Making card-not-present (CNP) payment methods available to customers is essential for businesses today – whether you’re taking holiday bookings, orders for furniture, or utility payments.
However, for many call centres, credit card payment security is an issue when taking orders over the phone or via email. A May 2020 report stated 55% of credit card purchases took place via card not present (CNP) transactions. Unfortunately, this increasing trend has also resulted in more CNP fraud.
What is a card-not-present transaction?
A card-not-present (CNP) transaction occurs when neither the cardholder nor the credit card is physically present at the time of the transaction. It’s most common for orders that happen remotely — over the phone or by fax, internet, or mail.
A transaction is only considered to be “card present” if payment details are captured in person, at the time of the sale.
Protecting cardholder data
Credit card fraud remains a major problem that costs merchants, consumers, and financial institutions billions of dollars every year. Many factors are involved in protecting cardholder data, and the risks are different for card present and card not present transactions.
While chip-enabled EMV cards have largely delivered on their security promises for card present fraud, chip cards don’t have the same effect on fraud that occurs on card not present transactions.
When cardholder data is stolen, there may be an immediate financial loss, compliance failures may result in fines, and a company’s brand can be seriously tarnished in the eyes of customers – sometimes beyond repair.
Card-not-present (CNP) fraud
As more and more consumers choose the convenience of e-commerce over traditional brick-and-mortar retailers, CNP fraud continues to become a larger problem.
CNP fraud has risen sharply during the ecommerce boom triggered by the COVID-19 pandemic. CNP statistics show that it is THE major source of card fraud by far.
Payment Card Industry Data Security Standard (PCI-DSS)
The Payment Card Industry Data Security Standard (PCI DSS) stipulates that companies should have systems in place to safeguard the credit and debit card details of customers.
The PCI Data Security Standards provides a good overview for protecting cardholder data (see #7 for detailed information on PCI).
The ultimate CNP fraud Protection MEANS finding the right payment partner. Ivrnet can help your business improve customer experience and reduce the risk of fraud.
- Data Breach Prevention: Remove cardholder data access from your organization preventing data breaches.
- Safe: Level 1 PCI compliant solution that bolts onto an organization’s existing processes enabling them to take compliant payments over the phone with a credit card.
- Savings: Eliminates expensive infrastructure costs, cumbersome processes and auditing required to maintain PCI compliance when done internally.
- Efficient
- Auto-attendant eliminates the need for agents to take payments over the phone.
- Call center integration can reduce the amount of time required for agents to stay on the line with the customer by up to 3 minutes/call by transferring the customer into the auto-attendant.
- Flexible: Agents can stay on a call during the payment process if desired to ensure customer completes the payment process.
- Compliant: DTMF tones are muted so credit card information isn’t heard by a live agent or heard on a recorded call.
- Convenient: Provides the 24% of customers who don’t pay online the ability to make a “touchless” payment other than using a check.
- Agnostic: Can be integrated with any Merchant Services Provider and all ERP, CRM, billing and call center systems.
- Quick: 2 – 6 week implementation time depending on level of integration.
- Reputable: Ivrnet is a Fintech pioneer providing payment solutions to SMB and enterprise organizations for over 20 years.
A leader in payment security, Ivrnet is a Level 1 PCI DSS certified Service Provider.
Visit ivrnet.com to learn more, watch a webinar or request a demo of our PCI compliant solutions for online and over the phone credit card payments.