In the modern world, it’s becoming increasingly difficult to ensure secure payment options. We’re no longer in an era where cash is the dominant means of transaction in the United States; instead, many would rather use their credit or debit cards. However, cards no longer guarantee secure payments either. This in part due to the fact that many potential criminals now have methods through which cards can be hacked. No matter how password protected a card is, there is no guarantee that it is completely secure. This also presents a host of potential problems for companies that operate sales through cards. An online company could face fraud from consumers who claim to have not ordered items that they actually did order; they can also be held responsible for any security breaches of their website resulting in private information being accessed. These reasons, among many more, are why “card not present transactions” are becoming more commonplace. There are many advantages to these kinds of transactions — let’s look into them.
What Are Card Not Present Transactions?
Card not present transactions involve paying without the physical presence of your card. This can mean a number of things. Card not present transactions can mean calling in your or manually inputting their card information a CNP environment. This can mean that the consumers involved can pay for goods out of the country. But the fact is that the greatest advantages to card not payment transaction systems are not only meant for those paying — but for the companies supplying the goods that are being bought. Card not present transactions are a great way of providing another, secure payment system. And they open up many different doors for the companies that provide them.
Payments Without Cards: Preventing Fraud
Fraud is a constant concern with debit and credit cards. The fact is that it’s far easier to commit fraud with a card than it is with cash; and that can present a number of problems for companies that rely on cards. 2014 alone saw $16.31 billion losses through fraud via payment cards. By 2020, the projected number of worldwide losses via payment card fraud is $35.45 billion. Companies that can prevent fraud during the sale of their products have an automatic appeal to their customers. Perhaps that in itself is the greatest advantage an online company in particular can have. Already, 50% of millennials report regularly browsing for products they don’t plan on buying; in fact, 36% only buy what is absolutely necessary. This cuts down on potential sales already — fear of fraud becomes another potential issue.
Problems Eliminated By Card Not Present Transactions
There are other things that you needn’t worry about when it comes to card not present transactions. While transactions with card open up potential for chargebacks associated with service, this is not something to be concerned with when consumers pay without cards. Service not being delivered or received are other things that become non-factors. Consumers also can’t claim that they never ordered the product in the first place with this method. As such, not only is the consumer protected from fraud as discussed above — the seller is as well.
Broadening Your Audience Through Payment Without Cards
This payment method is simply a better option for those who need more security in their payment processing systems. And many consumers feel that they deserve payment methods that don’t require cards. In fact, 82% of American Express card members and 79% of Visa and MasterCard holders hold the opinion that regardless of the nature of business, merchants should offer as many payment methods as possible. By offering different payment methods, companies are broadening their potential demographics of consumers. This benefits everyone involved.
There are no disadvantages to offering payment methods without cards. Not only are they beneficial to consumers, but sellers as well. This is why people are moving into the future and not only wanting these kinds of systems — but requiring them.
