The full form of CNP is Card Not Present

A card-not-present (CNP) transaction occurs when neither the cardholder nor the credit card is physically present at the time of the transaction. It’s most common for orders that happen remotely — over the phone or by fax, internet, or mail.

A transaction is only considered to be “card present” if payment details are captured in person, at the time of the sale. This occurs when cards are physically swiped, tapped or dipped through a reader or if an EMV chip is processed.

There are a number of CNP transactions that you probably come across everyday. They include:

• Online purchases, when a customer buys goods on the internet or through an e-commerce transaction.
• Phone orders, when a customer provides the credit card information over the phone to your business.
• Recurring payments that are set up to bill automatically.
• Invoices that are paid online.