How CNP Merchants can Better Process Visa & MasterCard
7. One Size Does Not Fit All:
Online merchants tend to forget that e-commerce represents a relatively small percentage of all credit card use. As with most professions, there are specialists, and payment processing is no exception. With an online transaction, authorizations, refunds and chargebacks are handled in profoundly different ways than your typical brick-and-mortar sale. Fraud, for instance, is a particularly poignant example of one of these differences. Because the credit card is not physically present (“Card-Not-Present” or “CNP”), the charge is more prone to misuse and is therefore more likely to spawn chargebacks. Another example is recurring payments, which provide their own challenges in a CNP environment (and often time opportunities, as we’ll see below). Fortunately there are payment processors that specialize in CNP transactions like Litle & Co., Paymentech, Merchant e-Solutions, Transfirst, CyberSource, and others. Don’t rely on processors that focus on retail, point-of-sale transactions; CNP specialists will reduce fraud, mitigate chargeback costs, and in some instances, increase billings
