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The unified orchestration layer for wallets and alternative payments
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The secure repository for all your payment methods
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Workflow-driven payments intelligence for smarter routing and higher auth rates
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A flexible fraud and authentication layer. Instantly add advanced fraud tools and 3DS
One integration to sell inside ChatGPT, Gemini, and every agentic platform
The visual workflow builder that ties fraud, identity, and payment routing together in one place
The unified orchestration layer for wallets and alternative payments
The secure repository for all your payment methods
Workflow-driven payments intelligence for smarter routing and higher auth rates
A flexible fraud and authentication layer. Instantly add advanced fraud tools and 3DS
One integration to sell inside ChatGPT, Gemini, and every agentic platform
The visual workflow builder that ties fraud, identity, and payment routing together in one place
CNP (Card-Not-Present) Transaction
A Card-Not-Present (CNP) transaction is any payment in which the physical payment card is not read by a terminal at the point of sale, encompassing all online purchases, telephone orders (MOTO), mail-order payments, and in-app purchases. In CNP transactions, the merchant relies on the cardholder manually entering card details (number, expiration date, CVV / CVC, and billing address) or using stored credentials rather than physically presenting the card.
CNP transactions carry inherently higher fraud risk than Card-Present (CP) transactions because the standard physical security controls of in-person payments are absent. There is no terminal reading the card's chip or magnetic stripe, no cardholder verification through PIN, and no physical presence requirement that would prevent a fraudster with stolen card details from making a purchase. The only verification available is the card details themselves and any additional authentication steps the merchant applies, AVS, CVV matching, and 3D Secure (3DS) authentication.
This elevated fraud risk is reflected in Interchange Fees, CNP transactions carry higher interchange rates than CP transactions in most card categories, and in liability rules. Without 3DS authentication, fraud-related chargebacks on CNP transactions are typically the merchant's liability. With Liability Shift from 3DS authentication, that liability transfers to the issuing bank.
The growth of e-commerce has made CNP the dominant transaction type by volume in many markets, making CNP fraud management one of the most commercially consequential capabilities in payments. CNP fraud losses globally are projected to reach $48.5 billion in 2025, according to Nilson Report estimates, making it the payment industry's largest fraud challenge by dollar value.
Frequently Asked Questions
What is the difference between CNP and MOTO transactions?
MOTO (Mail Order / Telephone Order) is a specific subcategory of CNP transaction where the cardholder communicates their card details to the merchant via mail or telephone, rather than entering them on a website or app. MOTO transactions are processed with a specific transaction type indicator that tells the issuer and card network that the card was not present and the cardholder did not enter their details directly in a merchant-controlled interface.
Does requiring 3DS authentication make CNP as secure as card-present transactions?
Not entirely equivalent, but materially closer. Well-implemented 3DS2 authentication, with rich data submission, Frictionless Authentication for low-risk transactions, and biometric challenge flows for higher-risk ones, provides a level of assurance that significantly narrows the security gap between CNP and CP. The key remaining difference is that CP transactions involve physical card possession verification (chip reading) and often PIN entry, which provides assurance 3DS cannot fully replicate.
How do subscription businesses manage CNP fraud risk for recurring payments?
Subscription businesses face a specific CNP fraud challenge: the initial payment authorizes the card, but subsequent merchant-initiated charges occur without the cardholder interacting with a checkout. The best practices for recurring CNP fraud management include: strong initial 3DS2 authentication to establish a legitimate mandate, Network Tokenization to ensure the card credentials stay current and to benefit from the issuer's higher confidence in network tokens, anomaly detection on account-level behavior (new payment methods added, shipping address changes that indicate account takeover), and prompt response to decline signals that may indicate a card has been canceled due to fraud on the issuer's side.
