The easiest form of transaction to make a chargeback against is a Card-Not-Present or Cardholder-Not-Present (CNP) transaction. These occur when the consumer isn’t present in person when making a purchase.
CNP transactions can occur online, where card details are typed in and the customer’s identity isn’t verified – these are classified as CNP Ecommerce payments.
Alternatively, card details can be given over the phone to a contact centre agent or keyed into an automated IVR – these are known as CNP Mail Order / Telephone Order (MOTO) transactions.
The merchant may not have verified the identity of the person using the credit card, either because it’s quite difficult and costly to do, or it adds a large obstacle to the shopping experience for all customers. Unfortunately, many organisations struggle to combat chargebacks against these type of transactions as they have limited evidence to prove the purchase was made legitimately.
Card-present transactions involve Chip and PIN payments, contactless/NFC or Mobile wallet payments, essentially payments where the customer is physically with the merchant when making the payment and able to verify their identity.
The key to reducing fraud is to take CNP transactions and high risk payments through a verification process to authenticate the customer. With Click 3D not matter how a customer wants to pay (online, over the phone, over email, etc) steps can be put in place to help protect the organisation.