Its Worth To Know About CNP Transaction On Your Credit Cards

The aim of writing this article is to help the merchant as well as the customer to avoid risk present in the customer not present (CNP) fraud. Here we will carefully learn how the CNP process works to avoid CNP-related frauds in the future. CNP transactions happen with the card holder not present at the point of sale. Here the card holder’s order is taken by the merchant over the phone, email, or by fax. The merchant is unable to check the identity of the,credit card,holder. CNP transaction is thus the most risky for both card holder and merchant. Criminals can take undue advantage of this by using fake personal details by illegally obtaining your card information.

During the CNP process the merchant request authorization from the bank to process the sale transaction. The bank verifies that the card is not stolen or lost, and checks whether the card carries enough funds or not, and then gives the go-ahead to the merchant to proceed with the transaction. Now, if the transaction results in a fraud, the full amount has to be paid by the merchant. And the card holder whose card has been used for fraud purposes comes to know only when he/she gets the bill statement. So check your bill statement as and when it comes in. If you find any fraudulent transaction, report to your bank immediately. In CNP frauds, the card holder is still safe as the bank would not hold the card holder responsible. The merchant is not so lucky. It has to pay from its own pocket whatever the fraudulent transaction amount is. So what’s the solution to avoid it for both the card holder and the merchant?
Merchants should avoid CNP transactions as a matter of course.

If they intend to do it, they should do these transactions only with clients who they know well; which means they can recognise the client’s voice properly. Even in such cases, they should avoid the transaction at the first hint of suspicion.Card holders should not share their credit card details with anybody; not even with friends.