Online merchants lost a combined half-trillion dollars last year to fraud and chargebacks.
However, these problems are not faced by a physical store where a customer shops face to face.
Why is this?
In-store payments are better for merchants than online
Payments taken in-store/in-person are classed as Card Present Payments (CPP). This is because the cardholder (and card) is physically present to complete the transaction.
Payments taken online or over the phone are classed as Card Not Present (CNP) payments.
The difference between CPP and CNP is important because it determines who is responsible for the transaction if it is fraudulent.
Card Not Present Payments
When a customer enters card details into an online checkout, there is no categoric way for the cardholder’s bank to verify they are making the transaction as neither the card nor PIN are present.
The cardholder’s bank will approve the transaction provided the card is not reported lost or stolen, but will not take responsibility for the transaction in case it turns out to be fraudulent. The liability in this case remains with the merchant. If the transaction subsequently turns out to be fraudulent, it is the merchant's responsibility to refund the cardholder.
Card Present Payments
When a customer pays using a physical terminal in store, the presence of the chip in the card and entering of the PIN (Chip & PIN) enables their bank to confirm it is the true cardholder making the purchase.
Because of this, the bank takes responsibility (liability) for the transaction as the chance of fraud is very low. If the transaction subsequently turns out to be fraudulent, it is the bank’s responsibility to refund the cardholder.
Remember,
whoever holds the liability is responsible for the refund!
Merchant
Card Not Present
Merchant
Card Not Present
Instore
Bank
Card Present
Instore
Online
How can I get the same payments security as retail stores if I sell online?
Physical retail stores are better protected from fraud when the customer is there in-person. But, card present payments have not been possible when selling via the internet.
Until now…!
CPoI® is new technology that enables Card-Present Payments (Chip & PIN) for consumers shopping online. The only difference is that instead of tapping their card against a payment terminal, they tap their card against their own mobile phone or tablet.
CPoI® enables online merchants to maximise the opportunities of online 24/7 selling, with the same protection against fraud as in-store payments.
Online merchants...
Has anyone ever purchased from you fraudulently?
Do you want to reduce the cost and risk of selling online?
Do you want to increase your revenue?
Many AI tools exist to fight fraud online, but many merchants don’t know about them or find them complex.
Other tools exist to help merchants manage risk, but they can be costly and often result in lost sales.
Regardless, fraud continues to rise at 19% year on year.
