Card-present vs card-not-present payments: Fees, fraud risk and merchant liability explained

Experts estimate that 60%1 of consumers are browsing merchant sites online every single week. While smartphones and tablets make online shopping seem easy to consumers, behind the scenes there’s a complex web of programs, regulations and entities that keep everyone’s money safe and make sure people get what they ordered.

Instead of focusing on growing their business, many small and medium-sized business owners are fighting a daily battle with disputes. They’re managing complicated, outdated systems and a rising tide of tricky refund demands. To understand why this is such a headache, let’s look at four of their biggest challenges.

When a customer taps their card or phone to pay for something at a store, it feels so easy. In the world of payments, this is called a card-present transaction, and it’s incredibly reliable. In fact, these in-person payments have a Visa authorization rate of about 98%.1 However, when we buy things online, known as card-not-present (CNP), success rate flags—often hovering around 80% for Visa CNP transactions.1 So why the drop?

When looking to improve the customer experience and reach new markets, offering a variety of payment options is an effective strategy. In fact, about 32% of merchants1 added new ways to pay this year specifically to reduce cart abandonment.

Experts estimate that 60%1 of consumers are browsing merchant sites online every single week. While smartphones and tablets make online shopping seem easy to consumers, behind the scenes there’s a complex web of programs, regulations and entities that keep everyone’s money safe and make sure people get what they ordered.

Today’s digital marketplace offers unprecedented opportunities for you to grow your business, yet these opportunities can also increase your risk of fraud. While larger organizations may have the luxury of resources to counter such threats, small and medium-sized businesses (SMBs) often find themselves struggling.

Visa’s Diana Unay interviewed Ryan Harris, Associate Director, Business Development with CHARACTER COUNTS!®

A TIN is any tax identification number used for U.S. tax reporting, such as an SSN (social security number), ITIN (individual tax identification number), or EIN (employer identification number). An EIN is a specific type of TIN issued by the IRS (Internal Revenue Service) to identify a business and is often needed for banking, hiring, and payment setup.

To accept payment from your customers, you need to integrate a payment gateway with your eCommerce platform. Discover how Authorize.net supports seamless eCommerce integration with leading platforms, offering secure payments and a smoother checkout experience.