A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.
This term refers to all credit card transactions made with credit card information that is transmitted to the merchant from a remote location, either via the Internet, the telephone or by mail. CNP transactions are considered by issuing banks and credit card companies to be riskier than transactions concluded with the customer physically handing the credit card to the merchant at a Point-of-Sale (POS) terminal.
A transaction where the merchant does not have physical access to the card (e.g. through telephone, mail order or Internet transactions).