Card-present (CP) refers to transactions where the cardholder physically presents a card for payment, typically in a retail or in-person environment. These transactions involve EMV chip reads, tap-to-pay, or magnetic stripe swipes. The payment terminal confirms the card’s authenticity and may request a PIN or signature. Because the card is scanned or inserted directly, CP transactions tend to have lower fraud rates and more favorable interchange fees than card-not-present (CNP).
If you operate a physical store or accept payments in person, you’ll benefit from the enhanced security and lower costs of CP transactions. However, your sales scope is limited, and you won’t have an international reach.
For merchants interested in offering both card-present and card-not-present transactions, AltoPay can help create a multi-channel sales method.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
