If a card is not present during payment, verification is difficult. Improve security and customer experience by setting up payment links for your small business via text, WhatsApp, email, or social media for the exact payment amount.Read more
10 March 2022
In order for a purchase to be made with a debit or credit card, you need a customer, a card, and a merchant. A card not present, also known as customer not present transaction is one that takes place when all three are not in the same location. Some examples include:
If the card is not present during a card payment, a fundamental part of the process is missing and therefore it makes verification of the payment difficult. This means that the transaction is considered high risk and unsecure. In 2020 79% of fraud losses on UK issued cards were due to CNP transactions.
Card not present transactions are convenient for customers and merchants alike, but it is widely acknowledged that they are particularly vulnerable to fraud, customer complaints, and chargebacks. There are common types of fraud that merchants need to be mindful of:
As well as the fraud risk, chargebacks and fraudulent transactions of this type are almost impossible for merchants to claim back from their bank. With fees for card not present transactions set higher, it makes sense for merchants to consider alternative ways of processing card payments when the customer or card is not present.
There are a number of tactics you can employ as a merchant to reduce the risk of fraud;
Our Pay by link facility allows you to quickly set up a secure payment link to send to your customer via text, WhatsApp, email, or social media for the exact payment amount. Your customer then clicks on the link to settle their bill. Each payment link is unique to them, making it easier to stay on top of what has or hasn’t been paid for. Invoices can be sent directly to a customer’s email.
Zero technical integration is required and set up is swift and simple. Not only will you guarantee more secure payments, but the transaction fees will be more favourable.
Everything you need to know about setting up payment links for your small business can be found on our Pay By Link webpage.