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What is a Card Not Present Transaction?

When running a credit card, the merchant will usually grab the card, swipe it, and complete the transaction. However, sometimes, the merchant will simply enter in the numbers. This is often the case when the machine is broken or the card is unreadable. However, when doing an online or mail order purchase, one will do a card not present transaction, and here is a short guide explaining this.

Higher rates of fraud: Without a doubt, credit card processing is easier if the person is present with the card in hand. Think about it, when committing fraud, a person will likely do it over the Internet, on the phone or through the mail. This is an easier way to avoid problems, and one should take extra steps to prevent fraud if they run a store or service where they accept payments via mail order. Remember, credit card processing is difficult, and one mistake can cost company money.

Take more precautions: Simply put, merchant account owners should take more precautions with credit card processing over the phone and through the mail. To do so, one should verify the address and all the other information is spot on. Not only that, when dealing with big-ticket items and high values, a company must call the client to confirm the charges. Then, when discovering anything odd, a company should cancel the transaction. While this may seem time-consuming, it will save a company a lot of time and money in the future as one fraud transaction is going to cause a lot of problems for employees and the company.

Still worth the risk: Finally, while there is a lot of fraud in this venue, it’s obviously worth the risk to most people ass it’s easy to find more clients with this method. Although most people present the card or use a website to buy goods, plenty of older people love to use mail order to buy things. Furthermore, once a relationship is established, it’s easy to understand that fraud is not hard to prevent. Yes, with a few common sense tips, a seller will avoid problems.

When looking to credit card transactions, one can see that there are many different types of ways to spend money. Simply put, when trying to make money, a company should accept all forms of payment. However, one should remain cautious when doing transaction where the card is not present.


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