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Why Are Card-Not-Present (CNP) Processors Important? | Platinum Payment Systems


The importance of Card-Not-Present (CNP) Processors in a modern era is not something that can be understated. But, why have they become so important in the first place?

Published on August 20, 2020

To successfully manage one’s business transactions, flexibility is the name of the game. For payment processing, this flexibility comes in the form of payment processing methods — which can be split into two distinct categories, card-present (CP) transactions and card-not-present (CNP) transactions.

The latter, CNP transactions, will be the subject of our discussion today, as it was largely contested by a significant number of merchants — primarily because it is thought to be more expensive and not as necessary as the more traditional CP transactions.

Learn more about CNP transactions and how they can help your business grow below:

What Are Card-Not-Present Transactions?

Before anything, let’s talk about what CNP transactions are, and why you need a good CNP processor to handle them!

To do that, we must first compare CP payment methods and CNP payment methods.

The main difference between the two is that, for a CNP transaction, neither the ‘cardholder’ nor the ‘credit card’ is physically available for facilitating the transfer of funds. In comparison, Card-Present transactions require both the presence of the ‘cardowner’ and the ‘credit card’ for the transfer to be facilitated.

As you can probably imagine, CNP processors are more helpful for merchants who prefer to sell their goods online — as it allows them the freedom to charge their customers for their products/service remotely (usually through the internet, but some use CNP processors for processing payments through the phone, fax, or email as well.)

A great example of a CNP processing service is Platinum Payment Systems (PLATPAY). This is a company that is known for prioritizing its relationship with its customers to facilitate their CNP transactions in a way that simplifies the process for both the merchant and customer — something that we’ll break down more as we go along.

How Much Do CNP Processing Services Charge?

The costs of CNP processing is variable and highly dependent on the type of payment processing that your business specifically requires — rates can also vary depending on the type of one’s business.

That is why it’s important to work with a CNP processing provider that will talk to you directly about your rates — as they can significantly differ depending on what your business needs.

It is important to note, however, that CNP Transactions are indeed more expensive than CP transactions — which can be explained by the heightened risks of using such a non-traditional transaction method.

What Are the Risks Involved with CNP Processors?

CNP transactions are not always risky. However, they are known to increase the risk of fraud, at least, when compared to CP transactions.

Card-Present transactions have just always been more secure — and this has only become more true with the wide-crossed adoption of EMV chip technology (which is known to be even more secure than traditional debit and credit cards.)

Fortunately, there are ways of alleviating some of the more inherent risks of CNP Transactions. And, the easiest way of doing so, is to work with a reliable CNP processing provider that will talk to you directly and help you manage those risks.

Most processing providers, including PLATPAY, follow incredibly strict security protocols to cut back most, if not all, of the risk of fraud. So, by choosing a good CNP processor, you can help protect your customers by bringing more security to your payment processing.

Which CNP Processor Should You Work With?

There are a ton of different CNP processing providers in the market, all of whom have their own unique characteristics that attract different types of merchants. Ultimately, however, we recommend working with a CNP Processor like Platinum Payment Systems.

Platinum Payment Systems is considered as one of the most reliable CNP processors in the market. It’s the go-to CNP processor for those looking for a payment processing solution that they can tailor to suit their business.

They also have over 20 years of experience helping their clients through the worst financial situations, and could potentially help you as well — especially through the economic instability caused by world-changing events like COVID-19.

Conclusion: Why Do You NEED A CNP Processor?

This brings us to our inevitable conclusion — that is, why do you need a CNP Processor for your business if CNP transactions are more expensive and riskier?

Well, as we said in the beginning, it’s all about providing convenience for your customers! Options, it’s all about options! The more options your customers have, the more likely it is that you get paid. It’s as simple as that, really.

Contributing Writer