Card not present (CNP)
Credit-card transactions where the card is not physically presented (e-commerce, phone, mail order).
Definition
Card not present (CNP) transactions are credit-card transactions completed online, by phone, or by mail without physical card swipe. Higher fraud risk; higher processing fees; chargeback liability on merchant.
Context
Most Delaware LLC e-commerce and SaaS transactions are CNP. Stripe and PayPal optimize for CNP.
Example
A Delaware LLC Shopify store processes 100% CNP transactions. Stripe charges standard 2.9% plus $0.30 per transaction.
Common pitfalls
- Chargeback liability rests with merchant.
- Implement fraud-prevention tools (Stripe Radar, fraud screening).