNP transactions should use the Address
Verification System (AVS) to verify the billing address of their
customer. AVS ensures the billing address provided by the customer
matches up with the shipping address provided. There will be plenty of
instances where the addresses don’t match for legitimate reasons
(someone sending a gift, for example), but these can be figured out
pretty easily.
Comply with PCI security standards
Make sure your business is PCI-certified and that you are complying
with all the PCI security standards. Also check for updates regularly,
and make sure you only use a PCI-certified payment processor as well.